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Ch 18: Economic Development and Transition

Matching
 
 
Identifying Key Terms
Match each term with the correct statement below.
a.
arable
f.
infrastructure
b.
development
g.
International Monetary Fund (IMF)
c.
foreign direct investment (FDI)
h.
perestroika
d.
foreign portfolio investment
i.
privatization
e.
glasnost
j.
World Bank
 

 1. 

the services and facilities necessary for an economy to function
 

 2. 

the establishment of an enterprise by a foreigner
 

 3. 

the process by which a nation improves the economic, political, and social well-being of its people
 

 4. 

suitable for producing crops
 

 5. 

organization formed to stabilize international exchange rates and facilitate development
 

 6. 

the sale or transfer of state-owned businesses to individuals
 

 7. 

Soviet leader Gorbachev’s plan for economic restructuring
 

 8. 

a policy of political “openness” introduced into the Soviet Union in the late 1980s
 

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 9. 

The primary measure of a country’s development is
a.
average income.
b.
average life expectancy.
c.
per capita gross domestic product.
d.
percentage of the population with a college degree.
 

 10. 

A high level of energy consumption indicates
a.
a high population growth rate.
b.
a high level of industrialization.
c.
a high level of infant mortality.
d.
a large labor force working mainly in subsistence agriculture.
 

 11. 

The calculating of a country’s population growth rate takes into account all of the following EXCEPT
a.
the number of deaths in a given year.
b.
the number of people who marry in a given year.
c.
the number of births in a given year.
d.
the number of people who move to a country in a given year.
 

 12. 

The average person in a developed nation
a.
is older than 65.
b.
is younger than 10.
c.
is older than the average person in a less developed nation.
d.
is more likely to have children than a person in a less developed nation.
 

 13. 

“Brain drain” occurs when
a.
a young girl in an LDC stops attending school after eighth grade.
b.
an engineer leaves her LDC to work in a developed nation.
c.
a boy in an LDC decides not to attend college because his help is needed to run the family business.
d.
a student from an LDC receives a college education in a developed nation and then returns home to work in his own country.
 

 14. 

Factors that have contributed to limiting development in poor nations include all of the following EXCEPT
a.
relying on a free market economy to stimulate economic growth.
b.
spending money on weapons at the expense of infrastructure.
c.
government leaders who accumulate personal fortunes at the expense of their nations.
d.
a history of colonialism that prevented countries from producing their own goods.
 

 15. 

The Marshall Plan was a program funded by the U.S. government that
a.
supplied money, food, and weapons to European nations during World War II.
b.
promoted foreign development in Communist nations following World War II.
c.
loaned and granted money to needy countries in Europe after World War II in the hopes of promoting democracy.
d.
encouraged the overthrow of Communist nations by funding a variety of resistance movements within Communist countries following World War II.
 

 16. 

The largest provider of development assistance is
a.
the World Bank.
b.
the U.S. government.
c.
the International Monetary Fund.
d.
the United Nations Development Program.
 

 17. 

All of the following are accurate statements about IMF stabilization programs EXCEPT that they often
a.
cause prices to rise in LDCs.
b.
include cuts in government spending.
c.
have a negative impact on the poor in the first few years.
d.
provide incentives to increase imports and decrease exports.
 

 18. 

All of the following are accurate statements about the special economic zones established in China EXCEPT
a.
foreign companies are allowed to operate in these zones.
b.
the economic zones established in the interior regions have been far more successful than those established in coastal cities.
c.
business owners are permitted to make most of their own decisions.
d.
the success of the zones has caused a great shift in the distribution of the population in the country.
 

Short Answer
 
 
Reading a Bar Graph

nar001-1.jpg
 

 19. 

Identify two countries whose population growth rate is more than 2.0.
 

 20. 

What is the annual natural rate of population increase in Venezuela?
 

 21. 

In which country do approximately the same number of people die each year as born each year?
 

 22. 

What does it mean if a country has a natural rate of population increase below zero?
 

Essay
 
 
Critical Thinking
 

 23. 

Drawing Conclusions Explain how it is possible that a country can have considerable wealth and still be considered a less developed country.
 

 24. 

Analyzing Information Discuss the benefits and problems associated with multinational corporations establishing production facilities in an LDC.
 



 
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