A. Global stratification refers to the unequal distribution of wealth, power, and prestige on a global basis.
<s> B. Global stratification results in people having vastly different life styles and life chances both within
and among the nations of the world.
<fig>fig 8-1<s>
<np>STOP: Define and describe global stratification.
<np>II. PROBLEMS IN STUDYING GLOBAL INEQUALITY
A. One of the problems is what terminology should be used to refer to the distribution of
resources in various nations.
<s> B. After World War II, the "three worlds" approach was utilized to distinguish among nations
based upon their economic development and their standard of living.
<s> 1. First World nations consisted of the rich, industrialized nations that primarily had
capitalistic economic systems and democratic political systems.
<s> 2. Second World nations consisted of the countries with at least moderate levels of economic
development and a moderate standard of living.
<s> 3. Third World nations consisted of the poorest countries with little or no industrialization
and the lowest standards of living, shortest life expectancies, and high mortality rates.
<s> C. The levels of development approach includes concepts such as developed nations, developing nations,
less developed nations, and underdevelopment.
<s> 1. Leaders of the developed nations argue that economic development and growth is the primary way to
solve poverty problems of the underdeveloped nations.
<s> 2. This viewpoint requires that people in the less developed nations accept the beliefs and values of
people in the developed nations.
<s> 3. If nations could increase their gross national product (GNP), then social and economic inequality
among their citizens could be reduced.
<s> 4. However, improving a country's GNP did not tend to reduce the poverty of the poorest people in that
country and inequality increased even with greater economic development; some analysts blamed high
rates of population growth in the underdeveloped nations.
<np>III. CLASSIFICATION OF ECONOMIES BY INCOME
<fig>BU007774<s> A. The World Bank classifies nations into three economic categories.
<s> B. Low-income economies are nations that have a GNP per capita of $725 or less in 1994.
<s> C. Middle-income economies are nations that have a GNP per capita of more than $725 but
less than $8,956 in 1994.
<s> D. High-income economies are nations that have a GNP per capita of $8,956 or more in 1994.
<w> The Work Bank site includes publications and other information about the economy and how different nations are faring.<url>http://www.worldbank.org/
<url>http://www.worldbank.org/
<np>IV. MEASURING GLOBAL WEALTH AND POVERTY
A. Absolute, relative, and subjective poverty are measurements of poverty defined on a global basis.
<fig>39303<s> B. The Gini Coefficient and Global Quality of Life Issues
<s> 1. The World Bank uses as its measure of income inequality what is known as the Gini
coefficient, which ranges from zero (when everyone has the same income) to 100
(when one person receives all the income).
<s> 2. Using this measure, the World Bank concluded that inequality increased in specific
nations in the 1990s.
<w> The United Nations home page includes a wealth of information about social, economic conditions around the world. Their publications on economic and social development are a good source of data about global stratification.<url>http://www.un.org/
<url>http://www.un.org/
<np>V. GLOBAL POVERTY AND HUMAN DEVELOPMENT ISSUES
A. Since the 1970s, the United Nations has focused on human development as a crucial factor in
fighting poverty utilizing both the Human Development Index and a nation's gross domestic product
(all of the goods and services produced within a country's economy during a given year) for measuring
the level of development in a country.
<s> B. Average life expectancy has increased by about a third in the past three decades and is now more
than 70 years in 23 countries; however, the average life expectancy at birth of people in middle-income
countries remains about 12 years less than that of people in high-income countries.
<s> C. Health is defined by the World Health Organization as a state of complete physical, mental,
and social well-being and not merely the absence of disease or infirmity. Many people in low-income
nations suffer from infectious and other diseases. New diseases have recently emerged in countries
all over the world, while some middle-income countries are experiencing rapid growth in degenerative
diseases such as cancer and coronary heart diseases.
<fig>So000531<s> D. What is literacy and why is it important for human development? UNESCO defines a
literate person as "someone who can, with understanding, both read and write a short, simple
statement on their everyday life." The adult literacy rate in the low-income countries is about
half of that in the high-income countries.
<s> E. Persistent gaps in human development paints an overall dismal picture for the world's poorest people.
<s> 1. The gap between the poorest nations and the middle-income nations has continued to widen.
<s> 2. Although more women are engaged in paid employment than in the past, more and more women are
still finding themselves in poverty because of increases in single-person and single-parent
households headed by women and low-wage work employment.
<np>STOP: Discuss global poverty and its effects upon human development.
<np>VI. THEORIES OF GLOBAL INEQUALITY
A. The most widely known development theory is modernization theory.
<s> 1. This perspective links global inequality to different levels of economic development
and suggests that low-income economies can move to middle- and high-income economies by achieving
self-sustained economic growth.
<s> 2. Along with intensive economic growth, the less-developed nations can improve their standard
of living with accompanying changes in people's beliefs, values, and attitudes toward work.
<s> B. Dependency theory states that global poverty can partially be attributed to the exploitation of the
low-income countries by the high-income countries.
<fig>60204<s> 1. Dependency theory has been more often applied to the newly industrializing countries (NICs)
of Latin America.
<s> 2. Scholars examining the NICs of East Asia found that dependency theory had little or no relevance
to economic growth and development in that part of the world.
<s> C. World Systems Theory suggests that under capitalism, a global system is held together by economic ties.
<s> 1. The capitalist world-economy is a global system divided into a hierarchy of three major types of
nations -- core, semiperipheral, and peripheral.
<s> 2. Core nations are dominant capitalist centers characterized by high levels of industrialization
and urbanization.
<s> 3. Semiperipheral nations are more developed than peripheral nations, but less developed than core nations.
<s> 4. Peripheral nations are dependent on core nations for capital, have little or no industrialization
(other than brought in by core nations), and have uneven patterns of urbanization.
<np> D. According to the new international division of labor theory, commodity production is being split into
fragments that can be assigned to whichever part of the world can provide the most profitable combination
of capital and labor.
<s> 1. The global nature of these activities is referred to as global commodity chains, a complex
pattern of international labor and production.
<s> 2. Producer-driven commodity chains describes industries in which transnational corporations play
a central part in controlling the production process.
<s> 3. Buyer-driven commodity chains refers to industries wherein large retailers, brand-named
merchandisers, and trading companies set up decentralized production networks in various
middle-and low-income counties.
<np>STOP: Explain the new international division of labor theory.
<np>VII. GLOBAL INEQUALITY IN THE FUTURE
A. Social scientists describe an optimistic or a pessimistic scenario for the future depending upon
the theoretical framework they apply in studying global inequality.
<s> 1. Some analysts highlight the human rights issues embedded in global inequality; others focus
primarily on an economic framework.
<s> 2. In the future, continued population growth, urbanization, and environmental degradation threaten
even the meager living conditions of those residing in low-income countries; the quality of life
diminishes as natural resources are depleted.
<vp>VIDEO: Brazil like the United States has a long standing problem of inequality.
<v>V7
<s> 3. A more optimistic scenario suggests that with modern technology and worldwide economic growth, it
might be possible to reduce absolute poverty and to increase people's opportunities, ensuring that
people all over the world have the opportunity to survive and thrive in their own surroundings.
<end>
<nq>20
<ques>The unequal distribution of wealth, power, and prestige on a global basis is known as:
<c1>global stratification
<c2>global layering
<c3>global distinction
<c4>global accumulation
<ans>a<expl>The unequal distribution of wealth, power and prestige on a global basis is referred to as: (p. 222)
<ques>First world nations are best represented by the countries of:
<c1>Japan, the United States, China.
<c2>New Zealand, the United States, Great Britain.
<c3>Canada, China, Korea.
<c4>Russia, Australia, Japan.
<ans>b<expl>First world nations are best represented by New Zealand, the United States, and Great Britain. (p. 224)
<ques>The concept of underdeveloped nations emerged out of the:
<c1>United Nations plan.
<c2>Truman Plan.
<c3>Marshall Plan.
<c4>NATO.
<ans>c<expl>The concept of underdeveloped nations emerged out of the Marshall Plan. (p. 225)
<ques>The term _____ refers to all the goods and services produced in a country in a given year plus the income earned outside the country by individuals and corporations.
<c1>WHO
<c2>GDP
<c3>NIC
<c4>GNP
<ans>d<expl>The term GNP refers to all the goods and services produced in a country in a given year plus the income earned outside the country by individuals and corporations. (p. 226)
<ques>Low-income economies are primarily found in _____ nations.
<c1>Asian and South American
<c2>Eastern European and African
<c3>African and South American
<c4>Asian and African
<ans>d<expl>Low-income economies are primarily found in Asian and African nations. (p. 227)
<ques>The situation wherein women around the world tend to be more impoverished than men is referred to as:
<c1>global feminization stratification.
<c2>global feminization.
<c3>global feminization of poverty.
<c4>global feminization of labor.
<ans>c<expl>The situation wherein women around the world tend to be more impoverished than men is referred to as global feminization of poverty. (p. 227)
<ques>Lower-middle income economies include the nations of:
<c1>Poland, Romania, the Ukraine.
<c2>South Korea, the Ukraine, Mexico.
<c3>Mexico, Guatemala, Russia.
<c4>Mozambique, Bosnia, Turkey.
<ans>a<expl>Lower-middle economies include Poland, Romania, and the Ukraine. (p. 229)
<ques>High-income economies are found in _____ nations.
<c1>51
<c2>15
<c3>38
<c4>25
<ans>d<expl>High-income economies are found in twenty-five nations. (p. 229)
<ques>The movement of jobs and economic resources from one nation to another is defined as:
<c1>deindustrialization.
<c2>capital flight.
<c3>transnational flight.
<c4>global decentralization.
<ans>b<expl>The movement of jobs and economic resources from one nation to another is defined as capital flight. (p. 229)
<ques>The closing of plants and factories because of their obsolescence or employment of cheaper workers in other nations is known as:
<c1>capital flight.
<c2>capital destabilization.
<c3>deindustrialization.
<c4>reindustrialization.
<ans>c<expl>The closing of plants and factories because of their obsolescence or employment of cheaper workers in others nations is known as deindustrialization. (pp. 229-230)
<ques>The World Bank uses the term _____ to indicate all of the goods and services produced within a country's economy during a given year:
<c1>GDP
<c2>GNP
<c3>GPA
<c4>GPO
<ans>a<expl>The World Bank uses the term GDP to indicate all of the goods and services produced within a country's economy during a given year. (p. 230)
<ques>_____ poverty is a condition in which people do not have the means to secure the most basic necessities of life.
<c1>Subjective poverty
<c2>Relative poverty
<c3>Absolute poverty
<c4>Standard poverty
<ans>c<expl>Absolute poverty is a condition in which people do not have the means to secure the most basic necessities of life. (p. 231)
<ques>The World Bank uses the term _____ as its measure of income inequality.
<c1>GNP
<c2>Gini coefficient
<c3>relative poverty
<c4>Mrydal coefficient
<ans>b<expl>The World Bank uses the term Gini Coefficient as its measure of income inequality. (p. 231)
<ques>The _____ is a measurement that the United Nations Development Program uses for measuring global human development.
<c1>HDI
<c2>GDP
<c3>GNP
<c4>AID
<ans>a<expl>The HDI is a measurement that the United Nations Development Program uses for measuring global human development. (p. 232)
<ques>_____ is the process of increasing people's options to lead a long and healthy life, to acquire knowledge, and to find access to the assets needed for a decent standard of living.
<c1>Human development
<c2>Life development
<c3>Life expectancy
<c4>Global literacy
<ans>a<expl>Human development is the process of increasing people's options to lead a long and healthy life, to acquire knowledge, and to find access to the assets needed for a decent standard of living. (p. 232)
<ques>According to _____ theory, low-income nations improve their standard of living only with a period of intensive economic growth and accompanying changes in people's beliefs, values, and attitudes toward work.
<c1>dependency
<c2>world systems
<c3>international division of labor
<c4>modernization
<ans>d<expl>According to modernization theory, low-income nations improve their standard of living only with a period of intensive economic growth and accompanying changes in people's beliefs, values, and attitudes toward work. (p. 236)
<ques>According to Walt Rostow's theory, the _____ is the first stage of the economic development of a country, wherein very little social change takes place.
<c1>historical stage
<c2>traditional stage
<c3>take-off stage
<c4>technological stage
<ans>b<expl>According to Walt Rostow's theory, the traditional stage is the first stage of the economic development of a country, wherein very little social change takes place. (p. 236)
<ques>The _____ theory states that global poverty is partially caused by the exploitation of the low-income countries by the high-income countries.
<c1>development and modernization
<c2>new international division of labor
<c3>world systems
<c4>dependency
<ans>d<expl>The dependency theory states that global poverty is partially caused by the exploitation of the low-income countries by the high-income countries. (p. 238)
<ques>According to the ____ theory, the capitalist world-economy is a global system divided into a hierarchy of three major types of nations.
<c1>world systems
<c2>dependency
<c3>development and modernization
<c4>new international division of labor
<ans>a<expl>According to the world systems theory, the capitalist world-economy is a global system divided into a hierarchy of three major types of nations. (p. 240)
<ques>According to the _____ theory, commodity production is split into fragments that can be assigned to the part of the world that can provide the most profitable combination of capital and labor.
<c1>world systems
<c2>new international division of labor
<c3>dependency
<c4>development and modernization
<ans>b<expl>According to the new international division of labor theory, commodity production is split into fragments that can be assigned to the part of the world that can provide the most profitable combination of capital and labor. (p. 241)
<tf>15
<ques>Unlike the United States, the world is divided into unequal segments characterized by extreme differences in wealth and poverty.
<ans>F<expl>Just as the United States is divided into classes, the world is divided into unequal segments characterized by extreme differences in wealth and poverty. (p. 222)
<ques>Between 1960 and 1990, the gap in global income differences between rich and poor countries continued to widen.
<ans>T<expl>None(p. 222)
<ques>Because of the past charitable work of Mother Teresa and billions of dollars in aid from rich countries, much progress has been made for the poor and low-income nations.
<ans>F<expl>Despite a great deal of talk and billions of dollars in "foreign aid" flowing from high-income nations to low-income nations, not much progress has been made for the poor and low-income nations. (p. 223)
<ques>According to the text, the problem of inequality lies not in poverty, but in excess.
<ans>T<expl>None(p. 223)
<ques>In utilizing the "three worlds" approach for studying global inequality, China is an example of a Third World Nation.
<ans>F<expl>China is an example of a second world nation. (p. 224)
<ques>Ideas regarding underdevelopment were popularized by U.S. President Harry S. Truman.
<ans>T<expl>None(p. 226)
<ques>According to the development approach in studying global inequality, an increase in the standard of living of a country meant that a nation was moving toward economic development.
<ans>T<expl>None(p. 226)
<ques>The term "underdevelopment" has been largely dropped in favor of measurements such as sustainable development.
<ans>T<expl>None(p. 227)
<ques>About half of the world's population lives in the 51 low-income economies, according to the World Bank classification.
<ans>T<expl>None(p. 227)
<ques>According to the classification of economies by income, many countries referred to as "middle income" have very few of their population living in poverty.
<ans>F<expl>More than half of the people residing in middle-income countries such as Bolivia, Guatemala, and Honduras live in poverty. (pp. 228-229)
<ques>Subjective poverty is defined as a condition in which people do not have the means to secure the most basic necessities.
<ans>F<expl>Subjective poverty is measured by comparing the actual income against the income earner's expectations and perceptions. (p. 231)
<ques>Since the 1970s, the United Nations has more actively focused on human development as a crucial factor for fighting poverty.
<ans>T<expl>None(p. 232)
<ques>The United States, as of 1997, had reached a life expectancy for men of 80 years.
<ans>F<expl>No country has reached a life expectancy for men of eighty years. (p. 232)
<ques>About 17 million people die each year from diarrhea, malaria, tuberculosis, and other infectious and parasitic illnesses.
<ans>T<expl>None(p. 234)
<ques>According to UNESCO, women in low-income countries comprise about two-thirds of those who are illiterate.
