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Chapter 4 Review The 21 Century Global Economy
the bringing together of nations through international trade, foreign investment, migration, and technology
globalization
traded goods and services without money
bartered
an international trade route of more than 5,000 miles that connected China to the countries of the Mediterranean region
Silk Road
led many Europeans to hope thatChina’s fabulous riches could be reached by ship
Marco Polo’s Travels
The search for shorter trade routes
“Age of Exploration.”
a geographical area politically controlled by a distant country
colony
are credited with establishing the first actual global trading opportunities.
Christopher Columbus
Vasco da Gama
By the end of the sixteenth century dominated trade with the Americas
Spain
The British government believed the colonies existed to serve the needs of the mother country; that is, they practiced
mercantilism
The British government also promoted growing in the American colonies
cotton
were brought in to work in the cotton fields
African slaves
was one of the main causes of the American Revolution
The Tea Act of 1773
are taxes imposed on goods that are imported into a country
Tariffs
drove global trade
the Industrial Revolution
made it easier to trade with foreign countries
Steamships and railroads
became the dominant countries in global trade
United States and Japan
Many believed that the lack of free trade was a major cause of
the Great Depression and World War II.
NAFTA
North American Free Trade Agreement
The effects of global trade include the economic growth and the reduction of poverty in countries like
China and India
NGK, which is headquartered in Nagoya, Japan, makes
spark plugs
In 1994, NGK Spark Plug Mfg. (USA), Inc., came to
Sissonville, West Virginia
West Virginia’s first serious interest in global trade came in the year 1986 when this Governor proposed setting up an overseas office.
Arch Moore
West Virginia’s top export market
Canada
GDP
Gross Domestic Product
Senator that has played an active role in attracting foreign investments to the state
John D. Rockefeller IV
Jobs are often classified into eight categories
1. trade;
2. government;
3. manufacturing;
4. construction;
5. transportation and utilities;
6. finance, insurance, and real estate;
7. mining;
8. services
and include workers who do something for someone else
Service occupations
include people who work in sales
Trade occupations
include governors, mayors, legislators, city council members, judges, and magistrates.
Government occupations
have seen the largest decline in workers over the last decade
manufacturing
the largest group of skilled workers in the U.S
Construction workers
the future of mining hinges on the movement toward
clean coal
influences the location of many of the industries in West Virginia
Geography
provided a method of transportation to bring raw materials to factories as well as to ship finished products to various marketplaces.
The Ohio River
located in the Allegheny Plateau region, state government is a major employer.
Charleston
Capitol Complex
the location of major wood-related industries
The Allegheny Highlands
farmland has been sold to make way for housing developments
the Potomac Section
have played a role in the state’s economic success.
a skilled workforce and a strong work ethic
when completed, will provide rail transportation between Chicago, Illinois, and Norfolk, Virginia
the Heartland Project
the ability to buy things now and pay for them over time
Credit
money paid for the use of money
Interest
to ensure that you will handle money effectively
follow a personal budget
advantage of following a personal budget
you can avoid problems caused by too much debt and a poor credit rating.
When developing a budget, you should plan for
a whole year
money earned for working, providing services, selling goods or property, or from investments.
Income
what you spend on your own needs and wants
Expenses
amounts that must be paid each month
Fixed expenses
expenses that are not set and may vary from month to month
flexible expenses
Budgets are useless if they are not
realistic
can be tapped for little or big emergencies
savings
The most important element in financial planning
a savings plan
a holding place for money for the future
savings account
to buy an asset hoping that it will provide future profit or income
To invest
a location where shares of ownership in a corporation, called stocks, are bought and sold.
The stock market
Most investors try to protect themselves by investing in a variety of high-risk and
low-risk ventures
depends on your income, how much you borrow, your payment history, and how much you owe.
access to credit
houses and automobiles
major purchases
vary based on the interest rate the Federal Reserve System charges to loan money to banks.
Interest rates
states that your total debt, excluding home mortgage payments, should be no more than 20 percent of your net income each year.
The “20 percent rule”
West Virginia’s treasurer
John Perdue