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