7. THE CHANGING GLOBAL DIVISION OF LABOR multiple choice (2 points each, up to 50 points total) a) From 1960 - 2000, the gap i wealth (measured by GDP) between the majority of global-South countries & the group of developed countries has narrowed significantly has shrunk somewhat has widened in most cases 1) Since the 1970s, countries in the global Seruth as a group have increased their share of total world exports of primary commodities (raw materials) services Emanufactured goods c) Since the 1970s. C) world trade has grown faster than production world production has grown faster than trade d) About 173 of all FDI (foreign direct investment) in the global South in the past 2 decades has gone to Malaysia India China inchuling Hong Kong) Thailand South Korea & Taiwan Brazil C) A major factor in S Korea's ability to raise the value of its exports & achieve GDP growth in the 1960s - 1970s was the end of its ban on all FDI privatization of its public enterprises government economic planning Which DID NOT contribute to lower profit rates, slower US economic growth, & 'stagflation during & sinec 1970s? spending on Vietnam War & foreign lases higher oil prices relatively high US wages in manufacturing DAUS ban on all FDI by non-US firms more competition from other manufacturing countries D) Countries that join the World Trade Organization must, reduce the tariffs they charge on imports eliminate policies to enforce intellectual property rights choose at least 3 WTO sections that they will abide by h. The economo-liberal market model predicts that societies that become more competitive will enjoy more equality Das economies become more competitive & efficient, workers who must find new jobs at lower pay, will benefit from lower prices, countries that fail to use government economic planning will be left behind b) lowestor State Dispute Settlement provisions (SDS) in NAITA, TPP, WIO,& many other FTA let governments