1. Chapter 4 Review The 21 Century Global Economy

2. the bringing together of nations through international trade, foreign investment, migration, and technology globalization

3. traded goods and services without money bartered

4. an international trade route of more than 5,000 miles that connected China to the countries of the Mediterranean region Silk Road

5. led many Europeans to hope that China’s fabulous riches could be reached by ship Marco Polo’s Travels

6. The search for shorter trade routes “Age of Exploration.”

7. a geographical area politically controlled by a distant country colony

8. are credited with establishing the first actual global trading opportunities. Christopher Columbus Vasco da Gama

9. By the end of the sixteenth century dominated trade with the Americas Spain

10. The British government believed the colonies existed to serve the needs of the mother country; that is, they practiced mercantilism

11. The British government also promoted growing in the American colonies cotton

12. were brought in to work in the cotton fields African slaves

13. was one of the main causes of the American Revolution The Tea Act of 1773

14. are taxes imposed on goods that are imported into a country Tariffs

15. drove global trade the Industrial Revolution

16. made it easier to trade with foreign countries Steamships and railroads

17. became the dominant countries in global trade United States and Japan

18. Many believed that the lack of free trade was a major cause of the Great Depression and World War II.

19. NAFTA North American Free Trade Agreement

20. The effects of global trade include the economic growth and the reduction of poverty in countries like China and India

21. NGK, which is headquartered in Nagoya, Japan, makes spark plugs

22. In 1994, NGK Spark Plug Mfg. (USA), Inc., came to Sissonville, West Virginia

23. 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

24. West Virginia’s top export market Canada

25. GDP Gross Domestic Product

26. Senator that has played an active role in attracting foreign investments to the state John D. Rockefeller IV

27. 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

28. and include workers who do something for someone else Service occupations

29. include people who work in sales Trade occupations

30. include governors, mayors, legislators, city council members, judges, and magistrates. Government occupations

31. have seen the largest decline in workers over the last decade manufacturing

32. the largest group of skilled workers in the U.S Construction workers

33. the future of mining hinges on the movement toward clean coal

34. influences the location of many of the industries in West Virginia Geography

35. provided a method of transportation to bring raw materials to factories as well as to ship finished products to various marketplaces. The Ohio River

36. located in the Allegheny Plateau region, state government is a major employer. Charleston Capitol Complex

37. the location of major wood- related industries The Allegheny Highlands

38. farmland has been sold to make way for housing developments the Potomac Section

39. have played a role in the state’s economic success. a skilled workforce and a strong work ethic

40. when completed, will provide rail transportation between Chicago, Illinois, and Norfolk, Virginia the Heartland Project

41. the ability to buy things now and pay for them over time Credit

42. money paid for the use of money Interest

43. to ensure that you will handle money effectively follow a personal budget

44. advantage of following a personal budget you can avoid problems caused by too much debt and a poor credit rating.

45. When developing a budget, you should plan for a whole year

46. money earned for working, providing services, selling goods or property, or from investments. Income

47. what you spend on your own needs and wants Expenses

48. amounts that must be paid each month Fixed expenses

49. expenses that are not set and may vary from month to month flexible expenses

50. Budgets are useless if they are not realistic

51. can be tapped for little or big emergencies savings

52. The most important element in financial planning a savings plan

53. a holding place for money for the future savings account

54. to buy an asset hoping that it will provide future profit or income To invest

55. a location where shares of ownership in a corporation, called stocks, are bought and sold. The stock market

56. Most investors try to protect themselves by investing in a variety of high-risk and low-risk ventures

57. depends on your income, how much you borrow, your payment history, and how much you owe. access to credit

58. houses and automobiles major purchases

59. vary based on the interest rate the Federal Reserve System charges to loan money to banks. Interest rates

60. 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”

61. West Virginia’s treasurer John Perdue