Unit 14: The Modern World

. . . China is such a powerhouse of low-cost manufacturing that even though the NAFTA accord has given Mexico a leg up with the United States, and even though Mexico is right next door to us, China in 2003 replaced Mexico as the number two exporter to the United States. (Canada remains number one.) Though Mexico still has a strong position in big-ticket exports that are costly to ship, such as cars, auto parts, and refrigerators, China is coming on strong and has already displaced Mexico in areas such as computer parts, electrical components, toys, textiles, sporting goods, and tennis shoes. But what’s even worse for Mexico is that China is displacing some Mexican companies in Mexico, where Chinese-made clothing and toys are now showing up on store shelves everywhere. No wonder a Mexican journalist told me about the day he interviewed a Chinese central bank official, who told him something about China’s relationship with America that really rattled him: “First we were afraid of the wolf, then we wanted to dance with the wolf, and now we want to be the wolf.”. . .

According to Thomas Friedman, why is it surprising that Mexico is being replaced by China as the number two exporter to the United States?

• Mexico is geographically close to the United States

• China's relationship with the United States has been damaged.

• Mexico has the world's strongest economy

• China's industry lacks low-cost manufacturing ability

. . . China is such a powerhouse of low-cost manufacturing that even though the NAFTA accord has given Mexico a leg up with the United States, and even though Mexico is right next door to us, China in 2003 replaced Mexico as the number two exporter to the United States. (Canada remains number one.) Though Mexico still has a strong position in big-ticket exports that are costly to ship, such as cars, auto parts, and refrigerators, China is coming on strong and has already displaced Mexico in areas such as computer parts, electrical components, toys, textiles, sporting goods, and tennis shoes. But what’s even worse for Mexico is that China is displacing some Mexican companies in Mexico, where Chinese-made clothing and toys are now showing up on store shelves everywhere. No wonder a Mexican journalist told me about the day he interviewed a Chinese central bank official, who told him something about China’s relationship with America that really rattled him: “First we were afraid of the wolf, then we wanted to dance with the wolf, and now we want to be the wolf.”. . .

In the quotation “First we were afraid of the wolf, then we wanted to dance with the wolf, and now we want to be the wolf,” what does the “wolf” symbolize?

• an economic powerhouse

• an exporting country

• a valuable trade item

• a low-cost manufacturer

What is a major reason for the trend illustrated by the graph?

• the fall of communist governments in Eastern Europe

• the formation of oil cartels, such as the Organization of Petroleum Exporting Countries (OPEC)

• an increase in global interdependence resulting from modern technology and expanded trade agreements

• a general decline in the standard of living for people in developing countries

What was one effect of the trend illustrated by the graph?

• Manufacturing expanded to employ more people around the world

• The availability of goods decreased around the world

• The supply of natural resources around the world increased

• People in Asia became more isolated from the rest of the world

Based on the information in this chart, which country has the highest life expectancy?

• Ireland

• Japan

• Venezuela

• Greece

Which generalization can best be supported using the data in this chart?

• The more globalized a country is, the more literate its inhabitants are.

• The more interconnected a country is with other countries, the higher its life expectancy is

• The higher population a country has, the more globalized it is

• Countries in Europe and Asia have higher life expectancy

Based on this map, which level of per capita income did most countries that were colonized in the 1800s and early 1900s have in 1998?

• Over $10,000

• $5,000-$10,000

• $1,000-$5,000

• Up to $1,000

Based on this late 20th-century map, which conclusion is accurate?

• The worldwide distribution of wealth is unequal

• Social mobility between social classes is increasing

• The communist movement is growing

• Economic self-sufficiency in less developed countries is increasing

An economist would find this document most useful for determining

• Why Western European countries are wealthier than Eastern European countries

• Which countries would benefit most from aid programs

• Which countries trade with one another

• Who owns the largest companies in each country

. . . One of the most important effects on the environment is indirect, and therefore less obvious: Industrial meat production is a key factor behind deforestation of the Amazon and other tropical rain forests. They’re being cleared to create fields to grow the feed needed for all those cows, especially corn and soy, which the cows eat instead of the grass they’d munch on if they were grazing in fields as they used to do. In fact, most of the corn and soy grown today goes to feed cattle, pigs, and chickens, not people. And all that grain requires vast quantities of chemical fertilizer, which in turn takes vast quantities of oil—1.2 gallons to create the fertilizer for every bushel. Finally, cutting down rainforests, which are full of carbon-absorbing trees, further exacerbates [worsens] climate change by reducing the planet’s ability to soak up carbon. . . .

Which issue is most closely associated with the concerns raised in this passage?

• drought

• climate change

• migration

• widespread famine