Question

Which of the following is true of the Great Transformation?

a. It does not take purchasing power parity (PPP) into account.
b. It is the linear story of the high speed economic growth of the developed world.
c. It refers to emerging economies struggling to compete with developed nations.
d. It refers to the shift in economic weight and engines of growth toward emerging economies.

Answer 1

The Great Transformation refers to the shift in economic weight towards emerging economies, characterized by rapid GDP growth in countries like China and India and improvements in the standard of living through market-oriented reforms and human capital development.

Step-by-step explanation:

The term "Great Transformation" refers to the significant shift in economic power and growth dynamics from the traditional economic powerhouses - typically developed nations - to emerging economies. This is exemplified by the rapid growth of countries such as China and India which have demonstrated that low-income countries can have GDP growth rates faster than those of middle-income and high-income countries.

Market-Oriented Economic Reforms have led to a dramatic increase in the standard of living for billions worldwide, especially in nations like the East Asian Tigers, as well as in much of Latin America and Eastern Europe. These positive trends have been fueled by investments in human capital development and the embrace of global trade and financial flows, although associated challenges such as trade deficits and financial crises (like the Asian Financial Crisis of the late 1990s) serve as cautionary tales of potential risks.

Given this context, the correct answer to the student's question is option d. It refers to the shift in economic weight and engines of growth toward emerging economies.

Answer 2

b. It is the linear story of the high speed economic growth of the developed world.

Step-by-step explanation:

"The Great Transformation"

Is an ecoomic book about how England socety and politics change withing the industrial revolution timeframe.

It argues about how the modern market economies developed the modern state and how this are linked in history. It change the mentalities to "rational transsactions" from local social relationships and institutions.

This transformation remove the pre-modern structure of tradition, redistribution an reciprocity for factors returns.

While it acknowledge the material wealth of free market. The respect for the free-market means to subordinate the substance of society itself to the laws of the market.