PrepGo

AP Human Geography Practice Quiz: Trade and the World Economy

Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026

Test your understanding with short quizzes. This quiz has 10 questions to check your progress.

Question 1 of 10

A U.S.-based technology company hires a software development team in India to manage its customer service and coding updates. This practice is best described as which of the following forces shaping the global economy?

All Questions (10)

A U.S.-based technology company hires a software development team in India to manage its customer service and coding updates. This practice is best described as which of the following forces shaping the global economy?

A) Deindustrialization

B) Outsourcing

C) E-commerce

D) Uneven development

Correct Answer: B

Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house. The scenario describes a company contracting work to an external organization in another country, which is a key component of the modern global economy.

Which of the following best describes a contemporary spatial pattern of industrialization?

A) A concentration of heavy industry evenly distributed across all continents.

B) A shift in manufacturing from more developed countries to newly industrialized countries.

C) The complete disappearance of manufacturing from North America and Europe.

D) The primary location of industrial production remaining in rural, agricultural areas.

Correct Answer: B

Contemporary spatial patterns show a significant relocation of manufacturing industries from historically dominant regions like the United States and Western Europe to newly industrializing countries, particularly in East Asia and Latin America, due to lower labor costs and other economic factors.

The "Rust Belt" in the United States is a region that has experienced significant population loss, economic decline, and abandoned factories since the mid-20th century. This is a classic example of the effects of which process?

A) E-commerce growth

B) Foreign direct investment

C) Deindustrialization

D) Urbanization

Correct Answer: C

Deindustrialization is the process of social and economic change caused by the removal or reduction of industrial capacity in a region. The Rust Belt exemplifies this process, where the loss of heavy industry led to widespread economic and social challenges.

A country experiences rapid industrial growth concentrated in its coastal cities, leading to high-paying jobs and modern infrastructure in those areas. Meanwhile, its inland, agricultural regions lag behind with limited opportunities. This situation best illustrates which of the following concepts?

A) The success of global e-commerce

B) A pattern of deindustrialization

C) A spatial pattern of uneven development

D) The decline of foreign investment

Correct Answer: C

This scenario describes uneven development, where economic growth and its benefits are concentrated in specific areas (often urban industrial centers), creating significant economic and social disparities with other regions (often rural).

How has the widespread practice of outsourcing by transnational corporations shaped contemporary global trade patterns?

A) It has decreased overall global trade by localizing all production.

B) It has created complex global supply chains, increasing trade in intermediate goods and services.

C) It has shifted all manufacturing back to the corporations' home countries.

D) It has eliminated the role of e-commerce in international transactions.

Correct Answer: B

Outsourcing parts of the production process to different countries creates complex supply chains. This means components, raw materials, and services are traded internationally before the final product is assembled and sold, thus increasing the volume and complexity of global trade.

When a German automobile company builds a new assembly plant in South Carolina, this is best categorized as an example of what?

A) Foreign direct investment

B) An e-commerce transaction

C) A deindustrialization effort

D) A rural-to-urban migration pattern

Correct Answer: A

Foreign direct investment (FDI) is an investment made by a firm in one country into business interests located in another country. Building a factory is a primary example of this, as it is a physical investment in another nation's economy.

The rapid growth of manufacturing in a previously rural area has led to the construction of new housing and roads, but also to increased pollution and traffic congestion. These outcomes are best explained as...

A) consequences of deindustrialization.

B) the result of declining foreign investment.

C) changes to a place resulting from industrial growth.

D) the isolation of urban and rural economies.

Correct Answer: C

The provided content states that 'Changes to places result from the growth or loss of industry.' The scenario describes both positive (infrastructure) and negative (pollution) changes that are direct results of new industrial growth transforming a place.

Which of the following best explains the connection between foreign investment in manufacturing and uneven development within a developing country?

A) Foreign investment guarantees that development becomes evenly distributed between all regions.

B) Foreign investment often concentrates job growth in specific urban areas, potentially widening the development gap with rural regions.

C) Foreign investment is a form of deindustrialization that causes all regions of a country to decline economically.

D) Foreign investment primarily benefits rural areas through agricultural projects, reversing the urban-rural divide.

Correct Answer: B

Foreign companies typically invest in specific, well-connected urban centers that have the necessary infrastructure and labor. This can accelerate development in those cities while leaving rural areas further behind, thus exacerbating uneven development within the host country.

The rise of global e-commerce platforms has most directly contributed to which change in the world economy?

A) An increase in deindustrialization in developing countries.

B) A decrease in the importance of foreign investment.

C) An expansion of market access for small and medium-sized businesses.

D) A strengthening of the urban-rural development divide.

Correct Answer: C

E-commerce lowers the barriers to entry for international trade, allowing smaller businesses to sell their products globally without the need for a physical presence or traditional, large-scale distribution networks. This has significantly shaped the modern global economy by broadening participation in trade.

A geographer observes that over the past 30 years, a city in the American Midwest has lost its steel mills, while a city in coastal China has built numerous electronics factories. This dual pattern best illustrates...

A) the global decline of all industrial activity.

B) a spatial shift in industrialization and the process of deindustrialization.

C) the equalizing effect of e-commerce on urban and rural areas.

D) a global trend of industries moving from coastal to inland locations.

Correct Answer: B

This scenario shows two interconnected processes central to contemporary global trade. The American city is experiencing deindustrialization (loss of industry), while the Chinese city is experiencing industrialization. This reflects the contemporary spatial pattern of manufacturing shifting from more developed to newly industrializing countries.