The “back-wash effect” refers to a phenomenon that has been observed on numerous occasions during the process of deindustrialization. It states that as one region of a state flourishes economically it does not necessarily improve the economy of another region, but instead, conversely, diminishes the significance and strength of another region. A classic example of this that is mentioned often is the “Rust Belt” experience of the Midwest.

The “fast world,” as distinct from the “slow world,” is defined by high-level telecommunication and transportation technology. Although the other answer choices might be generally true of the differences between “fast world” countries and “slow world” countries they are not as close to the exact definition as the correct answer.

While India is the second most populous nation in the world, the rate of economic development is much lower compared to nations like the United States (third most populous nation), Japan (tenth most populous nation), and Australia. Nations with high population density tend to be poverty-stricken as well, due to too many people in a given area competing for resources (agricultural, financial, etc). 

Economic restructuring is a phenomenon that has accelerated in the last part of the twentieth century and into the twenty-first century. Economic restructuring is the process in which economies move from a blue-collar industrial base, especially around heavy industry and factories, into more of a white-collar service sector. This process is typical in most major American cities, which has produced a thinner middle class and more menial jobs.

All of the American regions are correctly matched with their regional economic specialties except Hartford. Hartford is a city in Connecticut and has an extremely high concentration of insurance industries. It is not known for tourism.

E-commerce was the name given to any sales-related business conducted over the internet. When it first exploded in the 1990s, many economists expected E-commerce to completely eliminate and replace the business generated by actual in-person shops. These in-person shops are referred to as “brick and mortar businesses.” Instead, E-commerce has become an option available to consumers but not a replacement of traditional brick and mortar businesses.

“E-commerce” refers to the use of the internet to sell goods and services that would traditionally have required going to an actual store. It began in the 1990s as the internet exploded into existence all around the developed world. Many prognosticators at the time predicted that E-commerce would completely replace actual stores in a very short space of time, however that has not been the case. Instead we have seen an integration of E-commerce into the existing economy - where some things are bought online and some things are bought in person.

A “conglomerate corporation” is a company that is comprised of many smaller firms who all specialize in various aspects of the company’s product development and sale. So a large corporation might have different firms responsible for harvesting raw materials, manufacturing products for sale, transporting products to different markets, advertising and marketing, and so on. In the twenty-first century almost all major corporations are “conglomerate corporations.”

In the second half of the twentieth century most of the major corporations of the world transitioned their manufacturing centers from the developed world (countries like the United Kingdom, Germany, and the United States of America) to the developing world (countries like India, Mexico, and Brazil). The primary reason behind this is because it is extremely cost effective for the companies- they have access to much cheaper labor and, often, lower tax rates and other benefits. The consequences of this movement are still being felt and understood, but it has involved the transition of the national economies of much of the world.

It has become common in recent years for companies to transfer service-based jobs, particular call centers, to other countries. This is called “outsourcing.” This is generally done because the company knows it can save money by paying the outsourced workers a lower wage to do the same job.