Deck 8: Global Trade and Finance

Question 1

What was the Bretton Woods system designed to prevent?

A) The expansion of the gold to dollar standard
B) Another Great Depression
C) The sale of complex financial instruments called "derivatives"
D) Speculation in the markets for both gold and silver

Answer 1

B

Question 2

In what year did the International Monetary Fund begin operations?

A) 1929
B) 1947
C) 1966
D) 1995

Answer 2

B

Question 3

The _______ became the dominant trade and financial system after the Cold War.

A) transhumanist movement
B) global liberalization regime
C) mercantilist world order
D) liberal economic order

Answer 3

D

Question 4

The _______, or mercantilist, tradition focuses on the ability of states to be economically independent, a condition often called "economic nationalism."

A) Marxist
B) constructivist
C) protectionist
D) liberal

Question 5

Many _______ believe that construction of an open world economy is inevitable.

A) constructivists
B) globalists
C) autarchists
D) developmentalists

Question 6

Which term best describes economic decision making in China?

A) State capitalism
B) Iron Law of Wages
C) 100 Flowers Blooming
D) New Economic Plan (NEP)

Question 7

What was the name of the US-led and funded plan for reconstructing post-war Europe?

A) Truman Doctrine
B) Marshall Plan
C) Bretton Woods system
D) Structural Adjustment Plan

Question 8

In 1995, the GATT became the

A) G8.
B) New International Economic Order (NIEO).
C) World Trade Organization (WTO).
D) International Trade Court.

Question 9

Trade agreements that are regional in scope like the EU, NAFTA, or USMCA, are types of

A) open-border transactions.
B) global trade regimes.
C) liberalized trade partnerships.
D) transborder trade associations.

Question 10

The primary differences between types of capitalism can generally be broken down into the _______ and the _______.

A) Anglo-American system; Far East system
B) Washington Consensus; Beijing Consensus
C) Washington Program; Tokyo Program
D) Free World; Soviet Sphere

Question 11

Mercantilism is most often associated with

A) protectivism.
B) ethnonationalism.
C) protectionism and economic nationalism.
D) radical liberalism and Marxism.

Question 12

The counterpart the to the Marshall Plan was called _______ and provided _______ for Japanese reconstruction.

A) the Dodge Line; high interest loans
B) Regime-dominant functionality; men for labor
C) the IMF SAP programs; free equipment
D) the Dodge Line; grants

Question 13

Since 1971 the transborder cyberspatial network _______ has had no central meeting place at all.

A) Daiwa Securities
B) Gramsci-Kleinwort
C) IBEX/IBIS
D) NASDAQ

Question 14

Which of the following is one of the four aspects of globalization as outlined in the text?

A) Economic nationalism
B) Pursuit of autarchy
C) Internalization
D) The reassertion of territoriality

Question 15

Proponents of which academic approach might say "we cannot know what we want unless we know who we are?"

A) Realism
B) Constructivism
C) Institutionalism
D) Globalism

Question 16

Most firms involved in global trade and finance have kept a _______ board of directors.

A) non-national
B) mononational
C) hypernational
D) dual-national

Question 17

_______ is often connected with the concept of "economic liberalism" as a system of natural liberty.

A) Lassiter Smith
B) Adam Smith
C) Milton Friedman
D) Lionel Hampton

Question 18

The Trans-Pacific Partnership (TPP) was intended to

A) help defray the long-term combined costs of the Vietnam War and the Great Society programs.
B) be the largest regional trade agreement in history focusing on trade barriers, issues related to intellectual property, and labor and environmental standards.
C) expand the economic clout of ASEAN.
D) reduce the effects of the Smithsonian Agreement.

Question 19

"Global sourcing" refers to

A) the core and periphery in the international system.
B) the transfer of funds to the third world.
C) system-wide exploitation of workers' wages, benefits, and conditions.
D) obtaining goods and services across geopolitical boundaries.

Question 20

What organization promotes development in medium- and low-income countries with project loans and various advisory services?

A) Grameen Bank
B) Green Bank
C) World Bank Group
D) Global Bank Group

Question 21

The ability to borrow the amount of money a state has invested in the IMF is known as

A) Special Drawing Rights.
B) input-output funding.
C) First Priority Loan.
D) Structural Readjustment Program.

Question 22

The WTO replaced which organization?

A) IMF
B) IBRD
C) GATT
D) The entire Bretton Woods system

Question 23

The WTO covers services, intellectual property, and investment issues as well as

A) enforcing loan repayment.
B) shipping lanes.
C) trade of illegal substances.
D) merchandise trade.

Question 24

In 1947, which organization became the forum for negotiations on trade liberalization?

A) World Bank
B) GATT
C) WTO
D) IBRD

Question 25

The global economic collapse that ensued following the Wall Street stock market crash in October 1929 was called the

A) Great Depression.
B) World Economic Decline.
C) Financial Meltdown of 1929.
D) Great Recession.

Question 26

_______ preceded the start of the Great Depression in 1929.

A) World War II
B) Free trade
C) Economic liberalism
D) Increased tariffs

Question 27

GATT, IBRD, and the IMF were the three institutions of what post-World War II system?

A) WTO
B) Global Bank system
C) Bretton Woods
D) Basel Committee on Banking

Question 28

The Bretton Woods system managed the

A) international system without colonies.
B) Global North-South international system.
C) Second World War settlement.
D) global economy.

Question 29

When did the Group of Eight (G8, at the time, comprising the United States, Japan, Germany, the United Kingdom, France, Italy, Canada, and Russia) first meet?

A) 1976
B) 1985
C) 1998
D) 2008

Question 30

Pax Americana refers to the

A) period from 1981 to 1992 when Presidents Reagan and George H. W. Bush advocated higher tariffs as a means of bringing peace to global trade relations.
B) imaginary US hegemonic control over the Western hemispheric landmass.
C) liberal economic model the permitted various forms of capitalism and a range of trade policies.
D) 42 years of US-lead dominance over OECD and EFTA policies.

Question 31

What is the term for the degree to which products, communications, financial instruments, fixed assets, and people can circulate throughout the world economy free from state-imposed controls?

A) Structural adjustment policy
B) Liberalization
C) Neoliberalism
D) Mercantilism

Question 32

Which organization shifted its focus from reconstruction to development in 1947?

A) World Bank
B) International Monetary Fund
C) World Trade Organization
D) United Nations Security Council

Question 33

One new avenue of liberalization adopted by the World Trade Organization (WTO) is

A) the recreation of the GATT.
B) merging with regional trade organizations like the EU.
C) expansion into telecommunications management.
D) direct control over cross-border trade.

Question 34

The central demand of the Global South-led New International Economic Order (NIEO) was

A) restructuring of the international order toward greater equity for developing countries.
B) an immediate end to colonization.
C) free market trade liberalization.
D) more robust democracy.

Question 35

The Marshall Plan and the Dodge Line challenged the strict loan requirements of which organization(s)?

A) Group of 7 and Group of 8
B) Group of 20
C) IMF and World Bank Group
D) Containment Marketing Group

Question 36

Smart credit cards and SDRs are examples of

A) national currency.
B) supraterritorial money.
C) free trade dollars.
D) neogreenbacks.

Question 37

What international monetary system did the dollar standard replace?

A) Pound standard
B) Currency basket standard
C) Gold standard
D) Ruble standard

Question 38

The success of OPEC inspired other commodity-producing countries to think about establishing _______ to increase the prices of coffee, tin, rubber, and other exports from developing states.

A) cartels
B) market-capture growth models
C) Ricardo growth
D) labor intensive-led growth

Question 39

Economic globalization often causes _______ within and between states.

A) high GDP growth
B) social development
C) high inflation
D) wage stagnation and growth in inequality

Question 40

Regional frameworks like the European Union and North American Free Trade Agreement have removed (to varying degrees) _______ between participating countries.

A) official restrictions on trade
B) trade socialism
C) labor activism
D) industrial favoritism

Question 41

Protectionism includes which of the following strategies for enhancing a state's economic standing?

A) Lowering of trade barriers
B) Providing military protection for offshore extraction of fossil fuels
C) Imposing tariffs on imports
D) Enhanced cooperation with cross-border trade organizations

Question 42

Developing states began criticizing _______ at the Summit of Non-Aligned Nations in Algiers in 1973.

A) intergovernmental forum exclusivity
B) state partnership assemblies
C) Wallerstein's concept of world-system
D) the liberal economic order

Question 43

The declaration adopted by the UN General Assembly calling for a restructuring of the international order toward greater equity for developing countries is called the

A) liberal international economic order (LIEO).
B) Global South Equity Plan.
C) Millennium Development Goals (MDGs).
D) New International Economic Order (NIEO).

Question 44

Critics have suggested that _______ large corporations and encourage companies to move jobs overseas.

A) most free trade agreements harm
B) most free trade agreements favor
C) non-tariff barriers favor
D) trade maladjustment encourages

Question 45

Which two economists helped to create the Bretton Woods system?

A) Keynes and White
B) Smithson and Morgenthau
C) Galbraith and Bernstein
D) Hunter and Garcia

Question 46

The term _______ is used to describe a situation in which a single process is spread across several countries.

A) organized economics
B) transborder production
C) global sourcing
D) transborder agency

Question 47

Many governments have actively lured externally based business by lowering corporate tax rates, _______, and relaxing labor and environmental standards.

A) reducing restrictions on the repatriation of profits
B) increasing restrictions on the repatriation of profits
C) providing preferred housing to outsourcers
D) opting out of cartelized preference schemes

Question 48

Recent decades have witnessed the widespread _______ flows.

A) closing of borders to investment
B) opening of borders to investment
C) increasing trade and therefore industrial sewage
D) opening of internet-related travel

Question 49

In _______, the United States ended the system of _______ exchange rates based on the convertibility of the US dollar to $35 per ounce of gold.

A) 1962; fixed
B) 1969; arbitrary
C) 1971; floating
D) 1971; fixed

Question 50

Two examples from the 1880s of globalized goods are

A) Campbell Soup and Heinz.
B) IKEA and McDonald's.
C) Nescafé and Ford.
D) Dole and Heinz.

Question 51

More than _______ of FDI, credit card transactions, stock market capitalization, derivatives trade, and transborder loans flow within the North.

A) three-quarters
B) two-thirds
C) 90%
D) 40%

Question 52

What is the WTO dispute-resolution panel called?

A) Bank of International Settlement
B) Dispute Settlement Mechanism
C) Trade Dispute Review Board
D) Board to Investigate Trade Problems

Question 53

Local peculiarities have often affected the way a global product is sold and used in different places. For example, _______ has often been adjusted to local tastes to be more effective.

A) a specific tariff
B) retrenchment
C) packaging
D) advertising

Question 54

What term refers to the degree to which articles, communications, financial instruments, fixed assets, and people can circulate throughout the world economy, free from state-imposed controls?

A) Autarchy
B) Semi-periphery market shares
C) Internationalization
D) Globalization

Question 55

What organization brought major reductions in customs duties, quotas, and other measures that previously inhibited cross-border movement of merchandise?

A) IBRD
B) GATT/WTO
C) IMF
D) UNCTAD

Question 56

A nearly 40-year wave of protectionism began in what year?

A) 1890
B) 1914
C) 1929
D) 1950

Question 57

The government policy of discouraging imports through the imposition of tariffs and non-tariff barriers is called

A) autarchy.
B) protectionism.
C) coaxial refinement.
D) development assistance.

Question 58

What term refers to the international transfer of goods and services within transborder companies?

A) Intrafirm trade
B) Flexing labor forces
C) Global production
D) Triangulation

Question 59

Investors and transnational corporations seek the _______, which includes cheap labor, fewer rules and regulations, low-cost commodities, and safe and stable areas in which to invest or build their production facilities.

A) lowest common denominator
B) gross domestic product
C) greatest equal numerator
D) lowest marginal gains tax

Question 60

A number of equal portions in the nominal capital of a company is known as

A) investment capital.
B) proportional stockholding.
C) normal shares.
D) equity.

Question 61

What are some negative results associated with globalization?

Question 62

How might beggar-thy-neighbor trade policies have contributed to the world wars?

Question 63

What can dependency theory tell us about international politics?

Question 64

Name the four factors of continuity as outlined in this chapter.

Question 65

How has globalization affected territoriality?

Question 66

Was the Bretton Woods system a stable international economic order?

Question 67

Do the institutions established at Bretton Woods favor the West?

Question 68

Did the campaign for a "New International Economic Order" fail?

Question 69

Provide an example of a regional development bank and briefly describe what it does.

Question 70

What is Pax Americana, and is it still a potent force?

Question 71

Is the power of states truly diminished by globalization?

Question 72

Discuss the role of transnational corporations in international political economy.

Question 73

How do institutions like the OECD both help and harm developing countries?

Question 74

Is the World Trade Organization an improvement over the GATT?

Question 75

Name two types of global money.

Question 76

What is meant by cultural homogenization?

Question 77

Give three examples of connections that exemplify supraterritoriality.

Question 78

How have transborder products contributed to globalization?

Question 79

How have global trade and finance challenged cultural diversity?

Question 80

How have global trade and finance challenged the state?