Deck 7: International Political Economy and Development

Question 1

The United States spent about _______ in Marshall Plan aid.

A) $12 billion.
B) $1 billion.
C) $56 million.
D) $98 billion.

Answer 1

A

Question 2

The United States assumed the role as the major global financial power in the

A) 1930s.
B) 1970s.
C) 1920s.
D) 1940s.

Answer 2

D

Question 3

What is the approximate size of the GDP of the United States in U.S. dollars?

A) $6 trillion.
B) $500 billion.
C) $19 trillion.
D) $175 billion.

Answer 3

C

Question 4

International political economy (IPE) can defined as

A) The study of how politics and economics interact in an international context.
B) The sum of all GDPs in the world divided by the world population.
C) The growing independence of states from domestic market-driven factors in a globalized world.
D) The key decisions of the World Trade Organization and other key international organizations.

Question 5

National currencies-such as dollars, Euros, pesos, and rubles-can be converted into other currencies at what is termed

A) An exchange rate.
B) A flexible rate.
C) A variable rate.
D) A flat rate.

Question 6

The difference between the value of exports and imports is

A) The production total.
B) The added value.
C) The balance of trade.
D) The net profit margin.

Question 7

Mercantilism calls for the ________ of available resources in the name of the state.

A) Accumulation and protection.
B) Maximization and disbursement.
C) Maintenance and exploitation.
D) Lowering and saving.

Question 8

Which of the following is NOT a mercantilist principle?

A) States must make sure that most of the products and services they need are produced domestically.
B) Imports of foreign goods should be limited.
C) It is necessary to support domestic manufacturers and merchants.
D) Export of all goods is prohibited.

Question 9

In the nineteenth century many European states long considered the _____ colonies as ____ to their economies and national security, in keeping with mercantilist thinking.

A) Struggle for . . . vital.
B) Secession of . . . necessary.
C) Acquisition of . . . harmful.
D) Aspirations of . . . useful.

Question 10

Historically a state's financial resources, or finances, consisted of

A) Foreign bonds.
B) Gems.
C) Gold reserves.
D) Paper money.

Question 11

Mercantilism has been linked with

A) Liberalism.
B) Constructivism.
C) Realism.
D) Feminism.

Question 12

Which approach to IPE is MOST associated with promoting state interests and economic strength?

A) Mercantilism.
B) Liberalism.
C) Constructivism.
D) Conflict theories.

Question 13

Protectionism is

A) The strategy of encouraging neighboring countries to provide a defensive alliance at low cost.
B) The belief that as long as military spending is kept high, a country is safe from foreign threats.
C) The policy of restricting or discouraging imports and encouraging domestic production.
D) The focus on securing national borders from threats of invasion.

Question 14

Which of the following is NOT a protectionist measure?

A) Economic sanctions.
B) Free trade.
C) Tariffs.
D) Import taxes.

Question 15

Maynard Keynes is a founder of

A) Microeconomics.
B) Macroeconomics.
C) The comparative advantage.
D) The balance of trade.

Question 16

Which approach to IPE is MOST associated with promoting free trade?

A) Mercantilism.
B) Liberalism.
C) Constructivism.
D) Conflict theories.

Question 17

Who of the following is NOT an economic liberalist?

A) Adam Smith.
B) David Ricardo.
C) Karl Marx.
D) Friedrich List.

Question 18

Monetary policy is a concept generally associated with

A) Adam Smith.
B) Karl Marx.
C) Friedrich List.
D) John Maynard Keynes.

Question 19

Fiscal policy refers to

A) When states raise taxes and use this money to create jobs.
B) The percentage of taxes compared to the total public deficit.
C) The collection of income tax from foreign corporations in a country.
D) The changing of the amount of money in circulation.

Question 20

Of the following, who is MOST strongly associated with monetarism?

A) Milton Friedman.
B) Franklin D. Roosevelt.
C) Friedrich List.
D) Maynard Keynes.

Question 21

Milton Friedman's main works were written

A) During the American revolutionary wars.
B) In the 1960s.
C) Before the Great Depression.
D) During the Reagan administration.

Question 22

When the Federal Reserve, the central banking system in the United States, maintains the stability of the financial system, this is called

A) Stability pact.
B) Monetarism.
C) Balancing act.
D) Fiscal policy.

Question 23

Who of the following is MOST closely associated with applying liberal economic principles?

A) Barack Obama.
B) Margaret Thatcher.
C) Angela Merkel.
D) Vladimir Putin.

Question 24

The World Bank and International Monetary Fund were created in

A) 1944.
B) 1973.
C) 1919.
D) 1933.

Question 25

GATT was replaced by the

A) Global Trade Consortium.
B) World Trade Organization.
C) World Commerce Association.
D) Global Trade Convention.

Question 26

How many members does the WTO have?

A) The same number as UN member states.
B) Less than 100.
C) Nearly 160.
D) About 45.

Question 27

Critics of the WTO argue the following, EXCEPT

A) Free trade benefits mostly rich countries.
B) WTO rules harm small business.
C) Small countries can exercise less influence in the rounds of talks.
D) The negotiation rounds for new WTO rules are too short.

Question 28

Which approach to IPE is MOST associated with investigating the impact of the investment climate?

A) Mercantilism.
B) Liberalism.
C) Constructivism.
D) Conflict theories.

Question 29

_____ believe that the Marshall Plan was not only an economic policy but also a way to promote beliefs in free markets.

A) Constructivists.
B) Realists.
C) Feminists.
D) Liberalists.

Question 30

Who argues that material resources and economic policies are often seen through the prism of collective values or individual beliefs?

A) Realists.
B) Feminists.
C) Liberalists.
D) Constructivists.

Question 31

Places perceived as _____, as a rule, ____ international investors.

A) Corrupt . . . lose.
B) Safe . . . attract.
C) Risky . . . maintain.
D) Volatile . . . lure.

Question 32

Which approach to IPE is MOST associated with the role and impact of economic injustice?

A) Mercantilism.
B) Liberalism.
C) Constructivism.
D) Conflict theories.

Question 33

The failure of all of the following economies disenchanted many Marxist sympathizers except this one.

A) Soviet Union.
B) Cuba.
C) North Korea.
D) Mexico.

Question 34

Raul Prebisch to Hans Singer is like

A) Karl Marx to Vladimir Lenin.
B) Adolf Hitler to Winston Churchill.
C) Adam Smith to Donald Trump.
D) Franklin D. Roosevelt to Ronald Reagan.

Question 35

Dependency theory explains in relatively simple terms the main causes of the world's

A) Economic and political problems.
B) Sociocultural interdependence.
C) Cultural rivalries.
D) Sociopolitical achievements.

Question 36

Which of the following states pursued a policy of autarky?

A) North Korea.
B) Brazil.
C) India.
D) Venezuela.

Question 37

He opposed Communist rule and later, as president, he promoted free trade:

A) Lech Walesa of Poland.
B) Robert Mugabe of Zimbabwe.
C) Fidel Castro of Cuba.
D) Hugo Chavez of Venezuela.

Question 38

Which Communist leader moved decisively toward capitalism?

A) Kim Il-sung.
B) Fidel Castro.
C) Envar Hoxha.
D) Deng Xiaoping.

Question 39

______________ was a populist who believed in dependency theory.

A) Fidel Castro.
B) Kim Il-sung.
C) Muammar Qaddafi.
D) Hugo Chavez.

Question 40

After 2006, Iran openly pushed the development of _______.

A) Its nuclear program.
B) Its oil independency.
C) Its Middle East alliance.
D) Its green revolution.

Question 41

After the terrorist attacks of September 11, 2001,

A) The water reserves in the Middle East were at a drastic low.
B) Air traffic remained undisturbed.
C) The world's stock markets fell drastically.
D) The United States pursued a dovish foreign policy.

Question 42

Speculators generally ____financial markets ____.

A) Keep . . . secure.
B) Make . . . volatile.
C) Maintain . . . safe.
D) Cause . . . to stop fluctuating.

Question 43

The combination of high inflation and no growth in the late 1970s was called

A) Stop-and-go.
B) High-no.
C) Stagflation.
D) Hyperinflation.

Question 44

The ____________ calls for maximum deregulation of production and finances in order to boost inefficient economies.

A) Fukuyama Prescription
B) Dependency Prescription
C) China Solution.
D) Washington Consensus.

Question 45

Approximately ______ people live on less than $1.90 per day.

A) 200 million.
B) 450 million.
C) 700 million.
D) 2 billion.

Question 46

China has the world's ________ largest economy.

A) Second.
B) Third.
C) Fourth.
D) Fifth.

Question 47

Chinese leader Xi Linping

A) Seeks to increase China's global economic power.
B) Is elected by the entire adult Chinese citizenry.
C) Has called for the abolition of the communist party.
D) Has dramatically decreased military spending.

Question 48

When realist analysts compare the annual GDP of the United States and China, they most likely examine

A) Power relations.
B) The economic outlook.
C) Defense budgets.
D) Car sales in both countries.

Question 49

What does IPE stand for? Explain the concept using an empirical example.

Question 50

Why is the GDP of a country an important measure for realists?

Question 51

Define the concept of balance of trade.

Question 52

Name and define the basic principles of mercantilism.

Question 53

List and explain some of the beliefs held by economic liberalists.

Question 54

Who was Adam Smith and why is he important for economic liberalism?

Question 55

What is the night watchman concept?

Question 56

Who is John Maynard Keynes and why is he important for international political economy?

Question 57

Explain the term monetary policy.

Question 58

Name and define some trade barriers.

Question 59

How would constructivists define the Marshall Plan?

Question 60

Define the concept of fair trade.

Question 61

What is Jeffrey Sachs's model to fight poverty?

Question 62

How did the United States react to Chinese economic development from the 1980s onward?

Question 63

What domestic factors help explain the economic rise of China?

Question 64

Who are the main actors in IPE?

Question 65

What are the main tenets of dependency theory?

Question 66

What are multinational corporations and why are they controversial?

Question 67

What is the brain drain and how can it hurt economic development in the Global South?

Question 68

Drawing on empirical examples of the 2008-203 global financial situation, discuss both Keynesian and economic liberal approaches to coping with looming economic issues.

Question 69

Why is Marxism mostly irrelevant for explaining international political economy today? What historical factors help explain this?

Question 70

What are the key principles of dependency theory? Is it still relevant today? Discuss.

Question 71

Compare and discuss the concepts of trade surplus and trade deficit in global trade. Why would you choose one over the other?

Question 72

Using different theoretical frameworks presented in this chapter, discuss why global poverty has not been eradicated as of today.

Question 73

Describe and discuss Deng's economic policies to evaluate China's role in the world economy today.

Question 74

Write an essay in which you examine the importance of trade to international political economy and for domestic economies. Include discussions of the balance of trade and trade barriers.

Question 75

What are the basic tenets of mercantilism? What has supplanted it, and why?

Question 76

Compare, contrast, and analyze mercantilist, liberal, constructivist, and dependency theory approaches to international political economy. Which approach, or combination of approaches, do you think best captures current reality? Why?

Question 77

What are the key principles of economic liberalism? How do they contrast with Keynesianism?

Question 78

Discuss the nature and impact of protectionism and economic sanctions. Are they ever advisable? Defend your position.

Question 79

What are the important aspects of Keynesian economics? When were they first applied? Why are they still considered relevant today?

Question 80

What is the Washington Consensus and how does it affect developing countries? Why is it controversial?