Deck 7: Governance in the New Global Economy

Question 1

What is the "political trilemma" and what are the arguments behind it?

Answer 1

No Answer.

Question 2

Can the recent rise of populism be linked to "globalisation"?

Answer 2

No Answer.

Question 3

Which cases clearly call for "global governance"?

Answer 3

No Answer.

Question 4

What is the key difference between multilateral and regional trade agreements?

Question 5

What are the key principles of the multilateral trading system?

Question 6

What are the major forms of regional trade agreements and how do they differ?

Question 7

What are deep trade agreements (DTAs), and how do they differ from a standard free trade agreement (FTA)?

Question 8

What are major cases for international coordination in the International Monetary and Financial System (IMFS)?

Question 9

What does the "financial stability trilemma" suggest?

Question 10

Identify the 5 correct statements
1. The political trilemma posits that limiting hyper-globalisation is necessary for democratically legitimated global governance.
2. A rise in populism could in history often be observed after (global) financial crises.
3. When a policy of one country has a (spillover) effect on all other countries this clearly calls for global governance.
4. Regional trade agreement are by definition discriminatory.
5. According to the most-favoured nation principle of the multilateral trading system some countries are more favoured than others.
6. A custom union does require rules of origin.
7. A free trade area is welfare reducing when trade diversion exceed trade creation effects.
8. Deep trade agreements (DTAs) cover areas that are not covered also by WTO rules.
9. When an interest rate increase in one country leads to higher interest rates elsewhere, this is a clear case for international coordination.
10. The financial trilemma posits that a highly integrated financial system cannot guarantee financial stability when relying on national supervision.