Deck 4: The Statewho Runs the Economy

Question 1

The hyperglobalist position argues that:

A) The state is irrelevant to the operation of the modern global economy
B) Nation states have lost their role as meaningful units of participation in the global economy of today's borderless world
C) Globalization creates a single global market and a gigantic "global village" that cannot be controlled by individual states
D) All of the above
E) None of the above

Answer 1

All of the above

Question 2

The hyperglobalists have created a:

A) Free Trade Agreement in the Americas
B) Means for strengthening the influence of states in a globalized world
C) Powerful popular discourse surrounding the end of the state as an institution of political-economic governance
D) All of the above
E) None of the above

Answer 2

Powerful popular discourse surrounding the end of the state as an institution of political-economic governance

Question 3

The "globalization excuse" explains the ongoing reconfiguration of _________________ functions by invoking an all-powerful, external force--globalization.

A) State
B) Macro-economic
C) Fiscal and monetary
D) All of the above
E) None of the above

Answer 3

State

Question 4

The hyperglobalist accounts argue that power has shifted from states to the giant corporations and international financial institutions that orchestrate:

A) The provision of public goods and services
B) National development strategies
C) Global flows of capital and technology
D) All of the above
E) None of the above

Question 5

By deciding on where to invest, global corporations are seen to play states off against one another in order to obtain benefits in terms of:

A) Political support and financial incentives
B) Favorable environmental regulations
C) Market access
D) All of the above
E) None of the above

Question 6

An economic-geographical reading of the role of the state in today's global economy argues that firms and markets need to be seen as engaged with the state in a ___________________ relationship.

A) Discursive
B) Mutually dependent
C) Antagonistic
D) All of the above
E) None of the above

Question 7

As new centers of growth and profit in the modern era, countries such as Brazil, Russia, India, and China are commonly referred to as the:

A) "BRIC" economies
B) "Hyperglobal nations"
C) "Asian Tigers"
D) All of the above
E) None of the above

Question 8

The ______________ powers of the state are being transformed by globalization processes rather than necessarily eroded.

A) Fiscal
B) Administrative
C) Territorial
D) All of the above
E) None of the above

Question 9

During a financial crisis the state often steps in, becoming an institution of last resort and the ultimate _______________ of crucial economic instruments.

A) Opponent
B) Guarantor
C) Rival
D) All of the above
E) None of the above

Question 10

While on some occasions states may choose to let struggling institutions such as banks fail--in most cases the centrality of financial flows to the wider economy means that states intervene to:

A) Stabilize the system
B) Destabilize the system
C) Nationalize the system
D) All of the above
E) None of the above

Question 11

The international economic credibility of a state in part depends on its ability to ________________ the value of its currency.

A) Depreciate
B) Guarantee
C) Withhold
D) All of the above
E) None of the above

Question 12

States often engage in bilateral free trade agreements (FTAs) with one another in order to:

A) Advance their common economic interests
B) Expand their connections with the global economy
C) Strengthen regional linkages
D) All of the above
E) None of the above

Question 13

Property rights are enforced by the state and refer to the right of an individual or a corporate entity to own:

A) Land
B) Ideas
C) Buildings
D) All of the above
E) None of the above

Question 14

The state's primary source of legitimacy originates from its:

A) Citizens
B) Territory
C) Geography
D) All of the above
E) None of the above

Question 15

Refers to the state's endeavors to uphold the "fairness" of the market mechanism:

A) Fiscal correction
B) Market justice
C) Market regulation
D) All of the above
E) None of the above

Question 16

Many states have established fair trade commissions and anti-monopoly units to ensure market ______________ in different industries.

A) Competition
B) Exclusivity
C) Dominance
D) All of the above
E) None of the above

Question 17

In an era of accelerated globalization, the contemporary state plays a very important role in regulating cross-border flows of:

A) Capital
B) People
C) Knowledge
D) All of the above
E) None of the above

Question 18

Which of the following mechanisms allow states to restrict financial capital from entering and leaving their countries:

A) Free Trade Agreements
B) Foreign direct investment
C) Taxation
D) All of the above
E) None of the above

Question 19

States often actively manage trade in the interests of ____________________ producers.

A) Domestic
B) Foreign
C) Successful
D) All of the above
E) None of the above

Question 20

In most cases where states actively manage trade, the result is policies that seek to stimulate exports while:

A) Fostering access to imports
B) Being restrictive to imports
C) Abolishing tariffs on imports
D) All of the above
E) None of the above

Question 21

Non-tariff barriers represent:

A) Quotas
B) Licensing regulations
C) Labeling and safety requirements
D) All of the above
E) None of the above

Question 22

___________________ levels of cross-border investments by transnational corporations have been a key element of globalization processes over the last three decades.

A) Rising
B) Satisfactory
C) Sustainable
D) All of the above
E) None of the above

Question 23

Citizens are expected to work in return for state benefits as a part of:

A) Welfare schemes
B) Workfare regimes
C) Industrial regimes
D) All of the above
E) None of the above

Question 24

State-owned enterprises (SOEs) refer to:

A) Private enterprises that are directly owned and managed by the state
B) Public enterprises that are directly owned and managed by the state
C) Domestic enterprises that are directly owned and managed by the foreign states
D) All of the above
E) None of the above

Question 25

Business enterprises in which the state has a direct or indirect stake and yet leaves the management to professional managers.

A) Government-linked corporations (GLCs)
B) Foreign-owned enterprises (FOEs)
C) State-owned enterprises (SOEs)
D) All of the above
E) None of the above

Question 26

Certain states have become major global investors through their own national funds, known as:

A) State mutual funds (SMFs)
B) Domestic reserve funds (DRFs)
C) Sovereign wealth funds (SWFs)
D) All of the above
E) None of the above

Question 27

The state is a direct provider of which of the following public goods:

A) Public housing
B) Transport infrastructure
C) Education
D) All of the above
E) None of the above

Question 28

The provision of public goods and services is often seen as a __________________ investment for individual private firms.

A) Secure
B) Profitable
C) Lucrative
D) All of the above
E) None of the above

Question 29

"National business systems" are another way of referring to:

A) State-owned enterprises (SOEs)
B) Providers of public goods and services
C) Different national varieties of capitalism
D) All of the above
E) None of the above

Question 30

Political governance systems and the organization of economic institutions represent two broad criteria for distinguishing:

A) Varieties of states
B) Public goods and services from market alternatives
C) Domestic protectionism
D) All of the above
E) None of the above

Question 31

In neoliberal states, government institutions seek to ____________________ private firms and industries.

A) Provide public goods and services through
B) Keep their distance from
C) Regulate
D) All of the above
E) None of the above

Question 32

Welfare states are characterized by their:

A) Stringent labor laws
B) Welfare provisions
C) Highly regulated banking systems
D) All of the above
E) None of the above

Question 33

In welfare states, labor unions and state institutions play a _______________________ role in corporate governance and firm behavior.

A) Negligible
B) Less direct
C) Less representative
D) All of the above
E) None of the above

Question 34

Welfare states are able to provide a range of national welfare services for their citizens through:

A) State taxation
B) Foreign direct investment
C) Revenues from natural resources such as oil and gas
D) All of the above
E) None of the above

Question 35

In developmental states, the state is relatively _____________________ the influence of interest groups, business, and the population at large.

A) Perceptive to
B) Dependent upon
C) Autonomous from
D) All of the above
E) None of the above

Question 36

Interventionist measures by developmental states include:

A) Developing elite state-sponsored economic agencies and strategic industrial policies
B) Decisions to nurture only certain industries
C) Creating a range of "national champion" firms
D) All of the above
E) None of the above

Question 37

Over time many developmental states have progressed from what are termed import-substitution growth strategies to ones that are:

A) Export-oriented
B) Import-oriented
C) Nationalistic
D) All of the above
E) None of the above

Question 38

Import-substitution industrialization (ISI) is a strategy for economic development that depends upon:

A) Protectionist trade policies to reduce imports
B) Tight exchange rate controls
C) Strong subsidies for state-owned enterprises (SOEs) and domestically oriented private firms
D) All of the above
E) None of the above

Question 39

In contrast to ISI strategies, export-oriented industrialization (EOI) programs are characterized by:

A) Boosting the value of currencies to increase export competitiveness
B) Withdrawing state incentives that promote large export-oriented firms
C) Decreasing regulation of union activities
D) All of the above
E) None of the above

Question 40

Authoritarian states combine a highly __________________ political system with an increasingly open economic system.

A) Centralized
B) Decentralized
C) Regionalized
D) All of the above
E) None of the above

Question 41

The movement from national regimes of economic governance to authority at higher geographical scales has been described as a process of:

A) Regionalization
B) "Spatial shuffling"
C) "Upscaling"
D) All of the above
E) None of the above

Question 42

_________________ is an international organization with the means and resources to influence economic governance at the global scale.

A) World Bank (WB)
B) International Monetary Fund (IMF)
C) World Trade Organization (WTO)
D) All of the above
E) None of the above

Question 43

By early 2011 the World Trade Organization (WTO) had 153 members, accounting for _______ of global trade.

A) 97%
B) 60%
C) 52%
D) 40%
E) 7%

Question 44

_____________________ is a macro-regional bloc where trade restrictions between member states are removed, but states retain their individual trading arrangements with nonmembers

A) Customs union
B) Free-trade area
C) Economic union
D) All of the above
E) None of the above

Question 45

____________________ is a macro-regional bloc where members operate a free-trade agreement between themselves and have a common trade policy for nonmembers.

A) Customs union
B) Free-trade area
C) Common market
D) All of the above
E) None of the above

Question 46

The ________________ of the state has been particularly evident in the heartlands of neoliberalism.

A) Development
B) Downscaling
C) Englarging
D) All of the above
E) None of the above

Question 47

The "hollowing-out" of the state refers to:

A) How state functions are taken over by either public-private partnerships or private forms of regulation
B) A rise in non-state forms of economic regulation
C) The shift from government to governance
D) All of the above
E) None of the above

Question 48

___________________ is a political and economic ideology based on a strong belief in individual liberty, markets, and private enterprise.

A) Globalization
B) Developmentalism
C) Authoritarianism
D) Neoliberalism
E) Communalism

Question 49

Drawing on examples from the readings, discuss three incentives that states have in engaging in bilateral free trade agreements (FTAs) with one another.

Question 50

Does import-substitution industrialization (ISI) represent a more likely strategy of economic development for developed or developing nations? Why is this so?

Question 51

Provide three examples of how state functions may be "hollowed out."