Deck 1: International Political Economy

Question 1

Distributional consequences about resource allocation decisions

A) are determined by the level of societal well-being in a country.
B) determine how prestige is distributed in the international system.
C) influence how income is distributed between groups within countries.
D) are determined by the distribution of national attitudes toward hard work.
E) determine the level of democratic participation in a country.

Answer 1

A

Question 2

Britain was the first to adopt a free-trade policy

A) when it passed its "Corn Laws" in the 1840s.
B) when it opened its markets to imported grain.
C) when it forced the United States to eliminate most tariffs on trade.
D) when it negotiated the Cobden-Chevalier treaty with Germany.
E) when it adopted the gold standard.

Answer 2

B

Question 3

Interests are the goals or policy objectives that the central actors in the political and economic system want to use foreign economic policy to achieve.Which scenario appropriately captures "interests"?

A) If you are an American steel worker, you oppose steel tariffs because it reduces the likelihood that you will lose your job.
B) If you own a substantial share of General Motors stock you will support a steel tariff because higher steel prices will produce higher profits.
C) If you own a substantial share of General Motors stock you will support a steel tariff because lower steel prices will produce lower profits.
D) If you are an American steel worker, you oppose steel tariffs because it increases the likelihood that you will lose your job.
E) If you are an American steel worker, you will support steel tariffs because it reduces the likelihood that you will lose your job.

Answer 3

E

Question 4

Economic development strategies in the post WWII era in developing countries

A) have been largely unsuccessful in the newly industrializing countries of East Asia.
B) have been largely successful in the developing countries of East Africa.
C) have been largely successful in the newly industrializing countries of East Asia.
D) have been largely successful in all developing countries.
E) have been largely unsuccessful in all developing countries.

Question 5

The international monetary system primarily facilitates

A) the international exchange of national currencies.
B) the national exchange of international currencies.
C) the interest rates of national currencies.
D) the international regulation of economic foreign aid.
E) the international regulation of foreign direct investment.

Question 6

The idea that the purpose of economic activity was to enrich individuals,not to enhance a state's power was most strongly held by the

A) liberalism school of international political economy.
B) conservatism school of international political economy.
C) mercantilist school of international political economy.
D) Marxism school of international political economy.
E) realist school of international political economy.

Question 7

The mercantilist school of international political economy

A) believes that economic strength is not a critical component of national power.
B) believes that governments should encourage imports whenever possible.
C) believes that governments should encourage exports whenever possible.
D) believes that governments should leave resource allocations decisions to the marketplace.
E) emerged in Britain during the 18th century to challenge liberalism which was dominant.

Question 8

The Marxist school of international political economy primarily does NOT believe that

A) the state operates as an agent of the capitalist class.
B) investment decisions are made by the few firms that control the investment capital.
C) capitalism is associated with a inevitable growing rate of profit.
D) capitalism is plagued by an imbalance between the ability to produce goods and the ability to purchase goods.
E) large corporations are the key factor in determining how resources are used.

Question 9

Between 1815 and 1914 trade grew more rapidly than in the previous 300 years by increasing by approximately

A) 75%.
B) 150%.
C) 200%.
D) 300%.
E) 350%.

Question 10

Today the trade of goods and services across national borders each year is worth

A) a little more than $1 trillion.
B) between $2 trillion and $5 trillion.
C) between $5 trillion and $10 trillion.
D) between $10 trillion and $15 trillion.
E) between $15 trillion and $20 trillion.

Question 11

The decision by the Bush administration to raise tariffs on imported steel in the spring of 2002

A) was prompted by lobbying by owners of American steel firms but not workers.
B) was prompted by lobbying by workers in American steel firms but not owners.
C) was prompted by lobbying by owners and workers in American steel firms.
D) did not hurt American auto manufacturers.
E) did not harm foreign steel producers.

Question 12

The three different schools generate three very different images of the central dynamic of IPE.Which of the following is true?

A) Mercantilists argue that welfare conflicts occur in the IPE when governments compete to attract and maintain desired industries.
B) Liberals argue that international economic interactions are essentially conflictual because some countries benefit from international trade more than others.
C) Marxists argue that the IPE is characterized by the distributional conflict between classes within countries.
D) Marxists argue that the IPE is characterized by the distributional conflict between developed and developing countries within the international arena.
E) Liberals argue that international economic conflicts are common because governmental regulation.

Question 13

The study of the global economy does NOT usually include the study of

A) the international trade system.
B) the international monetary system.
C) multinational corporations.
D) economic development.
E) scientific development.

Question 14

Political institutions establish the rules governing the political process.As such,

A) democratic institutions promote mass participation in collective choices.
B) democratic institutions restrict participation to a narrow set of individuals.
C) authoritarian systems promote mass participation in collective choices.
D) in international economic organizations, decisions typically reflect the preferences of the less powerful nations.
E) they usually do not help to enforce collective decisions.

Question 15

The distributive consequences of global economic exchange

A) raises the incomes of all people in developed countries.
B) eliminate political competition in national arenas.
C) eliminate political competition in international arenas.
D) generate political competition in national and international arenas.
E) lowers the income of all people in developing countries.

Question 16

Explanatory studies are primarily oriented toward explaining

A) who make foreign economic policy choices in governments.
B) how governments make foreign economic policy choices.
C) when governments make foreign economic policy choices.
D) where governments make foreign economic policy choices.
E) why governments make foreign economic policy choices.

Question 17

Multinational corporations account for

A) 1/4 of the world's economic production & 1/4 of the world's trade.
B) 1/4 of the world's economic production & 1/3 of the world's trade.
C) 1/2 of the world's economic production & 1/2 of the world's trade.
D) 1/2 of the world's economic production & 3/4 of the world's trade.
E) 3/4 of the world's economic production & 1/2 of the world's trade.

Question 18

Welfare consequences about resource allocation decisions

A) determine the level of societal well-being in a country.
B) influence how income is distributed between nations in the international system.
C) influence how income is distributed between groups within countries.
D) are determined by the national attitudes toward hard work.
E) determine the level of democratic participation in a country.

Question 19

In the 19th century,cost and time in long distance trade was made dramatically more profitable by the invention of

A) the telegraph.
B) the automobile.
C) steam engines.
D) airplanes.
E) ocean going ships.

Question 20

International Political Economy (IPE)primarily studies

A) the political battle between nation-states.
B) the economic battle between producers and consumers.
C) how the consequences of global economic exchange generate political winners and losers in national and international arenas.
D) how the consequences of global political change generate new technologies.
E) how the consequences of global economic change generate new political cultures.

Question 21

After WWI,the United States

A) accepted the responsibilities that hegemonic status carried.
B) insisted that European governments repay war loans.
C) forgave European governments' war debts.
D) lowered tariffs to make it easier to repay war debts.
E) forgave France's war loans to hasten Germany's economic recovery.

Question 22

Global economic exchange raises the income of all people at least somewhat.

Question 23

Compare and contrast the desirable objectives of foreign economic policy among the three traditional schools of international political economy.

Question 24

In the international trade system,each WTO country gains access to all other WTO members markets on equal terms.

Question 25

How can mangers of multinational corporations in other regions of the world make decisions that affect economic conditions in the United States?

Question 26

Between 1880 and 1910,migration from Western Europe was close to

A) 5 million persons.
B) 9 million persons.
C) 14 million persons.
D) 24 million persons.
E) 35 million persons.

Question 27

What are the strengths and weaknesses of the Marxist school of thought regarding the roles of governments and capitalists in the international arena?

Question 28

Global economic forces play a larger role in determining most peoples' career opportunities than thirty years ago.

Question 29

Multinational corporations together account for about half of the world's trade.

Question 30

Industrialization and export promotion strategies in almost all Asian countries like India,Philippines and Indonesia have been very successful.

Question 31

The Post WWII global economy differed from the classical liberal system of the 19th century in important ways.Which of the following statements is NOT true about these differences?

A) There were significant changes in public attitudes about the government's proper economic role.
B) In the 19th century liberal system, governments eliminated trade barriers but made little effort to manage domestic economic activity.
C) The Great Depression encouraged governments to promote growth and limit unemployment.
D) The rules embodied in the Bretton Woods system provided some insulation between the domestic and the international economies.
E) The rules embodied in the Bretton Woods system provided no insulation between the domestic and the international economies.

Question 32

What are the similarities and differences between the "modern" mercantilist school of thought and the "classical" liberal school of thought regarding the roles of states and markets in the international arena?

Question 33

The globalization in the 19th century suggests that it is has been inevitable and expanding for more than 150 years.

Question 34

Scholars of US-based multinational corporations are usually only interested in the impact that they have on profits and employment in the United States.

Question 35

According to Marxists,the systematic exploitation of the poor in host countries by rich,large multinational corporations is detrimental to the national interests of their home countries.

Question 36

How has the global economy played a central role in bringing about changes shaped by the global rather than national economic forces in your state?

Question 37

How did national economic policy in most countries change after World War I?

A) They continued to expand their colonial expansion.
B) They adopted the gold standard to finance the war.
C) They no longer tightly controlled international trade flows.
D) They retreated into sheltered national economies.
E) They no longer tightly controlled international financial flows.

Question 38

Food tariffs in the United States almost always have the distributional effects of boosting the incomes of wealthier farmers domestically at the expense of poorer farmers in developing countries.

Question 39

The international monetary system exists solely to enable people living in different countries to engage in economic transactions with each other.

Question 40

After WWII,the United States

A) returned to its isolationist tradition.
B) concluded that its European allies were strong enough to reestablish a stable world economy.
C) accepted the responsibilities of hegemonic status that it refused after WW I.
D) discouraged the creation of international institutions provide the infrastructure for the postwar global economy.
E) rejected macroeconomic policies designed to promote growth and limit unemployment.

Question 41

How did the development of the steam engine and the telegraph dramatically reduce the cost,time and risk involved in long distance trade in the 19th century? What are the comparable technological improvements in the second half of the 20th century?

Question 42

In what important ways has the post-World War II political and global economy differed from the classical liberal system of the 19th century?

Question 43

In international economic organizations,how does relative bargaining power influence decisions that typically favor the preferences of the most powerful nations?

Question 44

How did World Wars I & II change the roles of Britain and the United States as the largest manufacturing and creditor countries?

Question 45

Compare and contrast some of the different interests and groups of society regarding the international political economy in developed versus developing countries?