Deck 6: Money: Propelling Global Interactions

Question 1

The global movement of goods and services describes which component of global money?

A) trade
B) transfer
C) finance
D) currency

Answer 1

A

Question 2

The global movement of capital or liquid assets describes which component of global money?

A) trade
B) transfer
C) finance
D) currency

Answer 2

C

Question 3

The systems of money exchange that enable different economies to interact describe which component of global money?

A) trade
B) transfer
C) finance
D) currency

Answer 3

D

Question 4

The idea that land, labor, and goods can all be bought, sold, or traded refers to which feature of capitalism?

A) market-driven interactions
B) private ownership
C) commodification
D) consumer sovereignty

Question 5

The idea that individuals have the right to reap the fruits of their labor refers to which feature of capitalism?

A) market-driven interactions
B) private ownership
C) commodification
D) consumer sovereignty

Question 6

The idea that economic transactions are governed by the self-interest of profit-seeking individuals refers to which feature of capitalism?

A) market-driven interactions
B) private ownership
C) commodification
D) consumer sovereignty

Question 7

The view that capitalism emerged naturally or organically from a need to trade goods and services characterizes which school of economic thought?

A) liberal
B) structuralist
C) Marxist
D) neoclassical

Question 8

Fast, flexible production of a smaller lot of higher quality goods through the use of outsourced labor is considered ______.

A) capitalist
B) Fordist
C) Marxist
D) post-Fordist

Question 9

Marxism is the idea that ______.

A) the state, capitalism, wage labor, and private property should be abolished in favor of common ownership of the means of production
B) capitalism exploits labor, and inequality is rooted in unequal control of the means of production
C) the idea that wealth and resources flow from poorer countries to richer ones, enriching the latter at the expense of the former
D) the idea that imperialism is the highest form of capitalism, which shifts the struggle from developed to underdeveloped economies

Question 10

The Varieties of Capitalism theory argues that ______.

A) different capitalist countries' institutions are designed to work for the specific needs of their economies
B) economies vary in terms of coordination by way of hierarchies and market-driven mechanisms
C) different capitalist countries' institutions vary in terms of nonmarket-driven interactions and coordination of relationships with other actors
D) economies vary in terms of the degree of decommodification of labor while promoting higher standards over minimal needs

Question 11

A capitalist economy that emphasizes competition between firms, sometimes features poor labor relations, and relies on market-driven interactions to solve coordination problems is referred to as a ______.

A) liberal market economy
B) post-Fordist market economy
C) coordinated market economy
D) social market economy

Question 12

A capitalist economy that emphasizes competition between firms, often features good labor relations, and relies on nonmarket-driven interactions to solve coordination problems is referred to as a ______.

A) liberal market economy
B) post-Fordist market economy
C) coordinated market economy
D) social market economy

Question 13

Free trade involves ______.

A) equitable prices paid in exchange of goods and services
B) removal or reduction of barriers to exchange of goods and services
C) national specialization in "what countries do best" to mutual advantage
D) exchange of goods and services without the need for hard currency as a medium

Question 14

The school of thought that embraces the idea that global trade benefits from free markets governing all elements of life is that of ______.

A) liberalism
B) neoliberalism
C) mercantilism
D) structuralism

Question 15

The school of thought that embraces the idea that global trade is good as long as it strengthens a state's power as well as its economy is that of ______.

A) liberalism
B) neoliberalism
C) mercantilism
D) structuralism

Question 16

The school of thought that embraces the idea that global trade systems have been created by rich countries in order to protect their wealth at the expense of poor countries is that of ______.

A) liberalism
B) neoliberalism
C) mercantilism
D) structuralism

Question 17

In global trade, quotas refer to ______.

A) caps on the amount of imported goods
B) caps on the amount of exported goods
C) the minimum amount of goods to be produced
D) economic development targets

Question 18

Health and safety regulations on specific traded goods can be considered ______.

A) trade barriers
B) quotas
C) tariffs
D) nontariff barriers

Question 19

Taxes and fees levied on traded goods are known as ______.

A) trade barriers
B) quotas
C) tariffs
D) nontariff barriers

Question 20

Which of the following features of the WTO describes its role as ensuring that trading partners reciprocate by allowing imports of each other's goods?

A) reciprocity
B) nondiscrimination
C) dispute settlement
D) trade negotiation

Question 21

Which of the following features of the WTO describes its role as ensuring that governments cannot give preferential treatment to home industries or companies via tax subsidies or regulations?

A) reciprocity
B) nondiscrimination
C) dispute settlement
D) trade negotiation

Question 22

Which of the following features of the WTO describes its role as intermediary for the purpose of resolving trade issues and enforcing trading rules?

A) reciprocity
B) nondiscrimination
C) dispute settlement
D) trade negotiation

Question 23

Which of the following features of the WTO describes its role as intermediary in dialogues between states or groups of states in order to reach agreements?

A) reciprocity
B) nondiscrimination
C) dispute settlement
D) trade negotiation

Question 24

A free trade agreement in which tariffs and quotas are removed between partner countries is known as _____.

A) a free trade area
B) a customs union
C) a common market
D) an economic union

Question 25

A free trade agreement in which the free movement of labor, goods, and services is enforced is known as _____.

A) a free trade area
B) a customs union
C) a common market
D) an economic union

Question 26

A free trade agreement in which there are no barriers, trade policies are harmonized, and sometimes other national policies like agriculture and fisheries are harmonized as well across partner countries is known as _____.

A) a free trade area
B) a customs union
C) a common market
D) an economic union

Question 27

The reversal of the U.S. position toward global trade policies like the TPP and the consequences of this decision illustrate ______ interactions that affect global trade.

A) inside-out
B) outside-in
C) top-down
D) bottom-up

Question 28

Agreements between producers of raw materials and manufacturers of consumer products--to return a larger share of final prices to original producers--are referred to as ______.

A) fair trade
B) free trade
C) comparative advantages
D) competitive devaluation

Question 29

A sovereign wealth fund is ______.

A) the outcome of a country's borrowing, lending, credit, currency, stock markets, investments, and banking practices
B) a country's investment fund, typically made up of surplus from exports, which is oftentimes used to invest elsewhere in the world
C) a country's so-called "paper" assets such as stocks and bonds
D) a country's physical assets including land, resources, mines, or factories

Question 30

International investments in liquid assets, such as stocks and bonds, are known as ______.

A) sovereign wealth funds
B) official development assistance
C) portfolio investments
D) foreign direct investments

Question 31

The Asian Financial Crisis of 1997 began as a consequence of ______.

A) financial hyperglobalization
B) capital controls that led to currency speculation
C) hyperinflation
D) Washington Consensus policies of the IMF

Question 32

The interconnectedness of economies around the world that facilitated the consequences of the 2007 financial crisis everywhere from the United States to Europe, Latin America, and Asia illustrates the ______ nature of global finance.

A) inside-out
B) outside-in
C) top-down
D) bottom-up

Question 33

The Bretton Woods monetary system was successful following World War II in large part because ______.

A) all currencies were pegged to the price of gold
B) the price of gold was set to $35/oz
C) the United States had the largest amount of gold backing its currency
D) it was an agreement among mainly Western countries

Question 34

Floating currency regimes are those in which ______.

A) countries manipulate and set the prices of their currencies based on need
B) currencies' values are determined by global supply and demand
C) currencies are backed by commodities whose prices are subject to supply and demand
D) currencies' values are determined through coordination with international organizations

Question 35

Surplus economies are those in which countries ______.

A) export more than they import, leading to more financial gain than expense
B) export more following currency devaluation, leading to financial gains overall
C) produce more goods than can be consumed in one or more sectors
D) utilize comparative advantages and competitive devaluation in global trade

Question 36

The idea of capitalism is interchangeable with the idea of free markets.

Question 37

Capitalism as we know is emerged over millennia across different societies.

Question 38

Comparative advantages can be summed up as the ability of one country to succeed or profit at the expense of another.

Question 39

Nowadays, most of the world engages in the practice of free trade.

Question 40

The WTO does not promote free trade.

Question 41

Free trade agreements can risk the erosion of national sovereignty and contribute to democratic deficits.

Question 42

Structuralists determine the value of free trade on the basis of states' vulnerability to or dependence on other economies.

Question 43

Free trade not only has redistributive effects in terms of prices of goods, but also in terms of labor and employment.

Question 44

The implementation of capital controls has led to financial hyperglobalization.

Question 45

Hard currency is money used in everyday life, such as in the form of banknotes and coins.

Question 46

What are the origins of capitalism, and what are some of the major approaches to answering this question? How have these origins affected the state of capitalism in the 21st century?

Question 47

What does capitalism look like in the 21st century? Using real-world examples to illustrate your claims, make an argument as to which economic system and institutions are more robust today and for the future, and why.

Question 48

What are the major theoretical approaches used to understand the modern system of global trade? In what ways are these approaches useful or accurate in their assessments, in what ways do they miss the mark, and why?

Question 49

How has the nature of global finance changed since World War II? How have global forces contributed to these developments, and why?

Question 50

How do financial crises come about, and why? What are the major factors that have precipitated and exacerbated these events, and what are the global interactions and forces involved?