Deck 15: The Illicit Global Economy: the Dark Side of Globalization

Question 1

What are some of the key unintended consequences of efforts to regulate the illicit global economy?

Answer 1

No Answer.

Question 2

What historical behavior did Western states condone and engage in that they now urge developing countries to restrict, suppress, or eradicate?

Answer 2

No Answer.

Question 3

What is the difference between white-listing and name-and-shame campaigns?

Answer 3

No Answer.

Question 4

What does the text suggest are the major rationales that smugglers offer to "justify" their actions?

Question 5

Why do state have trouble cooperating with one another against illicit markets?

Question 6

How do changes in technology affect the proliferation of illicit activities?

Question 7

Which of the following was not mentioned as a factor limiting coordination between states against illicit activities?

A) flags of convenience
B) tax havens
C) name-and-shame campaigns
D) commercialization of sovereignty

Question 8

Which of the following is the expectation that that states should prevent corrupt money from entering their financial system and should return money to countries from which it is stolen?

A) Know-thy-customer rules
B) anti-kleptocracy norm
C) socially responsible investing
D) name and shame norm

Question 9

Which of the following does the Lacey Act prohibit?

A) Bribing of foreign officials by American companies
B) Importation of any wood product illegally sourced in a foreign country
C) Importation of unlicensed antiquities
D) Exporting of counterfeit goods to a member of the WTO

Question 10

Which of the following is a correct statement?

A) Annual global sales of illegal drugs are approximately $500 billion.
B) The UNODC estimates that the annuals proceeds of drug trafficking and transnational organized crime are equal to about $500 billion.
C) The U.S. president can impose sanctions on countries that don't meet minimum standards in fighting human trafficking.
D) The UNODC estimates that about 15 percent of the world's adult population used illegal drugs at least once in 2015.

Question 11

What is the Kimberley Process?

A) An effort to prevent blood diamonds from entering international trade networks.
B) The process by which classes coercively seize assets such as land from other actors.
C) An effort by the world's largest banks to carefully screen their depositors.
D) An elaborate program to drastically reduce coca production in Latin America.

Question 12

What is the "hydra effect"?

A) The renting out of commercial privileges and protections to citizens and companies from other countries.
B) Another way of stating: "The bloody hands and the invisible hand often worked in concert."
C) Stopping drugs in one area causes drug production to increase somewhere else.
D) How the "rest and relation needs" of U.S. soldiers during the Vietnam War were a major stimulus to sex tourism in Thailand.

Question 13

What is "arbitrage"?

A) buying a product in a low-price market and selling it in a higher-price market
B) restriction on the export of high-tech goods
C) a mechanism to prevent drug trafficking
D) a major cause of human trafficking

Question 14

Which of the following is not an unintended consequence of supply-side policies against illicit activities?

A) the restriction-opportunity dilemma
B) displacement of an activity from one place to another
C) the profit paradox
D) democratization in developing countries

Question 15

An analyst of the illicit global economy would probably not agree with which of the following statements?

A) Global integration and technological change weaken criminal actors.
B) Opening of capital markets helps dirty money flow more easily around the world.
C) Transnistria is a hub of trafficking and smuggling.
D) Pressure on pariah states to crack down on illicit networks often backfires.

Question 16

What is a "secrecy jurisdiction"?

A) a place U.S. soldiers sought "rest and relaxation" during the Iraq War
B) a place wealthy tax evaders like to use
C) a unilateral threat to withhold aid from a country that fails to fight drugs seriously
D) a bank's obligation to know its customers and exercise due diligence with depositors

Question 17

The idea of the "Six Degrees of Separation" refers to what?

A) The idea that there is little separation between illegal businesses and socially responsible ones.
B) The theory that states don't cooperate against crime because sovereignty separates them.
C) The idea that a relatively small number of actors connects producers and consumers in illicit markets.
D) The belief that animal trafficking will lead to the extinction of some animal species in a short amount of time.

Question 18

In approaching illicit problems, the United States federal government can most aptly be described as which of the following?

A) over-emphasizing supply-side solutions
B) usually unwilling to cooperate with other states
C) committed to decriminalization of many illicit acts as a form of harm reduction
D) doing little to stop human trafficking

Question 19

Which of the following is not a practice designed to reduce global illicit activities?

A) name-and-shame campaigns
B) socially responsible investing
C) differential taxation
D) know-thy-customer procedures

Question 20

Which of the following is an historical process involving the violent or coercive stripping of assets from a class in society?

A) commercialization of sovereignty
B) the Kimberly Process
C) primitive accumulation
D) the anti-sweatshop movement

Question 21

Which of the following is a major reason why it is so hard to eliminate illicit markets?

A) NGOs don't care much about them.
B) States jealously guard their sovereignty.
C) The squiggliness of borders.
D) _{Lack of foreign aid to developing countries.}