Deck 11: International Economics: The Alternative Road

Question 1

The UN Center for Transnational Corporations was created for what purpose?

A) to facilitate the international deregulation of com­merce
B) to help support international currency stability
C) to establish global standards and regulations for multinational corporations
D) to improve labor standards worldwide

Answer 1

C

Question 2

GATT

A) met with some success, but was ultimately a failure.
B) was formed by the WTO.
C) addresses a wide range of development issues.
D) is the treaty underlying the WTO.

Answer 2

D

Question 3

What event served as the impetus to change the structure and course of international economic reform?

A) Balkan War
B) World War I
C) World War II
D) Vietnam War

Answer 3

C

Question 4

The WTO has

A) heard only a few cases because countries fear that decisions might violate their sovereignty.
B) had 30 cased filed annually in recent years.
C) not handled any cases involving the United States.
D) imposed sanctions on several countries as a result of trade disputes.

Question 5

What type of trade protections were included in the Uruguay Round of GATT revisions for the first time?

A) interference in commercial interchanges
B) agricultural tariffs
C) import quotas
D) industrial tariffs

Question 6

The liberal idea of interdependence seeks the

A) promotion of free markets for the powerful at the expense of the weak.
B) limitation of free markets to prevent states from economically merging.
C) limitation of free markets for the betterment of a states domestic labor force.
D) promotion of free markets for the economic good of all.

Question 7

Which of the following do economic nationalists not argue?

A) Countries should put domestic needs first
B) Economic diversification, not specialization is central to growth
C) Barriers should be used to protect the domestic economy
D) Trade liberalization is best for growth.

Question 8

What did signatories of the Uruguay Round document pledge to do about tariffs over the next 10 years?

A) maintain current tariff levels
B) reduce tariffs by one-third, on average
C) eliminate all tariffs
D) eliminate all tariffs except for tariffs on agricultural products

Question 9

UNCTAD was founded primarily for the purpose of

A) addressing the economic concerns of the LDCs.
B) promoting the growth of industry in the LDCs.
C) creating a forum for exchange between LDCs and EDCs regarding political issues.
D) addressing issues of intellectual property rights.

Question 10

The membership of the WTO includes

A) all states
B) only EDCs
C) only LDCs
D) most states including LDCs and EDCs

Question 11

The UN Development Programme works to

A) provide technical assistance and funds to LDCs.
B) provide LDCs access to global markets.
C) improve LDC military forces.
D) strengthen the global economy.

Question 12

In order for an LDC to expand and diversify their economies,these states require

A) development capital.
B) endorsements.
C) domestic aid.
D) transnational loans.

Question 13

Which of the following is not common defense of the IMF?

A) Reforms are necessary to correct the underlying domestic structural problems necessitating the original loan
B) The IMF is doing what it needs to do to promote global prosperity
C) Countries who fund the IMF should have a larger role in shaping its decisions
D) Loan conditionality undermines social welfare

Question 14

The struggle between the forces of economic internationalism and economic nationalism

A) will be one of the most pivotal struggles in the years ahead.
B) has already largely played out, with the triumph of economic internationalism.
C) has already largely played out, with the triumph of economic nationalism.
D) is more of a false dichotomy than a real debate between policy perspectives.

Question 15

The shift in emphasis in economic cooperation to the problems of LDCs was prompted by all of the following developments except for

A) the return to prosperity in the North
B) the fear of rapid currency fluctuations caused by inequality.
C) rising awareness in the North regarding the plight of LDCs.
D) independence movements that ended colonization.

Question 16

At the 2002 International Conference on Financing for Development (ICFD),participating countries agreed to the UN's recommended goal of contributing what percentage of their GNPs to economic development?

A) 0.01 percent
B) 0.07 percent
C) 1 percent
D) 7 percent

Question 17

Which international organization promotes global free trade?

A) International Monetary Fund
B) International Trade Organization
C) UN Conference on Trade and Development
D) World Trade Organization

Question 18

Which of the following is not an IGO created to facili­tate economic interactions across national boundaries?

A) The World Bank
B) The North American Treaty Organization
C) The International Monetary Fund
D) The World Trade Organization

Question 19

In trade dispute cases brought to the WTO

A) a three-judge panel hears complaints.
B) the case is decided by the UN General Assembly.
C) sanctions are always imposed on the losing party.
D) the WTO suggests options to the states in dispute.

Question 20

As of 2002,which country has been involved in WTO hearings most frequently?

A) Singapore
B) the United States
C) China
D) Japan

Question 21

The IMFs mission changed in the 1970s with the collapse of the "fixed-rate" system that tied currency to gold.Currently,exchange rates are determined by

A) the declaration of the IMF.
B) supply and demand for currencies.
C) international agreement.
D) Multinational corporations.

Question 22

Which of the following is not an LDC criticism of the World Bank?

A) The Bank provides too little funding overall.
B) The Bank dictates conditions of loans and hence, LDCs argue, violates economic sovereignty.
C) The Bank uses its financial power to impose capitalism.
D) Bank loans have too often been directed to countries in Africa.

Question 23

The primary function of the IMF is to

A) help maintain exchange-rate stability.
B) promote monetary union.
C) arbitrate economic disputes.
D) assist developing countries.

Question 24

Which of the following is not a typical condition associated with an IMF loan?

A) The loan must be repaid within 12 months.
B) State-run enterprises must be privatized.
C) Government budget deficits must be reduced.
D) Trade barriers must be reduced or eliminated.

Question 25

Based on its membership,the OECD could be considered

A) largely "a rich man's club."
B) a solely Western organization.
C) a hybrid of IGOs and NGOs.
D) an isolationist club that does not have links with non-members.

Question 26

The international organization most involved in pro­moting monetary cooperation is the

A) United Nations.
B) WTO.
C) World Bank.
D) IMF.

Question 27

Special Drawing Rights (SDRs)are

A) currency reserves from which central banks can draw, whose value is based on a "market basket" of several currencies.
B) most-favored-nation status trade perquisites
C) UN allowances for less developed countries
D) European central banks

Question 28

Which country is not part of the G-8?

A) Canada
B) Italy
C) Germany
D) China

Question 29

In addition to the IMF,which institution emerged at the end of World War II to assist cooperation?

A) International Bank for Mining and Agriculture
B) Bank for International Settlements
C) World Bank
D) Group of 77

Question 30

How is voting in the IMF weighted?

A) It is weighted based on exports.
B) It is population-weighted.
C) It is wealth-weighted.
D) Every country gets an equal vote.

Question 31

The IMF was established

A) at the end of World War I.
B) at the end of World War II.
C) after the Cuban Missile Crisis.
D) after the OPEC oil crisis.

Question 32

One of the principal concerns of the G-8 is

A) the development of LDCs.
B) developing political stability in the South.
C) the economic ramifications of ethnic fighting.
D) the environmental ramifications of economic policies.

Question 33

Which of the following is not a World Bank Group agency?

A) International Development Association
B) International Monetary Fund
C) International Bank for Reconstruction and Development
D) Multilateral Investment Guarantee Agency

Question 34

The International Finance Corporation focuses on making loans to

A) governments in LDCs.
B) individual entrepreneurs.
C) companies in LDCs.
D) countries in transition.

Question 35

Because of its weighted voting scheme,the IMF's decisions are controlled

A) solely by the United States.
B) a handful of developed countries.
C) all of the developed countries working in concert.
D) only with the consent of LDC countries.

Question 36

The recent collapse of the Doha Round of trade talks failed largely because

A) LDCs refused to attend.
B) EDCs boycotted key meetings.
C) LDCs did not present a clear agenda.
D) contradictory agendas were put forward by LDCs and EDCs.

Question 37

Which of the following IGOs is concerned with maintaining exchange rate stability?

A) WTO
B) World Bank Group
C) IMF
D) NAFTA

Question 38

One country that challenged the IMF in 2001,arguing that the terms of IMF loans eliminated domestic control over economic policy,was

A) Argentina.
B) China.
C) India.
D) Russia.

Question 39

What is the major criticism of conditionality in IMF lending?

A) It gives too much power over decisions to too few countries.
B) It restricts the amount of IMF funds available.
C) It leads to the imposition of unfair and unwise standards on borrowers.
D) It provides loans with an interest rate that is unfairly low.

Question 40

The World Bank's priorities

A) have shifted from development of the South to development of the North.
B) have shifted from development of the North to development of the South.
C) have always focused on development of the South.
D) have always focused on development of the North.

Question 41

The expansion of free economic interchange has

A) inspired countries to integrate into regional blocs.
B) extensively aided the economic growth of LDCs.
C) discouraged protectionism.
D) decreased economic nationalism.

Question 42

Economic regionalism

A) is not regulated by GATT.
B) may lead to greater protectionism and undermine global trade liberalization.
C) will undoubtedly increase global trade.
D) will certainly lessen American economic power.

Question 43

Increased global trade is thought to reduce international violence because

A) the economies of countries become linked.
B) the rich are often more interested in commerce than war.
C) most conflicts are over trade barriers.
D) war is banned by international organizations.

Question 44

The theory of "competitive advantage" was developed by

A) Adam Smith.
B) Edward Misselden.
C) David Ricardo.
D) John Stuart Mill.

Question 45

The central purpose of NAFTA is

A) political union.
B) customs union.
C) trade expansion.
D) monetary union.

Question 46

Economic internationalists argue that free trade

A) would hurt the North.
B) would undermine regional trade blocs like the EU and NAFTA.
C) could provide development capital for the South.
D) has only moral rewards for the North.

Question 47

According to free-trade advocates protectionism results in

A) increased international conflict.
B) higher prices due to tariffs.
C) increased international social class divisions.
D) the availability of fewer jobs.

Question 48

Economic internationalism argues that increasing free trade has what impact on development capital for LDCs?

A) Increase development capital because of greater foreign investment
B) Increase development capital because of more expensive goods
C) Decrease development capital because of cheap foreign goods
D) Decrease development capital because of higher interest rates for loans

Question 49

APEC members account for approximately what percentage of the world's GDP?

A) 10 percent
B) 30 percent
C) 50 percent
D) 80 percent

Question 50

Advocates of free trade argue that LDCs benefit from adopting a free-trade philosophy for all of the following reasons except that

A) foreign investment directly aids economic develop­ment in LDCs.
B) free trade increases the volume of manufactured goods available in LDCs for export.
C) free trade raises the standard of living in LDCs.
D) free trade promotes world cooperation and decreases the amount of conflict in LDCs.

Question 51

Which country was excluded from the 1994 Summit of the Americas meeting?

A) Cuba
B) Uruguay
C) the United States
D) Brazil

Question 52

Which of the following countries do free-trade ad­vocates use as evidence that free trade promotes democracy?

A) Pakistan
B) Mexico
C) Germany
D) Japan

Question 53

A trade agreement among three or more countries within a region is called

A) a Regional Trade Agreement (RTA).
B) a Free Trade Agreement (FTA).
C) the North American Free Trade Agreement (NAFTA).
D) an Economic Cooperation and Development (EDC) institution.

Question 54

The theory of competitive advantage argues that

A) wealthier countries have an economic advantage over poorer countries, which they use to dominate the international system.
B) poorer countries have a natural resource advantage over wealthier countries because they control raw materials.
C) diversification within domestic economies reduces reliance on other countries and gives individual countries a clear advantage.
D) specialization benefits all countries because it means that each country is producing that which is most cost-efficient for them to produce.

Question 55

Which country is most dependent on intra-NAFTA trade?

A) Iceland
B) Canada
C) Mexico
D) Chile

Question 56

Which of the following was not a reason for the failure of FTAA to materialize by the proposed 2005 deadline?

A) Interest groups in the United States feared the loss of subsidies.
B) LDCs feared being flooded with U.S. goods and services.
C) LDC's feared flood of American investors buying up local businesses and property.
D) Several countries insisted that Cuba be allowed to participate.

Question 57

Which IPE theory contends that specialization gives a country a competitive advantage?

A) economic internationalism
B) economic nationalism
C) economic structuralism
D) economic functionalism

Question 58

For economic internationalists,which of the following is not a noneconomic advantage to free trade?

A) World cooperation
B) Decreased international violence
C) The ability to further exploit LDCs
D) Democracy promotion

Question 59

Economic internationalists argue that free trade is beneficial to the international economy for all of the following reasons except that free trade

A) promotes general prosperity.
B) ensures that countries specialize according to their expertise.
C) promotes competition thereby ensuring better prod­ucts and more quality goods.
D) promotes tariff-building.

Question 60

Which one of the following countries is not a member of Mercosur?

A) Argentina
B) Brazil
C) Panama
D) Uruguay

Question 61

According to economic internationalists,how does free trade promote cooperation?

Question 62

Over the last 50 years,global economic cooperation has shifted to focus on development of the South.

Question 63

What is the main goal of the WTO?

Question 64

The UNDP promotes grassroots economic development in the LDCs.

Question 65

Economic nationalists argue that free trade threatens the domestic labor force and job security.

Question 66

Defenders of the IMF argue that conditionality requirements,even those that are unpopular,are necessary to correct problems that have led to financial difficulty,thus arguing that the hardships the IMF creates are a means to an end.

Question 67

What does UNCTAD stand for?

Question 68

The Doha Round of WTO talks produced great progress in addressing the concerns of both LDCs and EDCs.

Question 69

Advocates of free trade argue that increased economic interdependence among countries is inherently good because it reduces international conflict.

Question 70

What is the name of the underlying treaty of the WTO?

Question 71

Most LDCs are able to provide their own development capital.

Question 72

Unlike the IMF,the World Bank is not dominated by the North.

Question 73

The FTAA has linked the Northern Hemisphere into a single market.

Question 74

The IMF currently follows a system under which currencies are exchanged against the U.S.dollar on a fixed rate tied to the price of gold.

Question 75

The UN Conference on Trade and Development is a forum for Southern views on the global economy.

Question 76

Although public opinion has pushed the G-8 to consider development issues,the G-8 has yet to address them.

Question 77

One role that the UN plays is to regulate transnational corporations.

Question 78

List four advantages of economic nationalism.

Question 79

Membership of the IMF is restricted to EDCs.

Question 80

The theory of competitive advantage stresses that some countries are better at specialization than others.