Deck 10: National Economic Competition: The Traditional Road

Question 1

Which approach to international political economy views the international economy as a non-zero-sum game?

A) Economic nationalism
B) Economic structuralism
C) Economic internationalism
D) Economic statecraft

Answer 1

C

Question 2

Why have some institutions such as the World Bank moved away from using GNP as a measure of a country's financial status and toward an adjusted GNP based on purchasing power parity (PPP)?

A) They believe that PPP is a more accurate measure because it takes into account the cost of locally produced and consumed goods.
B) They believe that PPP is a more accurate measure because it takes into account the social costs of neoimperialism.
C) They believe that PPP is a more accurate measure because it separates the North and South before making comparisons.
D) They believe that PPP is a more accurate measure because it places newly industrializing countries into its own category.

Answer 2

A

Question 3

Economic nationalists rely on all of the following strategies to preserve and expand state power except

A) economic disincentives.
B) imperialism.
C) free trade.
D) protectionism.

Answer 3

C

Question 4

Which approach to international political economy argues that global prosperity is best achieved by freeing economic interchange from political restrictions?

A) Dependency theory
B) Economic nationalism
C) Economic structuralism
D) Economic internationalism

Question 5

Economists often compare the wealth of countries in terms of purchasing power parity because

A) countries use different currencies.
B) inflation rates vary across countries.
C) it controls for the different costs of living in different countries.
D) it controls for the national debt of countries.

Question 6

What relationship do economic structuralists see between economics and politics?

A) The economic order determines politics.
B) The political order determines economic relation­ships.
C) Economic relations are independent of politics.
D) Economic inequality is the result of the political system.

Question 7

Economic liberals are considered modified capitalists because they believe that

A) capitalism should be radically reformed to reduce class-based divisions.
B) IGOs and national governments should be used in a limited sense to ensure fair competition.
C) politics should play a more pivotal role in economic policy.
D) pure free trade without political interference will increase global prosperity.

Question 8

In the Communist Manifesto,Karl Marx argued that the struggle between the bourgeosie and the proletariat was primarily over

A) the right to vote.
B) land.
C) nationalism.
D) the distribution of wealth.

Question 9

To control for the impact of inflation,economists will often convert "current dollars" to

A) deflated dollars.
B) old dollars.
C) regular dollars.
D) real dollars.

Question 10

The view that a state should manipulate all movement of goods and services in the interest of the state is a policy that would be advocated by

A) free trade.
B) economic nationalists.
C) neoliberals.
D) Marxists.

Question 11

Economic internationalists would advocate using all of the following tactics except

A) loans.
B) investment.
C) international aid.
D) sanctions.

Question 12

When Adam Smith argued in The Wealth of Nations that politics should not interfere with trade,he was advocating economic

A) nationalism.
B) structuralism.
C) internationalism.
D) mercantilism.

Question 13

Which of the following represents the realpolitik school of international political economy?

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

Question 14

All of the following are terms associated with economic structuralism except

A) dependency.
B) neocolonialism.
C) neoliberalism.
D) neoimperialism.

Question 15

Which approach to international political economy focuses on increasing global prosperity through inter­national cooperation?

A) Economic nationalism
B) Economic internationalism
C) Economic structuralism
D) Economic statecraft

Question 16

Why are economic nationalists suspicious of economic interdependence?

A) They believe that it further perpetuates class conflict.
B) They believe that it inhibits free markets and inter­national free economic exchange.
C) They believe that it undermines state sovereignty and weakens national economic strength.
D) They believe that it gives some countries a competi­tive advantage over others.

Question 17

One criticism of using Gross National Product (GNP)as a basis to determine how well countries are doing is that the GNP

A) does not take into account prices for locally con­sumed goods despite the fact that the cost of locally consumed goods affects purchasing power.
B) is a biased measure because it is based on the U.S. dollar.
C) is an outdated measure that does not take into account the move toward standardized currencies such as the euro.
D) relies too heavily on purchasing power to determine the economic health of countries.

Question 18

The two groups who believe in economic structuralism are world systems theorists and

A) dependency theorists.
B) federalist theorists.
C) imperialist theorists.
D) neoimperialist theorists.

Question 19

Dependency theory maintains that the uneven distribu­tion of wealth is the result of

A) wealthy countries' use of protectionist tariffs to limit international trade.
B) wealthy countries' exploitation of poor countries for primary products and the continued depen­dence of poorer countries on wealthy countries for manufactured goods.
C) continued imperialistic expansion by wealthier countries.
D) too much political intervention in international trade.

Question 20

An individual who advocates the direct control of another land for national economic gain is most likely an economic

A) nationalist.
B) liberalist.
C) structuralist.
D) internationalist.

Question 21

The primary reason that the General Agreement on Tariffs and Trade was established was to

A) set trade tariffs between countries.
B) coordinate trade throughout the world.
C) provide a means for countries to reduce international trade barriers.
D) help LDCs to increase their trade.

Question 22

Approximately how many people in the world live in extreme poverty?

A) 1 million
B) 10 million
C) 100 million
D) 1 billion

Question 23

World system theorists would argue that the U.S.role in the Persian Gulf during the 1990s was the result of the U.S.desire to

A) promote free trade and capitalism.
B) end Iraqi imperialism.
C) to protect oil-producing countries so that they could continue to get crude oil at lower prices.
D) to end despotic rule in the region.

Question 24

Trade involving tangible items such as food and clothing is known as

A) export trade.
B) services trade.
C) merchandise trade.
D) primary trade.

Question 25

The mixed pattern of LDC development is caused by

A) domination by the North.
B) disparity within LDC countries.
C) disparity between LDC countries.
D) disparity both within and between LDC countries.

Question 26

The percentage of total worldwide FDI going to sub-Saharan Africa is

A) 5 percent.
B) 10 percent.
C) 25 percent.
D) 50 percent.

Question 27

Investment in foreign companies or real estate is known as

A) foreign direct investment.
B) foreign portfolio investment.
C) foreign service investment.
D) foreign goods investment.

Question 28

Foreign investment in the United States

A) is a threat to the American economy.
B) decreases the country's trade deficit.
C) helps to finance American businesses.
D) primarily results in the loss of American jobs.

Question 29

The creation of the General Agreement on Tariffs and Trade (GATT)was primarily motivated by the

A) Great Depression.
B) industrial revolution.
C) 1970s oil crisis.
D) cold war.

Question 30

Which of the following statements best characterizes the South?

A) The South has a diverse economy based primarily on services, trade, and industry.
B) The South has a limited economy based primarily on agriculture and the production of raw materials.
C) The South has transitioned in the last decade from an industry-based economy to a service-based economy.
D) The South has a singular economy based on the production of manufactured goods.

Question 31

Increased supply and demand for material goods can be traced back to

A) the Great Depression.
B) World War I.
C) World War II.
D) the industrial revolution.

Question 32

Countries that have made significant strides toward the establishment of a modern economic base are often referred to as

A) newly developing countries (NDCs).
B) countries in transition (CITs).
C) economically developed countries (EDCs).
D) newly industrializing countries (NICs).

Question 33

Reliance on primary products as a form of trade

A) has benefited LDCs that produce more than one primary product.
B) does not suffer from price instability.
C) has not been a highly effective means for LDC development.
D) has not provided a substantial income for any LDC.

Question 34

Structuralists would argue that the current low price of oil is a result of

A) an oversupply of oil and lower demand from consumers.
B) increased efforts by EDCs to produce more of their own oil.
C) manipulation of the market economy by oil produc­ers and capitalist consumers.
D) economic sanctions placed on oil-producing coun­tries by the United States.

Question 35

Over the past 100 years tariffs on foreign goods imported to the United States have

A) increased as the United States has become more focused on domestic job security.
B) decreased as the United States has embraced free trade as a means to ensure global prosperity.
C) remained relatively stable.
D) fluctuated dramatically because Republican pres­idents tend to support tariffs whereas Democratic presidents tend to oppose them.

Question 36

Which of the following statements about the general pattern of trade is true?

A) World trade has decreased over the past 100 years as a greater number of countries have sought protec­tionist strategies to protect their labor markets.
B) World trade has increased over the past 100 years due to growing economic interdependence.
C) World trade has leveled off over the past 100 years as a greater number of countries have begun to focus on domestic specialization.
D) World trade has fluctuated significantly over the past 100 years because it is closely linked to international politics.

Question 37

FDI and FPI are forms of

A) bilateral subsidies.
B) private investment.
C) IMF lending.
D) NGO development aid.

Question 38

The dependency school argues that EDCs exploit the LDCs' supply of

A) primary products.
B) manufactured goods.
C) high technology.
D) skilled labor.

Question 39

A negative side effect of modernization is

A) rapid urbanization.
B) increased longevity.
C) a population decrease.
D) a decrease in levels of infant mortality.

Question 40

The value of two currencies in relation to each other is known as

A) purchasing power.
B) exchange rate.
C) balance of payments.
D) monetary relations.

Question 41

Which of the following is a major problem spawned by rapid urbanization?

A) shortages of hard currency
B) overemployment in urban areas
C) weakening of traditional networks and the social order
D) overly rapid adjustments to an urban way of life by migrants

Question 42

Products that can be employed for both civilian and military use are known as what?

A) Bilateral goods
B) Military goods
C) Dual-use goods
D) Multipurpose products

Question 43

Nationalist opposition to economic integration and cooperation

A) has declined significantly.
B) has declined somewhat.
C) remains strong in many places.
D) was never much of a force.

Question 44

The end of the cold war has

A) increased the need for strategic cooperation.
B) lessened the need for strategic cooperation.
C) had no effect on the global economy.
D) caused a rapid acceleration in the world's economy.

Question 45

All companies that produce major military weapons require approval from whom before their sale on the international market?

A) Government
B) Foreign Ministry
C) Military
D) United Nations

Question 46

A country's sale of its exports in foreign markets at below-cost prices is known as

A) capitalism.
B) mercantilism.
C) dumping.
D) comparative advantage.

Question 47

Which of the following is not an instrument used by governments to restrict trade?

A) tariffs
B) quotas
C) health and safety standards
D) loans

Question 48

An international agreement among producers that attempts to control the price and supply of a product is a

A) multinational corporation.
B) cartel.
C) subsidy.
D) oligarchy.

Question 49

The economic model that is unquestionably dominant in the current international system is

A) capitalism.
B) socialism.
C) mercantilism.
D) Marxism.

Question 50

Which of the following is a cartel?

A) Organization of Economic Cooperation and Development (OECD)
B) International Monetary Fund (IMF)
C) Organization of Petroleum Exporting Countries (OPEC)
D) Dutch East India Company

Question 51

Efforts to insulate a state's economy from the pressures of the global economy are often called

A) protectionism.
B) insulation policy.
C) a new international economic order.
D) a mixed-economy.

Question 52

The New International Economic Order

A) lacks UN support.
B) was repudiated by the "Havana Program of Action."
C) reaffirms the desirability of laissez-faire capitalism
D) calls for reforms in the global economy to address inequality and poverty.

Question 53

Domestic subsidies are used by governments to

A) give an unfair competitive advantage to a domestic company or industry.
B) promote trade liberalization.
C) curb corporate corruption.
D) encourage companies to adopt better labor and environmental standards.

Question 54

The fundamental cause of concern among EDCs is that the North's growth rate has

A) expanded.
B) contracted.
C) stagnated.
D) slowed.

Question 55

What is not a central point of the proposed New International Economic Order?

A) trade reforms
B) greater labor migration
C) debt relief
D) a reduction in economic aid

Question 56

The movement of service jobs from the North to the South is commonly referred to as

A) job transferring.
B) streamlining.
C) automation.
D) outsourcing.

Question 57

A stronger or weaker currency has both advantages and disadvantages.Which of the following is a disadvantage (for Americans)of having a strong U.S.dollar?

A) Lower prices for foreign goods and services
B) Foreign stocks and bonds cost less
C) Foreign investments are more costly
D) U.S. firms must compete with lower priced imports

Question 58

Which of the following best captures public perception of globalization in the North and South?

A) Citizens in the North are skeptical while citizens in the South are pleased: many in the North believe their prosperity to be threatened by movement of jobs; many in the South believe globalization is helping to grow their economies.
B) Citizens in the North are pleased while citizens in the South are skeptical: many in the North believe their prosperity is due to their advantageous trading arrangements with the South; many in the South believe globalization benefits the North at the South's expense.
C) Citizens in both the North and South are pleased: many in the North believe their prosperity is due to their advantageous trading arrangements with the South; many in the South believe globalization is helping to grow their economies.
D) Citizens in both the North and South are skeptical: many in the North believe their prosperity to be threatened by movement of jobs; many in the South believe globalization benefits the North at the South's expense.

Question 59

In their attempt to stop Iran from developing plutonium and weapons-grade uranium,the EU and UN Security Council tried a mix of

A) subsidies and dumping.
B) economic incentives and economic sanctions.
C) economic sanctions and dumping.
D) economic incentives and subsidies.

Question 60

The most common form of investment restriction limits foreign

A) ownership of companies and real estate.
B) control of transportation industries.
C) trade through travel.
D) subsidies.

Question 61

Economic internationalists believe in using economic policy to further national interests.

Question 62

Economic structuralist theory maintains that the economic order determines political and social relationships.

Question 63

Name the three main approaches to IPE.

Question 64

The EDC's slowing economies have sharpened the competition among them.

Question 65

Countries can implement both tariff and nontariff barriers to limit imports or investment.

Question 66

Economic internationalists support the use of IGOs and national government interference in the economy for what two reasons?

Question 67

International exchange rates have little impact on domestic economies.

Question 68

Tax breaks are no longer a popular form of governmen­tal subsidy.

Question 69

Dependency theory maintains that the exploitation of LDCs occurs because EDCs require cheap primary goods.

Question 70

Economic sanctions and economic incentives can be used simultaneously.

Question 71

The primary exports of LDCs are manufactured goods.

Question 72

The world is on an inevitable path towards integration and cooperation.

Question 73

Economic nationalists believe in using economic policy to further national interests.

Question 74

List three of the political-economic strategies used by economic nationalists.

Question 75

The North-South analytical categorization is rendered obsolete by the existence of NICs.

Question 76

Using a country's economic data,such as GDP,is an absolute and accurate way to determine its wealth and to compare countries.

Question 77

Why do some economists argue that the GNP does not give an accurate picture of a country's financial status?

Question 78

What are the three major strands of thought in economic structuralism?

Question 79

Disparity within countries is not an economic problem facing LDCs.

Question 80

Once implemented,cartels have always proven to be successful.