Deck 11: Interdependence and Economic Order

Question 1

The costs imposed by Actor A on Actor B even if Actor B tries to avoid those costs describes the degree of

A) vulnerability of Actor B.
B) of sensitivity of Actor B.
C) dependence of Actor B.
D) interdependence of Actor B.

Answer 1

A

Question 2

The economic policy known as autarky

A) refers to minimizing trade to favor domestic production of all goods and services.
B) is rarely very cost-efficient.
C) is undertaken when state leaders value isolation over productive efficiency.
D) all of the above.

Answer 2

D

Question 3

In 2009,high income countries accounted for approximately ______percent of all international trade.

A) 30
B) 50
C) 70
D) 90

Answer 3

C

Question 4

Protectionism is a policy of

A) eliminating imports.
B) protecting only competitive industries.
C) restricting imports.
D) protecting all industries.

Question 5

Comparative advantage suggests that states

A) produce only goods that can be produced most cost efficiently and trade for the rest.
B) compare and adjust their economic development strategies in order to gain advantage.
C) produce only goods with high value added comparative advantage.
D) produce pizza instead of beer.

Question 6

The liberal view of interdependence is essentially

A) positive and optimistic.
B) negative and pessimistic.
C) neutral and cautious.
D) hopelessly flawed.

Question 7

Contemporary radical thinkers examine the ____________ that allows for the growing wealth divide in the world.

A) collective action problem
B) autarky
C) "spontaneous consent" of the masses
D) absolute gains

Question 8

Taxes and duties that are levied to control imports of goods and services are also known as

A) quotas.
B) nontariff barriers.
C) infant industries.
D) tariffs.

Question 9

Two elements of interdependence are

A) chaos and security dilemma.
B) security dilemma and vulnerability.
C) vulnerability and sensitivity.
D) sensitivity and chaos.

Question 10

Vulnerability in the international system is measured by

A) how quickly changes in one actor bring about changes in another actor.
B) the effects of national change on the global system.
C) the costs imposed on a state by external events.
D) the effects of technological growth.

Question 11

The economic doctrine that believes the best way to maximize wealth and reduce vulnerability is to actively encourage exports while discouraging imports is known as

A) market-based policy.
B) mercantilism.
C) monetary policy.
D) liberalism.

Question 12

How quickly changes in Actor A bring about changes in Actor B describes the degree of

A) vulnerability of Actor B to Actor A.
B) sensitivity of Actor B to Actor A.
C) dependence of Actor B to Actor A.
D) interdependence of Actor B to Actor A.

Question 13

The economic principle that suggests the tariffs imposed on goods imported from one state are no higher than the tariffs imposed on those same goods from any other state is known as

A) autarky.
B) mercantilism.
C) comparative advantage.
D) most-favored-nation status.

Question 14

_______________is an event that illustrates the concepts of both sensitivity and vulnerability.

A) Dropping the atomic bomb
B) The end of the cold war
C) The Asian financial crisis
D) 9/11

Question 15

Which of the following is NOT a nontariff barrier to trade (NTBs)?

A) Taxes
B) Quotas
C) Subsidies
D) Boycotts

Question 16

Realists are concerned with _________ gains;whereas liberals focus on __________ gains.

A) absolute;relative
B) positive;mutual
C) relative;absolute
D) mutual;positive

Question 17

One of the basic principles of international trade refers to how states produce what they are best at producing and then trading the surplus for other goods.This is also known as

A) surplus trade rules.
B) export controls.
C) comparative advantage.
D) none of the above.

Question 18

The concept of comparative advantage was developed by

A) Adam Smith.
B) Alexander Hamilton.
C) David Ricardo.
D) Robert Schuman.

Question 19

An economic policy of autarky involves

A) trading only within a regional organization.
B) minimizing trade in favor of domestic production.
C) granting Most Favored Nation trading status to competitors.
D) maximizing trade in favor of global production.

Question 20

_________ believes that in the domain of international political economy,international organizations and MNCs have the same influence as states.

A) Neomercantilists
B) Realists
C) Liberals
D) Radicals

Question 21

A policy whereby the state promotes certain export industries by providing government subsidies or other forms of assistance is known as

A) strategic trade.
B) comparative advantage.
C) embedded liberalism.
D) industrial policy.

Question 22

Founded in 1947,the General Agreement on Trade and Tariffs established rules aimed at

A) increasing sovereignty and strengthening the UN.
B) reducing trade barriers and mediating trade disputes.
C) the gold standard and fixed exchange rates.
D) establishing bilateral trade relations.

Question 23

Economic nationalism attempts to

A) reduce barriers to trade for the purpose of expanding global wealth.
B) minimize trade in favor of domestic production of all goods and services.
C) enhance the economic competitiveness of certain domestic industries.
D) gain trade partners with a comparative advantage.

Question 24

In 2010,the U.S.trade deficit with China was almost

A) $75 billion.
B) $175 billion.
C) $275 billion.
D) $375 billion.

Question 25

When and why do governments intervene in the market? What are two traditional areas of intervention? Explain.

Question 26

The mechanism designed to help states manage their exchange rates,maintain their reserve currencies,and regulate the movement of international capital is called

A) the capitalist system.
B) the gold standard.
C) a world bank.
D) an international monetary regime.

Question 27

What are the causes and consequences of the global move toward free trade? Explain and provide examples.

Question 28

In what ways has the World Trade Organization advanced liberal trade? Provide examples.

Question 29

By 2010,almost _________ trade disputes had been submitted to the World Trade Organization.

A) 125
B) 275
C) 325
D) 450

Question 30

Embedded liberalism refers to

A) the economic liberalism embedded within shared understanding of international relations.
B) the language in multilateral treaties mandating economic liberalism.
C) the language in multilateral treaties mandating political liberalism.
D) the commitment to embed economic and political liberalism into trade agreements.

Question 31

What is comparative advantage? Does it always work to increase the wealth of nations? Why or why not? Explain.

Question 32

The case where one state is able and willing to determine and maintain the essential rules by which relations among states are governed is called

A) anarchy.
B) free trade.
C) hegemony.
D) capitalism.

Question 33

Hegemonic decline under the Bretton Woods system refers to

A) the sun setting on the British empire.
B) the 1970s reality that the U.S.economy could no longer be the sole engine of worldwide economic growth.
C) the 1930s shift away from gold as the standard currency under Truman.
D) the Fall of the Roman Empire.

Question 34

A network of rules,norms and procedures that regularize behavior and control its effects is also known as

A) a regime.
B) an organization.
C) interdependence.
D) forced compliance.

Question 35

What functions and purposes do regimes provide? How and why are they created? Explain and provide examples.

Question 36

The total trade of OECD countries amounts to more than _________ of their collective GDP.

A) one-fourth
B) one-third
C) one-half
D) two-thirds

Question 37

China's pirating of computer software,audio recordings,and other high-tech goods protected by copyrights is likely to decrease in the future because

A) it now has a vibrant domestic market and demand for such goods.
B) its move toward liberal democracy compels it to focus on the rule of law.
C) its membership in the WTO will necessitate some economic restructuring and economic transparency.
D) it is suffering under economic sanctions.

Question 38

International interdependence has two dimensions: sensitivity and vulnerability.Explain.

Question 39

By 2008,WTO membership was approximately ______ member states.

A) 130
B) 150
C) 170
D) 190