Deck 4: Liberalism

Question 1

Adam Smith

A) supported laissez-faire policies that opposed any government intervention.
B) is closely associated with the theory of absolute advantage
C) believed that states should institute free trade policies unilaterally if necessary to permit the market to operate.
D) is closely associated with the theory of comparative advantage.

Answer 1

B

Question 2

Liberals

A) are not attuned to the role of power in interdependent relationships.
B) see technological change as an important force behind the potential for development.
C) are not concerned with distributional issues.
D) assume that states are likely to gain equally from open economic relationships.

Answer 2

B

Question 3

Interventionist liberals are more concerned than orthodox liberals with

A) international institutions
B) negative freedom
C) distributional issues
D) domestic-international interactions

Answer 3

C

Question 4

John Maynard Keynes

A) viewed limits on imports as sometimes justifiable.
B) favored internationalist policies at Bretton Woods because of his commitment to free trade.
C) did not accept a large extension of the traditional functions of government.
D) was accepting of the forceful nationalism of the interwar years.

Question 5

Keynesians have what view of deficit spending?

A) may be necessary when there is a long-term downturn
B) should be balanced out during prosperous times
C) is more likely to be effective than changing interest rates in a recession
D) all of the above

Question 6

The embedded liberal compromise

A) was supported by a domestic class compromise between business and labor
B) was a term used by Karl Polanyi to warn against the self-regulating market
C) was a term coined by Keynes to indicate his commitment to interventionist liberalism.
D) indicates that postwar efforts to maintain an open liberal international economy were embedded in institutions to ensure that there was global regulation

Question 7

Friedrich Hayek and Milton Friedman

A) reluctantly accepted the move to embedded liberalism in the 1940s to 1960s.
B) preferred economic planning only in some circumstances.
C) tried to reach some consensus with interventionist liberals.
D) supported a strict separation between politics and economics.

Question 8

The term "stagflation" refers to what combination of conditions:

A) high interest rates and high unemployment
B) low interest rates and high unemployment
C) high prices and high unemployment
D) low prices and high unemployment

Question 9

Liberals generally posit that

A) trade is likely to dampen conflict
B) trade and conflict are independent
C) trade can exacerbate conflict
D) trade depends on the resolution of conflict

Question 10

Robert Keohane and Joseph Nye

A) believe there is a hierarchy of issue areas in international relations.
B) view interdependence as having a fairly uniform effect on states.
C) believe that asymmetrical interdependence can be a source of power.
D) expect larger states to be successful in most cases with smaller states in complex interdependent relationships.

Question 11

Neomercantilists are more skeptical than liberals that states can move to Pareto-optimal outcomes in prisoners' dilemma because

A) they believe that prisoners' gains and losses are not likely to be balanced and equitable.
B) they are very concerned about free riding by states.
C) they view the prisoners as rational, self-interested individuals.
D) they see cheating as a major problem.

Question 12

Many liberal theorists shifted their focus from regimes to global governance because

A) global governance studies tend to be less state-centric than regime studies.
B) the global governance concept is usually more conducive to the development of useful theories.
C) global governance studies tend to focus more on order and cooperation among states.
D) global governance studies usually focus more on issue areas.

Question 13

Rational choice theorists alert us to what principal obstacles to trade liberalization:

A) trade depends on hegemony
B) trade seeks to minimize transactions costs
C) trade requires multiple level negotiations
D) trade agreements are difficult to pass because costs are concentrated while benefits are diffuse

Question 14

In two-level game theory, a win set is

A) a set of issues that can be bargained away at the negotiating table
B) based purely on the perceptions of the domestic constituencies and global negotiating partners
C) the set of the overlap of acceptable domestic and global agreements
D) the set of agreements that will push forward the negotiator's objectives.

Question 15

Interventionist liberals

A) point to the inequalities between the North and the South.
B) do not consider domestic inefficiencies in LDCs to be a serious problem.
C) oppose any protectionism for LDC industries.
D) raise questions as to whether private enterprise is the best answer for LDCs.

Question 16

Most modernization theorists believed that

A) LDC development problems resulted from domestic as well as international factors.
B) LDCs should adopt Western norms and institutions.
C) changes required for development would not create dislocation and hardship.
D) LDCs could follow different routes to development.

Question 17

Interventionist liberals tend to emphasize negative freedom.

Question 18

Liberals tend to view economics and politics as separate and autonomous spheres of activity.

Question 19

Adam Smith was dead set against government intervention.

Question 20

Interventionist liberals such as Keynes put a higher priority than orthodox liberals on specialization and international trade.

Question 21

A Pareto-optimal outcome is the best possible outcome for a prisoner in prisoners' dilemma.

Question 22

Regime studies tend to be less state-centric than governance studies.

Question 23

In two-level game theory, negotiators may have weaker bargaining positions if they are not subject to strong domestic pressures.

Question 24

Friedrich Von Hayek's critique of interventionism reached a wide audience by the 1960s.

Question 25

Most modernization theorists were deterministic, advising the South to follow the same path to development as the North.

Question 26

Theorists that promote "negative freedom" are known as __________________ liberals.

Question 27

Early liberal writing expects that __________order arises because of the self-interest of individuals.

Question 28

Karl Polanyi believed that the orthodox liberal commitment to the ________________ market produced such disasters as the Great Depression.

Question 29

In an _______________ relationship, transactions have reciprocal (but not necessarily symmetrical) costly effects.

Question 30

John Gerard Ruggie coined the term______________ in reference to the postwar balance between an open liberal international economy, and societal efforts to promote domestic security and stability for individuals.

Question 31

The best collective outcome in prisoners' dilemma is a _____________optimal outcome.

Question 32

International______________are principles, norms, rules, and decision-making procedures around which actors' expectations converge in an area of international relations.

Question 33

Robert Putnam coined the term______________ games in reference to the interaction between a state's international interests and obligations on the one hand, and domestic interactions within the state on the other.

Question 34

What are the similarities and differences between orthodox and interventionist liberalism? Using a concrete example of a global trade or financial issue, such as the renegotiation of the USMCA, trace out how each would seek to resolve it.

Question 35

Consider and expose the fundamental roots of the liberal tradition in terms of its view of human nature and how society should be organized in regard to the economy. What are the positives and negatives of its emphasis on individual freedom? Try to use concrete examples.

Question 36

How did Keynes justify government intervention through "pump priming?" Do you agree with his reasoning, or that of the monetarists and why? Use a recent event, such as the 2008 financial crisis as a test case.4) Why did neoliberalism emerge? How does it differ from the liberalism of Adam Smith? What predictions did Friedman make in regard to the relationship of economic and political freedom and why or why not has it held up to the test of time?

Question 37

Why did Ruggie's "embedded liberalism" become so important after World War II, and what are the implications for the state's role? What are the implications for the management of global trade and finance?

Question 38

Do you buy the fundamental argument behind interdependence? Is there evidence for it happening over time? Take a pair of countries or regions and see whether the implications of increasing or decreasing trade support the interdependence paradigm.

Question 39

How does prisoners' dilemma demonstrate "collective action problems"? How and why do neomercantilists and liberals differ in their views regarding the possibilities for cooperation under prisoners' dilemma?

Question 40

What are the major strengths and shortcomings of regime theory? Do you think that global governance is a more useful concept than regimes and why?

Question 41

What are international regimes, and what are the views of theorists regarding the formation, maintenance, and results of regimes?

Question 42

Examine a recent trade negotiation, such as the USMCA, and explain how you would apply the two level game approach. Take a look at one of the key modifications from the NAFTA and see how well the approach explains it.