TEST BANK
GLOBAL POLITICAL ECONOMY: THEORY AND
PRACTICE
,Global Political Economy 9th Edition
Table of Contents
PART I — Introduction and Overview
Chapter 1 — Introduction
Chapter 2 — Managing the Global Economy Since World War II: The Institutional Framework
PART II — Theoretical Perspectives
Chapter 3 — Realism and Neomercantilism
Chapter 4 — Liberalism
Chapter 5 — Critical Perspectives
PART III — The Issue Areas
Chapter 6 — International Monetary Relations
Chapter 7 — Financial Crises
Chapter 8 — Global Trade Relations
Chapter 9 — Preferential Trade Agreements and the Global Trade Regime
Chapter 10 — Multinational Corporations and Global Production
Chapter 11 — International Development
PART IV — Concluding Comments
Chapter 12 — Reconsidering GPE and Its Ability to Meet Emerging Challenges
,PART I — INTRODUCTION AND OVERVIEW
CHAPTER 1 — Introduction
Question 1 � Easy
Which of the following best defines "Global Political Economy" (GPE) as used by Cohn
and Hira?
A) The study of how governments regulate domestic financial markets
B) The study of the interaction between political and economic forces at the global level
C) The exclusive study of international trade agreements among developed nations
D) The analysis of military power and its effect on national economies
� ANSWER: B
Rationale: Cohn and Hira define GPE (also called International Political Economy, or IPE) as a
field that examines the interaction between politics and economics at the international or global
level. Option A is too narrow (domestic focus), Option C excludes developing nations and non-
trade issues, and Option D reduces GPE to a security/military analysis, which misses the
economic dimensions central to the field.
Question 2 � Easy
The term "International Political Economy" (IPE) is sometimes used interchangeably with
"Global Political Economy" (GPE). What is the primary reason some scholars prefer the
term "GPE"?
A) GPE focuses exclusively on economic globalization and ignores politics
B) GPE better reflects the involvement of non-state actors and transnational processes beyond
the state-centric focus implied by "international"
C) GPE is more commonly used by realist scholars than by liberals
D) GPE refers specifically to the post-Cold War period
� ANSWER: B
Rationale: The preference for "global" over "international" reflects a recognition that many key
actors in today's political economy—multinational corporations (MNCs), international
organizations (IOs), non-governmental organizations (NGOs), and global civil society—are not
,simply "inter-national" (between nations/states). "Global" captures transnational and subnational
dynamics that the state-centric term "international" may obscure.
Question 3 � Easy
According to Cohn and Hira, which of the following is an example of a "high politics" issue
traditionally studied in international relations?
A) Exchange rate management
B) Foreign direct investment flows
C) National security and military alliances
D) Tariff negotiations under the WTO
� ANSWER:C
Rationale: "High politics" refers to issues of national security, sovereignty, and military
power—traditionally the core concern of international relations (IR). "Low politics" historically
referred to economic and social issues (trade, investment, monetary policy). GPE emerged partly
from the recognition that this distinction is artificial and that "low politics" issues profoundly
affect security.
Question 4 � Easy
Which of the following best describes the concept of "globalization" as discussed in
Chapter 1?
A) The process by which all countries adopt identical economic policies
B) The increasing interconnectedness and interdependence of countries across economic,
political, and cultural dimensions
C) A policy promoted exclusively by the United States after World War II
D) The replacement of nation-states by global governing institutions
� ANSWER: B
Rationale: Globalization is understood as increasing interconnectedness across multiple
dimensions—economic, political, social, and cultural. It does not imply uniformity of policy (A),
is not a solely U.S.-driven project (C), and has not eliminated nation-states (D), though it does
challenge state sovereignty in various ways.
Question 5 � Easy
,Cohn and Hira identify three major theoretical perspectives used to analyze GPE. Which
of the following is NOT one of them?
A) Realism/Neomercantilism
B) Liberalism
C) Feminism (as a standalone primary framework)
D) Critical Perspectives
� ANSWER:C
Rationale: The three primary theoretical frameworks Cohn and Hira organize around are (1)
Realism/Neomercantilism, (2) Liberalism, and (3) Critical Perspectives (which includes
Marxism, dependency theory, constructivism, feminism, environmentalism, etc.). Feminism is
incorporated within the broader critical perspectives chapter rather than standing as one of the
three main pillars alongside realism and liberalism.
Question 6 � Easy
What does the term "interdependence" mean in the context of GPE?
A) All countries are equally powerful in the global system
B) Countries are mutually dependent on each other, such that actions in one country affect others
C) Developing countries depend on developed countries for financial aid
D) States must cooperate militarily to survive
� ANSWER: B
Rationale: Interdependence refers to mutual dependence—the situation in which countries are
linked such that events or decisions in one country produce consequences in others. This
is mutual, not hierarchical (ruling out A and C), and extends well beyond military matters (ruling
out D).
Question 7 � Medium
Cohn and Hira argue that the line between "domestic" and "international" political
economy is increasingly blurred. Which of the following scenarios BEST illustrates this
argument?
A) A country decides to build a new domestic highway system
B) A U.S. Federal Reserve interest rate decision triggers capital outflows from emerging market
economies
,C) Two neighboring countries sign a bilateral military defense treaty
D) A domestic labor union negotiates wages with a local factory
� ANSWER: B
Rationale: When the U.S. Federal Reserve raises interest rates, capital may flow from emerging
markets to the U.S. to seek higher returns, causing currency depreciations and financial
instability in those countries. This illustrates how a domestic policy decision by one country's
central bank produces major international economic consequences—perfectly illustrating the
blurred domestic/international boundary. Options A and D are purely domestic, and C is
primarily a political/security matter.
Question 8 � Medium
Which of the following statements BEST captures the difference between "positive" and
"normative" approaches in GPE?
A) Positive approaches focus on what should happen; normative approaches focus on
what does happen
B) Positive approaches seek to explain and describe reality as it is; normative approaches are
concerned with how the world ought to be
C) Positive approaches are used only by liberals; normative approaches are used only by realists
D) Positive approaches deal with quantitative data; normative approaches deal with historical
analysis
� ANSWER: B
Rationale: In social science, "positive" (or empirical) analysis aims to describe and explain
what is—it tests claims against observable evidence. "Normative" analysis involves value
judgments about what ought to be. Option A reverses the definitions. Options C and D
incorrectly tie methodological approaches to specific theoretical traditions or research methods.
Question 9 � Medium
Cohn and Hira discuss the concept of "hegemony" in GPE. Which of the following BEST
defines hegemony in this context?
A) A situation in which two great powers divide the world into spheres of influence
B) The dominance of a single state that has the power and willingness to establish and maintain
the rules of the international economic order
C) A form of government in which a single party controls all economic decisions
D) The economic dominance of multinational corporations over nation-states
,� ANSWER: B
Rationale: In GPE, hegemony refers to the preponderant power of a single state—the
hegemon—that is capable of and willing to provide global public goods (such as a stable reserve
currency, open markets, and international institutions). This concept is central to Hegemonic
Stability Theory. It is state-centric (ruling out D), refers to a single dominant power not a bipolar
arrangement (ruling out A), and is not about internal governance (ruling out C).
Question 10 � Medium
Why do Cohn and Hira argue that GPE is an interdisciplinary field?
A) It borrows from economics, political science, sociology, and history to understand complex
global phenomena
B) It requires scholars to simultaneously study all countries in the world equally
C) It was developed by combining military strategy with trade policy analysis
D) GPE scholars must conduct field research in multiple countries to produce valid findings
� ANSWER: A
Rationale: GPE/IPE is inherently interdisciplinary because neither economics nor political
science alone can fully explain the complex interactions between markets, states, and global
institutions. Scholars draw on economic theory, political analysis, historical context, sociological
insights, and more. The other options confuse "interdisciplinary" with other meanings of breadth
or scope.
Question 11 � Medium
According to Cohn and Hira, what is a key limitation of purely economic approaches to
understanding global trade and finance?
A) Economics uses too much historical data to be relevant today
B) Economic models tend to ignore political power, institutions, and the distributional
consequences of economic outcomes
C) Economic approaches are unable to measure GDP or trade balances accurately
D) Economics focuses too much on developing countries and ignores developed nations
� ANSWER: B
Rationale: A central argument for GPE as a distinct field is that orthodox economics—
especially neoclassical economics—tends to treat markets as largely apolitical mechanisms
governed by supply and demand. This ignores how political power shapes market outcomes, how
,institutions mediate economic exchange, and how the benefits and costs of economic integration
are distributed unevenly across and within countries.
Question 12 � Medium
Cohn and Hira note that GPE scholars debate whether the global economy is becoming
more or less "globalized." Which of the following pieces of evidence would MOST support
the argument that globalization is deepening?
A) A rise in tariff barriers among major trading nations
B) An increase in cross-border capital flows, foreign direct investment, and digital trade relative
to GDP
C) The withdrawal of major economies from international organizations
D) Growing nationalism and protectionist sentiment in domestic politics
� ANSWER: B
Rationale: Globalization is typically measured by indicators such as trade as a share of GDP,
cross-border capital flows, FDI, migration, and information exchange. An increase in these flows
relative to economic output (B) is the clearest evidence of deepening globalization. Options A,
C, and D are all indicators of de-globalization or deglobalization pressures.
Question 13 � Hard
Cohn and Hira argue that GPE must go beyond state-centric analysis. Critically evaluate
the following claim: "Non-state actors have become so powerful that the state is no longer
the primary unit of analysis in GPE."
A) This claim is fully supported because MNCs control more resources than most governments
B) This claim is overstated; states remain central because they set the rules within which non-
state actors operate, even if non-state actors have grown in influence
C) This claim is fully correct because international organizations like the WTO have replaced
states in trade policymaking
D) This claim is irrelevant because GPE only studies economic institutions, not political actors
� ANSWER: B
Rationale: While non-state actors (MNCs, NGOs, IOs) have indeed grown in power and
influence, it would be premature to declare the state obsolete. States remain crucial because they:
(1) create and enforce legal frameworks within which markets and firms operate; (2) provide
national security and property rights; (3) represent citizens in international negotiations; and (4)
retain the legitimate monopoly on coercive power. The claim in A overstates the case—having
,more revenue than some small states does not translate into governing authority. C is incorrect
because WTO decisions still require state consent and are implemented by states. D
mischaracterizes GPE entirely.
Question 14 � Hard
Consider the following argument: "Globalization is not a natural or inevitable process; it is
a politically constructed and politically reversible phenomenon." Based on Chapter 1 of
Cohn and Hira, which theoretical perspective would MOST strongly support this view, and
why?
A) Orthodox liberalism, because liberals believe free markets naturally lead to globalization
B) Critical perspectives, because they emphasize how power, ideology, and political choices
shape economic structures
C) Realism, because realists believe globalization is driven by military power
D) Neoclassical economics, because it shows that comparative advantage automatically produces
global trade
� ANSWER: B
Rationale: Critical perspectives—including historical materialism, constructivism, and various
heterodox approaches—are most likely to view globalization as a constructed project reflecting
the interests of powerful actors (states, classes, corporations) and embedded in specific
ideological frameworks (such as neoliberalism). They emphasize that what appears "natural" or
"inevitable" is actually the result of political choices that can be contested and changed. Liberals
(A) and neoclassical economists (D) tend to naturalize markets and globalization. Realists (C)
focus on state power but typically do not frame globalization as ideologically constructed in the
same critical-theoretical sense.
Question 15 � Hard
Cohn and Hira discuss the tension between "efficiency" and "equity" in the global
economy. Which of the following scenarios BEST illustrates this tension?
A) A country reduces tariffs, increasing overall economic efficiency and trade volume, but the
gains accrue primarily to wealthy investors while workers in import-competing industries lose
their jobs
B) A country increases defense spending, which reduces the efficiency of its military operations
C) Two countries sign a free trade agreement that benefits both equally
D) An international organization provides loans to developing countries at market interest rates
� ANSWER: A
, Rationale: The efficiency-equity tension is one of the central dilemmas in GPE. Free trade is
generally efficient in the aggregate (increases total output and consumption possibilities), but the
distributional effects are uneven—capital owners and export sectors gain, while workers in
import-competing industries may lose jobs and face wage pressure. This is the classic Stolper-
Samuelson dynamic and is a key insight of GPE beyond pure economic analysis. Option B
confuses efficiency in an economic sense with military operational effectiveness. Option C
describes a scenario that eliminates the tension. Option D is a financial issue without a clear
efficiency-equity tradeoff as described.
Question 16 � Hard
Cohn and Hira suggest that the study of GPE requires examining "structures" as well as
"agents." In this context, which of the following BEST illustrates the concept of
"structure" shaping agent behavior?
A) A finance minister personally decides to devalue the national currency
B) The rules and norms of the WTO constrain the trade policy choices available to member
states
C) An MNC lobbies its home government for tax exemptions
D) A president negotiates a bilateral investment treaty with a foreign counterpart
� ANSWER: B
Rationale: In social science, "structure" refers to the rules, norms, institutions, and material
conditions that shape, constrain, and enable the choices of "agents" (individuals, states,
organizations). The WTO's dispute settlement rules, tariff bindings, and MFN commitments
represent structural constraints that limit what even powerful states can unilaterally do in trade
policy. Options A, C, and D all illustrate agents taking action, though they do so within structural
contexts. The key distinction is that B most clearly shows a structure (the institutional rules of
the WTO) shaping and constraining agent choices.
Question 17 � Hard
Which of the following BEST explains why Cohn and Hira believe a multi-theoretical
approach is superior to relying on a single theoretical lens in GPE?
A) A single theory is never falsifiable and therefore scientifically useless
B) Each theoretical perspective illuminates certain aspects of reality while obscuring others;
combining perspectives provides a more comprehensive understanding
C) Multi-theoretical approaches are required by international law for academic publication
D) Realism, liberalism, and critical theory all arrive at the same policy conclusions
GLOBAL POLITICAL ECONOMY: THEORY AND
PRACTICE
,Global Political Economy 9th Edition
Table of Contents
PART I — Introduction and Overview
Chapter 1 — Introduction
Chapter 2 — Managing the Global Economy Since World War II: The Institutional Framework
PART II — Theoretical Perspectives
Chapter 3 — Realism and Neomercantilism
Chapter 4 — Liberalism
Chapter 5 — Critical Perspectives
PART III — The Issue Areas
Chapter 6 — International Monetary Relations
Chapter 7 — Financial Crises
Chapter 8 — Global Trade Relations
Chapter 9 — Preferential Trade Agreements and the Global Trade Regime
Chapter 10 — Multinational Corporations and Global Production
Chapter 11 — International Development
PART IV — Concluding Comments
Chapter 12 — Reconsidering GPE and Its Ability to Meet Emerging Challenges
,PART I — INTRODUCTION AND OVERVIEW
CHAPTER 1 — Introduction
Question 1 � Easy
Which of the following best defines "Global Political Economy" (GPE) as used by Cohn
and Hira?
A) The study of how governments regulate domestic financial markets
B) The study of the interaction between political and economic forces at the global level
C) The exclusive study of international trade agreements among developed nations
D) The analysis of military power and its effect on national economies
� ANSWER: B
Rationale: Cohn and Hira define GPE (also called International Political Economy, or IPE) as a
field that examines the interaction between politics and economics at the international or global
level. Option A is too narrow (domestic focus), Option C excludes developing nations and non-
trade issues, and Option D reduces GPE to a security/military analysis, which misses the
economic dimensions central to the field.
Question 2 � Easy
The term "International Political Economy" (IPE) is sometimes used interchangeably with
"Global Political Economy" (GPE). What is the primary reason some scholars prefer the
term "GPE"?
A) GPE focuses exclusively on economic globalization and ignores politics
B) GPE better reflects the involvement of non-state actors and transnational processes beyond
the state-centric focus implied by "international"
C) GPE is more commonly used by realist scholars than by liberals
D) GPE refers specifically to the post-Cold War period
� ANSWER: B
Rationale: The preference for "global" over "international" reflects a recognition that many key
actors in today's political economy—multinational corporations (MNCs), international
organizations (IOs), non-governmental organizations (NGOs), and global civil society—are not
,simply "inter-national" (between nations/states). "Global" captures transnational and subnational
dynamics that the state-centric term "international" may obscure.
Question 3 � Easy
According to Cohn and Hira, which of the following is an example of a "high politics" issue
traditionally studied in international relations?
A) Exchange rate management
B) Foreign direct investment flows
C) National security and military alliances
D) Tariff negotiations under the WTO
� ANSWER:C
Rationale: "High politics" refers to issues of national security, sovereignty, and military
power—traditionally the core concern of international relations (IR). "Low politics" historically
referred to economic and social issues (trade, investment, monetary policy). GPE emerged partly
from the recognition that this distinction is artificial and that "low politics" issues profoundly
affect security.
Question 4 � Easy
Which of the following best describes the concept of "globalization" as discussed in
Chapter 1?
A) The process by which all countries adopt identical economic policies
B) The increasing interconnectedness and interdependence of countries across economic,
political, and cultural dimensions
C) A policy promoted exclusively by the United States after World War II
D) The replacement of nation-states by global governing institutions
� ANSWER: B
Rationale: Globalization is understood as increasing interconnectedness across multiple
dimensions—economic, political, social, and cultural. It does not imply uniformity of policy (A),
is not a solely U.S.-driven project (C), and has not eliminated nation-states (D), though it does
challenge state sovereignty in various ways.
Question 5 � Easy
,Cohn and Hira identify three major theoretical perspectives used to analyze GPE. Which
of the following is NOT one of them?
A) Realism/Neomercantilism
B) Liberalism
C) Feminism (as a standalone primary framework)
D) Critical Perspectives
� ANSWER:C
Rationale: The three primary theoretical frameworks Cohn and Hira organize around are (1)
Realism/Neomercantilism, (2) Liberalism, and (3) Critical Perspectives (which includes
Marxism, dependency theory, constructivism, feminism, environmentalism, etc.). Feminism is
incorporated within the broader critical perspectives chapter rather than standing as one of the
three main pillars alongside realism and liberalism.
Question 6 � Easy
What does the term "interdependence" mean in the context of GPE?
A) All countries are equally powerful in the global system
B) Countries are mutually dependent on each other, such that actions in one country affect others
C) Developing countries depend on developed countries for financial aid
D) States must cooperate militarily to survive
� ANSWER: B
Rationale: Interdependence refers to mutual dependence—the situation in which countries are
linked such that events or decisions in one country produce consequences in others. This
is mutual, not hierarchical (ruling out A and C), and extends well beyond military matters (ruling
out D).
Question 7 � Medium
Cohn and Hira argue that the line between "domestic" and "international" political
economy is increasingly blurred. Which of the following scenarios BEST illustrates this
argument?
A) A country decides to build a new domestic highway system
B) A U.S. Federal Reserve interest rate decision triggers capital outflows from emerging market
economies
,C) Two neighboring countries sign a bilateral military defense treaty
D) A domestic labor union negotiates wages with a local factory
� ANSWER: B
Rationale: When the U.S. Federal Reserve raises interest rates, capital may flow from emerging
markets to the U.S. to seek higher returns, causing currency depreciations and financial
instability in those countries. This illustrates how a domestic policy decision by one country's
central bank produces major international economic consequences—perfectly illustrating the
blurred domestic/international boundary. Options A and D are purely domestic, and C is
primarily a political/security matter.
Question 8 � Medium
Which of the following statements BEST captures the difference between "positive" and
"normative" approaches in GPE?
A) Positive approaches focus on what should happen; normative approaches focus on
what does happen
B) Positive approaches seek to explain and describe reality as it is; normative approaches are
concerned with how the world ought to be
C) Positive approaches are used only by liberals; normative approaches are used only by realists
D) Positive approaches deal with quantitative data; normative approaches deal with historical
analysis
� ANSWER: B
Rationale: In social science, "positive" (or empirical) analysis aims to describe and explain
what is—it tests claims against observable evidence. "Normative" analysis involves value
judgments about what ought to be. Option A reverses the definitions. Options C and D
incorrectly tie methodological approaches to specific theoretical traditions or research methods.
Question 9 � Medium
Cohn and Hira discuss the concept of "hegemony" in GPE. Which of the following BEST
defines hegemony in this context?
A) A situation in which two great powers divide the world into spheres of influence
B) The dominance of a single state that has the power and willingness to establish and maintain
the rules of the international economic order
C) A form of government in which a single party controls all economic decisions
D) The economic dominance of multinational corporations over nation-states
,� ANSWER: B
Rationale: In GPE, hegemony refers to the preponderant power of a single state—the
hegemon—that is capable of and willing to provide global public goods (such as a stable reserve
currency, open markets, and international institutions). This concept is central to Hegemonic
Stability Theory. It is state-centric (ruling out D), refers to a single dominant power not a bipolar
arrangement (ruling out A), and is not about internal governance (ruling out C).
Question 10 � Medium
Why do Cohn and Hira argue that GPE is an interdisciplinary field?
A) It borrows from economics, political science, sociology, and history to understand complex
global phenomena
B) It requires scholars to simultaneously study all countries in the world equally
C) It was developed by combining military strategy with trade policy analysis
D) GPE scholars must conduct field research in multiple countries to produce valid findings
� ANSWER: A
Rationale: GPE/IPE is inherently interdisciplinary because neither economics nor political
science alone can fully explain the complex interactions between markets, states, and global
institutions. Scholars draw on economic theory, political analysis, historical context, sociological
insights, and more. The other options confuse "interdisciplinary" with other meanings of breadth
or scope.
Question 11 � Medium
According to Cohn and Hira, what is a key limitation of purely economic approaches to
understanding global trade and finance?
A) Economics uses too much historical data to be relevant today
B) Economic models tend to ignore political power, institutions, and the distributional
consequences of economic outcomes
C) Economic approaches are unable to measure GDP or trade balances accurately
D) Economics focuses too much on developing countries and ignores developed nations
� ANSWER: B
Rationale: A central argument for GPE as a distinct field is that orthodox economics—
especially neoclassical economics—tends to treat markets as largely apolitical mechanisms
governed by supply and demand. This ignores how political power shapes market outcomes, how
,institutions mediate economic exchange, and how the benefits and costs of economic integration
are distributed unevenly across and within countries.
Question 12 � Medium
Cohn and Hira note that GPE scholars debate whether the global economy is becoming
more or less "globalized." Which of the following pieces of evidence would MOST support
the argument that globalization is deepening?
A) A rise in tariff barriers among major trading nations
B) An increase in cross-border capital flows, foreign direct investment, and digital trade relative
to GDP
C) The withdrawal of major economies from international organizations
D) Growing nationalism and protectionist sentiment in domestic politics
� ANSWER: B
Rationale: Globalization is typically measured by indicators such as trade as a share of GDP,
cross-border capital flows, FDI, migration, and information exchange. An increase in these flows
relative to economic output (B) is the clearest evidence of deepening globalization. Options A,
C, and D are all indicators of de-globalization or deglobalization pressures.
Question 13 � Hard
Cohn and Hira argue that GPE must go beyond state-centric analysis. Critically evaluate
the following claim: "Non-state actors have become so powerful that the state is no longer
the primary unit of analysis in GPE."
A) This claim is fully supported because MNCs control more resources than most governments
B) This claim is overstated; states remain central because they set the rules within which non-
state actors operate, even if non-state actors have grown in influence
C) This claim is fully correct because international organizations like the WTO have replaced
states in trade policymaking
D) This claim is irrelevant because GPE only studies economic institutions, not political actors
� ANSWER: B
Rationale: While non-state actors (MNCs, NGOs, IOs) have indeed grown in power and
influence, it would be premature to declare the state obsolete. States remain crucial because they:
(1) create and enforce legal frameworks within which markets and firms operate; (2) provide
national security and property rights; (3) represent citizens in international negotiations; and (4)
retain the legitimate monopoly on coercive power. The claim in A overstates the case—having
,more revenue than some small states does not translate into governing authority. C is incorrect
because WTO decisions still require state consent and are implemented by states. D
mischaracterizes GPE entirely.
Question 14 � Hard
Consider the following argument: "Globalization is not a natural or inevitable process; it is
a politically constructed and politically reversible phenomenon." Based on Chapter 1 of
Cohn and Hira, which theoretical perspective would MOST strongly support this view, and
why?
A) Orthodox liberalism, because liberals believe free markets naturally lead to globalization
B) Critical perspectives, because they emphasize how power, ideology, and political choices
shape economic structures
C) Realism, because realists believe globalization is driven by military power
D) Neoclassical economics, because it shows that comparative advantage automatically produces
global trade
� ANSWER: B
Rationale: Critical perspectives—including historical materialism, constructivism, and various
heterodox approaches—are most likely to view globalization as a constructed project reflecting
the interests of powerful actors (states, classes, corporations) and embedded in specific
ideological frameworks (such as neoliberalism). They emphasize that what appears "natural" or
"inevitable" is actually the result of political choices that can be contested and changed. Liberals
(A) and neoclassical economists (D) tend to naturalize markets and globalization. Realists (C)
focus on state power but typically do not frame globalization as ideologically constructed in the
same critical-theoretical sense.
Question 15 � Hard
Cohn and Hira discuss the tension between "efficiency" and "equity" in the global
economy. Which of the following scenarios BEST illustrates this tension?
A) A country reduces tariffs, increasing overall economic efficiency and trade volume, but the
gains accrue primarily to wealthy investors while workers in import-competing industries lose
their jobs
B) A country increases defense spending, which reduces the efficiency of its military operations
C) Two countries sign a free trade agreement that benefits both equally
D) An international organization provides loans to developing countries at market interest rates
� ANSWER: A
, Rationale: The efficiency-equity tension is one of the central dilemmas in GPE. Free trade is
generally efficient in the aggregate (increases total output and consumption possibilities), but the
distributional effects are uneven—capital owners and export sectors gain, while workers in
import-competing industries may lose jobs and face wage pressure. This is the classic Stolper-
Samuelson dynamic and is a key insight of GPE beyond pure economic analysis. Option B
confuses efficiency in an economic sense with military operational effectiveness. Option C
describes a scenario that eliminates the tension. Option D is a financial issue without a clear
efficiency-equity tradeoff as described.
Question 16 � Hard
Cohn and Hira suggest that the study of GPE requires examining "structures" as well as
"agents." In this context, which of the following BEST illustrates the concept of
"structure" shaping agent behavior?
A) A finance minister personally decides to devalue the national currency
B) The rules and norms of the WTO constrain the trade policy choices available to member
states
C) An MNC lobbies its home government for tax exemptions
D) A president negotiates a bilateral investment treaty with a foreign counterpart
� ANSWER: B
Rationale: In social science, "structure" refers to the rules, norms, institutions, and material
conditions that shape, constrain, and enable the choices of "agents" (individuals, states,
organizations). The WTO's dispute settlement rules, tariff bindings, and MFN commitments
represent structural constraints that limit what even powerful states can unilaterally do in trade
policy. Options A, C, and D all illustrate agents taking action, though they do so within structural
contexts. The key distinction is that B most clearly shows a structure (the institutional rules of
the WTO) shaping and constraining agent choices.
Question 17 � Hard
Which of the following BEST explains why Cohn and Hira believe a multi-theoretical
approach is superior to relying on a single theoretical lens in GPE?
A) A single theory is never falsifiable and therefore scientifically useless
B) Each theoretical perspective illuminates certain aspects of reality while obscuring others;
combining perspectives provides a more comprehensive understanding
C) Multi-theoretical approaches are required by international law for academic publication
D) Realism, liberalism, and critical theory all arrive at the same policy conclusions
