CRP 291 Exam 3
Assumptions of neoliberalism correct answers people act rationally and efficiently,
individual self interest benefits society, taxation as a means of redistributing income
hurts the economy
Basics of neoliberalism correct answers monetary policies are more useful than fiscal
policies
Govt should create efficient markets and minimize restrictions on markets
Neoliberalism policies in practice correct answers privatization of public enterprises,
deregulation of economy, tax cuts, restrictions on organized labor, downsizing govt,
expansion of global markets
Causes of Post 1970 economic crisis correct answers world trade stagnation, high
interest rate, capital flight, trade deterioration, domestic issues
Britton Woods institutions and neoliberal policies correct answers IMF- provides funds
for stabilizing currencies in countries facing economic instability
World Bank- focuses more on poorer countries
Both create SAPs, which become the economic policies of developing countries
Countries taking loans from international financial institutions must get approval from
correct answers IMF
Deflationary policies to correct budgeting imbalances (SAP) correct answers tight
control over state spending
limits to money supply
increased interest rates on credits
wage reductions
Expenditure-switching policies (SAP) correct answers currency devaluation
export promotion
tax reforms
, deregulation of imports
Institutional reforms to liberalize trade and promote market efficiency correct answers
deregulation of prices and rates
elimination of barriers to international trade, investment, and currency flows
privatization of state-run activities
Main components of globalization in the third world correct answers economic
liberalization
spread of democracy and limited state control
spread of western culture (including media, internet, etc)
Reverse polarization correct answers turning point from relative concentration to
relative de-concentration in the spatial pattern of urban growth in a city region or nation
Mexico urbanization 1900-1940 correct answers urban population increased faster than
the country's population, most growth occurred in the largest cities
Current urban growth in Mexico correct answers mostly in intermediate cities located
close to large cities, along US-Mexico border, and in independent cities far from large
agglomerations
Mexico's border cities correct answers economy and culture is altered due to proximity
to the US
economy is dominated by maquiladoras, imports - export business, and tourism
Maquiladoras correct answers assembly plants for US sourced components
cheap labor
benefits to Mexico: jobs and skills
Problems of Central America correct answers limited mineral wealth, physical isolation,
poor transportation, small markets, rivalries and duplication, land tenure problems,
Cold-War induced political stability
The Caribbean characteristics correct answers relatively low urbanization, rapid
population growth, disease, and malnutrition, severe poverty in urban areas,
immigration to escape poverty
Assumptions of neoliberalism correct answers people act rationally and efficiently,
individual self interest benefits society, taxation as a means of redistributing income
hurts the economy
Basics of neoliberalism correct answers monetary policies are more useful than fiscal
policies
Govt should create efficient markets and minimize restrictions on markets
Neoliberalism policies in practice correct answers privatization of public enterprises,
deregulation of economy, tax cuts, restrictions on organized labor, downsizing govt,
expansion of global markets
Causes of Post 1970 economic crisis correct answers world trade stagnation, high
interest rate, capital flight, trade deterioration, domestic issues
Britton Woods institutions and neoliberal policies correct answers IMF- provides funds
for stabilizing currencies in countries facing economic instability
World Bank- focuses more on poorer countries
Both create SAPs, which become the economic policies of developing countries
Countries taking loans from international financial institutions must get approval from
correct answers IMF
Deflationary policies to correct budgeting imbalances (SAP) correct answers tight
control over state spending
limits to money supply
increased interest rates on credits
wage reductions
Expenditure-switching policies (SAP) correct answers currency devaluation
export promotion
tax reforms
, deregulation of imports
Institutional reforms to liberalize trade and promote market efficiency correct answers
deregulation of prices and rates
elimination of barriers to international trade, investment, and currency flows
privatization of state-run activities
Main components of globalization in the third world correct answers economic
liberalization
spread of democracy and limited state control
spread of western culture (including media, internet, etc)
Reverse polarization correct answers turning point from relative concentration to
relative de-concentration in the spatial pattern of urban growth in a city region or nation
Mexico urbanization 1900-1940 correct answers urban population increased faster than
the country's population, most growth occurred in the largest cities
Current urban growth in Mexico correct answers mostly in intermediate cities located
close to large cities, along US-Mexico border, and in independent cities far from large
agglomerations
Mexico's border cities correct answers economy and culture is altered due to proximity
to the US
economy is dominated by maquiladoras, imports - export business, and tourism
Maquiladoras correct answers assembly plants for US sourced components
cheap labor
benefits to Mexico: jobs and skills
Problems of Central America correct answers limited mineral wealth, physical isolation,
poor transportation, small markets, rivalries and duplication, land tenure problems,
Cold-War induced political stability
The Caribbean characteristics correct answers relatively low urbanization, rapid
population growth, disease, and malnutrition, severe poverty in urban areas,
immigration to escape poverty
