Global Issues (5) Test 2 Module Global
Political Economy
What happened at the 1884-1885 Berlin Conference: correct answers European
countries divided up Africa without much regard for local peoples or existing ethnic
divisions
Colonies (select all that apply, there are one to four possible correct answers): correct
answers Were generally drained of commodities, human capital, and/or money
Saw the introduction of key European ideas, such as European conceptions of
individualism and justice
Were often restructured by the dominant country to produce one particular crop or
mineral resource
The difference between foreign direct investment (FDI) and foreign portfolio investment
(FPI) is that: correct answers FDI is investing more in fixed assets (companies and real
estate), as opposed stocks and bonds (which is portfolio investment)
European colonial economic policies can be described as: correct answers Mercantilist
Mercantilism is: (select all that apply, there are one to four possible correct answers)
correct answers States controlling trade, often protecting home markets while seeking
to sell products abroad, so as to gain as much profit and power as possible
For people and countries to develop and prosper, they need: correct answers Capital
(goods, services, and money)
How many people were forcibly removed from Africa as slaves during the 300+ years of
Triangular Trade: correct answers 9-15 million
Match the "products" that came out of each region during the Triangular Trade correct
answers Africa: Slaves, gold, ivory
Americas:Primary products such as sugar and coffee
Europe: Guns, alcohol
Under colonialism (select all that apply, there are one to four possible correct answers):
correct answers Colonies provided cheap labor and resources, and served as markets
for the colonizers goods
, Vast revenues and resources typically flowed out of the colonies, with relatively little
capital flowing back in
A core dominant country generally controlled the political and economic lives of foreign
peoples
During the Cold War: correct answers Superpower competition between the US and
USSR led to proxy wars in many developing countries, helping bring real economic
development to a standstill
The World Bank and the IMF are part of what post-World War II system? correct
answers Bretton Woods system
Winston Churchill described the political control of the Soviet Union over Eastern
Europe as the: correct answers "Iron Curtain"
The World Bank is considered which type of actor? correct answers International
Governmental Organization (IGO)
In a socialist system: (select all that apply, there are one to four possible correct
answers) correct answers The state owns and controls key means of production
To stabilize currencies during the initial Post WWII era, countries: correct answers
Fixed (or pegged) the value of their currency to the U.S. dollar, which was fixed to the
price of gold ($35 for 1oz. gold)
The primary role of IMF loans is to: correct answers Help stabilize a country's economy
when the country has severe budgetary imbalances
The General Agreement on Tariffs and Trade (GATT) was the precursor to the: correct
answers World Trade Organization (WTO)
The decision to help Europe and Japan rebuild, such as with the Marshall Plan in
Europe, showed that: correct answers The U.S. needed rebounding markets for trade
and investment
The liberal world economic order sought by the United States and other Western
countries after WWII was based on: correct answers Open Markets, freer trade, and
free flowing capital
What is the definition of "GDP Growth"? Note, definitions are found on the Maps,
Country Profile, and Rank by Variable tabs by clicking on a variable name. correct
answers "The annual rate of change in nominal Gross Domestic Product (Constant
Prices)"
Political Economy
What happened at the 1884-1885 Berlin Conference: correct answers European
countries divided up Africa without much regard for local peoples or existing ethnic
divisions
Colonies (select all that apply, there are one to four possible correct answers): correct
answers Were generally drained of commodities, human capital, and/or money
Saw the introduction of key European ideas, such as European conceptions of
individualism and justice
Were often restructured by the dominant country to produce one particular crop or
mineral resource
The difference between foreign direct investment (FDI) and foreign portfolio investment
(FPI) is that: correct answers FDI is investing more in fixed assets (companies and real
estate), as opposed stocks and bonds (which is portfolio investment)
European colonial economic policies can be described as: correct answers Mercantilist
Mercantilism is: (select all that apply, there are one to four possible correct answers)
correct answers States controlling trade, often protecting home markets while seeking
to sell products abroad, so as to gain as much profit and power as possible
For people and countries to develop and prosper, they need: correct answers Capital
(goods, services, and money)
How many people were forcibly removed from Africa as slaves during the 300+ years of
Triangular Trade: correct answers 9-15 million
Match the "products" that came out of each region during the Triangular Trade correct
answers Africa: Slaves, gold, ivory
Americas:Primary products such as sugar and coffee
Europe: Guns, alcohol
Under colonialism (select all that apply, there are one to four possible correct answers):
correct answers Colonies provided cheap labor and resources, and served as markets
for the colonizers goods
, Vast revenues and resources typically flowed out of the colonies, with relatively little
capital flowing back in
A core dominant country generally controlled the political and economic lives of foreign
peoples
During the Cold War: correct answers Superpower competition between the US and
USSR led to proxy wars in many developing countries, helping bring real economic
development to a standstill
The World Bank and the IMF are part of what post-World War II system? correct
answers Bretton Woods system
Winston Churchill described the political control of the Soviet Union over Eastern
Europe as the: correct answers "Iron Curtain"
The World Bank is considered which type of actor? correct answers International
Governmental Organization (IGO)
In a socialist system: (select all that apply, there are one to four possible correct
answers) correct answers The state owns and controls key means of production
To stabilize currencies during the initial Post WWII era, countries: correct answers
Fixed (or pegged) the value of their currency to the U.S. dollar, which was fixed to the
price of gold ($35 for 1oz. gold)
The primary role of IMF loans is to: correct answers Help stabilize a country's economy
when the country has severe budgetary imbalances
The General Agreement on Tariffs and Trade (GATT) was the precursor to the: correct
answers World Trade Organization (WTO)
The decision to help Europe and Japan rebuild, such as with the Marshall Plan in
Europe, showed that: correct answers The U.S. needed rebounding markets for trade
and investment
The liberal world economic order sought by the United States and other Western
countries after WWII was based on: correct answers Open Markets, freer trade, and
free flowing capital
What is the definition of "GDP Growth"? Note, definitions are found on the Maps,
Country Profile, and Rank by Variable tabs by clicking on a variable name. correct
answers "The annual rate of change in nominal Gross Domestic Product (Constant
Prices)"
