POLI 105 VCU Saladino Final exam
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Market - CORRECT ANSWER - exchange of goods, services, and payments
Liberalism - CORRECT ANSWER - primary policy- free trade
no state interference with markets (ideally)
Reduce barriers to the market (ie. tariffs)
Comparative advantage
-Adam Smith "Wealth of Nations"
comparative advantage - CORRECT ANSWER - The ability of a country to produce a
good at a lower cost than another country can. (determined by market- Not State)
Mercantilism - CORRECT ANSWER - an economic system (Europe in 18th C) to
increase a nation's wealth by government regulation of all of the nation's commercial interests.
*Tariffs and other barriers used by governments to control market
Difference between Liberalism and Mercantilism - CORRECT ANSWER - The role of the
state:
mercantilism- state controls economics
liberalism- economics run the state
Protectionism - CORRECT ANSWER - the practice or policy of shielding one or more
industries within a country's economy from foreign competition through the use of tariffs,
subsidies or quotas.
- to protect infant industries, national security or in response to dumping
, Dumping - CORRECT ANSWER - selling products in a foreign country at lower prices
than those charged in the producing country
Economic Nationalism - CORRECT ANSWER - an emphasis on domestic control and
protection of the economy. (ie. "buy American")
Japanese Case Study - CORRECT ANSWER - used protectionist policies to grow infant
industries, established itself in the market, the voted to make protectionist policy illegal to ensure
that no other countries could overtake their new industry.
Globalization - CORRECT ANSWER - the expansion of free trade everywhere, by
opening up all markets and states to the global economy-- sell the products and ideas of the
world and every state
Anti-Globalization Protests - CORRECT ANSWER - 1. Began with WTO meeting in
Seattle (Nov. 2009)
2. Several protests have been staged at major international meetings
3. Anti sweatshop campaigns
Biggest problems with free trade - CORRECT ANSWER - agriculture, intellectual
property rights, service sectors policies
The World Trade Organization (WTO) - CORRECT ANSWER - International
organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes
free trade around the world.
*Strong enforcement structure
*Means of reciprocal free trade enforcement (if you break agreement then other countries have
the right to place barriers on your trade)
GATT (General Agreement on Tariffs and Trade) - CORRECT ANSWER - international
agreement first signed in 1947 aimed at lowering trade barriers
*grew to big and too broadly focused--> became WTO
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Market - CORRECT ANSWER - exchange of goods, services, and payments
Liberalism - CORRECT ANSWER - primary policy- free trade
no state interference with markets (ideally)
Reduce barriers to the market (ie. tariffs)
Comparative advantage
-Adam Smith "Wealth of Nations"
comparative advantage - CORRECT ANSWER - The ability of a country to produce a
good at a lower cost than another country can. (determined by market- Not State)
Mercantilism - CORRECT ANSWER - an economic system (Europe in 18th C) to
increase a nation's wealth by government regulation of all of the nation's commercial interests.
*Tariffs and other barriers used by governments to control market
Difference between Liberalism and Mercantilism - CORRECT ANSWER - The role of the
state:
mercantilism- state controls economics
liberalism- economics run the state
Protectionism - CORRECT ANSWER - the practice or policy of shielding one or more
industries within a country's economy from foreign competition through the use of tariffs,
subsidies or quotas.
- to protect infant industries, national security or in response to dumping
, Dumping - CORRECT ANSWER - selling products in a foreign country at lower prices
than those charged in the producing country
Economic Nationalism - CORRECT ANSWER - an emphasis on domestic control and
protection of the economy. (ie. "buy American")
Japanese Case Study - CORRECT ANSWER - used protectionist policies to grow infant
industries, established itself in the market, the voted to make protectionist policy illegal to ensure
that no other countries could overtake their new industry.
Globalization - CORRECT ANSWER - the expansion of free trade everywhere, by
opening up all markets and states to the global economy-- sell the products and ideas of the
world and every state
Anti-Globalization Protests - CORRECT ANSWER - 1. Began with WTO meeting in
Seattle (Nov. 2009)
2. Several protests have been staged at major international meetings
3. Anti sweatshop campaigns
Biggest problems with free trade - CORRECT ANSWER - agriculture, intellectual
property rights, service sectors policies
The World Trade Organization (WTO) - CORRECT ANSWER - International
organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes
free trade around the world.
*Strong enforcement structure
*Means of reciprocal free trade enforcement (if you break agreement then other countries have
the right to place barriers on your trade)
GATT (General Agreement on Tariffs and Trade) - CORRECT ANSWER - international
agreement first signed in 1947 aimed at lowering trade barriers
*grew to big and too broadly focused--> became WTO
