POS 486: International Political Economy
UPDATED ACTUAL Exam Questions and
CORRECT Answers
International Political Economy - CORRECT ANSWER - Study of the political battle
between the winners and losers of globalization.
Globalization - CORRECT ANSWER - The process of economic integrations of countries
through the increasing flow of goods, services, capital and labor.
Foreign Direct Investment - CORRECT ANSWER - Establishment of a business operation
in one country by a corporation based in another country.
International Migration - CORRECT ANSWER - The movement across national borders
of labor
Realist Idea of Order - CORRECT ANSWER - Conflictual, hegemony, anarchy - powerful
states keep each other in check
Liberal Idea of Order - CORRECT ANSWER - Cooperative, Network of groups that run
the global economy, International institutions.
Public Goods - CORRECT ANSWER - Non-rivalrous, non-exludable. Ex. from IPE:
Security against foreign powers, low tariffs.
Hegemon - CORRECT ANSWER - The dominant power in the global economy. Leader or
major power. Ex: The U.S. is a hegemon in global politics.
Hegemonic Stability Theory - CORRECT ANSWER - the argument that regimes are most
effective when power in the international system is most concentrated.
, Example of Trade Barrier - CORRECT ANSWER - Tariffs - Taxes on imports
Government subsidy to domestic markets - gives an advantage to those goods domestically and
makes them more expensive for foreign markets.
4 eras of globalization - CORRECT ANSWER - Globalization's Prehistory, 16th-19th
Centuries - slow, chartered trading companies, Mercantilism(economic strength leads to national
power, trade valued for exports but not imports, state should play a large role in economy, in
conflict with IPE)
Globalization 1.0, 19th Century - massive increase to trade and GDPs, free trade policies spread,
liberal ideology on the rise.
Globalization 2.0 20th Century 1945-1995 - Bretton Woods, General Agreement on Tariffs and
Trade (GATT). Growth of global trade 1945-1995
Globalization 3.0 / "Hyperglobalization", 20th and 21st Centuries -The World Trade
Organization (WTO), Neoliberalism (liberal ideals but think state intervention still does more
harm than good).
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.
Bretton Woods System - CORRECT ANSWER - The economic order negotiated among
allied nations at Bretton Woods, New Hampshire, in 1944, which led to a series of cooperative
arrangements involving a commitment to relatively low barriers to international trade and
investment.
Named for a conference held at Bretton Woods, New Hampshire, in 1944, this system provided
the foundation for postwar economic globalization, including the World Bank and the
International Monetary Fund; based on the promotion of free trade, stable currencies, and high
levels of capital investment.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
International Political Economy - CORRECT ANSWER - Study of the political battle
between the winners and losers of globalization.
Globalization - CORRECT ANSWER - The process of economic integrations of countries
through the increasing flow of goods, services, capital and labor.
Foreign Direct Investment - CORRECT ANSWER - Establishment of a business operation
in one country by a corporation based in another country.
International Migration - CORRECT ANSWER - The movement across national borders
of labor
Realist Idea of Order - CORRECT ANSWER - Conflictual, hegemony, anarchy - powerful
states keep each other in check
Liberal Idea of Order - CORRECT ANSWER - Cooperative, Network of groups that run
the global economy, International institutions.
Public Goods - CORRECT ANSWER - Non-rivalrous, non-exludable. Ex. from IPE:
Security against foreign powers, low tariffs.
Hegemon - CORRECT ANSWER - The dominant power in the global economy. Leader or
major power. Ex: The U.S. is a hegemon in global politics.
Hegemonic Stability Theory - CORRECT ANSWER - the argument that regimes are most
effective when power in the international system is most concentrated.
, Example of Trade Barrier - CORRECT ANSWER - Tariffs - Taxes on imports
Government subsidy to domestic markets - gives an advantage to those goods domestically and
makes them more expensive for foreign markets.
4 eras of globalization - CORRECT ANSWER - Globalization's Prehistory, 16th-19th
Centuries - slow, chartered trading companies, Mercantilism(economic strength leads to national
power, trade valued for exports but not imports, state should play a large role in economy, in
conflict with IPE)
Globalization 1.0, 19th Century - massive increase to trade and GDPs, free trade policies spread,
liberal ideology on the rise.
Globalization 2.0 20th Century 1945-1995 - Bretton Woods, General Agreement on Tariffs and
Trade (GATT). Growth of global trade 1945-1995
Globalization 3.0 / "Hyperglobalization", 20th and 21st Centuries -The World Trade
Organization (WTO), Neoliberalism (liberal ideals but think state intervention still does more
harm than good).
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.
Bretton Woods System - CORRECT ANSWER - The economic order negotiated among
allied nations at Bretton Woods, New Hampshire, in 1944, which led to a series of cooperative
arrangements involving a commitment to relatively low barriers to international trade and
investment.
Named for a conference held at Bretton Woods, New Hampshire, in 1944, this system provided
the foundation for postwar economic globalization, including the World Bank and the
International Monetary Fund; based on the promotion of free trade, stable currencies, and high
levels of capital investment.
