POSC 2601 FINAL EXAM QUESTIONS & ANSWERS
What did the pax americana do? - answer -established after wwii, created a liberal
economic world order that allowed for various forms of capitalism and a wide variety of
trade policies, meaning some states were more protectionist than others.
What was the great depression? - answer -global economic collapse that ensued
following the us wall street stock market crash in october 1929.
What is the bretton woods system? - answer -system of economic and financial
accords that created the imf, the world bank, and gatt/wto following world war ii.
What is the world bank group? (wbg) - answer -a collection of five agencies, first
established in 1945, with head offices in washington, d.c.. The wbg promotes
development in medium - and low-income countries with project loans, structural-
adjustment programs, and various advisory services.
What is a free market? - answer -a market ruled by the forces of supply and demand,
where all buying and selling is not constrained by government regulations or
interventions
Study major public global governance agencies on pg. 309 - answer -
Interdependence meaning - answer -a condition where states or people are affected by
decisions taken by others. Interdependence can be symmetric (i.e. Both sets of actors
can be affected equally) or asymmetric (the impact varies among actors)
What is protectionism? - answer -not an economic policy but a variety of political
actions taken to protect domestic industries from more efficient foreign procedures.
Usually, this means the use of tariffs, non tariff barriers, and subsidies to protect
domestic interests.
What is a fixed exchange rate? - answer -the price a currency will earn in a hard
currency. Here a government is committed to keep it at a specific value.
What is a floating exchange rate? - answer -the market decides what the actual value
of a currency is compared to other currencies.
What is foreign direct investment? - answer -the capital speculation by citizens or
organizations of one country into markets or industries in another country.
What is deregulation? - answer -removal of all regulation so that market forces, not
governmental policy, control economic developments
, What is capital controls? - answer -the monetary policy device that a government uses
to regulate the flows into and out of a country's capital account (i.e. The flows of
investment-oriented money into and out of a country or currency)
What is immigration controls? - answer -a government's control of the number of
people who may work, study, or relocate to its country. It may include quotas for certain
national groups for immigration.
What is the transborder? - answer -economic, political, social, or cultural activity
crossing or extending across a border.
World trade organization - answer -a permanent institution established in 1995 to
replace the gatt. It has greater powers of enforcement and a wider agenda, covering
services, intellectual property, and investment issues, as well as merchandise trade.
What is the marshall plan? - answer -officially known as the european recovery
program, foreign aid to western europe. The us transferred over 12 billion in economic
recovery to western europe.
What is poverty? - answer -according to the un, poverty is a denial of choices and
opportunities, a violation of human dignity, it means lack of basic capacity provided by
material possessions or money participate effectively in society
What is the new international economic order? - answer -a declaration adopted by the
un general assembly calling for a restructuring of the international order toward greater
equity for developing countries, particularly in reference to a wide range of trade,
financial, commodity, and debt related issues.
What is a supraterritoriality? - answer -social, economic, cultural, and political
connections that transcend territorial geography
What is "most favored nation status" - answer -the status granted to most trading
partners that says trade rules with that country will be the same as those given to their
most favored trading partner
What is global sourcing? - answer -obtaining goods and services across geopolitical
boundaries. Usually, the goal is to find the least expensive labor and raw material costs
and the lowest tariffs.
What is intrafirm trade? - answer -the international trade from one brach of a tnc to an
affiliate of the same company in a different country
What are global goods? - answer -products that are made for a global market and are
available across the world
What did the pax americana do? - answer -established after wwii, created a liberal
economic world order that allowed for various forms of capitalism and a wide variety of
trade policies, meaning some states were more protectionist than others.
What was the great depression? - answer -global economic collapse that ensued
following the us wall street stock market crash in october 1929.
What is the bretton woods system? - answer -system of economic and financial
accords that created the imf, the world bank, and gatt/wto following world war ii.
What is the world bank group? (wbg) - answer -a collection of five agencies, first
established in 1945, with head offices in washington, d.c.. The wbg promotes
development in medium - and low-income countries with project loans, structural-
adjustment programs, and various advisory services.
What is a free market? - answer -a market ruled by the forces of supply and demand,
where all buying and selling is not constrained by government regulations or
interventions
Study major public global governance agencies on pg. 309 - answer -
Interdependence meaning - answer -a condition where states or people are affected by
decisions taken by others. Interdependence can be symmetric (i.e. Both sets of actors
can be affected equally) or asymmetric (the impact varies among actors)
What is protectionism? - answer -not an economic policy but a variety of political
actions taken to protect domestic industries from more efficient foreign procedures.
Usually, this means the use of tariffs, non tariff barriers, and subsidies to protect
domestic interests.
What is a fixed exchange rate? - answer -the price a currency will earn in a hard
currency. Here a government is committed to keep it at a specific value.
What is a floating exchange rate? - answer -the market decides what the actual value
of a currency is compared to other currencies.
What is foreign direct investment? - answer -the capital speculation by citizens or
organizations of one country into markets or industries in another country.
What is deregulation? - answer -removal of all regulation so that market forces, not
governmental policy, control economic developments
, What is capital controls? - answer -the monetary policy device that a government uses
to regulate the flows into and out of a country's capital account (i.e. The flows of
investment-oriented money into and out of a country or currency)
What is immigration controls? - answer -a government's control of the number of
people who may work, study, or relocate to its country. It may include quotas for certain
national groups for immigration.
What is the transborder? - answer -economic, political, social, or cultural activity
crossing or extending across a border.
World trade organization - answer -a permanent institution established in 1995 to
replace the gatt. It has greater powers of enforcement and a wider agenda, covering
services, intellectual property, and investment issues, as well as merchandise trade.
What is the marshall plan? - answer -officially known as the european recovery
program, foreign aid to western europe. The us transferred over 12 billion in economic
recovery to western europe.
What is poverty? - answer -according to the un, poverty is a denial of choices and
opportunities, a violation of human dignity, it means lack of basic capacity provided by
material possessions or money participate effectively in society
What is the new international economic order? - answer -a declaration adopted by the
un general assembly calling for a restructuring of the international order toward greater
equity for developing countries, particularly in reference to a wide range of trade,
financial, commodity, and debt related issues.
What is a supraterritoriality? - answer -social, economic, cultural, and political
connections that transcend territorial geography
What is "most favored nation status" - answer -the status granted to most trading
partners that says trade rules with that country will be the same as those given to their
most favored trading partner
What is global sourcing? - answer -obtaining goods and services across geopolitical
boundaries. Usually, the goal is to find the least expensive labor and raw material costs
and the lowest tariffs.
What is intrafirm trade? - answer -the international trade from one brach of a tnc to an
affiliate of the same company in a different country
What are global goods? - answer -products that are made for a global market and are
available across the world
