FINAL EXAM POSC 2601
QUESTIONS & ANSWERS 100%
CORRECT!!
What did the Pax Americana do? - ANSWERestablished 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 is the New International Economic Order? - ANSWERa 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 free market? - ANSWERa 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
What was the Great Depression? - ANSWERGlobal economic collapse that ensued
following the US Wall Street stock market crash in October 1929.
What is the Bretton Woods system? - ANSWERsystem 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) - ANSWERa 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.
World Trade Organization - ANSWERA 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? - ANSWERofficially 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? - ANSWERaccording 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
, Interdependence meaning - ANSWERa 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? - ANSWERnot 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? - ANSWERthe 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? - ANSWERthe market decides what the actual
value of a currency is compared to other currencies.
What is foreign direct investment? - ANSWERthe capital speculation by citizens or
organizations of one country into markets or industries in another country.
What is deregulation? - ANSWERremoval of all regulation so that market forces, not
governmental policy, control economic developments
what is capital controls? - ANSWERthe 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? - ANSWERa 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? - ANSWEReconomic, political, social, or cultural activity
crossing or extending across a border.
what is a supraterritoriality? - ANSWERsocial, economic, cultural, and political
connections that transcend territorial geography
what is liberalization? - ANSWERgovernment policies that reduce the role of the
state in the economy, such as the dismantling of trade tariffs and barriers, the
deregulation and opening of the financial sector to foreign investors, and the
privatization of state enterprises
what is the post-washington consensus? - ANSWERslightly modified version of the
Washington consensus promoting economic growth through trade liberalization
coupled with pro-poor growth and poverty-reduction policies
what is regional diversity? - ANSWEReach region of the world has experienced
economic development differently based on traditions, culture, historical
development, and even geographic location
QUESTIONS & ANSWERS 100%
CORRECT!!
What did the Pax Americana do? - ANSWERestablished 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 is the New International Economic Order? - ANSWERa 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 free market? - ANSWERa 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
What was the Great Depression? - ANSWERGlobal economic collapse that ensued
following the US Wall Street stock market crash in October 1929.
What is the Bretton Woods system? - ANSWERsystem 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) - ANSWERa 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.
World Trade Organization - ANSWERA 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? - ANSWERofficially 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? - ANSWERaccording 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
, Interdependence meaning - ANSWERa 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? - ANSWERnot 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? - ANSWERthe 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? - ANSWERthe market decides what the actual
value of a currency is compared to other currencies.
What is foreign direct investment? - ANSWERthe capital speculation by citizens or
organizations of one country into markets or industries in another country.
What is deregulation? - ANSWERremoval of all regulation so that market forces, not
governmental policy, control economic developments
what is capital controls? - ANSWERthe 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? - ANSWERa 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? - ANSWEReconomic, political, social, or cultural activity
crossing or extending across a border.
what is a supraterritoriality? - ANSWERsocial, economic, cultural, and political
connections that transcend territorial geography
what is liberalization? - ANSWERgovernment policies that reduce the role of the
state in the economy, such as the dismantling of trade tariffs and barriers, the
deregulation and opening of the financial sector to foreign investors, and the
privatization of state enterprises
what is the post-washington consensus? - ANSWERslightly modified version of the
Washington consensus promoting economic growth through trade liberalization
coupled with pro-poor growth and poverty-reduction policies
what is regional diversity? - ANSWEReach region of the world has experienced
economic development differently based on traditions, culture, historical
development, and even geographic location
