POSC 2601 FINAL REVIEW:Marquette U
Questions with 100% Correct Answers
Marxism Correct Answer: Views trade through class struggle, suggesting
exploitation by capitalist countries.
Mercantilism Correct Answer: Promotes wealth accumulation through favorable
trade balance, often with protectionist measures.
Liberalism Correct Answer: Advocates for free trade, minimal government
intervention, and mutual trade benefits.
Invisible hand Correct Answer: Concept by Adam Smith where self-interest leads
to societal good in a free market.
Free trade Correct Answer: Policy allowing unrestricted cross-border trade
without government barriers.
Documentary: The Deceptive Promise of Free Trade Correct Answer: Examines
complexities and controversies of free trade agreements.
Comparative advantage Correct Answer: Nations specialize in goods with lower
opportunity cost for mutual benefit.
National endowments Correct Answer: Includes a nation's resources like labor,
capital, and technology.
Division of labor (specialization) Correct Answer: Breaking production into tasks
for efficiency and specialization.
Autarky Correct Answer: Economic self-sufficiency without international trade
involvement.
, Problems of free trade Correct Answer: Issues like job displacement, income
inequality, and environmental harm.
Protectionism Correct Answer: Using policies to protect domestic industries from
foreign competition.
4 objectives Correct Answer: Goals in trade policies like economic growth and
national security.
Tariffs Correct Answer: Taxes on imports; non-tariff barriers include quotas,
subsidies, and regulations.
Impact on consumers Correct Answer: How trade policies affect consumer
access, prices, and quality.
Trade regime Correct Answer: Framework of rules governing international trade
relations.
GATT (General Agreement on Tariffs and Trade) Correct Answer: Multilateral
agreement promoting trade liberalization, replaced by WTO.
Goals and functions of GATT and WTO Correct Answer: Roles in trade
negotiations, dispute resolution, and global trade promotion.
WTO (World Trade Organization) Correct Answer: Regulates international trade,
negotiates agreements, and resolves disputes.
5 principles of the WTO Correct Answer: Guiding principles include non-
discrimination, reciprocity, and transparency.
Most favored nation (MFN) Correct Answer: WTO principle requiring equal
trading terms among member nations.
Questions with 100% Correct Answers
Marxism Correct Answer: Views trade through class struggle, suggesting
exploitation by capitalist countries.
Mercantilism Correct Answer: Promotes wealth accumulation through favorable
trade balance, often with protectionist measures.
Liberalism Correct Answer: Advocates for free trade, minimal government
intervention, and mutual trade benefits.
Invisible hand Correct Answer: Concept by Adam Smith where self-interest leads
to societal good in a free market.
Free trade Correct Answer: Policy allowing unrestricted cross-border trade
without government barriers.
Documentary: The Deceptive Promise of Free Trade Correct Answer: Examines
complexities and controversies of free trade agreements.
Comparative advantage Correct Answer: Nations specialize in goods with lower
opportunity cost for mutual benefit.
National endowments Correct Answer: Includes a nation's resources like labor,
capital, and technology.
Division of labor (specialization) Correct Answer: Breaking production into tasks
for efficiency and specialization.
Autarky Correct Answer: Economic self-sufficiency without international trade
involvement.
, Problems of free trade Correct Answer: Issues like job displacement, income
inequality, and environmental harm.
Protectionism Correct Answer: Using policies to protect domestic industries from
foreign competition.
4 objectives Correct Answer: Goals in trade policies like economic growth and
national security.
Tariffs Correct Answer: Taxes on imports; non-tariff barriers include quotas,
subsidies, and regulations.
Impact on consumers Correct Answer: How trade policies affect consumer
access, prices, and quality.
Trade regime Correct Answer: Framework of rules governing international trade
relations.
GATT (General Agreement on Tariffs and Trade) Correct Answer: Multilateral
agreement promoting trade liberalization, replaced by WTO.
Goals and functions of GATT and WTO Correct Answer: Roles in trade
negotiations, dispute resolution, and global trade promotion.
WTO (World Trade Organization) Correct Answer: Regulates international trade,
negotiates agreements, and resolves disputes.
5 principles of the WTO Correct Answer: Guiding principles include non-
discrimination, reciprocity, and transparency.
Most favored nation (MFN) Correct Answer: WTO principle requiring equal
trading terms among member nations.
