1
POLI 105 VCU Saladino Final exam Questions with
Answers (100% Correct Answers)
Market Answer: exchange of goods, services, and payments
Liberalism 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 Answer: The ability of a country to produce a
good at a lower cost than another country can. (determined by market-
Not State)
Mercantilism 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
© 2025 All rights reserved
,2
Difference between Liberalism and Mercantilism Answer: The role of the
state:
mercantilism- state controls economics
liberalism- economics run the state
Protectionism 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 Answer: selling products in a foreign country at lower prices
than those charged in the producing country
Economic Nationalism Answer: an emphasis on domestic control and
protection of the economy. (ie. "buy American")
Japanese Case Study 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.
© 2025 All rights reserved
, 3
Globalization 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 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 Answer: agriculture, intellectual
property rights, service sectors policies
The World Trade Organization (WTO) 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) Answer: international
agreement first signed in 1947 aimed at lowering trade barriers
© 2025 All rights reserved
POLI 105 VCU Saladino Final exam Questions with
Answers (100% Correct Answers)
Market Answer: exchange of goods, services, and payments
Liberalism 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 Answer: The ability of a country to produce a
good at a lower cost than another country can. (determined by market-
Not State)
Mercantilism 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
© 2025 All rights reserved
,2
Difference between Liberalism and Mercantilism Answer: The role of the
state:
mercantilism- state controls economics
liberalism- economics run the state
Protectionism 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 Answer: selling products in a foreign country at lower prices
than those charged in the producing country
Economic Nationalism Answer: an emphasis on domestic control and
protection of the economy. (ie. "buy American")
Japanese Case Study 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.
© 2025 All rights reserved
, 3
Globalization 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 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 Answer: agriculture, intellectual
property rights, service sectors policies
The World Trade Organization (WTO) 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) Answer: international
agreement first signed in 1947 aimed at lowering trade barriers
© 2025 All rights reserved
