INTERNATIONAL POLITICAL LATEST
ECONOMY EXAM QUESTIONS
AND ANSWERS 2026 - 2027
Why does Japan impose a high tariff on rice?
A) To promote rice exports
B) To encourage innovation
C) To protect small-scale farmers
D) To comply with WTO standards
To protect small-scale farmers
Exporters (sellers in another country) want to be paid in
their local currency
a government policy that restricts the supply of imported goods and
gives market advantage to home producers.
non-tariff barrier (NTB)
The 'Buy America' policy is an example of which type of
protectionism?
A. Tariffs
B. Import quotas
C. Government purchasing rules
D. Non-tariffbarriers
Government purchasing rules
When a company from one country builds or controls a company in
another country this called
Foreign Direct Investment (FDI)
END OF
PAGE
1
, INTERNATIONAL POLITICAL LATEST
ECONOMY EXAM QUESTIONS
AND ANSWERS 2026 - 2027
when someone buys stocks, bonds, or securities in another country
without controlling the business.
Portfolio investment
When foreign banks give loans to businesses in another country this
called
Bank Deposits & Lending
A marketplace for buying and selling foreign currencies.
Foreign Exchange Market
T or F/ Dollarization is when a country adopts a foreign currency
(often USD).
True
is a company that has its main office (headquarters) in one country,
but also operates in other countries.
A Multinational Enterprise (MNE)
A key reason firms expand internationally is to be ______ to
customers.
closer
T or F/ Cost-effective labour is a major factor in decisions to expand
operations abroad.
True
END OF
PAGE
2
, INTERNATIONAL POLITICAL LATEST
ECONOMY EXAM QUESTIONS
AND ANSWERS 2026 - 2027
T or F/ MNEs have no role in influencing international relations.
False
What policy contributed to the collapse of global trade during the
Great Depression?
A) Free trade agreements
B) Protectionism
C) Monetary expansion
D) Tax cuts
Protectionism
What does IPE stand for?
A) International Peace Education
B) International Political Economy
C) Internal Policy Evaluation
D) International Policy Enforcement
International Political Economy
Which two fields does IPE combine?
A) Sociology and law
B) Politics and culture
C) Economics and politics
D) History and diplomacy
END OF
PAGE
3
ECONOMY EXAM QUESTIONS
AND ANSWERS 2026 - 2027
Why does Japan impose a high tariff on rice?
A) To promote rice exports
B) To encourage innovation
C) To protect small-scale farmers
D) To comply with WTO standards
To protect small-scale farmers
Exporters (sellers in another country) want to be paid in
their local currency
a government policy that restricts the supply of imported goods and
gives market advantage to home producers.
non-tariff barrier (NTB)
The 'Buy America' policy is an example of which type of
protectionism?
A. Tariffs
B. Import quotas
C. Government purchasing rules
D. Non-tariffbarriers
Government purchasing rules
When a company from one country builds or controls a company in
another country this called
Foreign Direct Investment (FDI)
END OF
PAGE
1
, INTERNATIONAL POLITICAL LATEST
ECONOMY EXAM QUESTIONS
AND ANSWERS 2026 - 2027
when someone buys stocks, bonds, or securities in another country
without controlling the business.
Portfolio investment
When foreign banks give loans to businesses in another country this
called
Bank Deposits & Lending
A marketplace for buying and selling foreign currencies.
Foreign Exchange Market
T or F/ Dollarization is when a country adopts a foreign currency
(often USD).
True
is a company that has its main office (headquarters) in one country,
but also operates in other countries.
A Multinational Enterprise (MNE)
A key reason firms expand internationally is to be ______ to
customers.
closer
T or F/ Cost-effective labour is a major factor in decisions to expand
operations abroad.
True
END OF
PAGE
2
, INTERNATIONAL POLITICAL LATEST
ECONOMY EXAM QUESTIONS
AND ANSWERS 2026 - 2027
T or F/ MNEs have no role in influencing international relations.
False
What policy contributed to the collapse of global trade during the
Great Depression?
A) Free trade agreements
B) Protectionism
C) Monetary expansion
D) Tax cuts
Protectionism
What does IPE stand for?
A) International Peace Education
B) International Political Economy
C) Internal Policy Evaluation
D) International Policy Enforcement
International Political Economy
Which two fields does IPE combine?
A) Sociology and law
B) Politics and culture
C) Economics and politics
D) History and diplomacy
END OF
PAGE
3
