INTERNATIONAL POLITICAL ECONOMY
B
QUESTIONS AND CORRECT DETAILED
ANSWERS
Why might a multinational corporation (MNC) move production abroad for political reasons? - MNCs
may wish to get around tough government regulations in their home country.
EU-
NAFTA-
ASEAN-
Mercosur- - Europe
North America
Asia
South America
Which of the following are the Bretton Woods institutions? - - International Monetary Fund
- GATT/WTO
- World bank
The most advanced regional trade agreement in terms of fostering political and economic integration is
the European Union. Despite the close linkages among member states, some economic sectors, most
notably agriculture, have caused tension among participating countries. - TRUE
Order of importance: - - Mercantilism
- Economic liberalism
- Marxism
Why might someone want to use an offshore financial center, such as the Cayman Islands, to do their
banking? - These locations often have less regulations and lower taxes
pushes for the reduction of tariff and nontariff barriers between countries - GATT/World Trade
Organization
provides loans for development projects, often based around infrastructure - World Bank
provides short-term loans and advice to countries facing budget crises - International Monetary Fund
, (IMF)
Taxing and spending are related to ______ policy, whereas ___________ policy is related to regulating
the economy through manipulating interest rates and the currency supply. - -fiscal
-monetary
The economy should be as free as possible from government control. - Economic Liberalism
Conflict between the owners of wealth and workers is inevitable. - Economic Radicalism
States should accumulate gold and silver to guarantee power. - Mercantilism
Which of the following are arguments against the North American Free Trade Agreement? - America has
lost manufacturing jobs to Mexico.
NAFTA has not led to a decrease in poverty in Mexico
What does it mean for development to be sustainable? - Economic development must take account of
the environment and whether resources are renewable or not.
During the past thirty years, a growing share of money going to developing countries has come from
private sources, such as multinational corporations, rather than public sources, such as the World Bank
or large developed states. - true
The sector that has proven most resistant to economic liberalization has been agriculture. - true
Which of the following made the Eurozone crisis worse in PIGS countries, such as Greece and Portugal? -
- PIGS countries could not control their own monetary policy.
- PIGS countries had no formal way of receiving money from wealthier EU nations
- PIGS countries had large budget deficits and no way of financing them.
BRICS - - Brazil
- Russia
- India
- China
- South Africa
Most policymakers in charge of international economic institutions, as well as most leaders of Western
nations and academics, come from which economic perspective? - Economic liberalism
Marxism developed as a direct reaction to the excesses of what economic theory? - Liberalism
What best describes the relationship between mercantilism and protectionism? - Protectionism
represents a set of policies that a mercantilist government might follow.
Which of the following statements about the modern international monetary system are correct? - - The
value of the U.S. dollar is allowed to float and is based on market forces.
B
QUESTIONS AND CORRECT DETAILED
ANSWERS
Why might a multinational corporation (MNC) move production abroad for political reasons? - MNCs
may wish to get around tough government regulations in their home country.
EU-
NAFTA-
ASEAN-
Mercosur- - Europe
North America
Asia
South America
Which of the following are the Bretton Woods institutions? - - International Monetary Fund
- GATT/WTO
- World bank
The most advanced regional trade agreement in terms of fostering political and economic integration is
the European Union. Despite the close linkages among member states, some economic sectors, most
notably agriculture, have caused tension among participating countries. - TRUE
Order of importance: - - Mercantilism
- Economic liberalism
- Marxism
Why might someone want to use an offshore financial center, such as the Cayman Islands, to do their
banking? - These locations often have less regulations and lower taxes
pushes for the reduction of tariff and nontariff barriers between countries - GATT/World Trade
Organization
provides loans for development projects, often based around infrastructure - World Bank
provides short-term loans and advice to countries facing budget crises - International Monetary Fund
, (IMF)
Taxing and spending are related to ______ policy, whereas ___________ policy is related to regulating
the economy through manipulating interest rates and the currency supply. - -fiscal
-monetary
The economy should be as free as possible from government control. - Economic Liberalism
Conflict between the owners of wealth and workers is inevitable. - Economic Radicalism
States should accumulate gold and silver to guarantee power. - Mercantilism
Which of the following are arguments against the North American Free Trade Agreement? - America has
lost manufacturing jobs to Mexico.
NAFTA has not led to a decrease in poverty in Mexico
What does it mean for development to be sustainable? - Economic development must take account of
the environment and whether resources are renewable or not.
During the past thirty years, a growing share of money going to developing countries has come from
private sources, such as multinational corporations, rather than public sources, such as the World Bank
or large developed states. - true
The sector that has proven most resistant to economic liberalization has been agriculture. - true
Which of the following made the Eurozone crisis worse in PIGS countries, such as Greece and Portugal? -
- PIGS countries could not control their own monetary policy.
- PIGS countries had no formal way of receiving money from wealthier EU nations
- PIGS countries had large budget deficits and no way of financing them.
BRICS - - Brazil
- Russia
- India
- China
- South Africa
Most policymakers in charge of international economic institutions, as well as most leaders of Western
nations and academics, come from which economic perspective? - Economic liberalism
Marxism developed as a direct reaction to the excesses of what economic theory? - Liberalism
What best describes the relationship between mercantilism and protectionism? - Protectionism
represents a set of policies that a mercantilist government might follow.
Which of the following statements about the modern international monetary system are correct? - - The
value of the U.S. dollar is allowed to float and is based on market forces.
