Question 1

Under a system of fixed exchange rates, the international market determines the value of a country's currency.

Accepted Answer

A) True 
 B)False

Question 2

Does globalization mean the end of the age of states? Write an essay in which you explore this question, citing examples of how globalization has eroded state power and ways in which the state is still a viable entity in international relations.

Accepted Answer

Globalization has undoubtedly had a sign

Question 3

Contrast mercantilist and liberal economic theories.Will globalization spawn a new era of "neo-mercantilism?" Explain the roles and goals of neo-mercantilist ideas in the global economy today.

Accepted Answer

Mercantilist economic theory, which was

Question 4

Although the saying is, "A rising tide lifts all boats," globalization is not affecting all states equally.Who are the big winners, and who are the losers? What creates this disparity and keeps all states from developing along parallel paths? What steps could be taken to help those who are adversely affected by globalization?

Accepted Answer

The big winners of globalization are typ

Question 5

A government can control the value of its currency by

Accepted Answer

A) increasing or decreasing the supply of money. 
B) adjusting interest rates. 
C) practicing arbitrage. 
D) Both options a and b are true. 
E) All of the above are true. 
A) increasing or decreasing the supply of money. 
B) adjusting interest rates. 
C) practicing arbitrage. 
D) Both options a and b are true. 
E) All of the above are true.

Question 6

Discuss the three tools/policies states use to protect their economies from foreign competition.Should America use more protectionist policies to protect key industries? What American industries would a protectionist target?

Accepted Answer

States use three main tools/policies to

Question 7

The situation that results when a state buys more from abroad than it sells is known as a(n)

Accepted Answer

A) devaluation. 
B) floating exchange rate. 
C) managed exchange rate system. 
D) balance-of-trade deficit. 
E) inflation. 
A) devaluation. 
B) floating exchange rate. 
C) managed exchange rate system. 
D) balance-of-trade deficit. 
E) inflation.

Question 8

After the WTO superseded GATT, it successfully ended most global trade disputes.

Accepted Answer

A) True 
 B)False

Question 9

Another term for neomercantilism is

Accepted Answer

A) classical liberalism. 
B) economic fascism. 
C) economic nationalism. 
D) communitarianism. 
E) the New Economic Order. 
A) classical liberalism. 
B) economic fascism. 
C) economic nationalism. 
D) communitarianism. 
E) the New Economic Order.

Question 10

According to the most-favored-nation (MFN) principle,

Accepted Answer

A) states cannot rely on comparative advantage in their trade policies. 
B) goods produced at home are treated the same for import and export agreements. 
C) tariff preferences granted to one state must be granted to all others exporting the same product. 
D) import quotas can be used to regulate trade, but export quotas cannot be used. 
E) certain important trading partners should be given favors status. 
A) states cannot rely on comparative advantage in their trade policies. 
B) goods produced at home are treated the same for import and export agreements. 
C) tariff preferences granted to one state must be granted to all others exporting the same product. 
D) import quotas can be used to regulate trade, but export quotas cannot be used. 
E) certain important trading partners should be given favors status.

Question 11

Monetary policy affects two main economic variables: the supply of money in circulation and interest rates.

Accepted Answer

A) True 
 B)False

Question 12

An open international economy is a collective good.

Accepted Answer

A) True 
 B)False

Question 13

Some economists believe that the post-World War II international trade and finance regime, led by America, may be coming to an end.What are the alternatives to this regime? What nation or group of nations could emerge to establish a new trading and finance regime?

Accepted Answer

There are several potential alternatives

Question 14

Since the early 1970s, the world has had a system of fixed but adjustable exchange rates.

Accepted Answer

A) True 
 B)False

Question 15

The Bretton Woods system established at the end of World War II included all but which of the following?

Accepted Answer

A) Free trade 
B) Open markets 
C) A global currency 
D) Monetary stability 
E) Strong leadership role for the United States 
A) Free trade 
B) Open markets 
C) A global currency 
D) Monetary stability 
E) Strong leadership role for the United States

Question 16

In contrast to liberalism, mercantilism advocates government regulation of economic life to increase state power and security.

Accepted Answer

A) True 
 B)False

Question 17

The number of regional trade agreements has been declining during the age of globalization.

Accepted Answer

A) True 
 B)False

Question 18

An infant industry is one that

Accepted Answer

A) is not yet strong enough to compete effectively in the global marketplace. 
B) is new to the practice of voluntary export restraints. 
C) is accused of "dumping" products below the cost of production. 
D) recently began selling exports. 
E) utilizes child labor. 
A) is not yet strong enough to compete effectively in the global marketplace. 
B) is new to the practice of voluntary export restraints. 
C) is accused of "dumping" products below the cost of production. 
D) recently began selling exports. 
E) utilizes child labor.

Question 19

Liberals emphasize the mutual gains (absolute gains) of global trade whereas mercantilists are more concerned with relative gains.

Accepted Answer

A) True 
 B)False

Question 20

Most of the world's states consistently support the tenets of free trade.

Accepted Answer

A) True 
 B)False

Under a system of fixed exchange rates, the international market determines the value of a country's currency.

Does globalization mean the end of the age of states? Write an essay in which you explore this question, citing examples of how globalization has eroded state power and ways in which the state is still a viable entity in international relations.

Contrast mercantilist and liberal economic theories.Will globalization spawn a new era of "neo-mercantilism?" Explain the roles and goals of neo-mercantilist ideas in the global economy today.

A government can control the value of its currency by

Discuss the three tools/policies states use to protect their economies from foreign competition.Should America use more protectionist policies to protect key industries? What American industries would a protectionist target?

The situation that results when a state buys more from abroad than it sells is known as a(n)

After the WTO superseded GATT, it successfully ended most global trade disputes.

Another term for neomercantilism is

According to the most-favored-nation (MFN) principle,

Monetary policy affects two main economic variables: the supply of money in circulation and interest rates.

An open international economy is a collective good.

Some economists believe that the post-World War II international trade and finance regime, led by America, may be coming to an end.What are the alternatives to this regime? What nation or group of nations could emerge to establish a new trading and finance regime?

Since the early 1970s, the world has had a system of fixed but adjustable exchange rates.

The Bretton Woods system established at the end of World War II included all but which of the following?

In contrast to liberalism, mercantilism advocates government regulation of economic life to increase state power and security.

The number of regional trade agreements has been declining during the age of globalization.

An infant industry is one that

Liberals emphasize the mutual gains (absolute gains) of global trade whereas mercantilists are more concerned with relative gains.

Most of the world's states consistently support the tenets of free trade.

Analyzing World Politics

Theories of World Politics

The Historical Setting of Contemporary World Politics

States and Foreign Policy Decision Making

Global and Regional Intergovernmental Organizations

Nongovernmental Organizations, Multinational Corporations, and Other Nonstate Actors

Patterns of Armed Conflict

Military Power and the Use of Force

International Law and Human Rights

The Political Economy of Global Poverty and Inequality

Global Ecological Trends and the Transformation of World Politics

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Exam 10: The Globalization of Trade and Finance

Under a system of fixed exchange rates, the international market determines the value of a country's currency.

Does globalization mean the end of the age of states? Write an essay in which you explore this question, citing examples of how globalization has eroded state power and ways in which the state is still a viable entity in international relations.

Contrast mercantilist and liberal economic theories.Will globalization spawn a new era of "neo-mercantilism?" Explain the roles and goals of neo-mercantilist ideas in the global economy today.

A government can control the value of its currency by

Discuss the three tools/policies states use to protect their economies from foreign competition.Should America use more protectionist policies to protect key industries? What American industries would a protectionist target?

The situation that results when a state buys more from abroad than it sells is known as a(n)

After the WTO superseded GATT, it successfully ended most global trade disputes.

Another term for neomercantilism is

According to the most-favored-nation (MFN) principle,

Monetary policy affects two main economic variables: the supply of money in circulation and interest rates.

An open international economy is a collective good.

Some economists believe that the post-World War II international trade and finance regime, led by America, may be coming to an end.What are the alternatives to this regime? What nation or group of nations could emerge to establish a new trading and finance regime?

Since the early 1970s, the world has had a system of fixed but adjustable exchange rates.

The Bretton Woods system established at the end of World War II included all but which of the following?

In contrast to liberalism, mercantilism advocates government regulation of economic life to increase state power and security.

The number of regional trade agreements has been declining during the age of globalization.

An infant industry is one that

Liberals emphasize the mutual gains (absolute gains) of global trade whereas mercantilists are more concerned with relative gains.

Most of the world's states consistently support the tenets of free trade.

Analyzing World Politics

Theories of World Politics

The Historical Setting of Contemporary World Politics

States and Foreign Policy Decision Making

Global and Regional Intergovernmental Organizations

Nongovernmental Organizations, Multinational Corporations, and Other Nonstate Actors

Patterns of Armed Conflict

Military Power and the Use of Force

International Law and Human Rights

The Political Economy of Global Poverty and Inequality

Global Ecological Trends and the Transformation of World Politics

Filters