Question 1

Which of the following reasons does NOT explain Greece's difficulty in financing its debt?

Accepted Answer

A)  Greece's abandoning of the euro in exchange for the drachma 
B)  The global recession 
C)  Higher interest rates 
D)  High levels of borrowing 
A)  Greece's abandoning of the euro in exchange for the drachma 
B)  The global recession 
C)  Higher interest rates 
D)  High levels of borrowing

Question 2

The goal of the World Trade Organization (WTO) dispute settlement process is to

Accepted Answer

A)  punish the offending member. 
B)  determine right and wrong. 
C)  mediate conflict. 
D)  enforce American economic values and enhance the economic position of the United States in the world. 
A)  punish the offending member. 
B)  determine right and wrong. 
C)  mediate conflict. 
D)  enforce American economic values and enhance the economic position of the United States in the world.

Question 3

In the past, governments had greater control over currency prices because

Accepted Answer

A)  governments were stronger and more centralized. 
B)  governments controlled more currency than private actors. 
C)  the cost of exchanging currency was higher in the past. 
D)  governments had a monopolistic control over currency markets. 
A)  governments were stronger and more centralized. 
B)  governments controlled more currency than private actors. 
C)  the cost of exchanging currency was higher in the past. 
D)  governments had a monopolistic control over currency markets.

Question 4

In 2010, who acted as the lender of last resort for Greece?

Accepted Answer

A)  The European Union, but primarily Germany 
B)  The United Kingdom 
C)  The United States 
D)  The World Bank 
A)  The European Union, but primarily Germany 
B)  The United Kingdom 
C)  The United States 
D)  The World Bank

Question 5

One major problem of the General Agreement on Tariffs and Trade (GATT) was the exclusion of certain classes of products. One of the most significant classes of product originally excluded from GATT was

Accepted Answer

A)  agricultural. 
B)  manufactured. 
C)  automotive. 
D)  pharmaceuticals. 
A)  agricultural. 
B)  manufactured. 
C)  automotive. 
D)  pharmaceuticals.

Question 6

Discuss the origins and purposes of the Bretton Woods system, particularly as it relates to trade and monetary policies. Why did the Bretton Woods monetary regime give way to a system of floating exchange rates in the 1970s and 1980s?

Accepted Answer

The Bretton Woods system was established

Question 7

As the role of the U.S. dollar becomes undermined as the main currency of international commerce, the __________ has emerged as a highly stable form of currency to which many governments have already shifted in regards to reserve currency.

Accepted Answer

A)  Chinese yuan 
B)  Australian dollar 
C)  Euro 
D)  Japanese yen 
A)  Chinese yuan 
B)  Australian dollar 
C)  Euro 
D)  Japanese yen

Question 8

All of the following are considered to be nontariff barriers except

Accepted Answer

A)  voluntary export restraints. 
B)  health and environmental regulations. 
C)  quotas. 
D)  taxes on imports. 
A)  voluntary export restraints. 
B)  health and environmental regulations. 
C)  quotas. 
D)  taxes on imports.

Question 9

Protection for U.S. sugar farmers _____.

Accepted Answer

A)  makes sugar more efficient 
B)  triples the price of US sugar 
C)  gives the US a comparative advantage in sugar 
D)  generates a savings for consumers 
A)  makes sugar more efficient 
B)  triples the price of US sugar 
C)  gives the US a comparative advantage in sugar 
D)  generates a savings for consumers

Question 10

One of the main criticisms of globalization is that it

Accepted Answer

A)  makes the powerful more powerful and wealthy. 
B)  actually makes everyone less well off. 
C)  outsources jobs from developing to developed countries. 
D)  prevents poorer countries from expanding their economies. 
A)  makes the powerful more powerful and wealthy. 
B)  actually makes everyone less well off. 
C)  outsources jobs from developing to developed countries. 
D)  prevents poorer countries from expanding their economies.

Question 11

Which domestic interest groups would benefit from preserving trade barriers and which groups would be hurt from those same barriers? How important are domestic interest groups in affecting international trade policy?

Accepted Answer

Domestic interest groups that would bene

Question 12

To explain the growth in free trade after World War II, barriers to increased free trade can only be overcome when a single state is powerful enough to persuade other states to go along. This is called the

Accepted Answer

A)  costs and adjustments theory. 
B)  regionalization theory. 
C)  liberal trade theory. 
D)  hegemonic stability theory. 
A)  costs and adjustments theory. 
B)  regionalization theory. 
C)  liberal trade theory. 
D)  hegemonic stability theory.

Question 13

Why did the Greek crisis threaten to spread to the rest of Europe?

Accepted Answer

A)  Because there were not any other states struggling with debt. 
B)  Because of arbitrage and capital mobility 
C)  Because of the International Monetary Fund. 
D)  Because many banks that were owed monies by Greek businesses were headquartered in other European states 
A)  Because there were not any other states struggling with debt. 
B)  Because of arbitrage and capital mobility 
C)  Because of the International Monetary Fund. 
D)  Because many banks that were owed monies by Greek businesses were headquartered in other European states

Question 14

Financial burden that is imposed on a country as a result of changes in the international economic system is called the

Accepted Answer

A)  most favored nation principle. 
B)  nondiscrimination. 
C)  cost of adjustment. 
D)  internationalization of finance. 
A)  most favored nation principle. 
B)  nondiscrimination. 
C)  cost of adjustment. 
D)  internationalization of finance.

Question 15

The fundamental linkage between debt crises and monetary crises that can shift a manageable downturn into an unmanageable panic is referred to as a

Accepted Answer

A)  lender of last resort. 
B)  crisis of confidence. 
C)  monetary stagnation. 
D)  currency devaluation. 
A)  lender of last resort. 
B)  crisis of confidence. 
C)  monetary stagnation. 
D)  currency devaluation.

Question 16

The monetary system wherein little capital mobility occurred, stable exchange rates existed in order to facilitate trade, and the U.S. dollar was the primary currency to which all other currencies adjusted was known as the

Accepted Answer

A)  classical gold standard system. 
B)  the intervening, interwar era. 
C)  the Bretton Woods system. 
D)  the post-Bretton Woods system. 
A)  classical gold standard system. 
B)  the intervening, interwar era. 
C)  the Bretton Woods system. 
D)  the post-Bretton Woods system.

Question 17

What are the competing costs and benefits of globalization?

Accepted Answer

Globalization has both costs and benefit

Question 18

Discuss the key aspects of globalization. How important is each as a means to explain globalization? In what practical ways has globalization impacted your daily life?

Accepted Answer

Globalization is a complex and multiface

Question 19

What is the main difference for members of the World Trade Organization (WTO) who also are members of a free trade area (FTA)?

Accepted Answer

A)  WTO members are provided lower tariffs than members of the FTA. 
B)  There are no nontariff barriers for WTO members, but there may be some for FTA members. 
C)  Within a free trade area, there are no tariffs at all, but there are some tariffs for WTO members. 
D)  Barriers may be low for FTA members, but they are even lower for WTO members. 
A)  WTO members are provided lower tariffs than members of the FTA. 
B)  There are no nontariff barriers for WTO members, but there may be some for FTA members. 
C)  Within a free trade area, there are no tariffs at all, but there are some tariffs for WTO members. 
D)  Barriers may be low for FTA members, but they are even lower for WTO members.

Question 20

Why was agriculture left out of the original General Agreement on Tariffs and Trade (GATT) agreement?

Accepted Answer

A)  It is too diverse. 
B)  It cannot be included in free trade arrangements, because each country has different standards. 
C)  It was left out because agriculture interests are extremely powerful politically. 
D)  It was left out because of too much disagreement and debate among the members of the organization. 
A)  It is too diverse. 
B)  It cannot be included in free trade arrangements, because each country has different standards. 
C)  It was left out because agriculture interests are extremely powerful politically. 
D)  It was left out because of too much disagreement and debate among the members of the organization.

Which of the following reasons does NOT explain Greece's difficulty in financing its debt?

The goal of the World Trade Organization (WTO) dispute settlement process is to

In the past, governments had greater control over currency prices because

In 2010, who acted as the lender of last resort for Greece?

One major problem of the General Agreement on Tariffs and Trade (GATT) was the exclusion of certain classes of products. One of the most significant classes of product originally excluded from GATT was

Discuss the origins and purposes of the Bretton Woods system, particularly as it relates to trade and monetary policies. Why did the Bretton Woods monetary regime give way to a system of floating exchange rates in the 1970s and 1980s?

As the role of the U.S. dollar becomes undermined as the main currency of international commerce, the __________ has emerged as a highly stable form of currency to which many governments have already shifted in regards to reserve currency.

All of the following are considered to be nontariff barriers except

Protection for U.S. sugar farmers _____.

One of the main criticisms of globalization is that it

Which domestic interest groups would benefit from preserving trade barriers and which groups would be hurt from those same barriers? How important are domestic interest groups in affecting international trade policy?

To explain the growth in free trade after World War II, barriers to increased free trade can only be overcome when a single state is powerful enough to persuade other states to go along. This is called the

Why did the Greek crisis threaten to spread to the rest of Europe?

Financial burden that is imposed on a country as a result of changes in the international economic system is called the

The fundamental linkage between debt crises and monetary crises that can shift a manageable downturn into an unmanageable panic is referred to as a

The monetary system wherein little capital mobility occurred, stable exchange rates existed in order to facilitate trade, and the U.S. dollar was the primary currency to which all other currencies adjusted was known as the

What are the competing costs and benefits of globalization?

Discuss the key aspects of globalization. How important is each as a means to explain globalization? In what practical ways has globalization impacted your daily life?

What is the main difference for members of the World Trade Organization (WTO) who also are members of a free trade area (FTA)?

Why was agriculture left out of the original General Agreement on Tariffs and Trade (GATT) agreement?

Introduction Problems and Questions in International Politics

The Historical Evolution of International Politics

Theories of International Relations Realism and Liberalism

Theories of International Relations Economic Structuralism Constructivism and Feminism

The State Society and Foreign Policy

Bureaucracies Groups and Individuals in the Foreign Policy Process

International Organizations and Transnational Actors

International Insecurity and the Causes of War and Peace

The Use of Force

Fundamentals of International Political Economy

The Problem of Global Inequality

International Law Norms and Human Rights

The Global Environment and International Politics

Conclusion Power and Purpose in a Changing World

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Exam 11: The Globalization of Trade and Finance

Which of the following reasons does NOT explain Greece's difficulty in financing its debt?

The goal of the World Trade Organization (WTO) dispute settlement process is to

In the past, governments had greater control over currency prices because

In 2010, who acted as the lender of last resort for Greece?

One major problem of the General Agreement on Tariffs and Trade (GATT) was the exclusion of certain classes of products. One of the most significant classes of product originally excluded from GATT was

Discuss the origins and purposes of the Bretton Woods system, particularly as it relates to trade and monetary policies. Why did the Bretton Woods monetary regime give way to a system of floating exchange rates in the 1970s and 1980s?

As the role of the U.S. dollar becomes undermined as the main currency of international commerce, the __________ has emerged as a highly stable form of currency to which many governments have already shifted in regards to reserve currency.

All of the following are considered to be nontariff barriers except

Protection for U.S. sugar farmers _____.

One of the main criticisms of globalization is that it

Which domestic interest groups would benefit from preserving trade barriers and which groups would be hurt from those same barriers? How important are domestic interest groups in affecting international trade policy?

To explain the growth in free trade after World War II, barriers to increased free trade can only be overcome when a single state is powerful enough to persuade other states to go along. This is called the

Why did the Greek crisis threaten to spread to the rest of Europe?

Financial burden that is imposed on a country as a result of changes in the international economic system is called the

The fundamental linkage between debt crises and monetary crises that can shift a manageable downturn into an unmanageable panic is referred to as a

The monetary system wherein little capital mobility occurred, stable exchange rates existed in order to facilitate trade, and the U.S. dollar was the primary currency to which all other currencies adjusted was known as the

What are the competing costs and benefits of globalization?

Discuss the key aspects of globalization. How important is each as a means to explain globalization? In what practical ways has globalization impacted your daily life?

What is the main difference for members of the World Trade Organization (WTO) who also are members of a free trade area (FTA)?

Why was agriculture left out of the original General Agreement on Tariffs and Trade (GATT) agreement?

Introduction Problems and Questions in International Politics

The Historical Evolution of International Politics

Theories of International Relations Realism and Liberalism

Theories of International Relations Economic Structuralism Constructivism and Feminism

The State Society and Foreign Policy

Bureaucracies Groups and Individuals in the Foreign Policy Process

International Organizations and Transnational Actors

International Insecurity and the Causes of War and Peace

The Use of Force

Fundamentals of International Political Economy

The Problem of Global Inequality

International Law Norms and Human Rights

The Global Environment and International Politics

Conclusion Power and Purpose in a Changing World

Filters