Question 1

What kind of a foreign exchange condition occurs when the domestic producer benefits, but the foreign exporter is hurt?

Accepted Answer

A)  A strong currency 
B)  A weak currency 
C)  A fluctuating currency 
D)  A mixed currency 
A)  A strong currency 
B)  A weak currency 
C)  A fluctuating currency 
D)  A mixed currency B

Question 2

States may manipulate the price of their currency downward in order to

Accepted Answer

A)  increase their trade deficit. 
B)  encourage emigration. 
C)  boost their trade surplus. 
D)  import more foreign goods. 
A)  increase their trade deficit. 
B)  encourage emigration. 
C)  boost their trade surplus. 
D)  import more foreign goods. C

Question 3

During the Great Depression in the United States, gross domestic product (GDP) fell by nearly

Accepted Answer

A)  20 percent. 
B)  30 percent. 
C)  50 percent. 
D)  65 percent. 
A)  20 percent. 
B)  30 percent. 
C)  50 percent. 
D)  65 percent. B

Question 4

Who developed the theory of comparative advantage?

Accepted Answer

A)  Harold Lasswell 
B)  Ben Bernanke 
C)  David Ricardo 
D)  John Maynard Keynes 
A)  Harold Lasswell 
B)  Ben Bernanke 
C)  David Ricardo 
D)  John Maynard Keynes

Question 5

Which of the following are real challenges for China in the future?

Accepted Answer

A)  A demographic crisis that will make it more difficult for workers to support retirees 
B)  Sound investment policies that have taken a back seat to maintaining political stability 
C)  Regional development disparities that have emerged between the east coast and the interior 
D)  All of the above are true. 
A)  A demographic crisis that will make it more difficult for workers to support retirees 
B)  Sound investment policies that have taken a back seat to maintaining political stability 
C)  Regional development disparities that have emerged between the east coast and the interior 
D)  All of the above are true.

Question 6

By implementing policies called for by the theory of comparative advantage, what is meant to happen between the two countries?

Accepted Answer

A)  One country is able to out produce and sell more than the other country 
B)  Production increases in one country while consumption decreases in the other 
C)  Consumption drops in both countries while production remains constant 
D)  Consumption increases in both countries 
A)  One country is able to out produce and sell more than the other country 
B)  Production increases in one country while consumption decreases in the other 
C)  Consumption drops in both countries while production remains constant 
D)  Consumption increases in both countries

Question 7

Neomercantilism includes all but one of the following principles. Which is not correct?

Accepted Answer

A)  Focus on state goals 
B)  Concern with the distribution of the gains from trade 
C)  Focus on the benefits of trade 
D)  Emphasis on the conflictual nature of trade 
A)  Focus on state goals 
B)  Concern with the distribution of the gains from trade 
C)  Focus on the benefits of trade 
D)  Emphasis on the conflictual nature of trade

Question 8

The theory of comparative advantage has been an important concept in international politics for several centuries. What is the basic argument of this theory? What are its main assumptions? In what way does it explain the rise of efficiency between two countries?

Accepted Answer

The theory of comparative advantage, fir

Question 9

Which Chinese leader recognized that market forces were needed to foster economic growth in China?

Accepted Answer

A)  Mao Zedong 
B)  Deng Xiaoping 
C)  Chiang Kai-shek 
D)  Sun Yat-sen 
A)  Mao Zedong 
B)  Deng Xiaoping 
C)  Chiang Kai-shek 
D)  Sun Yat-sen

Question 10

Embedded liberalism refers to the dilemma in which

Accepted Answer

A)  free trade may be beneficial but it could lead to an intrusive and abusive state. 
B)  the realist view of mercantilism should be softened with a more constructivist approach. 
C)  free trade is widely accepted yet the outcome from free trade could be disruptive and thus government needs to be cautious. 
D)  liberalism is essentially embedded into the framework of the government structure. 
A)  free trade may be beneficial but it could lead to an intrusive and abusive state. 
B)  the realist view of mercantilism should be softened with a more constructivist approach. 
C)  free trade is widely accepted yet the outcome from free trade could be disruptive and thus government needs to be cautious. 
D)  liberalism is essentially embedded into the framework of the government structure.

Question 11

A key difference between the constructivist approach to international political economy and that of the other theories is its assumption that

Accepted Answer

A)  power remains central to an understanding of the global economy. 
B)  states' goals and policies continuously change. 
C)  economic growth and development will be achieved over time. 
D)  individuals are still able to improve their economic positions. 
A)  power remains central to an understanding of the global economy. 
B)  states' goals and policies continuously change. 
C)  economic growth and development will be achieved over time. 
D)  individuals are still able to improve their economic positions.

Question 12

An American manufacturer with American customers competing with imported goods will benefit from

Accepted Answer

A)  a strong American dollar. 
B)  a weak American dollar. 
C)  neither a weak or strong American dollar. Exchange rates do not affect manufacturers. 
D)  a stable American dollar. 
A)  a strong American dollar. 
B)  a weak American dollar. 
C)  neither a weak or strong American dollar. Exchange rates do not affect manufacturers. 
D)  a stable American dollar.

Question 13

One effect domestically of a weak currency is

Accepted Answer

A)  consumers will purchase fewer foreign goods and more domestic goods. 
B)  the price of domestically priced goods will increase and consumers will purchase more foreign goods. 
C)  foreign producers will flood the domestic market with goods. 
D)  overall trade will decline as consumers decrease both domestic and foreign purchases. 
A)  consumers will purchase fewer foreign goods and more domestic goods. 
B)  the price of domestically priced goods will increase and consumers will purchase more foreign goods. 
C)  foreign producers will flood the domestic market with goods. 
D)  overall trade will decline as consumers decrease both domestic and foreign purchases.

Question 14

Approximately what percentage of the clothing sold in the United States is manufactured elsewhere?

Accepted Answer

A)  35 percent 
B)  50 percent 
C)  75 percent 
D)  95 percent 
A)  35 percent 
B)  50 percent 
C)  75 percent 
D)  95 percent

Question 15

Why did global firms not reject China's demand for investing in Chinese companies, so that China could move up the value chain?

Accepted Answer

A)  Because they wanted to gain access to China's sizeable market 
B)  In order to take advantage of China's cheap labor force 
C)  So that China would buy billions of dollars' worth of U.S. government bonds that fund the U.S. budget deficit 
D)  Both options A and B are true. 
A)  Because they wanted to gain access to China's sizeable market 
B)  In order to take advantage of China's cheap labor force 
C)  So that China would buy billions of dollars' worth of U.S. government bonds that fund the U.S. budget deficit 
D)  Both options A and B are true.

Question 16

Developing countries blame __________ farmers in the United States and Europe for their inability to compete more successfully in the global marketplace.

Accepted Answer

A)  subsidies to 
B)  grants to 
C)  regulations on 
D)  tariffs on 
A)  subsidies to 
B)  grants to 
C)  regulations on 
D)  tariffs on

Question 17

Why do feminists argue that the costs of globalization are unevenly distributed?

Accepted Answer

Feminists argue that the costs of global

Question 18

In a country with a trade surplus,

Accepted Answer

A)  there will be higher prices. 
B)  there will be lower prices. 
C)  the economy will be damaged. 
D)  there will be increased employment and higher wages. 
A)  there will be higher prices. 
B)  there will be lower prices. 
C)  the economy will be damaged. 
D)  there will be increased employment and higher wages.

Question 19

How does currency manipulation hurt the international economic system? If a certain country is engaged in competitive devaluation, what problems might that imply for their foreign trading partners? How might this currency manipulation also hurt the domestic market?

Accepted Answer

Currency manipulation can hurt the inter

Question 20

The term that refers to the reduction of the general level of prices in an economy is

Accepted Answer

A)  devaluation. 
B)  depression. 
C)  depreciation. 
D)  deflation. 
A)  devaluation. 
B)  depression. 
C)  depreciation. 
D)  deflation.

What kind of a foreign exchange condition occurs when the domestic producer benefits, but the foreign exporter is hurt?

States may manipulate the price of their currency downward in order to

During the Great Depression in the United States, gross domestic product (GDP) fell by nearly

Who developed the theory of comparative advantage?

Which of the following are real challenges for China in the future?

By implementing policies called for by the theory of comparative advantage, what is meant to happen between the two countries?

Neomercantilism includes all but one of the following principles. Which is not correct?

The theory of comparative advantage has been an important concept in international politics for several centuries. What is the basic argument of this theory? What are its main assumptions? In what way does it explain the rise of efficiency between two countries?

Which Chinese leader recognized that market forces were needed to foster economic growth in China?

Embedded liberalism refers to the dilemma in which

A key difference between the constructivist approach to international political economy and that of the other theories is its assumption that

An American manufacturer with American customers competing with imported goods will benefit from

One effect domestically of a weak currency is

Approximately what percentage of the clothing sold in the United States is manufactured elsewhere?

Why did global firms not reject China's demand for investing in Chinese companies, so that China could move up the value chain?

Developing countries blame __________ farmers in the United States and Europe for their inability to compete more successfully in the global marketplace.

Why do feminists argue that the costs of globalization are unevenly distributed?

In a country with a trade surplus,

How does currency manipulation hurt the international economic system? If a certain country is engaged in competitive devaluation, what problems might that imply for their foreign trading partners? How might this currency manipulation also hurt the domestic market?

The term that refers to the reduction of the general level of prices in an economy is

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

The Globalization of Trade and Finance

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 10: Fundamentals of International Political Economy

What kind of a foreign exchange condition occurs when the domestic producer benefits, but the foreign exporter is hurt?

States may manipulate the price of their currency downward in order to

During the Great Depression in the United States, gross domestic product (GDP) fell by nearly

Who developed the theory of comparative advantage?

Which of the following are real challenges for China in the future?

By implementing policies called for by the theory of comparative advantage, what is meant to happen between the two countries?

Neomercantilism includes all but one of the following principles. Which is not correct?

The theory of comparative advantage has been an important concept in international politics for several centuries. What is the basic argument of this theory? What are its main assumptions? In what way does it explain the rise of efficiency between two countries?

Which Chinese leader recognized that market forces were needed to foster economic growth in China?

Embedded liberalism refers to the dilemma in which

A key difference between the constructivist approach to international political economy and that of the other theories is its assumption that

An American manufacturer with American customers competing with imported goods will benefit from

One effect domestically of a weak currency is

Approximately what percentage of the clothing sold in the United States is manufactured elsewhere?

Why did global firms not reject China's demand for investing in Chinese companies, so that China could move up the value chain?

Developing countries blame __________ farmers in the United States and Europe for their inability to compete more successfully in the global marketplace.

Why do feminists argue that the costs of globalization are unevenly distributed?

In a country with a trade surplus,

How does currency manipulation hurt the international economic system? If a certain country is engaged in competitive devaluation, what problems might that imply for their foreign trading partners? How might this currency manipulation also hurt the domestic market?

The term that refers to the reduction of the general level of prices in an economy is

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

The Globalization of Trade and Finance

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