Question 1

What is concessional finance?

Accepted Answer

A) When countries attract multinational corporations by giving them tax breaks for investing in the country. 
B) When money is lent to developing countries at below-market interest rates. 
C) When countries allow multinational corporations to violate labor and environmental laws. 
D) When developing countries encourage multinational corporations to develop their natural resources. 
E) When lenders get special consideration from the International Monetary Fund during debt crises. 
A) When countries attract multinational corporations by giving them tax breaks for investing in the country. 
B) When money is lent to developing countries at below-market interest rates. 
C) When countries allow multinational corporations to violate labor and environmental laws. 
D) When developing countries encourage multinational corporations to develop their natural resources. 
E) When lenders get special consideration from the International Monetary Fund during debt crises.

Question 2

What reasons would a country have for wanting to seek international finance,and how would this differ from the reasons why a country might seek foreign direct investment?

Accepted Answer

There are several reasons why a country

Question 3

All of the following are international financial institutions EXCEPT the:

Accepted Answer

A) International Monetary Fund. 
B) World Bank. 
C) World Trade Organization. 
D) Inter-American Development Bank. 
E) Bank for International Settlements. 
A) International Monetary Fund. 
B) World Bank. 
C) World Trade Organization. 
D) Inter-American Development Bank. 
E) Bank for International Settlements.

Question 4

Which of the following is an austerity measure?

Accepted Answer

A) The United States lowered interest rates in response to the financial crisis. 
B) Brazil increased spending on health care for the poor. 
C) Mexico raised interest rates to 50 percent in 1994. 
D) Venezuela reduced the price of bus fares. 
E) Russia lowered taxes on the middle class. 
A) The United States lowered interest rates in response to the financial crisis. 
B) Brazil increased spending on health care for the poor. 
C) Mexico raised interest rates to 50 percent in 1994. 
D) Venezuela reduced the price of bus fares. 
E) Russia lowered taxes on the middle class.

Question 5

Which of the following did NOT suffer from a major financial crisis in the 1990s?

Accepted Answer

A) Brazil. 
B) Canada. 
C) Russia. 
D) Mexico. 
E) Indonesia. 
A) Brazil. 
B) Canada. 
C) Russia. 
D) Mexico. 
E) Indonesia.

Question 6

The International Monetary Fund is controversial,because some believe that:

Accepted Answer

A) decision making in the organization has been taken over by developing countries. 
B) the organization takes unfair advantage of debtor nations. 
C) the organization allows only developed countries to become members. 
D) a country that stops paying its debt will eventually receive more economic benefits than one that honors its obligations. 
E) the organization faces a massive shortfall in revenue. 
A) decision making in the organization has been taken over by developing countries. 
B) the organization takes unfair advantage of debtor nations. 
C) the organization allows only developed countries to become members. 
D) a country that stops paying its debt will eventually receive more economic benefits than one that honors its obligations. 
E) the organization faces a massive shortfall in revenue.

Question 7

The International Monetary Fund was created to:

Accepted Answer

A) avoid the dramatic decrease in trade that occurred during the Great Depression. 
B) provide loans to developing countries during financial crises. 
C) oversee investment in developing countries. 
D) provide loan advice to lenders and borrowers. 
E) manage the international monetary system. 
A) avoid the dramatic decrease in trade that occurred during the Great Depression. 
B) provide loans to developing countries during financial crises. 
C) oversee investment in developing countries. 
D) provide loan advice to lenders and borrowers. 
E) manage the international monetary system.

Question 8

Which of the following is NOT a reason that foreign direct investment is controversial?

Accepted Answer

A) Multinational corporations can be insensitive to local culture and customs. 
B) People in developed countries prefer that multinational corporations invest in their own countries. 
C) Multinational corporations can choose to build factories in countries with weak environmental protections. 
D) Developing countries think multinational corporations keep too much of the profit from their investments. 
E) Multinational corporations help developing countries develop infrastructure. 
A) Multinational corporations can be insensitive to local culture and customs. 
B) People in developed countries prefer that multinational corporations invest in their own countries. 
C) Multinational corporations can choose to build factories in countries with weak environmental protections. 
D) Developing countries think multinational corporations keep too much of the profit from their investments. 
E) Multinational corporations help developing countries develop infrastructure.

Question 9

Which of the following is NOT a reason that investors feel comfortable sending capital to other countries?

Accepted Answer

A) They can earn higher interest rates that help alleviate the risk of the investment. 
B) Countries that do not repay loans can have their foreign assets frozen. 
C) The investors' government could put pressure on a borrowing country not to default. 
D) The International Monetary Fund (IMF)can force other countries to repay their debts. 
E) Owners of capital in capital-rich countries can make more money investing in capital-poor countries. 
A) They can earn higher interest rates that help alleviate the risk of the investment. 
B) Countries that do not repay loans can have their foreign assets frozen. 
C) The investors' government could put pressure on a borrowing country not to default. 
D) The International Monetary Fund (IMF)can force other countries to repay their debts. 
E) Owners of capital in capital-rich countries can make more money investing in capital-poor countries.

Question 10

What leverage over foreign direct investment,if any,does a developing country have over a multinational corporation?

Accepted Answer

The answer of What leverage over foreign direct investment,if any,does...

Question 11

Where did the 2008 financial crisis originate?

Accepted Answer

A) The United States. 
B) Mexico. 
C) Russia. 
D) Japan. 
E) Indonesia. 
A) The United States. 
B) Mexico. 
C) Russia. 
D) Japan. 
E) Indonesia.

Question 12

Capital and labor are similar in the international political economy because:

Accepted Answer

A) they are usually concentrated in the same country. 
B) both factors typically organize against liberalization of goods. 
C) they are typically immobile as factors of production. 
D) they both can easily overcome the collective action problems they face domestically due to their small groups. 
E) they are both likely to move toward places that are scarce in their endowment. 
A) they are usually concentrated in the same country. 
B) both factors typically organize against liberalization of goods. 
C) they are typically immobile as factors of production. 
D) they both can easily overcome the collective action problems they face domestically due to their small groups. 
E) they are both likely to move toward places that are scarce in their endowment.

Question 13

What explains the level of investment in developing countries?

Accepted Answer

A) There are more opportunities to make profits in developing countries. 
B) There is a higher risk to investing in developing countries. 
C) Developing countries are farther away from the countries where investors live. 
D) Developing countries are close enough to the United States and Europe that investors can keep track of their assets. 
E) The large numbers of different languages spoken in developed countries make investment difficult. 
A) There are more opportunities to make profits in developing countries. 
B) There is a higher risk to investing in developing countries. 
C) Developing countries are farther away from the countries where investors live. 
D) Developing countries are close enough to the United States and Europe that investors can keep track of their assets. 
E) The large numbers of different languages spoken in developed countries make investment difficult.

Question 14

What is foreign direct investment?

Accepted Answer

A) A loan from the International Monetary Fund made directly to a country's central bank. 
B) A loan intended to bypass corrupt local officials by going straight to a targeted industry. 
C) A loan made directly to a foreign ruler. 
D) An investment in which a company maintains control of its assets in another country. 
E) Investments in other countries in which investors have no role in managing the assets. 
A) A loan from the International Monetary Fund made directly to a country's central bank. 
B) A loan intended to bypass corrupt local officials by going straight to a targeted industry. 
C) A loan made directly to a foreign ruler. 
D) An investment in which a company maintains control of its assets in another country. 
E) Investments in other countries in which investors have no role in managing the assets.

Question 15

Why is international finance controversial?

Accepted Answer

A) Investors demand near-perfect credit ratings from foreign countries,a requirement that few can meet. 
B) Sovereign states are beholden to foreign investors and international organizations. 
C) Lenders in capital-rich countries rarely make sufficient profit on loans,because interest rates are too low. 
D) Borrowers in developing countries rarely pay back their loans. 
E) International organizations cannot require restrictions or standards on governments that borrow money. 
A) Investors demand near-perfect credit ratings from foreign countries,a requirement that few can meet. 
B) Sovereign states are beholden to foreign investors and international organizations. 
C) Lenders in capital-rich countries rarely make sufficient profit on loans,because interest rates are too low. 
D) Borrowers in developing countries rarely pay back their loans. 
E) International organizations cannot require restrictions or standards on governments that borrow money.

Question 16

Which of the following is NOT an example of a common view on immigration?

Accepted Answer

A) Construction workers in Massachusetts credit the influx of Brazilian workers for an increase in their wages. 
B) Plumbers in France complain that Polish workers are taking over their jobs. 
C) A U.S.senator complains that the children of Mexican immigrants receive free school lunches. 
D) The mayor of a California city points out that immigrants from El Salvador pay sales taxes. 
E) Owners of a chicken processing plant in Arkansas post help-wanted advertisements in Spanish-language newspapers. 
A) Construction workers in Massachusetts credit the influx of Brazilian workers for an increase in their wages. 
B) Plumbers in France complain that Polish workers are taking over their jobs. 
C) A U.S.senator complains that the children of Mexican immigrants receive free school lunches. 
D) The mayor of a California city points out that immigrants from El Salvador pay sales taxes. 
E) Owners of a chicken processing plant in Arkansas post help-wanted advertisements in Spanish-language newspapers.

Question 17

Which of the following illustrates how international conditions can affect debtor nations?

Accepted Answer

A) Mexican oil exports decreased,because higher U.S.interest rates precipitated a recession. 
B) The government of Thailand increased interest rates,which led to a recession. 
C) Argentina experienced hyperinflation,because of excessive government spending. 
D) Honduran electricity production decreased,because of insufficient rain to fill its reservoirs. 
E) India increased unemployment assistance because of student protests. 
A) Mexican oil exports decreased,because higher U.S.interest rates precipitated a recession. 
B) The government of Thailand increased interest rates,which led to a recession. 
C) Argentina experienced hyperinflation,because of excessive government spending. 
D) Honduran electricity production decreased,because of insufficient rain to fill its reservoirs. 
E) India increased unemployment assistance because of student protests.

Question 18

What event sparked the 1980's debt crisis?

Accepted Answer

A) The Mexican government announced it could not make its debt payment. 
B) The Soviet Union invaded Afghanistan,and all extra investment was used for defense spending. 
C) The United States Congress banned lending to Latin American countries. 
D) Ronald Reagan was elected president of the United States. 
E) The 1979 Iranian revolution led to extreme oil shortages. 
A) The Mexican government announced it could not make its debt payment. 
B) The Soviet Union invaded Afghanistan,and all extra investment was used for defense spending. 
C) The United States Congress banned lending to Latin American countries. 
D) Ronald Reagan was elected president of the United States. 
E) The 1979 Iranian revolution led to extreme oil shortages.

Question 19

What does the International Monetary Fund do in the twenty-first century?

Accepted Answer

A) It contributes to the smooth regulation of international trade. 
B) It provides loans to multinational corporations,so that they can operate in developing countries. 
C) It lends money to developing countries,so that they can build necessary infrastructure. 
D) It negotiates between multinational corporations and developing countries to facilitate relocation of factories and other businesses. 
E) It lends money to developing countries with debt problems. 
A) It contributes to the smooth regulation of international trade. 
B) It provides loans to multinational corporations,so that they can operate in developing countries. 
C) It lends money to developing countries,so that they can build necessary infrastructure. 
D) It negotiates between multinational corporations and developing countries to facilitate relocation of factories and other businesses. 
E) It lends money to developing countries with debt problems.

Question 20

Which of the following is NOT a productive use for foreign investment?

Accepted Answer

A) Chile inviting international copper companies to expand their copper mines. 
B) Iraq allowing U.S.oil companies to build an oil rig. 
C) Botswana using a loan to build a new highway. 
D) India using investors' money to pay loan interest. 
E) China using investors' money to build a hydroelectric plant. 
A) Chile inviting international copper companies to expand their copper mines. 
B) Iraq allowing U.S.oil companies to build an oil rig. 
C) Botswana using a loan to build a new highway. 
D) India using investors' money to pay loan interest. 
E) China using investors' money to build a hydroelectric plant.

What is concessional finance?

What reasons would a country have for wanting to seek international finance,and how would this differ from the reasons why a country might seek foreign direct investment?

All of the following are international financial institutions EXCEPT the:

Which of the following is an austerity measure?

Which of the following did NOT suffer from a major financial crisis in the 1990s?

The International Monetary Fund is controversial,because some believe that:

The International Monetary Fund was created to:

Which of the following is NOT a reason that foreign direct investment is controversial?

Which of the following is NOT a reason that investors feel comfortable sending capital to other countries?

What leverage over foreign direct investment,if any,does a developing country have over a multinational corporation?

Where did the 2008 financial crisis originate?

Capital and labor are similar in the international political economy because:

What explains the level of investment in developing countries?

What is foreign direct investment?

Why is international finance controversial?

Which of the following is NOT an example of a common view on immigration?

Which of the following illustrates how international conditions can affect debtor nations?

What event sparked the 1980's debt crisis?

What does the International Monetary Fund do in the twenty-first century?

Which of the following is NOT a productive use for foreign investment?

Introduction

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Trade

International Monetary Relations

Development: Causes of the Wealth and Poverty of Nations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Foundations, war, and Peace

International Political Economy, transnational Politics, and Looking Ahead

Filters

Exam 9: International Financial Relations

What is concessional finance?

What reasons would a country have for wanting to seek international finance,and how would this differ from the reasons why a country might seek foreign direct investment?

All of the following are international financial institutions EXCEPT the:

Which of the following is an austerity measure?

Which of the following did NOT suffer from a major financial crisis in the 1990s?

The International Monetary Fund is controversial,because some believe that:

The International Monetary Fund was created to:

Which of the following is NOT a reason that foreign direct investment is controversial?

Which of the following is NOT a reason that investors feel comfortable sending capital to other countries?

What leverage over foreign direct investment,if any,does a developing country have over a multinational corporation?

Where did the 2008 financial crisis originate?

Capital and labor are similar in the international political economy because:

What explains the level of investment in developing countries?

What is foreign direct investment?

Why is international finance controversial?

Which of the following is NOT an example of a common view on immigration?

Which of the following illustrates how international conditions can affect debtor nations?

What event sparked the 1980's debt crisis?

What does the International Monetary Fund do in the twenty-first century?

Which of the following is NOT a productive use for foreign investment?

Introduction

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Trade

International Monetary Relations

Development: Causes of the Wealth and Poverty of Nations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Foundations, war, and Peace

International Political Economy, transnational Politics, and Looking Ahead

Filters