Exam 9: International Political Economy

Based on the recognition that states differ in their resource endowments of land, labor, and capital, a theory developed arguing that states should trade based on their ________, whereby each state produces and exports those products that it can produce most efficiently relative to other states.

Some liberal theorists go beyond simply extolling the economic benefits of liberalism and claim that an international liberal economy

European integration has led to the creation of the euro, which is

When exchange rates float, currencies

The radical perspective on international political economy includes the view that MNCs are

NAFTA differs from the European Union in that, unlike the EU, it contains social, political, and security dimensions.

A drawback of globalization is

Although originally designed to facilitate reconstruction in post-World War II Europe, much of the World Bank's funding actually has been used to

MNCs are considered by liberals to be

Describe the key principles and claims of economic liberalism, then state whether or not you find this theoretical perspective compelling and why. Include in your response some discussion of the recent events and how they shape your beliefs in economic theory.

The development gap is a phenomenon of the past. At the turn of the new millennium, there were no clear-cut regional economic disparities between the North and the South.

Since the 1990s, economic regionalism

State-owned investment funds composed of a range of financial assets including stocks and bonds, precious metal, and property that are formed in capital-surplus countries are known as ________.

Economic crises affect all states similarly.

Mercantilists believe that economic policy dictates states' self-interest and that states should therefore give MNCs free reign.

Radicals argue that the state tends to support

The IMF lent money to a Western country during the 2008-2009 financial crisis.

European economic integration has been based solely on liberal economics; the EU has not utilized protection or government subsidies.

Within the last decade we have had two major financial crises: the 2008-2009 global financial crisis and the 2009 Eurozone crisis. Describe how you think these crises illustrate how international finance and international trade can impact states today. Given these effects, which economic theory-liberalism, mercantilism/statism, and radicalism-do you think best describes the state of the international political economy today? And why?

Two key factors that contributed to the 2009 Eurozone Crisis are