Question 1

Rent-seeking is the term used to describe

Accepted Answer

A)  efforts by public officials to use the political system to achieve a higher-than-market return on an economic activity. 
B)  efforts by public officials to use the economic system to achieve a higher-than-market return on an political activity. 
C)  efforts by private actors to use the political system to achieve a higher-than-market return on an economic activity. 
D)  efforts by public officials to pressure producers to pay a higher-than-average taxes on an economic activity. 
E)  any corrupt practices associated with government interference in the market. 
A)  efforts by public officials to use the political system to achieve a higher-than-market return on an economic activity. 
B)  efforts by public officials to use the economic system to achieve a higher-than-market return on an political activity. 
C)  efforts by private actors to use the political system to achieve a higher-than-market return on an economic activity. 
D)  efforts by public officials to pressure producers to pay a higher-than-average taxes on an economic activity. 
E)  any corrupt practices associated with government interference in the market. C

Question 2

According to Oatley,manufacturing industries created through ISI were not competitive in international markets primarily because

Accepted Answer

A)  of collusion by advanced industrial states. 
B)  industries achieved economies of scale but not economies of experience. 
C)  of insufficient capacity to satisfy domestic consumption. 
D)  domestic markets for ISI goods were too small to achieve economies of scale. 
E)  governments were forced to privatize them. 
A)  of collusion by advanced industrial states. 
B)  industries achieved economies of scale but not economies of experience. 
C)  of insufficient capacity to satisfy domestic consumption. 
D)  domestic markets for ISI goods were too small to achieve economies of scale. 
E)  governments were forced to privatize them. D

Question 3

Explain the success of the three pillars of China's economic reforms in spite of the inefficient state-owned sector that still employs tens of millions of people.

Accepted Answer

The success of the three pillars of China's economic reforms, namely agriculture, state-owned enterprises (SOEs), and foreign investment, can be attributed to several factors despite the inefficiency of the state-owned sector.

Firstly, China's focus on agriculture as a key pillar of its economic reforms has led to significant improvements in productivity and output. By implementing policies such as the Household Responsibility System, which allowed farmers to lease land and sell surplus produce, China was able to increase agricultural productivity and reduce rural poverty. This has contributed to overall economic growth and stability.

Secondly, while the state-owned sector may be inefficient, it still plays a significant role in China's economy, particularly in strategic industries such as energy, telecommunications, and finance. The government has implemented reforms to improve the efficiency of SOEs, such as restructuring and corporatization, which have helped to modernize these enterprises and make them more competitive in the global market.

Lastly, foreign investment has played a crucial role in China's economic reforms, providing access to technology, capital, and markets. This has helped to drive economic growth and modernization, despite the challenges posed by the state-owned sector.

Overall, the success of China's economic reforms can be attributed to a combination of factors, including the focus on agriculture, reforms within the state-owned sector, and the benefits of foreign investment. While the state-owned sector may still employ tens of millions of people, the government's efforts to modernize and improve efficiency have contributed to the overall success of China's economic reforms.

Question 4

By the mid-1980s,in Taiwan and South Korea,

Accepted Answer

A)  textiles were still their largest exports. 
B)  steel and petrochemicals were their largest exports. 
C)  steel and ship building were their largest exports. 
D)  electronics and automobiles were their largest imports. 
E)  electronics and automobiles were their largest exports. 
A)  textiles were still their largest exports. 
B)  steel and petrochemicals were their largest exports. 
C)  steel and ship building were their largest exports. 
D)  electronics and automobiles were their largest imports. 
E)  electronics and automobiles were their largest exports.

Question 5

A current account deficit means that

Accepted Answer

A)  a country is exporting more than it is importing. 
B)  a country is importing more than it is exporting. 
C)  a country is unable to pay off its loans. 
D)  a country is making less money on its exports than on its imports. 
E)  a government is spending more than it is receiving in revenues. 
A)  a country is exporting more than it is importing. 
B)  a country is importing more than it is exporting. 
C)  a country is unable to pay off its loans. 
D)  a country is making less money on its exports than on its imports. 
E)  a government is spending more than it is receiving in revenues.

Question 6

According to Oatley,the international institutions of the IMF and the World Bank linked financial assistance to economic reforms that

Accepted Answer

A)  reduced the ability of governments to spend on education and health care. 
B)  increased the role of the market in the economy. 
C)  drastically reduced the wages of domestic workers. 
D)  dramatically increased political instability. 
E)  increased the interest rates on foreign debt to discourage government spending. 
A)  reduced the ability of governments to spend on education and health care. 
B)  increased the role of the market in the economy. 
C)  drastically reduced the wages of domestic workers. 
D)  dramatically increased political instability. 
E)  increased the interest rates on foreign debt to discourage government spending.

Question 7

Domestic politics in support of urban residents aggravated the budget deficits generated by ISI.

Accepted Answer

A) True 
 B)False

Question 8

Explain the role of World Bank/IMF structural adjustment mandates on large job losses through privatization and cut backs in government spending.

Accepted Answer

The World Bank and IMF structural adjust

Question 9

According to Oatley,one of the worst features of ISI was the opportunities it created for government corruption.

Accepted Answer

A) True 
 B)False

Question 10

East Asian governments used industrial policies to

Accepted Answer

A)  increase the cost of investment in targeted industries. 
B)  create incentives to export. 
C)  reduce protection on infant industries. 
D)  promote the export of skilled labor. 
E)  use credit to assist importers' input suppliers. 
A)  increase the cost of investment in targeted industries. 
B)  create incentives to export. 
C)  reduce protection on infant industries. 
D)  promote the export of skilled labor. 
E)  use credit to assist importers' input suppliers.

Question 11

How have Brazil,India and China (BICs)changed the direction of the WTO and greater trade liberalization talks in recent years?

Accepted Answer

The Brazil, India, and China (BICs) have

Question 12

ISI policies in the long run constrained the ability of governments to implement reforms because

Accepted Answer

A)  they created too many veto players to block change. 
B)  they raised consumer expectations to unreasonable levels. 
C)  they raised producer profit expectations to unreasonable levels. 
D)  state owned enterprises became too corrupt to manage. 
E)  government subsidies were too popular with urban elites. 
A)  they created too many veto players to block change. 
B)  they raised consumer expectations to unreasonable levels. 
C)  they raised producer profit expectations to unreasonable levels. 
D)  state owned enterprises became too corrupt to manage. 
E)  government subsidies were too popular with urban elites.

Question 13

Microeconomic inefficiencies created by ISI policies were aggravated by the tendency of developing country governments to

Accepted Answer

A)  maintain undervalued exchange rates. 
B)  maintain overvalued exchange rates. 
C)  depreciate currency under fixed rates of exchange. 
D)  depreciate currency under floating rates of exchange. 
E)  inflate the value of foreign currencies. 
A)  maintain undervalued exchange rates. 
B)  maintain overvalued exchange rates. 
C)  depreciate currency under fixed rates of exchange. 
D)  depreciate currency under floating rates of exchange. 
E)  inflate the value of foreign currencies.

Question 14

According to Oatley,governments in developing countries were unwilling to scale back their industrialization strategies because

Accepted Answer

A)  it was unclear what model they should shift to because of the myth of adverse terms of trade. 
B)  market-oriented development strategies would reduce corruption. 
C)  they preferred to obtain higher rents by borrowing from foreigners. 
D)  they were unwilling to fight against the GATT system. 
E)  foreign lenders would eventually expose their corruption. 
A)  it was unclear what model they should shift to because of the myth of adverse terms of trade. 
B)  market-oriented development strategies would reduce corruption. 
C)  they preferred to obtain higher rents by borrowing from foreigners. 
D)  they were unwilling to fight against the GATT system. 
E)  foreign lenders would eventually expose their corruption.

Question 15

Economic crises struck many developing countries outside of East Asia in the early 1980s in large part because of decisions to

Accepted Answer

A)  use foreign loans to finance large infrastructure projects or domestic consumption. 
B)  use foreign loans to subsidize export oriented development 
C)  use domestic savings to finance large infrastructure projects or domestic consumption. 
D)  use government funds to fight drugs and terrorism. 
E)  allow corrupt governments to put their money into foreign banks. 
A)  use foreign loans to finance large infrastructure projects or domestic consumption. 
B)  use foreign loans to subsidize export oriented development 
C)  use domestic savings to finance large infrastructure projects or domestic consumption. 
D)  use government funds to fight drugs and terrorism. 
E)  allow corrupt governments to put their money into foreign banks.

Question 16

East Asian governments were more successful in their development strategies than those in Latin America and Africa because

Accepted Answer

A)  they shifted to export-oriented substitution once they had exhausted the gains from easy ISI. 
B)  they shifted to export-oriented substitution without resorting to easy ISI. 
C)  they shifted to export-oriented substitution once they had exhausted the gains from commodity exports in agriculture. 
D)  they shifted to secondary ISI once they had exhausted the gains from easy ISI. 
E)  they were not interested in rent seeking trade strategies. 
A)  they shifted to export-oriented substitution once they had exhausted the gains from easy ISI. 
B)  they shifted to export-oriented substitution without resorting to easy ISI. 
C)  they shifted to export-oriented substitution once they had exhausted the gains from commodity exports in agriculture. 
D)  they shifted to secondary ISI once they had exhausted the gains from easy ISI. 
E)  they were not interested in rent seeking trade strategies.

Question 17

Brazil,India,and China (the BICs)have sharply increased their share of world output since 1980 now accounting for about 20% collectively.Which of the following statements is not true?

Accepted Answer

A)  China's growth accounts for most of this increase. 
B)  The BICs have taken steps to institutionalize their growing influence. 
C)  The BICs are not unified in their bargaining strategy. 
D)  Other developing countries have been enthusiastic about allowing the BICs to represent their interests in trade negotiations. 
E)  In spite of their growth, the BICs are populous but still relatively poor. 
A)  China's growth accounts for most of this increase. 
B)  The BICs have taken steps to institutionalize their growing influence. 
C)  The BICs are not unified in their bargaining strategy. 
D)  Other developing countries have been enthusiastic about allowing the BICs to represent their interests in trade negotiations. 
E)  In spite of their growth, the BICs are populous but still relatively poor.

Question 18

Between 1973 and 1982 developing countries were also harmed by three international shocks which included

Accepted Answer

A)  increase in oil prices, increase in commodity imports and higher interest rates on the foreign debt. 
B)  increase in oil prices, reduction in their terms of trade and lower profits on simple ISI products. 
C)  increase in oil prices, improvement in their terms of trade and higher interest rates on the foreign debt. 
D)  increase in oil prices, reduction in their terms of trade and lower interest rates on the foreign debt. 
E)  increase in oil prices, reduction in their terms of trade and higher interest rates on the foreign debt. 
A)  increase in oil prices, increase in commodity imports and higher interest rates on the foreign debt. 
B)  increase in oil prices, reduction in their terms of trade and lower profits on simple ISI products. 
C)  increase in oil prices, improvement in their terms of trade and higher interest rates on the foreign debt. 
D)  increase in oil prices, reduction in their terms of trade and lower interest rates on the foreign debt. 
E)  increase in oil prices, reduction in their terms of trade and higher interest rates on the foreign debt.

Question 19

Import substitution industrialization (ISI)gave rise to trade deficits primarily because

Accepted Answer

A)  it generated a considerable exports but did not generate sufficient imports. 
B)  export revenues were adversely affected by negative terms of trade. 
C)  import revenues were adversely affected by negative terms of trade. 
D)  governments were unable to continue to subsidize state owned enterprises. 
E)  it generated a considerable demand for imports but did not generate sufficient exports. 
A)  it generated a considerable exports but did not generate sufficient imports. 
B)  export revenues were adversely affected by negative terms of trade. 
C)  import revenues were adversely affected by negative terms of trade. 
D)  governments were unable to continue to subsidize state owned enterprises. 
E)  it generated a considerable demand for imports but did not generate sufficient exports.

Question 20

ISI also generated an important imbalance in persistent current-account deficits.

Accepted Answer

A) True 
 B)False

Rent-seeking is the term used to describe

According to Oatley,manufacturing industries created through ISI were not competitive in international markets primarily because

Explain the success of the three pillars of China's economic reforms in spite of the inefficient state-owned sector that still employs tens of millions of people.

By the mid-1980s,in Taiwan and South Korea,

A current account deficit means that

According to Oatley,the international institutions of the IMF and the World Bank linked financial assistance to economic reforms that

Domestic politics in support of urban residents aggravated the budget deficits generated by ISI.

Explain the role of World Bank/IMF structural adjustment mandates on large job losses through privatization and cut backs in government spending.

According to Oatley,one of the worst features of ISI was the opportunities it created for government corruption.

East Asian governments used industrial policies to

How have Brazil,India and China (BICs)changed the direction of the WTO and greater trade liberalization talks in recent years?

ISI policies in the long run constrained the ability of governments to implement reforms because

Microeconomic inefficiencies created by ISI policies were aggravated by the tendency of developing country governments to

According to Oatley,governments in developing countries were unwilling to scale back their industrialization strategies because

Economic crises struck many developing countries outside of East Asia in the early 1980s in large part because of decisions to

East Asian governments were more successful in their development strategies than those in Latin America and Africa because

Brazil,India,and China (the BICs)have sharply increased their share of world output since 1980 now accounting for about 20% collectively.Which of the following statements is not true?

Between 1973 and 1982 developing countries were also harmed by three international shocks which included

Import substitution industrialization (ISI)gave rise to trade deficits primarily because

ISI also generated an important imbalance in persistent current-account deficits.

International Political Economy

The World Trade Organization and the World Trade System

The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Multinational Corporations in the Global Economy

The Politics of Multinational Corporations

The International Monetary System

Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

A State-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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Exam 7: Trade and Development II: Economic Reform

Rent-seeking is the term used to describe

According to Oatley,manufacturing industries created through ISI were not competitive in international markets primarily because

Explain the success of the three pillars of China's economic reforms in spite of the inefficient state-owned sector that still employs tens of millions of people.

By the mid-1980s,in Taiwan and South Korea,

A current account deficit means that

According to Oatley,the international institutions of the IMF and the World Bank linked financial assistance to economic reforms that

Domestic politics in support of urban residents aggravated the budget deficits generated by ISI.

Explain the role of World Bank/IMF structural adjustment mandates on large job losses through privatization and cut backs in government spending.

According to Oatley,one of the worst features of ISI was the opportunities it created for government corruption.

East Asian governments used industrial policies to

How have Brazil,India and China (BICs)changed the direction of the WTO and greater trade liberalization talks in recent years?

ISI policies in the long run constrained the ability of governments to implement reforms because

Microeconomic inefficiencies created by ISI policies were aggravated by the tendency of developing country governments to

According to Oatley,governments in developing countries were unwilling to scale back their industrialization strategies because

Economic crises struck many developing countries outside of East Asia in the early 1980s in large part because of decisions to

East Asian governments were more successful in their development strategies than those in Latin America and Africa because

Brazil,India,and China (the BICs)have sharply increased their share of world output since 1980 now accounting for about 20% collectively.Which of the following statements is not true?

Between 1973 and 1982 developing countries were also harmed by three international shocks which included

Import substitution industrialization (ISI)gave rise to trade deficits primarily because

ISI also generated an important imbalance in persistent current-account deficits.

International Political Economy

The World Trade Organization and the World Trade System

The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Multinational Corporations in the Global Economy

The Politics of Multinational Corporations

The International Monetary System

Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

A State-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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