Question 1

Why do developing countries allow foreign direct investment?

Accepted Answer

A) The World Bank requires it as part of their loan packages. 
B) They need capital in order to develop,and FDI is often the best source. 
C) They want to break monopolies held by their own domestic firms. 
D) Multinational corporations threaten boycotts and trade embargoes if they cannot invest. 
A) The World Bank requires it as part of their loan packages. 
B) They need capital in order to develop,and FDI is often the best source. 
C) They want to break monopolies held by their own domestic firms. 
D) Multinational corporations threaten boycotts and trade embargoes if they cannot invest.

Question 2

Why is international migration controversial? Who tends to support it and who opposes it?

Accepted Answer

Answers will vary.International migratio

Question 3

Which of the following is the most prominent international financial institution,especially in times of economic distress?

Accepted Answer

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

Question 4

What was the Latin American debt crisis? How does it illustrate the problems and controversies of sovereign lending?

Accepted Answer

Answers will vary.Students should briefl

Question 5

Why is there no effective international institution that helps regulate foreign direct investment (FDI)?

Accepted Answer

A) Multinational corporations have blocked efforts to create a viable international organization. 
B) There are few accepted global concerns with regard to FDI,and there is no strong demand for cooperation in dealing with MNCs. 
C) An organization is unnecessary,because countries have already agreed to a standard code of conduct regarding FDI. 
D) FDI is a recent phenomenon,and there has not been time to develop a relevant international organization. 
A) Multinational corporations have blocked efforts to create a viable international organization. 
B) There are few accepted global concerns with regard to FDI,and there is no strong demand for cooperation in dealing with MNCs. 
C) An organization is unnecessary,because countries have already agreed to a standard code of conduct regarding FDI. 
D) FDI is a recent phenomenon,and there has not been time to develop a relevant international organization.

Question 6

Why did restrictions on immigration increase during the nineteenth and early twentieth centuries in the United States?

Accepted Answer

A) Immigration was so low that it wasn't controversial until the latter half of the nineteenth century. 
B) Unions gained more power over this time period and were better able to influence policy outcomes. 
C) A series of economic crises and depressions led to increasing opposition to immigration. 
D) The changing racial composition of the typical immigrant led to different levels of opposition over time. 
A) Immigration was so low that it wasn't controversial until the latter half of the nineteenth century. 
B) Unions gained more power over this time period and were better able to influence policy outcomes. 
C) A series of economic crises and depressions led to increasing opposition to immigration. 
D) The changing racial composition of the typical immigrant led to different levels of opposition over time.

Question 7

How do international finance and international immigration behave in similar ways? How do they differ?

Accepted Answer

Answers will vary.Students should explai

Question 8

Which of the following best characterizes the majority of international investment in the world?

Accepted Answer

A) Individuals in rich countries investing in other rich countries 
B) Individuals in rich countries investing in developing countries 
C) Individuals in democracies investing in non-democracies 
D) Individuals in poor countries investing in other poor countries 
A) Individuals in rich countries investing in other rich countries 
B) Individuals in rich countries investing in developing countries 
C) Individuals in democracies investing in non-democracies 
D) Individuals in poor countries investing in other poor countries

Question 9

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) 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) the organization faces a massive shortfall in revenue.

Question 10

The International Monetary Fund was created to:

Accepted Answer

A) manage the international monetary system. 
B) provide loans to developing countries during financial crises. 
C) oversee investment in developing countries. 
D) provide loan advice to lenders and borrowers. 
A) manage the international monetary system. 
B) provide loans to developing countries during financial crises. 
C) oversee investment in developing countries. 
D) provide loan advice to lenders and borrowers.

Question 11

How did Intel cause problems in Costa Rica?

Accepted Answer

A) Their assembly plant caused significant pollution,leading to a spike in cancer diagnoses in the country. 
B) Their assembly plant employed such a large proportion of the Costa Rican population that when they closed it,the country experienced a depression. 
C) They defaulted on their loans to government banks,leading to a banking crisis. 
D) They sold their products in Costa Rica so cheaply that they drove domestic firms out of business. 
A) Their assembly plant caused significant pollution,leading to a spike in cancer diagnoses in the country. 
B) Their assembly plant employed such a large proportion of the Costa Rican population that when they closed it,the country experienced a depression. 
C) They defaulted on their loans to government banks,leading to a banking crisis. 
D) They sold their products in Costa Rica so cheaply that they drove domestic firms out of business.

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

Question 13

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 
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

Question 14

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 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 lends money to developing countries with debt problems.

Question 15

A multinational corporation is created by what type of investment?

Accepted Answer

A) Portfolio investment 
B) Concessional lending 
C) Foreign direct investment 
D) Sovereign lending 
A) Portfolio investment 
B) Concessional lending 
C) Foreign direct investment 
D) Sovereign lending

Why do developing countries allow foreign direct investment?

Why is international migration controversial? Who tends to support it and who opposes it?

Which of the following is the most prominent international financial institution,especially in times of economic distress?

What was the Latin American debt crisis? How does it illustrate the problems and controversies of sovereign lending?

Why is there no effective international institution that helps regulate foreign direct investment (FDI)?

Why did restrictions on immigration increase during the nineteenth and early twentieth centuries in the United States?

How do international finance and international immigration behave in similar ways? How do they differ?

Which of the following best characterizes the majority of international investment in the world?

The International Monetary Fund is controversial because some believe that:

The International Monetary Fund was created to:

How did Intel cause problems in Costa Rica?

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

What is concessional finance?

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

A multinational corporation is created by what type of investment?

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

Introduction

Foundations, War, and Peace

International Political Economy, Transnational Politics, and Looking Ahead

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Exam 8: International Financial Relations

Why do developing countries allow foreign direct investment?

Why is international migration controversial? Who tends to support it and who opposes it?

Which of the following is the most prominent international financial institution,especially in times of economic distress?

What was the Latin American debt crisis? How does it illustrate the problems and controversies of sovereign lending?

Why is there no effective international institution that helps regulate foreign direct investment (FDI)?

Why did restrictions on immigration increase during the nineteenth and early twentieth centuries in the United States?

How do international finance and international immigration behave in similar ways? How do they differ?

Which of the following best characterizes the majority of international investment in the world?

The International Monetary Fund is controversial because some believe that:

The International Monetary Fund was created to:

How did Intel cause problems in Costa Rica?

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

What is concessional finance?

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

A multinational corporation is created by what type of investment?

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

Introduction

Foundations, War, and Peace

International Political Economy, Transnational Politics, and Looking Ahead

Filters