Question 1

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.E) All of the above
F) A) and B)

Question 2

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.E) B) and D)
F) None of the above

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.E) A) and B)
F) None of the above B

Question 4

Who developed the theory of comparative advantage?

Accepted Answer

A)   Harold Lasswell
B)   Ben Bernanke
C)   David Ricardo
D)   John Maynard KeynesE) B) and C)
F) None of the above

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.E) A) and B)
F) A) and D)

Question 6

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.E) None of the above
F) B) and D)

Question 7

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 8

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 onE) A) and C)
F) A) and D)

Question 9

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 10

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 tradeE) All of the above
F) A) and D)

Question 11

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 countriesE) B) and D)
F) A) and D)

Question 12

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.E) A) and B)
F) A) and C)

Question 13

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

Accepted Answer

Feminists argue that the costs of global...

Question 14

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-senE) B) and D)
F) A) and C)

Question 15

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.E) All of the above
F) A) and D)

Question 16

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.E) B) and D)
F) A) and B)

Question 17

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.E) A) and D)
F) C) and D) C

Question 18

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 percentE) All of the above
F) B) and D)

Question 19

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.E) A) and B)
F) A) and C)

Question 20

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 currencyE) B) and C)
F) A) and D) B

Exam 10: Fundamentals of International Political Economy

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

Correct AnswerverifiedShow Answer

One effect domestically of a weak currency is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

Who developed the theory of comparative advantage?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerAnswered by ExamLex AICurrency manipulation can hurt the inter...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerAnswered by ExamLex AIThe theory of comparative advantage, fir...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerAnswered by ExamLex AIFeminists argue that the costs of global...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

In a country with a trade surplus,

Correct AnswerverifiedShow Answer

Embedded liberalism refers to the dilemma in which

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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B

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Answered by ExamLex AI
Currency manipulation can hurt the inter...
View Answer

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Answered by ExamLex AI
The theory of comparative advantage, fir...
View Answer

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Correct Answer
Answered by ExamLex AI
Feminists argue that the costs of global...
View Answer

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C

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B