Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/63

Click to flip

63 Cards in this Set

  • Front
  • Back
Which of the following acronym does not refer to an approach to measuring the size of a state's economy?
A. GDP
B. GNP
C. IPE
D. GNI
C. IPE
Why have some institutions such as the World Bank moved away from using GNP as a measure of a country's financial status and toward an adjusted GNP based on purchasing power parity (PPP)?
A. They believe that PPP is a more accurate measure because it takes into account the cost of locally produced and consumed goods
B. They believe that PPP is a more accurate measure because it takes into account the social costs of neoimperialism.
C. They believe that PPP is a more accurate measure because it separates the North and South before making comparisons
D. They believe that PPP is a more accurate measure because it places newly industrializing countries into its own category.
A. They believe that PPP is a more accurate measure because it takes into account the cost of locally produced and consumed goods.
One criticism of using GNP as a basis to determine how well countries are doing is that the GNP
A. does not take into account prices for locally consumed goods despite the fact that the cost of locally consumed goods affects purchasing power
B. is a biased measure because it is based on the US dollar
C. is an outdated measure that does not take into account the move toward standardized currencies such as the euro
D. relies too heavily on purchasing power to determine the economic health of countries
A. does not take into account prices for locally consumed goods despite the fact that the cost of locally consumed goods affects purchasing power.
One problem with GDP is that it reflects only
A. manufactured goods but not services
B. good and services but not intellectual property
C. the formal economy that the government is able to keep statistics on
D. None of these
C. the formal economy that the government is able to keep statistics on.
The view that a state should manipulate all movement of goods and services in the interest of the state is a policy that would be advocated by
A. free trade
B. economic nationalists
C. neoliberals
D. Marxists
B. economic nationalists
Which approach to international political economy views the international economy as a non-zero-sum game?
A. economic nationalism
B. economic structuralism
C. economic internationalism
D. economic statecraft
C. economic internationalism
Economic internationalists would advocate using all of the following tactics except
A. loans
B. investment
C. international aid
D. sanctions
D. sanctions
What relationship do economic structuralists see between economics and politics?
A. The economic order determines politics
B. The political order determines economic relationships
C. Economic relations are independent of politics
D. Economic inequality is the result of the political system.
A. The economic order determines politics
The dependency school argues that EDCs exploit the LDCs' supply of
A. primary products
B. manufactured goods
C. high technology
D. skilled labor
A. primary products
Trade involving intangible items such as food and clothing is known as
A. export trade
B. services trade
C. merchandise trade
D. primary trade
C. merchandise trade
Over the past 100 years, tariffs on foreign goods imported to the US have
A. increased as the US has become more focused on domestic job security
B. decreased as the US has embraced free trade as a means to ensure global prosperity.
C. remained relatively stable
D. fluctuated dramatically because Republican presidents tend to support tariffs whereas Democratic presidents tend to oppose them.
B. decreased as the US has embraced free trade as a means to ensure global prosperity.
The primary reason that the General Agreement on Tariffs and Trade was established was to
A. set trade tariffs between countries
B. provide a means for countries to reduce international trade barriers
C. coordinate trade throughout the world
D. help LDCs to increase their trade
B. provide a means for countries to reduce international trade barriers
The value of two currencies in relation to each other is known as
A. purchasing power
B. exchange rate
C. balance of payments
D. monetary relations
B. exchange rate.
Approximately how many people in the world live in extreme poverty?
A. 1 million
B. 10 million
C. 100 million
D. 1 billion
B. 10 million
A negative side effect of modernization is
A. rapid urbanization
B. increased longevity
C. a population decrease
D. a decrease in levels of infant mortality
A. rapid urbanization
The UN recommends that EDCs use what percentage of their GDPs for economic assistance?
A. .7%
B. 1.7%
C. 2.5%
D. 7%
A. .7%
Domestic subsidies are used by governments to
A. give an unfair competitive advantage to a domestic company or industry
B. promote trade liberalization
C. curb corporate corruption
D. encourage companies to adopt better labor and environmental standards
A. give an unfair competitive advantage to a domestic company or industry
Which factor explains the persistence of economic nationalism?
A. disagreements between the North and the South
B. the shortage of international institutions.
C. the continuing status of sovereign states as the primary actors in international politics.
D. a sense that the gains from economic cooperation are not big enough.
C. the continuing status of sovereign states as the primary actors in international politics.
True Or False: Using a country's economic data, such as GDP, is an absolute and accurate way to determine its wealth and to compare countries
False
True Or False: Economic nationalists believe in using economic policy to further national interests
True
True Or False: Economic internationalists seek to integrate politics and economics
False
True Or False: Economic structuralist theory maintains that the economic order determines political and social relationships
True
True Or False: International exchange rates have little impact on domestic economies
False
True Or False: Multinational Corporations are also known as Transnational Corporations
True
True Or False: The North-South analytical categorization is rendered obsolete by the existence of NICS.
False
True Or False: The primary exports of LDCS are manufactured goods.
False
True Or False: Disparity within countries is not an economic problem facing LDCs.
False
True Or False: Since 1989, the US has been decreasing its balance of payments deficit.
False
True Or False: One source of tension between countries in the North is that economic growth rates of EDCs have slowed
True
True Or False: The push to establish a New International Economic Order has been led by the G-7.
False
True Or False: Economic Nationalists would generally be in favor of using subsidies or non-tariff barriers to protect a country's economy
True
True Or False: Tax breaks are no longer a popular form of governmental subsidy
False
True Or False: The trends are clear, Economic Nationalism will not play an important role in the 21st century
False
approach to the study of international relations that is concerned with the political determinants of international political relations
What is International Political Economy?
measure of the sum of all goods and services produced by a country's nationals, whether they are in a country or abroad.
What is Gross National Product?
measure of income within a country that excludes foreign earnings.
What is Gross Domestic Product?
- measure of the relative purchasing power of different currencies
- measured by the price of the same goods in different countries
- aka exchange rate
What is purchasing power parity?
- value of the dollar in a year for which it is being reported
- aka inflated dollars
What is current dollars?
- value of dollar expressed in terms of a base year
- taking current value and subtracting the amount of inflation between the base year and the year being reported
- aka uninflated dollars
What are real dollars
- belief that the state should use its economic strength to further national interests and a state should use its power to builds is economic strength
What is economic nationalism?
- aka colonialism
- domination by Northern Eurowhites over Southern Nonwhites as a means to tap resources to further their own development
What is imperialism?
notion that EDCs continue to control and exploit LDCs through indirect means, such as economic dominance and co-opting the local elite
What is neocolonialism?
belief that international economic relations should and can be conduced cooperatively because the international economy is a non-zero-sum game in which prosperity is available to all
What is economic internationalism?
economic system based on private ownership of the means of production and distribution of goods, competition and profit themselves
What is capitalism?
- philosophy that economic order determines political and social relationship
- history, present, and future are determined by economic struggle
What is Marxist Theory?
belief that economic structure determines politics, as the conduct of the world politics is based on the way the world is organized economically
What is economic structuralism?
belief that an industrialized North has created a neocolonial relationship with South in which the LDC are dependent on and disadvantaged by their economic relations with the capitalist industrial countries
What is dependency theory?
agricultural products and raw materials, such as minerals
What are primary products?
- items that require substantial processing or assembly to become usable
- distinct from primary products, such as agricultural and forestry products, that need little or no processing
What are manufactured goods?
- view that the world is something of an economic society brought about by the spread of capitalism and characterized by a hierarchy of countries and regions based on a gap in economic circumstance, by a division of labor between capital-intensive activities in wealthy countries and labor-intensive activities in poor countries
- domination of lower tier countries and regions by upper tier ones
What is World Systems Theory?
import and export of tangible manufactured goods and raw materials
What is merchandise trade?
- trade based on the purchases or sale to another country of intangibles
EX: architectural fees, royalties
What are services trade?
buying assets in another country with the aim of gaining a controlling interest in foreign economic investments
What is foreign direct investments?
- investments in the stocks and public and private debt instruments of another country below the level where the stock or bondholder can exercise control over the stock-issuing company or bond-issuing debtor
What is foreign portfolio investment?
entire scope of international issues, such as exchange rates, interest rates, loan policies, balance of payments, and regulating institutions.
What are monetary relations?
values of 2 currencies relative to each other
What are exchange rates?
countries in the poorest of economic circumstances
What are Least Developed Countries?
- LDCs whose economy and trade now include significant amounts of manufactured products
What are newly industrialized countries?
- condition of living less that $1 per day
What is extreme poverty?
- UN organization established in 1964 and currently consisting of all UN members plus; the Holy See, Switzerland, and Tonga
- holds quadrennial meetings aimed at promoting international trade and economic development.
What is United Nations Office On Trade And Development?
the goals and demands of the south for basic reforms in the International Economic System
What is New International Economic Order?
tax, usually based on a percent or value, that importers must pay on items purchased abroad
What are tariffs?
- nonmonetary restriction on trade
EX: quotas, technical specifications
What are NonTariff Barriers?