Chapter 10 ( National Economic Competition: The Traditional Road)

Front 1

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

Back 1

C. IPE

Front 2

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.

Back 2

A. They believe that PPP is a more accurate measure because it takes into account the cost of locally produced and consumed goods.

Front 3

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C. is an outdated measure that does not take into account the move toward standardized currencies such as the euro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

Back 3

A. does not take into account prices for locally consumed goods despite the fact that the cost of locally consumed goods affects purchasing power.

Front 4

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

Back 4

C. the formal economy that the government is able to keep statistics on.

Front 5

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

Back 5

B. economic nationalists

Front 6

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

Back 6

C. economic internationalism

Front 7

Economic internationalists would advocate using all of the following tactics except
A. loans
B. investment
C. international aid
D. sanctions

Back 7

D. sanctions

Front 8

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.

Back 8

A. The economic order determines politics

Front 9

The dependency school argues that EDCs exploit the LDCs' supply of
A. primary products
B. manufactured goods
C. high technology
D. skilled labor

Back 9

A. primary products

Front 10

Trade involving intangible items such as food and clothing is known as
A. export trade
B. services trade
C. merchandise trade
D. primary trade

Back 10

C. merchandise trade

Front 11

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.

Back 11

B. decreased as the US has embraced free trade as a means to ensure global prosperity.

Front 12

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

Back 12

B. provide a means for countries to reduce international trade barriers

Front 13

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

Back 13

B. exchange rate.

Front 14

Approximately how many people in the world live in extreme poverty?
A. 1 million
B. 10 million
C. 100 million
D. 1 billion

Back 14

B. 10 million

Front 15

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

Back 15

A. rapid urbanization

Front 16

The UN recommends that EDCs use what percentage of their GDPs for economic assistance?
A. .7%
B. 1.7%
C. 2.5%
D. 7%

Back 16

A. .7%

Front 17

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

Back 17

A. give an unfair competitive advantage to a domestic company or industry

Front 18

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.

Back 18

C. the continuing status of sovereign states as the primary actors in international politics.

Front 19

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

Back 19

False

Front 20

True Or False: Economic nationalists believe in using economic policy to further national interests

Back 20

True

Front 21

True Or False: Economic internationalists seek to integrate politics and economics

Back 21

False

Front 22

True Or False: Economic structuralist theory maintains that the economic order determines political and social relationships

Back 22

True

Front 23

True Or False: International exchange rates have little impact on domestic economies

Back 23

False

Front 24

True Or False: Multinational Corporations are also known as Transnational Corporations

Back 24

True

Front 25

True Or False: The North-South analytical categorization is rendered obsolete by the existence of NICS.

Back 25

False

Front 26

True Or False: The primary exports of LDCS are manufactured goods.

Back 26

False

Front 27

True Or False: Disparity within countries is not an economic problem facing LDCs.

Back 27

False

Front 28

True Or False: Since 1989, the US has been decreasing its balance of payments deficit.

Back 28

False

Front 29

True Or False: One source of tension between countries in the North is that economic growth rates of EDCs have slowed

Back 29

True

Front 30

True Or False: The push to establish a New International Economic Order has been led by the G-7.

Back 30

False

Front 31

True Or False: Economic Nationalists would generally be in favor of using subsidies or non-tariff barriers to protect a country's economy

Back 31

True

Front 32

True Or False: Tax breaks are no longer a popular form of governmental subsidy

Back 32

False

Front 33

True Or False: The trends are clear, Economic Nationalism will not play an important role in the 21st century

Back 33

False

Front 34

approach to the study of international relations that is concerned with the political determinants of international political relations

Back 34

What is International Political Economy?

Front 35

measure of the sum of all goods and services produced by a country's nationals, whether they are in a country or abroad.

Back 35

What is Gross National Product?

Front 36

measure of income within a country that excludes foreign earnings.

Back 36

What is Gross Domestic Product?

Front 37

- measure of the relative purchasing power of different currencies
- measured by the price of the same goods in different countries
- aka exchange rate

Back 37

What is purchasing power parity?

Front 38

- value of the dollar in a year for which it is being reported
- aka inflated dollars

Back 38

What is current dollars?

Front 39

- 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

Back 39

What are real dollars

Front 40

- 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

Back 40

What is economic nationalism?

Front 41

- aka colonialism
- domination by Northern Eurowhites over Southern Nonwhites as a means to tap resources to further their own development

Back 41

What is imperialism?

Front 42

notion that EDCs continue to control and exploit LDCs through indirect means, such as economic dominance and co-opting the local elite

Back 42

What is neocolonialism?

Front 43

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

Back 43

What is economic internationalism?

Front 44

economic system based on private ownership of the means of production and distribution of goods, competition and profit themselves

Back 44

What is capitalism?

Front 45

- philosophy that economic order determines political and social relationship
- history, present, and future are determined by economic struggle

Back 45

What is Marxist Theory?

Front 46

belief that economic structure determines politics, as the conduct of the world politics is based on the way the world is organized economically

Back 46

What is economic structuralism?

Front 47

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

Back 47

What is dependency theory?

Front 48

agricultural products and raw materials, such as minerals

Back 48

What are primary products?

Front 49

- 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

Back 49

What are manufactured goods?

Front 50

- 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

Back 50

What is World Systems Theory?

Front 51

import and export of tangible manufactured goods and raw materials

Back 51

What is merchandise trade?

Front 52

- trade based on the purchases or sale to another country of intangibles
EX: architectural fees, royalties

Back 52

What are services trade?

Front 53

buying assets in another country with the aim of gaining a controlling interest in foreign economic investments

Back 53

What is foreign direct investments?

Front 54

- 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

Back 54

What is foreign portfolio investment?

Front 55

entire scope of international issues, such as exchange rates, interest rates, loan policies, balance of payments, and regulating institutions.

Back 55

What are monetary relations?

Front 56

values of 2 currencies relative to each other

Back 56

What are exchange rates?

Front 57

countries in the poorest of economic circumstances

Back 57

What are Least Developed Countries?

Front 58

- LDCs whose economy and trade now include significant amounts of manufactured products

Back 58

What are newly industrialized countries?

Front 59

- condition of living less that $1 per day

Back 59

What is extreme poverty?

Front 60

- 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.

Back 60

What is United Nations Office On Trade And Development?

Front 61

the goals and demands of the south for basic reforms in the International Economic System

Back 61

What is New International Economic Order?

Front 62

tax, usually based on a percent or value, that importers must pay on items purchased abroad

Back 62

What are tariffs?

Front 63

- nonmonetary restriction on trade
EX: quotas, technical specifications

Back 63

What are NonTariff Barriers?