1. The hegemonic stability theory posits that international markets work best when a single dominant state (a hegemon) accepts the costs of keeping markets open, sea lanes safe and commerce flowing smoothly. In the 18th and 19th centuries, the world’s hegemon was largely _________________. Today it is _____________ . Tomorrow, it could be __________________. Tell me why and how that might happen.

2. What is the dependence theory of international imperialism?

3. The Financial Crisis of 2007-08 produced many negative economic outcomes for Americans and people around the world. State how a structuralist would interpret the event.

That crisis causes a global economic imbalance rooted in a U.S. balance of payment problem, weak global governance, and U.S. regulatory regime that led to excessive debt and imprudent lending practices by banks, mortgage companies, and other financial institutions.

4. What are the five dominant features of Capitalism?

a. Markets coordinate society’s economic activities.

b. Extensive markets exist for the exchange of land, labor, commodities, and money.

c. Competition regulates economic activity; consumer self-interests motivate economic activity.

d. Freedom of enterprise; individuals are free to start up any new business enterprise without state permission.

e. Private property; the owner of a resources is legally entitled to the income that flows from the resource.

5. Provide at least one example of how a capitalist economy is not self-motivating, self-coordinating and self-regulating.

6. The great liberal economic thinker John Stuart Mill believed that given the inherent inequalities that were to be expected (even welcomed) in the capitalist system, there was a limited role for government. What would that role be?

7. What is the Keynesian “paradox of thrift?”

8. What is the difference between Marx’s and Lenin’s view of capitalism?

9. How much is economic globalization a threat to the sovereignty of nation states? Explain!

10. Saudi Arabia’s de-facto ruler, Crown Prince Muhammed Bin-Salman, has been credibly accused of ordering the killing of Jamal Khashoggi. The U.S. Senate is not pleased. It is likely that the U.S. relationship with the Kingdom will be altered significantly—maybe permanently. With U.S. domestic oil production now the world’s highest and our dependence on Saudi oil a thing of the past, how would a major change in the U.S.’s relationship with Saudi Arabia alter the Middle East balance of power?

11. The book mentions nine (9) characteristics that LDC’s (less developed countries share in common. List them.

a.

b.

c.

d.

e.

f.

g.

h.

i.

12. Explain the meaning and the origins of the terms: First World, Second World, and Third World.292

13. The development process for LDC’s is generally seen as starting after WWII, when many LDC’s became independent from their former colonial masters. Not all LDC’s have performed better on their own. What are at least two (2) of the factors that have held back economic development in these newly-independent countries? List the factors and discuss.

a.

b.

14. China has rapidly risen to global economic prominence. China’s enormous foreign reserves are invested in the world’s safest investment: U.S. Treasury bonds. What would be the economic consequence of China divesting itself fully or substantially of its enormous holding of U.S. Treasuries?

15. The UK is going through a very long and messy divorce from the EU. What are the likely consequences of that divorce?

16. Name ten members of the EU

1. Portugal

2. Denmark

3. Spain

4. Italy

5. Germany

6. France

7. Luxembourg

8. The Netherlands

9. Belgium

10. Austria

17. What was created by the Treaty of Rome in 1957?

18. What were the principal achievements of the Maastricht Treaty?

19. Name five (5) EU member state currencies (e.g. “dollars”) that are no longer in circulation because they have been replaced by the Euro.

1

2

3

4

5

20. If members of the EU are joined economically by a common market and currency, how can a country like Greece get into so much financial trouble?

21. The EU expanded rapidly following the collapse of the Soviet Union (the universe hates a void). Russia is not happy about that but hasn’t been in a position to oppose it. Give reasons for Russia’s displeasure and discuss two things that Russia has done in the last 2 years to signal their displeasure.

22. What are the five elements that need to be present if a particular business transaction is to be deemed “corrupt?”

a.

b.

c.

d.

e.

23. Provide three reasons why corruption is not economically good for a country (I am not asking for a moral reason, such as “it’s wrong” or “it’s unfair.” I want you to tell me why it is bad for the economy of the country).

24. Your instructor takes the point of view that governments and regimes (of all political, religious and social persuasions) can stay in power through force or coercion, but others achieve popular legitimacy (even if not elected) by improving the lives of the people. Give an example of such a regime or government, even if it is not “democratic” or viewed positively in the West, and what we might learn from them.

25. The State of Israel and the status of the Palestinian people has been a front-page issue for decades. Provide two economic (not political or military) reasons why the issue has still not been resolved.