Solve these question:

A.

1.

Hegemonic stability theorists argue that in the interwar period

a.

Britain was no longer willing to be the global hegemon.

b.

the United States was not yet willing to be the global hegemon

c.

the United States was beginning to act as the global hegemon.

d.

Britain's power was declining, but it was still the global hegemon.

B.

---Argues that the real culprit of uneven world development is the alienation from economic and political autonomy, coupled with exploitation and poverty.

a.

Socialism

b.

Dialectical materialism

c.

Capitalism

d.

Constructivism

C.

The human development index is sometimes used today to measure development because it

a.

includes a measure of life expectancy.

b.

includes a measure of political as well as economic well-being.

c.

is a better predictor of the future than the per capita GDP.

d.

includes the purchasing power parity.

D.

1.

After trade has opened up, the gains that trade brings to consumers of the imported goods are, in absolute value,

a.

Larger than the losses to domestic producers of that good.

b.

Smaller than the losses to domestic producers of that good.

c.

Exactly equal to the losses to domestic producers of that good.

d.

Immeasurable.

E.

Firms engage in horizontal integration

a.

to gain more control of raw materials that will assist their production.

b.

to limit government scrutiny of their activities.

c.

to ensure the quality of goods that reach the consumer.

d.

to defend or increase their market share.

F.

1.

Its advocates supported extensive economic liberalization policies such as privatization, fiscal austerity, deregulation, free trade, and reductions in government spending in order to enhance the role of the private sector in the economy.

a.

Neoliberalism

b.

Socialism

c.

Laissez- faire

d.

Capitalism

G.

Which of the following is not a part of the WTO's stance on trade?

a.

Tariffs that are implemented to conserve natural resources must not be used merely to shut out foreign goods.

b.

Any trade barrier that reduces greenhouse-gas emissions is permissible.

c.

Any tax on imports must not exceed that on import competing products.

d.

Freer import policy for the cleanest foreign country must be matched by freedom of imports for polluter countries.

H.

The theorists most likely to argue that a state's competitiveness is closely linked with the competitiveness of its MNCs are

a.

interventionist liberals.

b.

realists.

c.

historical materialists.

d.

orthodox liberals.

I.

Mexico is an unskilled labor abundant country, while the United States is a skilled labor abundant country. With the opening of trade, you would expect that, in the long run, wages for unskilled workers

a.

Decline in the United States and rise in Mexico.

b.

Decline in both countries.

c.

Rise in the United States and decline in Mexico.

d.

Rise in both countries.

J.

The theorists most likely to view small states as benefiting more than large states from open regional trade agreements (RTAs) are

a.

historical materialists.

b.

liberals.

c.

realists.

d.

None of the above

K.

In which case is the national defense argument a valid one for tariff protection?

a.

When the crucial goods are depletable mineral resources.

b.

When a war with a neighboring country is feared.

c.

When stocks of the crucial goods can be cheaply stored.

d.

When production subsidies or stockpiling are prohibitively expensive.

L.

The imposition of an import tariff by a large nation

a.

Allows for any of the cited possibilities

b.

Leaves the nation's welfare unchanged.

c.

Increases the nation's welfare.

d.

Reduces the nation's welfare.

M.

The 1934 Reciprocal Trade Agreements Act

a.

enabled the United States to lower tariffs on a statutory basis.

b.

resulted in multilateral trade negotiations.

c.

enabled the U.S. Congress to lower tariffs by up to 50 percent.

d.

was enacted to reverse the damage caused by the Smoot-Hawley tariff.

N.

This protective argument states that the government must limit imports during peacetime to be assured that the country can meet its needs for defense goods during times of war.

a.

National defense argument

b.

Infant industry argument

c.

International trade argument

d.

Strong government argument

O.

States in the mercantilist period

a.

helped establish territorial unification and state authority

b.

emphasized industrialization and agricultural exports as a means of gaining wealth.

c.

viewed free trade as serving their interests.

d.

repealed the corn laws andincreased their technology exports

P.

Britainshifted to free-trade policies in the 1830s-40s

a.

to strengthen the Cobden-Chevalier Treaty with France.

b.

to promote industrialization in its colonies.

c.

to increase its industrial exports.

d.

to increase its agricultural exports.

Q.

Transfer prices are

a.

prices that MNCs charge to host states.

b.

prices that MNCs transfer on to the consumer.

c.

prices an MNC's affiliates charge for the internal sales of goods and services

d.

prices MNCs charge for the sale of goods and services to other MNCs..

R.

The WTO permits a state to impose Countervailing Duties (CVDs)

a.

if foreign goods are dumped, and the dumping causes or threatens material injury to its domestic producers.

b.

if another state provides trade-distorting subsidies that produce or threaten serious injury to its domestic producers.

c.

if another state provides trade-distorting subsidies that produce or threaten material injury to its domestic producers.

d.

if foreign goods are dumped, and the dumping causes or threatens serious injury to its domestic producers.

S.

1.

The increased fees levied on foreign goods to make them considerably more expensive than similar goods produced within the country is an example of

a.

Ad valorem tariffs

b.

Green tariffs

c.

Protective tariffs

d.

VER

T.

1.

The functions of the World Bank evolved in response to

a.

the increase in protectionism.

b.

the creation of the Marshall Plan.

c.

the competitive devaluation of currencies.

d.

the shift to floating exchange rates.

U.

1.

The Heckscher-Ohlin theory

a.

builds on strategic-trade theory.

b.

builds on the theory of comparative advantage.

c.

builds on the Stolper-Samuelson theory.

d.

builds on the theory of absolute advantage.

V.

1.

The underlining reason behind the collapse in world trade that many economists believe seriously deepened the depression was

a.

Cartel

b.

Free trade

c.

Tariffs

d.

Quota

W.

1.

RTAs in the South in the 1960s were designed mainly

a.

to form unified regional blocs vis--vis the North.

b.

to attract more foreign investment from the North.

c.

to promote free trade among the member countries.

d.

to promote import substitution at the regional level.

X.

Globalization

a.

is a uniform process throughout the world.

b.

is a relatively new phenomenon.

c.

declined in the period between World Wars I and II.

d.

has caused the state to be superseded as the principle

actor in IR.

Y.

The 1944 Bretton Woods Conference resulted in the formation of the

a.

UNCTAD and the World Bank

b.

International Monetary Fund (IMF)

c.

General Agreement on Tariffs and Trade (GATT) and the ECOWAS

d.

Organization for Economic Cooperation and Development