Test Bank for Cohn Global Political Economy Theory and Practice 7th Edition

Test Bank for Cohn Global Political Economy Theory and Practice 7th EditionChapter 1 Introduction Multiple Choice 1) Theorists who define globalization primarily as an economic phenomenon with little effect on the primacy of states are a) moderate globalists. b) hyperglobalists. c) internationalists. d) liberal economists. Answer: c; Page 7 2) Theorists who emphasize the fact that international relations is a “self- help” system are most often a) historical materialists. b) liberals. c) Keynesians. d) neomercantilists. Answer: d; Page 5 3) Globalization a) has caused the state to be superseded as the principle actor in IR. b) declined in the period between World Wars I and II. c) is a uniform process throughout the world. d) is a relatively new phenomenon. Answer: b; Page 8 4) The total value of goods and services produced by domestically owned factors of production in a given year is the 1a) gross national product. b) gross domestic product. c) gross domestic income. d) gross national income. Answer: a, Page 9 True-False 1) The 2008 global financial crisis has been the worst financial crisis since the Great Depression. Answer: True; Page 3 2) The gross national income and gross domestic product are virtually the same. Answer: False; Page 9 3) China’s GDP per capita has been increasing rapidly, and is approaching the levels of the major DCs. Answer: False; Page 10 4) In the view of liberals, states on the average benefit equally from economic relationships. Answer: False; Page 5 Fill in the Blank 1) Neomercantilists who view one state’s gain as another state’s loss tend to see IPE as a . Answer: zero-sum game; Page 5 2) A coordinating mechanism where buyers and sellers exchange goods and services at prices determined by supply and demand is a . 2Answer: market; Page 3 3) A sovereign territorial unit is a Answer: state; Page 3 . 4) When a market does not produce an optimal allocation of resources, we refer to this as . Answer: market failure, Page 4 Essay 1) Why is theory important in the study of IPE? Is it possible to study the facts in IPE without theorizing? Pages 4-6 2) How do hyperglobalists, internationalists, and moderate globalists differ in their view of globalization? Which group’s views do you find most convincing, and why? Pages 7-8 3) What do the East Asian NIEs, the BRIC economies and the LLDCs have in common, and how do they differ from each other? Pages 10-12 4) Discuss what you think would be the pros and cons of trying to develop a single all-embracing theory of international political economy. Pages 4-6 Chapter 2 Managing the Global Economy since World War II: The Institutional Framework Multiple-Choice 31) States in the mercantilist period a) increased their technology exports. b) emphasized industrialization as a means of gaining wealth. c) helped establish territorial unification and state authority. d) viewed free trade as serving their interests. Answer: c; Page 19 2) The 1944 Bretton Woods Conference resulted in the formation of the a) UNCTAD. b) OECD. c) GATT. d) IBRD. Answer: d; Page 17 3) An example of a weighted voting institution is the a) UNCTAD. b) IMF. c) WTO. d) OECD. Answer: b; Page 23 4) Britain shifted to free trade policies in the 1830s-40s to a) promote industrialization on the European continent. b) increase its agricultural exports. c) strengthen the Cobden-Chevalier Treaty with France. . d) increase its industrial exports. Answer: d; Page 19 5) World Bank presidents have been a) only Americans 4b) only Americans and Europeans c) only Europeans d) Americans, Asians, and Europeans Answer: a; Page 26 6) GATT a) became the main global trade organization after the ITO had functioned for only a few years. b) was comparable to the IMF and World Bank. c) was originally designed to be temporary. d) was formed at Bretton Woods. Answer: c; Page 22 7) Hegemonic stability theorists argue that in the interwar period a) the United States was not yet willing to be the global hegemon. b) the United States was beginning to act as the global hegemon. c) Britain’s power was declining but it was still the global hegemon. d) the United States was not yet able to be the global hegemon. Answer: a; Page 21 8) Which of the following has been the most informal? a) GATT b) OECD c) UNCTAD d) IMF Answer: a; Page 22 9) The human development index is sometimes used today to measure development because it a) is a better predictor of the future than the per capita GDP. b) includes a measure of life expectancy. c) includes the purchasing power parity. 5d) includes a measure of political as well as economic well- being. Answer: b; Page 32 10) The G7/G8 has performed well in a) negotiating agreements. b) regulating international capital flows. c) dealing with the issue of debt relief for LDCs. d) enforcing decisions. Answer: c; Page 31 11) A country that was not a founding member of the IMF and World Bank was a) Yugoslavia b) Czechoslovakia c) Poland d) Hungary Answer: d; Page 40 12) Judging by their actions, most civil society organizations are a) reformist. b) transformist. c) conformist. d) rejectionist. Answer: c; Page 43 13) The main informal group dealing with global economic issues is the a) G77. b) G8. c) G20. d) G7. Answer: c; Page 31 614) The functions of the World Bank evolved in response to a) the creation of the European Recovery Program. b) the competitive devaluation of currencies. c) the increase in protectionism. d) the shift to floating exchange rates. Answer: a; Page 22 15) The G20 has become more important today primarily because a) the breakup of the Soviet bloc has expanded the reach of the capitalist global economy. b) the emerging economies now have more influence. c) globalization has spread to more countries. d) democratization has become a more important force in the world. Answer: b; Page 31 True-False 1) Britain was the largest industrial power until the end of World War I when the United States took over that position. Answer: False; Page 20 2) The United States, Japan, Germany, Britain, and France (the G5) are the 5 countries with the most votes in the World Bank today. Answer: False; Page 26 3) The GATT was not formed at the Bretton Woods Conference Answer: True; Page 17 4) The KIEOs (the IMF, World Bank, and WTO) are all specialized agencies of the United Nations. Answer: False; Pages 22-23 75) Purchasing power parity (PPP) based exchange rates do not take account of income inequalities. Answer: True; Page 32 6) The G77 has become more important than the G7/G8 in dealing with problems affecting the global economy. Answer: False; Page 38 7) All Directors-General of the WTO have been from developed countries. Answer: False; Page 26 Fill in the Blank 1) In 1930 the U.S. Congress passed the increased U.S. tariffs to their highest level in the twentieth century. Answer: Smoot-Hawley tariff; Page 20 2) In 1846 Britain repealed its , which opened its market to agricultural imports and ushered in a period of free trade. Answer: Corn Laws; Page 19 3) In 1860 Britain and France signed the , which produced a network of trade agreements lowering tariffs throughout Europe. Answer: Cobden-Chevalier Treaty; Page 19 4) In 1964 LDCs expressed their dissatisfaction with the KIEOs by forming the . Answer: Group of 77 (G77); Page 38 5) In 1934 the U.S. Congress passed the 8 , which , whichdelegated tariff-setting authority to the President. Answer: Reciprocal Trade Agreements Act; Page 21 6) The first international financial organization, the was established in Basle, Switzerland in 1930. Answer: Bank for International Settlements; Page 21 7) The is an international economic organization of 34 mainly DC members that usually operates through a system of mutual persuasion. Answer: Organization for Economic Cooperation and Development (OECD); Pages 28-29 Essay 1) What are the KIEOs? What problems have they confronted, and how have they adapted and changed over time? Pages 21-22 2) Describe OPEC, the NIEs, and the BRIC economies, and discuss how they present a challenge to the dominance of the North. Pages 23 and 26 3) What is the human development index (HDI) and what are its strengths and shortcomings? What is the IHDI? Pages 32-37 4) In what ways were the IMF, World Bank, and GATT designed to prevent the economic problems that resulted in the Great Depression and World War II? Pages 21-22 5) Who are the members of the G7/G8, and in what ways is it an 9 ,informal grouping? Why do you think it was not established as a more formal organization? Is Russia an active member of the group? Pages 29-31 6) What functions does the OECD perform, how does it operate, and how has its membership changed over time? Pages 28-29 7) What are the advantages of using PPP-adjusted GDP figures, and what are its shortcomings? What is the Gini coefficient? Page 32 8) What is the World Economic Forum? How does it contribute to a blurring of lines between “public” and “private” in the global political economy? Page 42 9) What are civil society groups, how do they differ in their goals and tactics, and which type of civil society group is the most common? Page 43 10) What is the resource curse, and does it apply to all countries that are rich in natural resources? Page 34 Chapter 3 Neomercantilism Multiple-Choice 1) Neomercantilists a) give priority to politics over economics. b) give priority to economics over politics. 10c) view IPE as a variable sum game. d) view the state as existing on fairly equal footing with several important actors in IPE. Answer: a; Page 56 2) All rational choice theorists a) operate within the liberal or realist perspective. b) see rational individuals as utility maximizers. c) see rational individuals as obtaining an optimal amount of information before making decisions. d) rely on mathematical models. Answer: b; Page 53 3) Neomercantilism a) focuses on the efforts of states to achieve absolute gains. b) views globalization mainly as a political process. c) sees that states can be constrained by domestic structures. d) is virtually synonymous with economic nationalism. Answer: c; Page 56 4) Friedrich List a) viewed free trade as valuable in the long term for countries that had gained industrial supremacy. b) advised governments in the South to protect their infant industries so they could catch up with developed countries in the North. c) supported agricultural protectionism to build up the power of the state d) provided advice on how Germany could catch up with the United States. Answer: a; Page 59 115) U.S. realist scholars after World War II a) finally recognized that economic issues had become more important. b) saw political and economic issues as closely linked, and assumed that political power was essential for a state to gain economic power. c) followed in the path of the mercantilists, Hamilton, and List. d) were influenced by Adam Smith’s ideas on the separability of politics and economics. Answer: d; Page 60 6) The revival of neomercantilism as an IPE perspective in the 1970s and 1980s stemmed partly from a) the neomercantilists’ new awareness that economics had become as important as politics in IPE. b) the neomercantilist belief that the growth of interdependence made the study of IPE essential. c) the interest of neomercantilists in the Cold War and how it related to the global political economy. d) the fact that growing international competition caused states to become more involved in the economy. Answer: d; Pages 60-61 7) Hegemonic stability theorists believe that a) there have been a number of global hegemons over the centuries. b) economic openness and stability cannot be maintained in the absence of a global hegemon. c) economic openness and stability are more likely when most other major states view the dominant state’s policy as beneficial. d) hegemony will be maintained as long as there is a dominant state that is able to lead. Answer: c; Page 61 128) Gramscians a) view hegemony in terms of the capitalist class’s refusal to grant concessions to subordinate social classes. b) view hegemony in terms of coercion of the weak by the strong. c) view hegemony mainly in state-centric terms. d) view hegemony in terms of culture and ideas. Answer: d; Page 62 9) Public goods a) are underproduced in IR. b) are always provided by the hegemon. c) are nonexcludable, but can sometimes be rival. d) are provided by several major countries. Answer: a; Page 63 10) Some neomercantilists view globalization as a) having enabling effects on the state. b) having similar effects on large and small states. c) systematically undermining state control. d) mainly a political process. Answer: a; 57 11) Most renewalists in regard to U.S. hegemony a) concede that U.S. economic power has decreased in a relative sense since 1945. b) have focused on hard power c) have been right-wingers on the political spectrum d) have seen hegemony as inherently unstable. Answer: a; Page 65 12) Neomercantilists believe that a) the South should focus on absolute gains to 13decrease its vulnerability to the North b) the South should focus on increasing its wealth and power to decrease its vulnerability to the North c) the South must accept the importance of interdependence if it is ever to catch up with the North. d) the poorest in the South should receive more attention by theorists. Answer: b; Page 68 13) Hegemonic stability theory a) is a realist theory. b) has become of less interest to most IR scholars. c) has become of more interest to U.S. scholars over the years. d) has helped to clarify the relationship between international and domestic politics. Answer: b; Page 61 14) Compared with liberals, neomercantilists are more likely to a) see hegemons as having mixed motives. b) see hegemons as providing public goods. c) believe in the separability of economics and politics. d) criticize the inequalities in the capitalist system. Answer: a; Page 63 15) Compared with historical materialists, neomercantilists are more likely to a) be economistic. b) draw linkages between domestic and international politics. c) see hegemons as self-interested. d) be supportive of capitalism. Answer: d; Page 56 True-False 141) Neomercantilists believe that in the nineteenth century Britain benefited from a division of labor and free trade. Answer: True; Page 58 2) Neomercantilism is the IPE counterpart of realism. Answer: True; Page 55 3) Neomercantilism and economic nationalism are virtually synonymous. Answer: False; Page 59 4) U.S. neoconservatives wanted the country to focus more on economics to build up U.S. strength in the late 1980s and 1990s. Answer: False; Pages 65-66 5) Mathematical models are a necessary feature of rational choice analysis. Answer: False; Page 53 6) Most hegemonic stability theorists believe that there have been only 3 global hegemons. Answer: False; Page 61 7) In most circumstances public goods are not in short supply. Answer: False; Page 63 Fill in the Blank 1) Economic thought and practice in Europe from about 1500 to 1750 which emphasized national power and contributed to state building, is referred to as Answer: mercantilism; Page 57 152) IPE theorists that emphasize relative gains and the importance of the state are referred to as . Answer: neomercantilists; Pages 56-57 3) Those who describe IR as a may gain or lose together. Answer: variable-sum game; Page 56 4) When a country can get other countries to want what it wants, the country has . Answer: soft power; Page 65 5) When the uncoordinated actions of states do not produce the best possible outcome for them, there is a . Answer: collective action problem; Page 63 6) The term refers to an extremely unequal distribution of power, where one powerful state controls or dominates other states in the international system. Answer: hegemony; Page 62 7) Goods that are nonexcludable and nonrival are Answer: public goods; Page 63 Essay 1) What are the similarities and differences between realism, neomercantilism, mercantilism, and economic nationalism? Pages 55-59 2) Why did U.S. realists devote so little attention to IPE issues after World War II? Why was there a revival of U.S. neomercantilism in the 1970s-80s? 16 . , believe that groupsPages 60-61 3) How and why do theorists differ in their views regarding the strategies and motives of hegemonic states? Pages 62-64 4) What are some of the strengths and weaknesses of rational choice as an analytical approach to the study of IPE? Pages 53-54 5) What are “public goods”, what purpose do they serve in the global economy, and why does their provision present collective action problems? What is the relationship between hegemony and public goods? Page 63 6) How do theorists differ in their views regarding the current status of U.S. hegemony? Is any other actor likely to replace the United States as the global hegemon? Pages 65-67 7) What is the difference between hard and soft power, and how has U.S. hard and soft power changed in recent years? Pages 65-67 8) How were the mercantilists similar to, and different from, Alexander Hamilton and Friedrich List in their approach to IPE? Did liberalism have any effect on List’s views? Pages 57-59 9) What aspects of North-South relations are of most, and least interest to neomercantilists? Why is this the case? Pages 67-68 1710) What are the strengths and weaknesses of the neomercantilist perspective? Pages 70-71 Chapter 4 Liberalism Multiple Choice 1) Adam Smith a) supported laissez-faire policies that opposed any government intervention. b) is closely associated with the theory of absolute advantage c) believed that states should institute free trade policies unilaterally if necessary to permit the market to operate. d) is closely associated with the theory of comparative advantage. Answer: b; Page 81 2) Most modernization theorists believed that a) LDC development problems resulted from domestic as well as international factors. b) LDCs should adopt Western norms and institutions. c) changes required for development would not create dislocation and hardship. d) LDCs could follow different routes to development. Answer: b; Page 93 3) The embedded liberal compromise a) was supported by a domestic class compromise between business and labor b) was a term used by Karl Polanyi to warn against the self- regulating market c) was a term coined by Keynes to indicate his commitment to interventionist liberalism. 18d) indicates that postwar efforts to maintain an open liberal international economy were embedded in institutions to ensure that there was some regulation Answer: a; Page 83 4) John Maynard Keynes a) viewed limits on imports as sometimes justifiable. b) favored internationalist policies at Bretton Woods because of his commitment to free trade. c) did not accept a large extension of the traditional functions of government. d) was accepting of the forceful nationalism of the interwar years. Answer: a; Page 82 5) Interventionist liberals are more concerned than orthodox liberals with a) international institutions b) negative freedom c) distributional issues d) domestic-international interactions Answer: c; Page 79 6) Friedrich Hayek and Milton Friedman a) reluctantly accepted the move to embedded liberalism in the 1940s to 1960s. b) preferred economic planning only in some circumstances. c) tried to reach some consensus with interventionist liberals. d) supported a strict separation between politics and economics. Answer: d; Page 84 7) In their approach to interdependence, Robert Keohane and Joseph Nye devoted more attention than Richard Cooper to a) the systematic study of economic interdependence. 19b) the limits on states’ ability to achieve their objectives. c) the relationship between domestic and foreign policies. d) the political aspects of interdependence. Answer: d; Page 85 8) In two-level game theory a) states that are subject to strong domestic pressures have a weaker bargaining position internationally. b) win-sets are all possible level 2 agreements that would gain ratification at level 1. c) win-sets are all possible level 1 agreements that would gain ratification at level 2. d) concentrated domestic interests always have more influence than diffuse domestic interests on a state’s negotiators. Answer: c; Page 91 9) Neomercantilists are more skeptical than liberals that states can move to Pareto-optimal outcomes in prisoners’ dilemma because a) they believe that prisoners’ gains and losses are not likely to be balanced and equitable. b) they are very concerned about free riding by states. c) they view the prisoners as rational, self-interested individuals. d) they see cheating as a major problem. Answer: a; Page 88 10) Unlike liberals, neomercantilists believe that a) states in institutions can cheat on each other. b) regimes do not have a role in IPE. c) having common interests is the only way to ensure cooperation among states. d) state concerns with relative gains pose a serious obstacle to cooperation in international institutions. Answer: d; Page 88 11) Many liberal theorists shifted their focus from regimes to 20global governance because a) global governance studies tend to be less state-centric than regime studies. b) the global governance concept is usually more conducive to the development of useful theories. c) global governance studies tend to focus more on order and cooperation among states. d) global governance studies usually focus more on issue areas. Answer: a; Page 90 12) Robert Keohane and Joseph Nye a) believe there is a hierarchy of issue areas in international relations. b) view interdependence as having a fairly uniform effect on states. c) believe that asymmetrical interdependence can be a source of power. d) expect larger states to be successful in most cases with smaller states in complex interdependent relationships. Answer: c, Page 85 13) Interventionist liberals a) point to the inequalities between the North and the South. b) do not consider domestic inefficiencies in LDCs to be a serious problem. c) oppose any protectionism for LDC industries. d) raise questions as to whether private enterprise is the best answer for LDCs. Answer: a; Page 93 14) Two states are interdependent when a) they have many transactions between them. b) they have many common interests. c) they do not use military force against each other. d) their transactions have reciprocal costly effects. 21Answer: d; Page 85 15) Liberals a) are not attuned to the role of power in interdependent relationships. b) see technological change as an important force behind globalization. c) are not concerned with distributional issues. d) assume that states are likely to gain equally from open economic relationships. Answer: b; Page 79 True-False 1) A Pareto-optimal outcome is the best possible outcome for a prisoner in prisoners’ dilemma. Answer: False; Pages 86-88 2) Regime studies tend to be less state-centric than governance studies. Answer: False; Page 90 3) In two-level game theory, negotiators may have weaker bargaining positions if they are not subject to strong domestic pressures. Answer: True; Pages 91-92 4) Interventionist liberals such as Keynes put a higher priority than orthodox liberals on specialization and international trade. Answer: False; Page 82 5) Liberals tend to view economics and politics as separate and autonomous spheres of activity. Answer: True; Page 79 226) Institutional liberals tend to emphasize negative freedom. Answer: False; Pages 77-78 7) Most modernization theorists were deterministic, advising the South to follow the same path to development as the North. Answer: True; Page 93 Fill in the Blank 1) Karl Polanyi believed that the orthodox liberal commitment to the produced such disasters as the Great Depression. Answer: self-regulating market; Page 83 2) Robert Putnam coined the term in reference to the interaction between a state’s international interests and obligations on the one hand, and domestic interactions within the state on the other. Answer: two-level game theory; Page 91 3) Theorists that promote “negative freedom” are Answer: orthodox liberals; Page 77 4) In an . relationship, transactions have reciprocal (but not necessarily symmetrical) costly effects. Answer: interdependent; Page 85 5) John Gerard Ruggie coined the term in reference to the postwar balance between an open liberal international economy, and societal efforts to promote domestic security and stability for individuals. Answer: embedded liberal compromise; Page 83 6) The best collective outcome in prisoners’ 23dilemma is a outcome. Answer: Pareto-optimal; Page 87 7) International are principles, norms, rules, and decision- making procedures around which actors’ expectations converge in an area of international relations. Answer: regimes; Page 88 Essay 1) What are the similarities and differences between, orthodox, interventionist, and institutional liberalism? Pages 77-78 2) In what ways have studies of foreign economic policy-making, concentrated and diffuse domestic interests, and two-level game theory increased our understanding of domestic-international interactions in IPE? Pages 90-92 3) When did neoliberalism emerge and why? How did it draw on the ideas of Milton Friedman? How did it differ from the liberalism of Adam Smith? Page 84 4) What are the similarities and differences between the orthodox liberal and interventionist liberal approach to North-South relations? What are some of the criticisms of the liberal approach to North- South relations in general? Pages 92-97 5) Why did Ruggie’s “embedded liberalism” become so important after World War II, and how did it draw on the ideas of Keynes and Polanyi? 24Page 83 6) How does prisoners’ dilemma demonstrate “collective action problems”? How and why do neomercantilists and liberals differ in their views regarding the possibilities for cooperation under prisoners’ dilemma? Pages 86-88 7) What are the major strengths and shortcomings of regime theory? Do you think that global governance is a more useful concept than regimes and why? Pages 88-90 8) What are international regimes, and what are the views of theorists regarding the formation, maintenance, and results of regimes? Pages 88-89 9) What is endogenous growth theory, and what are the implications of this theory for North-South relations? Page 96 10) What are the similarities and differences between Richard Cooper’s view of interdependence, and the views of Robert Keohane and Joseph Nye? Pages 85-86 Chapter 5 Critical Perspectives Multiple-Choice 1) Marx wrote that a) capitalism was a dynamic, expansive system with a mission to spread development around the world. b) technological advances resulted from natural human 25drives for economic progress. c) capitalism was hindering progress in such countries as India and China. d) capitalism had survived longer than expected because of imperialism. Answer: a; Page 107 2) Dependency theorists and Raúl Prebisch basically agreed that a) LDCs should adopt socialist policies. b) DCs in the core will never permit LDCs in the periphery to achieve genuine, autonomous development. c) LDCs should cut off contact with DCs in the core. d) LDCs face major structural obstacles to development. Answer: d; Page 109 3) Unlike the Cardoso-Faletto strain of dependency theory, the André Gunder Frank strain a) argued that the development of capitalist economies required the underdevelopment of the periphery. b) examined the relationship between external and internal processes of domination. c) gave primacy to external factors. d) argued that only dependent development could occur in the periphery. Answer: a; Page 109 4) Differences between structural Marxists and neomercantilists include the fact that neomercantilists view the state as a) providing some benefits to the working class. b) furthering the national interest. c) adopting policies opposed by some capitalists. d) somewhat autonomous. Answer: b; Page 105 5) Neo-Gramscians 26a) view the capitalist class as maintaining hegemony by coercion. b) tend to be economistic. c) view the capitalist class as maintaining hegemony with a good deal of consent. d) predict that the semiperiphery will bring about the downfall of the dominant class in the long term. Answer: c; Pages 112-113 6) Unlike dependency theory, world-systems theory a) is concerned with both “relations of exchange” and “relations of production.” b) underestimates the important of domestic factors in development. c) uses the “semi-periphery” concept. d) views development as possible for LDCs, even if it is dependent development. Answer: c; Page 111 7) Constructivists a) engage in the systematic, objective testing of hypotheses. b) are concerned with social facts as well as material facts. c) generally reject material reality, because its meaning depends on ideas and interpretation. d) believe that agents are more important than structures. Answer: b; Page 114 8) Feminist theorists a) believe that those who ignore gender distinctions reinforce unequal economic relations. b) are striving to increase their influence by developing a more unified perspective. c) believe that historical materialists are attuned to feminist interests unlike mainstream liberals and neomercantilists. 27d) believe that the main IPE perspectives can avoid downgrading the role of women by being gender neutral. Answer: a; Page 117 9) Public goods are a) excludable and rival. b) nonexcludable and nonrival. c) excludable and nonrival. d) nonexcludable and rival. Answer: b; Page 120 10) One of the most important IR mainstream debates today involves: a) Constructivism b) Environmentalism c) Neo-Gramscianism d) Feminism Answer: a; Pages 121-122 11) Marx a) claimed that Western imperialism served a useful purpose in countries with the Asiatic mode of production. b) claimed that countries with the Asiatic mode of production had to go through the feudal and capitalist modes before progressing to communism. c) based his studies of the Asiatic mode on several years of experience in these countries. d) viewed Western imperialism as even worse than the Asiatic mode of production. Answer: a; Page 107 12) Common property goods are a) excludable and rival. b) rival and not excludable. 28c) excludable and not rival. d) not rival and not excludable. Answer: b; Pages 120-121 13) Hobson and Lenin agreed that imperialism resulted from a) the dominance of monopolies and finance capital. b) low wages and underconsumption by workers. c) the basic nature of capitalism. d) the division of territories around the globe. Answer: b; Page 107 14) The greens often a) call for tradable pollution permits to induce firms to produce environmental products. b) argue that economic growth causes global environmental problems. c) call for government involvement as well as market-based solutions to improve environmental conditions. d) support IMF and World Bank finance to help LDCs promote sustainable development. Answer: b; Page 120 15) World-systems theorists a) devote considerable attention to hegemony in a cultural sense b) believe that states are not meaningful actors apart from their position in the world-economy. c) criticize classical Marxists for being too economistic d) see the world as being divided into the core and the periphery. Answer: b; Pages 111 True-False 1) Feminist theorists generally agree that the gender equality problem should be addressed by including more women in our major 29institutions. Answer: False; Page 116 2) The most vehement critics of critical theorists are usually mainstream liberals and neomercantilists. Answer: False; Page 122 3) Historical materialists tend to agree with liberals that globalization is a pervasive force in the world. Answer: True, Page 105 4) World-systems theory is more economistic than Gramscian analysis Answer: True; Pages 111-112 5) Structural Marxists have similarities with liberals, and instrumental Marxists have similarities with neomercantilists. Answer: False; Pages 104-105 6) Hobson and Lenin disagreed on the causes of imperialism, but they offered similar methods for ending imperialism. Answer: False; Pages 107-108 7) All of the following theoretical perspectives have liberal as well as critical variants: environmentalism, feminism, and constructivism. Answer: True; Page 103 Fill in the Blank 1) The dominant theoretical approach to development among Latin American intellectuals during the 1960s was . Answer: dependency theory; Page 108 2) A network of professionals with recognized expertise and policy 30relevant knowledge in a particular issue area is an Answer: epistemic community; Page 115 . 3) Marxists that view the state as being subject to direct political pressure from the capitalist class are called . Answer: instrumental Marxists; Page 104-105 4) Goods such as air, water, and outer space that are rival but nonexcludable are called . Answer: common property goods; Pages 120-121 5) Raúl Prebisch argued that LDCs in the periphery suffer from declining with DCs in the core because of their dependence on primary product exports. Answer: terms of trade; Page 109 6) The Gramscian concept of a refers to the congruence between state power, institutions, and ideas. Answer: historic bloc; Page 113 7) theorists introduced the concept of the “semiperiphery.” Answer: world-systems; Page 111 Essay 1) What are the similarities and differences between world-systems theory and dependency theory? How did world-systems theorists address some of the criticisms directed at dependency theory? Pages 108-112 2) What are the differences between public goods, private goods, 31common property goods, and club goods? In what ways do public goods and common property goods present collective action problems? Pages 120-121 3) What are the main features of neo-Gramscian analysis, and how is it similar to, and different from classical Marxism? Pages 112-114 4) How does the constructivist approach differ from the rationalist approach to IPE? Pages 114-116 5) What are the similarities and differences between Marxism, dependency theory, and world-systems theory? Pages 106-112 6) In what ways do neomercantilists, liberals, and historical materialists fail to adequately address gender issues in IPE? How do feminist scholars think we should remedy the problem of inattention to gender issues in IPE? Pages 116-117 7) What are the similarities and differences between neomercantilist, liberal, and critical environmental theorists? Pages 118-121 8) Despite the differences between the critical perspectives, what criticisms are made in general about them? How valid are the criticisms in your view, and why? Pages 121-122 9) Do you think that historical materialism is passé as a result of the breakup of the Soviet bloc and the end of the Cold War? What 32evidence can you give to support your position? Page 122 10) What are the similarities and differences between liberal and critical constructivists; and between liberal and critical feminist theorists? Pages 114-117 Chapter 6 International Monetary Relations Multiple-Choice 1) The U.S. balance of payments deficit in the 1950s and 1960s resulted largely from a) the growing U.S. services trade deficit. b) the growing U.S. current account deficit. c) the growing U.S. financial account deficit. d) the growing U.S. merchandise trade deficit. Answer: c; Answer: Page 146 2) The Triffin Dilemma in regard to reserve assets refers to conflict between a) the need to devalue the U.S. dollar, and the inability to do so. b) the liquidity and adjustment functions. c) the confidence and adjustment functions. d) the liquidity and confidence functions. Answer: d; Page 147 3) SDRs a) are allocated mainly to countries that have serious balance of payments problems. b) account for a large share of global reserve assets today. c) are allocated in proportion to a country’s IMF quota. d) have a value determined by a basket of 3 currencies today. 33Answer: c; Page 150 4) The “Unholy Trinity” today involves a trade-off between: a) pegged exchange rates and policy autonomy. b) pegged exchange rates and private capital mobility. c) private capital mobility and policy autonomy. d) none of the above. Answer: a; Page 152 5) On August 15, 1971 President Richard Nixon a) greatly restricted the official convertibility of the dollar into gold. b) devalued the U.S. dollar in relation to other currencies. c) imposed a tariff surcharge on all dutiable imports. d) began to float the dollar in relation to gold and other currencies. Answer: c; Page 151 6) The financial account includes a) the capital account. b) secondary income. c) portfolio investment. d) services trade. Answer: c; Page 134 7) Orthodox liberals advise governments to deal with balance of payments deficits with a) tariffs. b) deflationary fiscal policies. c) currency devaluation. d) financing. Answer: b; Pages 136-139 348) When a state lowers the official value of its currency, it is engaging in a) depreciation. b) appreciation. c) revaluation. d) devaluation. Answer: d; Page 140 9) The type of monetary regime most closely associated with the embedded liberal compromise was a) a managed floating regime. b) a gold exchange standard. c) a gold standard. d) a free floating regime. Answer: b; Page 142 10) Which country has not appointed its own IMF executive director in recent years? a) India b) Russia c) Saudi Arabia d) China Answer: a; Page 144 11) Eurocurrencies are a) national currencies located in banks outside the home country. b) held by countries that have replaced their national currencies with the euro. c) national currencies that must be held in European banks. d) national currencies closely linked with the formation of the European Union. Answer: a; Page 147 3512) The current account includes a) direct investment assets. b) monetary reserves. c) investment liabilities. d) primary income. Answer: d; Page 132 13) In the postwar period, the United States first had a balance of trade deficit in a) 1971. b) 1960. c) 1973. d) 1950. Answer: a; Page 132 14) IMF members agreed to create SDRs in 1969 with the approval of a) the G5. b) the G7. c) the G10. d) the G20. Answer: c; Page 150 15) In the interwar period (between World Wars I and II), the world had a) a gold standard and floating exchange rates. b) a gold exchange standard and floating exchange rates. c) only floating exchange rates. d) only a gold standard. Answer: b; Page 141 True-False 361) Under the current monetary regime, volatility of currency rates is a greater problem than misalignment of currency rates. Answer: False; Page 152-153 2) The Group of 24 includes finance ministers or central bank governors from 24 major DCs and LDCs. Answer: False; Page 149 3) The Triffin Dilemma refers to the problem that the liquidity and adjustment functions of the key currency in a monetary regime eventually come into conflict. Answer: False; Page 147 4) The first time the United States had a balance of payments deficit in the post-World War II period was in 1950. Answer: True; Page 146 5) The financial account of the balance of payments includes direct investment, portfolio investment, and primary income. Answer: False; Pages 133-134 6) Depreciation refers to the market-driven decrease in a currency’s price. Answer: True; Page 140 7) IMF votes on most important decisions such as changing the IMF quotas give an effective veto to the United States, China, and Japan. Answer: False; Page 145 Fill in the Blank 1) A government uses to deal with a balance of payments deficit by lowering government spending and raising taxes. 37