IPE Master quiz 1 to 6

Question 1

Where does the cost of sanctions mostly fall?

Accepted Answer

Average citizens

Question 2

Why did Bretton Woods system fail?

Accepted Answer

US did not want to constraint its economy by reducing imports, Institutions faield

Question 3

What does the evidence +clearly+ say?

Accepted Answer

There is no clear evidence of a rate to the bottom

Question 4

EU members must agree to have the same trade policy to the rest of the world. This is an example of…

Accepted Answer

Custom Union

Question 5

Which of the following is NOT true?

Accepted Answer

MNCs are relatively new!

Question 6

What is the difference between intangible assets (1) and specific assets (2)?

Accepted Answer

1 derives from knowledge, 2 derives from a long-term relationship

Question 7

Which of the following could explain the reason why the US limits imports of foreign sugar?

Accepted Answer

Collective action problem: producers organise betters than consumers

Question 8

Which of the following best describes the main idea of “Dark Leviathan”, by Farrell?

Accepted Answer

Ross Ulbricht ended up building a micro-state

Question 9

Consider an example of a one-time game (theory) between the EU and China. Which of the following predictions is correct?

Accepted Answer

Even if both prefere to liberalise, the result will be protection from both

Question 10

Most “BITS” are mantained in ____ to protect _____ countries firms

Accepted Answer

1. Developing 2. Developed

Question 11

Why is it true that countries under NO condition can have the 3 elements of the trinity?

Accepted Answer

Adjusting interest rates will lead to two prices of the currency

Question 12

Which of the following is not a reason that may prevent successful bargaining between two states?

Accepted Answer

Political culture

Question 13

What is the main difference between a society-centred (1) and state-centred (2) approach to trade politics?

Accepted Answer

1 focuses on distribution of winners/losers, 2 on active action of state

Question 14

Which of the following sanctions was not involved in the Suez Crisis?

Accepted Answer

Asset targeting

Question 15

How do states protect infant industries?

Accepted Answer

Subsidies/tariffs until it achieves economies of scale/experience

Question 16

Which of the following secors want a weak currency?

Accepted Answer

Import competing, Export oriented

Question 17

Hecksher-Ohlin theory; a country will __ goods that make use of abundant factors and ___ goods that use ____ factors

Accepted Answer

1. Export / 2. Import

Question 18

According to the theory focusing on the distribution of societal support, what is true about the passage of RTAA?

Accepted Answer

The position of the US in the world had changed….

Question 19

According to the hegemonic stability theory…

Accepted Answer

A dominant actor can shoulder the burden of enforcement for all

Question 20

Which of the following mechanisms of the WTO ensure same trade conditions among all members of the organisation?

Accepted Answer

Most Favoured Nation (MFN)

Question 21

Which of the following accounts for non-financial transactions?

Accepted Answer

Currrent account

Question 22

Consumers in North Korea do not have certain goods such as fancy cars because of....

Accepted Answer

Targeted sanctions

Question 23

Which of the following is an implication of strategic trade theory?

Accepted Answer

Subsidies can lead to a new industry to enter an oligopoly

Question 24

Which of the following statements is true?

Accepted Answer

Today, most states have a floating currency system

Question 25

What is true about the Reciprocal Trade Agreements act (RTAA) of 1934?

Accepted Answer

It gave greater authority to the president to set trade policy

Question 26

What is true about the emprical evidence regarding central banks?

Accepted Answer

Evidence is clear on inflation, but less on growth

Question 27

Consider the case of china (Stolper-Samuelson approach)…

Accepted Answer

Capital in china will have to compete with investment from abroad

Question 28

Which of the following is focused on normative issues?

Accepted Answer

British school

Question 29

Why did developing countries give control back to foreign interests (e.g attract FDI)?

Accepted Answer

Economic benefits as an attempt to manage the firms to their advantage

Question 30

What does the so-called “generalised system of preference” mean?

Accepted Answer

That developed countries can apply lower tariffs to developing countries

Question 31

Would we expect those with the most liberalised internal markets to also have the most liberalised external markets?

Accepted Answer

No, states can do welfare and liberalisation at the same time

Question 32

Which of the following is said to come before?

Accepted Answer

Political economy

Question 33

What is the main problem with the Sanctions' research design?

Accepted Answer

Selection bias

Question 34

What electoral system is expected to lead to more protectionism on average?

Accepted Answer

Majoritarian

Question 35

Why were countries able to mantain fixed exchange rates with high capital mobility in the late 19th century?

Accepted Answer

There were fewer democracies, and more authoritarian governments

Question 36

The partisan model....

Accepted Answer

Reflects competition between factors

Question 37

Who holds MNCs accountable?

Accepted Answer

Stockholders

Question 38

Many governments sustain industry insurance programs. These are…

Accepted Answer

Non-tariff barriers

Question 39

Under floating XR regimes, balance of payments ill be restored through exchange rate movements. This will lead to...

Accepted Answer

Surplus counttries see imports go up, and exports go down, Deficit coutnries see imports go down and exports go up

Question 40

What is the proper objective of the theory “interests and institutions”?

Accepted Answer

Politically constrained efficiency

Question 41

Acc to partisan model, __ governments are more liley than __ governments to establish a fixed XR, promoting ___ currency

Accepted Answer

Right wing / Left wing / Strong

Question 42

Which of the following schools of IPE sees the international economic system as conflictual?

Accepted Answer

Mercantilism

Question 43

Adjusting BoP under fixed XR: How can the British government solve un upward pressure on GBP vis-a-vis the Euro?

Accepted Answer

Bank of england buys euros using pounds

Question 44

According to the Stolper-Samuelson (factor) theory, which goods will be imported by an advanced country like Germany?

Accepted Answer

Labor intensive goods (e.g clothes)

Question 45

What was the main problem that led to the 2002 currency run in Argentina?

Accepted Answer

Credibility undermined because of deficit spending

Question 46

What is true about the Ricardo-Viner (Sector) approach?

Accepted Answer

Workers and capitalists can be part of the same “team”

Question 47

FDI….

Accepted Answer

Is provided by and received in advanced countries

IPE Master quiz 1 to 6

Questions 47

IPE Master quiz 1 to 6

Questions 47