International Political Economy
Midterm Exam
Course Introduction
International Political Economy explores the dynamic interplay between politics and economics on a global scale, examining how states, institutions, and markets interact to shape the distribution of wealth and power worldwide. Students analyze key theories and concepts, such as globalization, trade, investment, monetary systems, development, and the roles of international organizations. The course investigates contemporary issues including trade disputes, economic crises, inequality, and the impact of emerging powers, equipping students with the analytical tools to understand and critique the economic and political forces shaping the international system.
Recommended Textbook
World Politics 4th Edition by Jeffry A. Frieden
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Page 2
Chapter 1: What Shaped Our World
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Q1) A major change in the balance of power within nineteenth-century Europe was spurred by the:
A)unification and growth of Germany.
B)rise of the Ottoman Empire.
C)decline of the American empire.
D)withdrawal of England from active intervention in European politics.
Answer: A
Q2) Which of the following is the best example of the challenges to globalization in the modern world?
A)Arab Spring uprisings lead to uncertain results in Middle Eastern and North African countries.
B)Developing economies push for reforms in the United Nations General Assembly.
C)The value of currencies fluctuates now that there is no gold standard.
D)China and Russia refuse to fully open their borders to international trade.
E)The United States brings trade dispute cases to the World Trade Organization.
Answer: D
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3
Chapter 2: Understanding Interests, interactions, and Institutions
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Q1) Which of the following would be considered a threat to the nature of sovereignty?
A)A superior international government
B)Domestic markets
C)Urbanization
D)Journalism
Answer: A
Q2) Which of the following is a potential example of state loss of sovereignty?
A)A state changes its currency from a cash system to an electronic system.
B)A state takes over all of its banks and declares itself the sole lender to its citizens.
C)A corporation successfully takes over the enactment and adjudication of a state's laws.
D)A state expands its control over ocean waterways.
Answer: C
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Chapter 3: Why Are There Wars
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Q1) Resolve is difficult to measure because it depends on:
A)the quality of a state's military training.
B)how much a state is willing to pay and risk in order to achieve a particular goal.
C)how much a state trusts the other side.
D)how well a state can obscure facts about its armies from opponents.
Answer: B
Q2) Which is true of World War I?
A)Leaders expected the war to be the longest in history.
B)Leaders thought the war would be an average length and prepared for it.
C)Leaders expected the war to be short.
D)Leaders had fairly realistic expectations for the war.
Answer: C
Q3) What do states hope to achieve by engaging in brinksmanship?
A)States want to demonstrate a commitment to bargaining.
B)States seek to generate audience costs.
C)States hope to demonstrate resolve.
D)States aim to gain an adversary's trust.
Answer: C
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Chapter 4: Domestic Politics and War
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Q1) In which way can the military shape the probability of war?
Q2) How might electoral institutions minimize the influence of small groups?
Q3) How does a sense of shared community influence disputes between democratic states?
A)It enables compromise settlements.
B)It solves issue indivisibilities.
C)It creates collective defense.
D)It ensures no conflicting interests.
Q4) Why would Dwight Eisenhower warn the American people about the military-industrial complex?
A)Strong links between the two removed civilian control over the military.
B)Such an alliance would push for a more aggressive foreign policy.
C)Americans would become immune to the rally effect if it was used too often.
D)American manufacturing was harmed by devoting such a large portion of the budget to the military.
Q5) Explain how and to what extent the military can influence foreign policy decisions.
Q6) What is the rally effect? What causes it? Do you believe leaders purposefully change their behavior to cause a rally effect? Why might they or might they not do so?
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Chapter 5: International Institutions and War
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Q1) How do collective security organizations reduce costs associated with joint decision making and commitment problems?
Q2) When are alliances most likely to be successful?
A)When democratic states create alliances
B)When a large number of states join the alliance
C)When powerful states are interested in the outcome of a dispute
D)When states are able to credibly signal their strong mutual interests
Q3) Which of the following would be considered a collective security organization?
A)The "Pact of Steel" between Germany and Italy
B)The League of Nations
C)The European Union
D)The North American Free Trade Agreement
Q4) Which of the following is true of NATO alliance partners?
A)NATO members share the alliance's burden equally.
B)NATO alliance partners have always been reliable.
C)The alliance partners did not all agree on a common policy toward Iraq.
D)NATO members disagree on how much each state is actually contributing to the alliance.
Q5) How does the presence of an alliance alter the bargaining model of war?
Q6) Why has NATO survived after the end of the Cold War?
Page 7
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Chapter 6: Violence by Nonstate Actors: Civil War and Terrorism
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Q1) While economic downturns typically weaken a state's position in bargaining,they are:
A)likely to hurt the rebels just as much.
B)rare in countries experiencing civil war.
C)usually only temporary.
D)usually mitigated by international intervention.
Q2) Which of the following is a potential group-level explanation for citizen mobilization?
A)Cohesion and trust between individuals of the same ethnic identity
B)Corrupt political leaders
C)The collapse of a country's economy
D)Pressure from a neighboring state
Q3) What is the difference between a moderate and an extremist?
A)Extremists are dedicated to using violence.
B)Extremist views are less widely shared.
C)Moderates have a higher education level.
D)Moderates come from a lower socioeconomic status.
Q4) Why did the civil war in the Democratic Republic of the Congo last so long?
Q5) How does counterinsurgency work?
Q6) Why do some grievances lead to civil war and others do not?
Page 8
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Chapter 7: International Trade
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Q1) What is the theory of hegemonic stability?
A)The spread of free trade throughout the world will lead to a stable single trading system.
B)The longer countries keep their free-trade policies,the more likely they are to remain pro-free trade.
C)Having one single hegemonic source of information can improve the chances of stability in international trade.
D)One large state that is willing and powerful enough can solve the collective action problems of international trade.
Q2) Why do economists believe that free trade would be beneficial for the world economy? Why do nations still erect barriers in the face of those arguments?
Q3) How do compensation programs create a Pareto improvement in trade policy? Why might they create more support for trade?
Q4) Explain how domestic political interests,institutions,and interactions affect the likelihood of trade liberalization or trade restriction.
Q5) How do strategic interactions create problems in international trade policy,and how might these problems be resolved?
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Page 9
Chapter 8: International Financial Relations
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Q1) What event sparked the 1980s debt crisis?
A)The Mexican government announced it could not make its debt payment.
B)The Soviet Union invaded Afghanistan,and all extra investment was used for defense spending.
C)The U.S.Congress banned lending to Latin American countries.
D)Ronald Reagan was elected president of the United States.
Q2) What type of international investment is the World Bank involved in?
A)Portfolio investment
B)Foreign direct investment
C)Austerity finance
D)Concessional finance
Q3) The World Bank typically provides additional capital to:
A)developed countries at the market rate.
B)developed countries at below the market rate.
C)lesser developed countries at the market rate.
D)lesser developed countries at below the market rate.
Q4) Why have financial and debt crises been recurring features of the global economy?
Q5) What was the Latin American debt crisis? How does it illustrate the problems and controversies of sovereign lending?
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Chapter 9: International Monetary Relations
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Q1) Which of the following is most like a commodity-backed paper standard?
A)The Bretton Woods System
B)The British pound
C)The euro
D)The classical gold standard
Q2) Why do currency crises occur?
Q3) Why would a country adopt floating exchange rates?
A)Floating exchange rates allow a government the freedom to pursue its own monetary policies.
B)Floating exchange rates reduce the likelihood of abrupt changes in currency values.
C)Floating exchange rates are beneficial for borrowers of foreign funds.
D)Floating exchange rates make international trade less risky.
Q4) Which of the following is an example of a country using monetary policy?
A)Sweden increases import taxes to raise government revenues.
B)Iceland decreases its interest rate to increase consumer spending.
C)Japan borrows from the People's Republic of China for domestic consumption.
D)China increases spending on hydroelectric projects.
Q5) Why do monetary interactions between governments sometimes resemble a Prisoner's Dilemma?
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Chapter 10: Development: Causes of the Wealth and Poverty of Nations
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Q1) Why are secure property rights important for economic development?
A)Governments need to be able to make use of public lands for infrastructure projects.
B)Countries that are insecure and subject to invasions from neighboring countries are less likely to have the necessary economic and political environment for development.
C)When property owners think their assets are secure,they are more likely to invest in improvements to their land.
D)Countries cannot develop economically without a clearly written democratic constitution.
Q2) What was the purpose of the New International Economic Order?
A)European countries wanted to reduce the power of the United States.
B)Less developed countries wanted to make conditions more favorable for poor countries.
C)The United States wanted to reduce the amount of foreign aid it gave to poor countries.
D)Middle Eastern countries wanted to earn more profit from their oil exports.
Q3) How do developed country policies harm developing countries?
Q4) How has geography affected the economic development of poor countries?
Q5) What are some ways governments can encourage economic growth?
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Chapter 11: International Law and Norms
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Q1) Customary international law is different from normal international law in that it:
A)is more optional compared to other kinds of international law.
B)is more about etiquette and proper diplomatic behavior.
C)is often developed over time as acceptable practices evolve.
D)deals with issues of culture,as opposed to economic or political issues.
Q2) International norms are best described as:
A)rules in the international system that only a few states follow.
B)informal standards of behavior specifying what is accepted as right or appropriate.
C)expectations that only exist between developed countries.
D)bureaucratic rules governing interactions among states.
Q3) When are norms easiest to identify in the international system?
A)When states are following the norms
B)When states are violating norms
C)When there is an established international organization pushing for the norm
D)When the international hegemon identifies a norm as being important
Q4) What role do TANs play in changing minds and altering interests?
Q5) What is international law and what types of rules constitute international law? Give an example of each type of rule.
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Chapter 12: Human Rights
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Q1) All of the following are within the jurisdiction of the ICC EXCEPT if the:
A)accused is a citizen of a state that has ratified the treaty establishing the ICC.
B)crime in question took place on the territory of a state that has ratified the treaty establishing the ICC.
C)accused has already been tried and found innocent by the courts of his or her own country.
D)United Nations Security Council refers the case to the ICC prosecutor.
Q2) Which of these regimes is MOST likely to use violence against its citizens?
A)Single-party dictatorships are most likely to violate rights because the dictator can single-handedly order human rights abuses.
B)Multiparty dictatorships are most likely to violate rights because the political opposition is active and the dictator uses repression to suppress them.
C)Multiparty democracies are most likely to violate rights because elected officials are accountable to a public that supports rights.
D)Two-party democracies are most likely to violate rights because elected officials do not need to fully represent constituent interests.
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Chapter 13: The Global Environment
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Q1) Which of the following is a reason that those who would be negatively affected by tighter environmental restrictions so often defeat these policies?
A)Those negatively affected by regulations vastly outnumber those who benefit from them.
B)Groups who would benefit from environmental protection are directly compensated for its absence through bargaining.
C)Existing industries have more supporters that they can mobilize compared to industries that are developing more environmentally friendly technologies.
D)The majority of citizens sympathize with the affected industries and pressure governments to avoid environmental regulations.
Q2) The depletion of the whale population due to hunting is an example of:
A)the difficulty of managing common-pool resources.
B)the ineffectiveness of TANs.
C)the relative effectiveness of numerical limits rather than complete bans.
D)the importance of scientific whaling.
Q3) How can international institutions help implement international environmental agreements?
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15
Chapter 14: The Future of International Politics
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Q1) Which of the following is the best example of economic globalization?
A)Workers protest for a higher minimum wage.
B)Brazil sells oil to Japanese manufacturers.
C)American culture spreads throughout the world.
D)Millions of acres of rain forest are cut down for development.
Q2) Research suggests that the most valid concern of those who fear immigration is:
A)cultural adjustments.
B)fewer jobs.
C)government budgets.
D)lower wages.
Q3) If two states possess nuclear weapons and credibly commit to using them in a second strike,what effect does this have on bargaining between the two parties?
A)It should have no real effect on bargaining,as it is a uniform increase to costs.
B)The potential benefit for either side winning the war increases dramatically.
C)It expands the range of acceptable bargains for both parties and should make war less likely.
D)It should make neither side willing to bargain,as launching nuclear weapons is much cheaper than fighting a conventional war.
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Chapter 15: Introduction
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Q1) Take a recent example of an international situation you have read about in the news.Explain the events using the framework of interests,interactions,and institutions.
Q2) Is realism realistic? Explain why you think the framework is suitable for international relations,or,if you do not think it is,does liberalism or constructivism make more sense?
Q3) Which of the following is an example of an interest?
A)A politician is elected president.
B)A politician collects campaign donations to be elected president.
C)A politician is put on the ballot in all the districts in which he or she is running.
D)A politician wants to be president.
Q4) Which of the following is an example of cooperation?
A)A state banning the language of a minority group within its territory
B)Two states agreeing to similar sets of traffic laws in order to make border crossings more fluid
C)One state capitulating to another state to end a border war
D)Two states raising taxes on imports so they will become less reliant on each other
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Chapter 16: Foundations, War, and Peace
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Q1) The North Atlantic Treaty Organization likely had what effect on the United States' bargaining range when dealing with communist countries?
A)It had no effect on the bargaining range.
B)It increased the potential costs to the communist states and made the range of preferable bargaining outcomes larger for the United States.
C)It increased the potential costs for the United States and made the range of preferable bargaining outcomes larger for the communist states.
D)It increased the potential benefits to the communist states and made the range of bad bargaining outcomes larger for the United States.
Q2) Explain how there is a credibility problem in states representing their interests,capabilities,and resolve in international relations.
Q3) Successful use of coercive diplomacy is complicated by:
A)the presence of divisible goods in bargaining.
B)unfavorable reversion points for the target state.
C)strong prohibitions by international institutions.
D)the costs associated with following through on threats.
Q4) How does the bargaining model apply to civil war?
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Chapter
Politics, and Looking Ahead
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Q1) Currently,which of these statements best describes today's international monetary arrangements?
A)Gold is the currency of the world.
B)It is based on a commodity standard.
C)The International Monetary Fund (IMF)regulates fixed exchange rates.
D)A few major currencies float against one another.
Q2) Which of the following is an example of an environmental issue that has reached the third stage of a norms cycle?
A)Enforcement of environmental protection is not needed,as states protect the environment on their own.
B)The issues dealing with the environment are being favorably covered by major media sources.
C)The proper steps to be taken in order to address environmental concerns are being discussed in international organizations.
D)Some states sanction other states for not protecting the environment.
Q3) Why do states engage in human rights violations? Under what conditions might they be stopped?
Q4) Why do environmental agreements typically use soft law rather than hard law?
Page 19
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