Growth and Development
Midterm Examination 1

Short Answer Essay

1. What are three reasons why students should study international political economy (IPE)?

2. Tension is building between China and the United States.

(a) What was the most favored nation status and civil rights argument about?

(b) What is the current tension about?

3. What is the difference between relational and structural power?

(a) Give an example of each in terms of nation-states.

4. What is the traditional definition of Mercantilism?

(a) Which direction does the money and manufactured goods flow?

(b) How does national security play into Mercantilism?

(c) What can states do with the money in terms of building a modern nation-state?

5. What are Alexander Hamilton's ideas?

(a) What is import substitution?

6. What are Friedrich List's ideas?

(a) Why is state action needed?

7. What are the banana wars about?

(a) Why is nation sovereignty important?

8. What is industrial espionage?

(a) What is the origin of most source for information?

(b) How does China gather and "steal" technology?

9. What are some benefits of a government developing its defense industries?

(a) What are the benefits and problems of selling high-tech weapons?

10. What is Hayek's Road to Serfdom (1944) all about?

11. According to Adam Smith, what is the purpose of government?

(a) What are the benefits of international free trade?

12. What are Britain's Corn Laws?

(a) Whom was hurt by these laws?

(b) What happened to British (Victorian) society after the corn laws were repealed?

13. What are John Stuart Mill's ideas?

(a) What did Mill say if the state is too involved?

14. What are the ideas of John Maynard Keynes?

(a) What is the Paradox of Thrift?

(b) What are four programs that followed from Keynes?

15. What is hegemony?

(a) What are the three modern hegemonies?

(b) What are public goods?

(c) What kind of international public goods that a hegemon supplies?

(d) What happens if the hegemon fails?

16. What is the Bretton Woods System?

(a) What is the purpose of the International Monetary Fund?

(b) Why did the United States support free trade after World War II?

(c) Why do some consider the United States to be a selfish hegemon?

17. Marx identified three problems with capitalism.

(a) Briefly explain the Law of the Falling Rate of Profit.

(b) Briefly explain the Law of Concentration.

(c) Briefly explain the Law of Disproportionality.

18. According to Vladimir Lenin, how did the capitalistic countries escape the inherent problems of capitalism?

19. What is Dependency Theory?

(a) What are the three eras of dependency?

20. According to Marx and Lenin, what are the two purposes of a colony?

21. Many countries actively intervene with free trade. Please define the following:

(a) Tariffs

(b) Import Quotas

(c) Export Quotas

(d) Export Subsidies

(e) Currency devaluation

(f) Nontariff Barriers (NTBs)

(g) Dumping

(h) Strategic Trade Practices

22. What is the World Trade Organization (WTO)?

(a) What is transparency?

(b) Does WTO intervene with trade disputes?

(c) Can the WTO impose trade sanctions?

23. What are trade sanctions?

(a) Give an example of a trade sanction.

(b) What are two problems with trade sanctions that make them ineffective?