Growth and Development
Final Examination

Short Answer Essay

1. 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?

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

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

3. 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?

4. 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?

5. 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.

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

7. What is Dependency Theory?

(a) What are the three eras of dependency?

8. What are the common methods that government can help foster research and development?

9. What is the liberal view for intellectual property rights?

10. What is the mercantilistic view for intellectual property rights?

11. What is the structuralist view for intellectual property rights?

12. What happens if intellectual property rights are weak?

13. What was the Keiretsu important for Japan's economic development?

(a) Bank

(b) Antitrust Regulations

(c) Hostile Takeovers

14. What are benefits and problems for Russia's transition to capitalism?

(a) Include in your answer for benefits of banks, resources, taxes, regulations, and international markets.

(b) Include in your answer for problems of crime, Russian ruble, and current direction of government.

15. How did the Communist Party in China incorporate market reforms into their society?

16. What kind of economic policies do the World Bank, International Monetary Fund, and World Trade Organization recommend?

(a) Do most countries follow these policies?

17. What is import substitution?

(a) Which countries have used this growth approach?

(b) Is this policy effective?

(c) What was the financial position of governments that used these policies?

18. What is export oriented growth?

(a) Which countries have used this growth approach?

(b) Is this policy effective?

(c) What was the financial position of governments that used these policies?

(d) Why are high savings rate important?

19. What is the role of women in Less Developed Countries (LDCs)?

(a) Integration

(b) Marginalization and Exploitation

20. What are the characteristics of countries that export petroleum and other valuable minerals?

(a) Government Revenue

(b) Traditions

(c) Who owns the resources?

(d) Foreigners