Chapter 2.3: Economic nationalism in the 20th century

Question 1

What drove the leading economies to seek refuge in mercantilist policies?

Answer 1

economic depression of the 1930s

Question 2

A nationalist mentality informed the creation of?

Answer 2

colonial or semi-colonial trading blocs such as those by Britain, France, Germany and Japan

Question 3

Agressive mercantilism found its most extreme manifestation in?

Answer 3

Nazi Germany between 1933 and 1945

- expansionist policy of territorial gain

Question 4

Ideas of economic nationalist such as Friedrich List found widespread appeal in many?

Answer 4

developing countries that emerged from colonial rule after WW2

• insufficiently integrated and developed
• low educational standards
• human capital not fully developed
• trade relations unequal
• imported manufactured goods for raw materials

Question 5

What theory that neb-mercantilist ideas were to exert their greatest influence on economic policy in developing countries?

Answer 5

Theory of dependency

Question 6

Latin American dependency theorists such as Raul Prebisch and Fernando Henrique Cardoso advocated a policy of ?

Answer 6

import substitution

to break the exploitative links between the economies of the capitalist centre and the underdeveloped economies in the South

Question 7

What is the modern version of infant industry argument?

Answer 7

import substitution industrialisation (ISI)

It seeks to enables domestic industries to develop and gain strength behind the barriers of trade protection before they enter international competition on a stronger footing