IPE

Question 1

Supply and Demand of Currency

Answer 1

Floating System

Question 2

State Intervention

Answer 2

Fixed/ Pegged rate system

Question 3

States guarantee value of currency against gold convertability

Answer 3

Gold Standard

Question 4

Benefits to the issuer of the currency ,

Answer 4

Signorage

Question 5

Examples of Seignorage

Answer 5

Reduces cost and risk of currency volatility, trade and purchase in own currency, increase macroeconomic autonomy (artificial inflation), people want YOUR money

Question 6

Liquidity OR Confidence

Answer 6

Triffin Dilemma

Question 7

End of Gold Convertability, Imposed Tariffs to restore trade surplus, Depreciates US dollar

Answer 7

Nixon Shocks

Question 8

The Euro is an example of

Answer 8

a Currency Union, reduces volatility and speculation.

Question 9

State controlled investment vehicles, political agendas, control large amounts of global finance.

Answer 9

Sovereign Wealth Funds (SWF)

Question 10

Ratio of debt payments to exports

Answer 10

Debt Service Ratio

Question 11

OPEC Oil revenues deposited in commercial banks

Answer 11

Petrodollars

Question 12

Unregulated competition in banking, cometitive.

Answer 12

Loan Pushing

Question 13

Short to Medium Term Loans to reduce debt

Answer 13

Structural Adjustment Loans (SAL)

Question 14

Poor country initiative, involving IMF, rescheduling and relief of debt, soft loans.

Answer 14

Heavily Indebted Poor Country Initiative (HIPC)

Question 15

Political and Economic Paths followed by the North (Traditional Belief)

Answer 15

Modernization Theory

Question 16

Money given at below market interest rate loans (grants)

Answer 16

Official Development Assistance (ODA)

Question 17

Reliance on natural resource exports, strategy, realist

Answer 17

Import Substitution Industrialization (ISI)

Question 18

Resource exporters suffered from declining terms of trade. IE: as income increases, demand for resource does not continue to increase.. demand for manufactured good often continues to increase. Inevitable relative economic decline

Answer 18

Singer-Prebisch Theory

Question 19

Replace manufatured products with local goods . Such as appliances, automobiles. Requires large investment, debt financing

Answer 19

Secondary ISI (Latin America Approach)

Question 20

Convert easy ISI producers into export industries. Large role for the state.

Answer 20

ISI - Export Substitution (EXPORT LED GROWTH, or East Asian Approach)

Question 21

ISI and infant industries, WTO trade rules, MNCs and investment rules

Answer 21

Strategic Trade Theory

Question 22

Firms that actively control operations in 2 + Countries, Direct control over foreign affiliates

Answer 22

Mulinational Corporations

Question 23

MNCs manage underdevelopment, locate key production regardless of economic justice

Answer 23

Dependency Theory

Question 24

MNCs are basis of transnational capitalist hegemony

Answer 24

Gramscian Theory

Question 25

Stabe supply chains

Answer 25

ertical Integration

Question 26

Economies of scale, technological change, improved abilities to control operations in other countries

Answer 26

Horizontal Integration

Question 27

MNCs have power initially but their investment becomes fixed.. bargaining power decreases

Answer 27

Obsolescing Bargain

Question 28

Production decisions not driven by comparative advantage, dependent on decisions of competitors, Fears of political instability

Answer 28

Ogopolistic Economic Trade Theory

Question 29

Principal of separate national accounts creates potential for tax avoidance, has an impact on national tax revenue, trade occurs within firms mostly (1/3)

Answer 29

Intrafirm Trade

Question 30

Regulatory effort that benefited MNC and did little to address policy challenges

Answer 30

Bilateral Investment Treaties (BIT)

Question 31

Comparative advantage comes from abundant factors of production

Answer 31

Heckscher Ohlin Theory

Question 32

In a resource dependent economy, free trade will benefit resource sectors, but not those who work in under endowed sectors of the economy

Answer 32

Stopler-Samuelson Theory

Question 33

benefits of free trade must outweight the cost of free trade for the HEGEMON

Answer 33

Hememonic Stability Theory

Question 34

Tariffs, Non Tariff Barriers (NTB) and Voluntary Export Restraints (VER) are examples of

Answer 34

Trade Barriers

Question 35

Anti Dumping Duties (ADD) and Countervailing Duties (CVD) are examples of

Answer 35

Trade Safeguards

Question 36

Bans performance requirements Stipulations on FDI

Answer 36

Trade Related Investment Measure (TRIM)

Question 37

Requires states to create patent and copyright protections systems to prevent theft of MNC intellectual property

Answer 37

Trade related Intellectual Property (TRIPS)