IPE QUIZ 1 Flashcards

1
Q

The modern European state gained
official recognition at the 1648 __________________ which marked the defeat of
the Catholic Hapsburg countries by mostly Protestant countries in Northern
Europe.

A

Treaty of Westphalia,

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2
Q

The _______________________upheld state sovereignty and territorial integrity
by institutionalizing changes to prevent external religious intervention

A

Peace of Westphalia

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3
Q

A major factor enabling the state to establish its authority vis-à-vis internal and external forces was the development of _______________.

A

mercantilism

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4
Q

, an eighteenth-century liberal economist who was highly critical of the
mercantilists,

A

Adam Smith

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5
Q

___________________were acutely
aware of the linkage between politics and economics, viewing both power and
wealth as essential goals of national policy.

A

Mercantilists

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6
Q

3 reasons mercatilism : accumulated gold and silver by seeking trade
advantages over others in the following ways:

A

They increased their exports and
decreased their imports of manufactured goods,

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7
Q

3 reasons mercatilism : accumulated gold and silver by seeking trade
advantages over others in the following ways:

A

restricted raw material and technology exports to prevent others from developing manufacturing capabilities

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8
Q

3 reasons mercatilism : accumulated gold and silver by seeking trade
advantages over others in the following ways:

A

imported raw materials they needed to reduce costs for their own manufacturers.

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9
Q

____________ was central to mercantilism, because the colonies provided the metropole with raw materials and served as markets for its manufactures

A

Colonialism

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10
Q

T OR F manufacturing in the colonies was usually NOT prohibited.

A

F

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11
Q

____________ became the hegemonic power
in the nineteenth century as it was the first state to industrialize.

A

Britain

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12
Q

T OR F Hegemonic stability theorists argue that the lack of a global hegemon
prevented the development of an open, stable international economy in the
interwar period.

A

T

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13
Q
A
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14
Q
A
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15
Q
A
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16
Q

_______________________________ was established in Basle, Switzerland in 1930 to oversee the settlement of German repara-
tions after World War I,

A

Bank for International Settlements (BIS),

17
Q

Q: What was the purpose of the 1922 conference in Genoa, Italy?

A

A: The 1922 Genoa conference aimed to pressure central banks to manage currency exchange rates and use currencies convertible into gold.

18
Q

Q: Why did the 1922 conferences fail?

A

A: They failed to resolve issues related to war reparations, debt, disorderly currency exchange, and the decline in world trade.

19
Q

Q: Which countries reached an agreement on exchange rates in 1936?

A

A: Britain, the United States, and France reached an agreement in 1936.

20
Q

How did the economic experiences between the World Wars influence post-World War II economic policy?

A

A: The failures of international economic management led to the creation of the IMF, World Bank, and GATT to ensure stability.

21
Q

Q: What role did the United States play in the formation of international economic institutions after World War II?

A

A: The United States emerged as a hegemonic power, leading the establishment of institutions to develop a liberal economic order and prevent interwar problems.

22
Q

Q: Who else, besides the United States, influenced the creation of the IMF, World Bank, and GATT?

A

A: John Maynard Keynes, a British economist, played an important role in the creation of these institutions.

23
Q

Q: Why are the IMF, World Bank, and GATT referred to as keystone international economic organizations (KIEOs)?

A

A: They are called KIEOs because of their central role in monetary relations, development, and trade.

24
Q

Q: What was the primary purpose of the International Monetary Fund (IMF) when it was created?

A

A: The IMF was created to monitor a system of pegged or fixed exchange rates and provide short-term loans to countries facing balance-of-payments deficits.

25
Q

Q: How did the IMF aim to prevent competitive devaluation of currencies?

A

A: The IMF’s system of fixed exchange rates aimed to avoid competitive devaluation, which had led to trade wars during the interwar period.

26
Q

Q: What type of loans does the International Bank for Reconstruction and Development (IBRD), or World Bank, provide?

A

A: The World Bank provides long-term loans for postwar reconstruction and economic development in less developed countries (LDCs).

27
Q

Q: What functions did GATT serve in international trade?

A

A: GATT lowered tariffs in multilateral trade negotiations, established rules for conducting international trade, and developed procedures for resolving trade disputes.

28
Q

Q: What was the main goal of GATT in relation to the protectionist barriers of the interwar period?

A

A: GATT aimed to avoid the protectionist barriers that had emerged during the interwar period by promoting free trade and cooperation.

29
Q

USA in 1948 to give bilateral aid to Western Europe.

A

European Recovery Program (or Marshall Plan)

30
Q
A