weeks 2-5 Flashcards
What was the primary objective of the Bretton Woods Conference held in 1944?○
(a) To establish a global military alliance to prevent future wars.○
(b) To create a stable international economic system to promote post-war recovery and growth.○
(c) To divide the world into spheres of influence among the victorious Allied powers.○
(d) To promote the spread of communist ideology throughout the world.
(b) To create a stable international economic system to promote post-war recovery and growth.
Which two major institutions were created as a direct result of the Bretton Woods Conference?○
(a) The United Nations and the World Trade Organization○
(b) The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) (commonly known as the World Bank)○
(c) The North Atlantic Treaty Organization (NATO) and the Warsaw Pact○
(d) The League of Nations and the International Court of Justice
(b) The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) (commonly known as the World Bank)○
What event is widely viewed as marking the end of the Bretton Woods system?○
(a) The outbreak of the Korean War in 1950○
(b) The construction of the Berlin Wall in 1961○
(c) President Nixon’s decision to end the convertibility of the US dollar to gold in 1971○
(d) The fall of the Soviet Union in 1991
(c) President Nixon’s decision to end the convertibility of the US dollar to gold in 1971○
.
What has been a significant economic impact of China’s rise as a global economic power?○
(a) A decrease in global poverty.○
(b) Deindustrialisation of manufacturing centres in developed countries.○
(c) A decrease in international trade.○
(d) A decline in technological advancements.
(b) Deindustrialisation of manufacturing centres in developed countries.
.
Which of the following is a key feature of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)?○
(a) It was initiated by China to strengthen its economic influence in the Asia-Pacific region.○
(b) It includes all major economies in the Americas, Asia, and Europe.○
(c) It aims to reduce or eliminate tariffs on a wide range of goods among its member countries.○
(d) It has been highly successful in achieving its goals and has faced no significant challenges.
(c) It aims to reduce or eliminate tariffs on a wide range of goods among its member countries.
.
What is a common criticism of regional trade agreements (RTAs)?○
(a) They can lead to a complex web of differing rules and regulations, creating challenges for businesses and potentially undermining the multilateral trading system.○
(b) They always result in job losses and economic decline for all participating countries.○
(c) They have been proven to be completely ineffective in promoting trade liberalisation.○
(d) They are illegal under international law and violate the principles of the World Trade Organization.
(a) They can lead to a complex web of differing rules and regulations, creating challenges for businesses and potentially undermining the multilateral trading system.
What was a key motivation behind the negotiation of the North American Free Trade Agreement (NAFTA)?○
(a) To isolate Mexico from the global economy and limit its economic growth.○
(b) To create a military alliance between Canada, Mexico, and the United States.○
(c) To integrate the economies of Canada, Mexico, and the United States and promote regional trade and investment.)○
(d) To establish a single currency and central bank for North America.
(c) To integrate the economies of Canada, Mexico, and the United States and promote regional trade and investment.)○
.
Which of the following is a major difference between NAFTA and its successor agreement, the United States-Mexico-Canada Agreement (USMCA)?○
(a) The USMCA eliminates all trade between the three countries.○
(b) The USMCA significantly weakens environmental protections.○
(c) The USMCA includes stronger labour enforcement mechanisms, particularly in the automotive sector.○
(d) The USMCA expands the controversial investor-state dispute settlement (ISDS) mechanism.
(c) The USMCA includes stronger labour enforcement mechanisms, particularly in the automotive sector.○
What is the IMF’s primary source of funding?○
A. Credit arrangements○
B. Member quotas○
C. Bilateral borrowing agreements○
D. Donations from philanthropic organisations
B. Member quotas○
What is the “most favoured nation” (MFN) clause in the GATT/WTO system?○
A. A clause that allows developed countries to offer lower tariffs to developing countries○
B. A clause that allows countries to form free trade agreements with preferred partners○
C. A clause that requires countries to offer the same trade advantages to all other members○
D. A clause that allows countries to impose retaliatory tariffs on countries that engage in unfair trade practices
C. A clause that requires countries to offer the same trade advantages to all other members
.
What is one of the main criticisms of regional trade agreements (RTAs)?○
A. They can create a complex web of rules that make it difficult for small countries and businesses to participate in international trade.○
B. They can lead to a decrease in global trade as countries focus on their regional partners.○
C. They can undermine the World Trade Organization’s dispute settlement system.○
D. They can lead to an increase in global inequality as developed countries benefit more than developing countries.
A. They can create a complex web of rules that make it difficult for small countries and businesses to participate in international trade.
.
Which of the following is NOT a stated goal of NAFTA?○
A. To eliminate most tariffs on products traded between the three countries○
B. To protect intellectual property○
C. To harmonise environmental regulations across the three countries○
D. To establish dispute resolution mechanisms
C. To harmonise environmental regulations across the three countries○
What is one of the potential benefits for the UK of joining the CPTPP?○
A. Reduced tariffs on UK exports to CPTPP countries○
B. Increased access to the EU market○
C. Reduced immigration from CPTPP countries to the UK○
D. Stronger environmental regulations in the UK
A. Reduced tariffs on UK exports to CPTPP countries○
1.
Which country was the first European nation to join the CPTPP?○
A. France○
B. Germany○
C. United Kingdom○
D. Italy
C. United Kingdom○
What is one significant change introduced by the USMCA?○
A. It reintroduced tariffs on certain agricultural products traded between the three countries.○
B. It weakened labour protections for Mexican workers.○
C. It tightened rules of origin for the auto industry.○
D. It expanded the investor-state dispute settlement mechanism.
C. It tightened rules of origin for the auto industry.○
What is a potential negative consequence of Globalization 4.0?○
a) Increased trade and lower prices○
b) The spread of new ideas and technologies○
c) Increased global interdependence○
d) Global climate change
d) Global climate change
What historical event marked a new beginning for the global economy after periods of decline?○
a) The invention of the telegraph○
b) The Age of Discovery○
c) The end of World War II○
d) The fall of the Roman Empire
c) The end of World War II○
What is a common concern about the Belt and Road Initiative?○
a) It could lead to unsustainable debt for participating countries○
b) It could promote economic development in developing countries○
c) It could foster greater cooperation between China and other countries○
d) It could reduce China’s reliance on fossil fuels
a) It could lead to unsustainable debt for participating countries○
●
Which of the following best describes the central idea of mercantilism?○
A. A nation’s wealth is determined by the overall value of goods and services available to its people.○
B. A nation’s strength is best served by maximising exports and minimising imports to amass wealth.○
C. Special economic zones play a crucial role in fostering international trade and economic growth.○
D. A country should specialise in producing goods for which it has an absolute advantage.
B. A nation’s strength is best served by maximising exports and minimising imports to amass wealth.○
●
What is the primary objective of the Global System of Trade Preferences (GSTP)?○
A. To regulate trade between developed and developing nations.○
B. To promote a circular economy by reducing plastic usage.○
C. To establish special economic zones in developing countries.○
D. To facilitate trade among developing countries through preferential tariff reductions.
D. To facilitate trade among developing countries through preferential tariff reductions.
According to the World Economic Forum article, how can the GSTP contribute to sustainable development goals?○
A. By imposing strict environmental regulations on member countries.○
B. By encouraging investments in fossil fuel-based energy production.○
C. By promoting cooperation in areas like clean energy, food security, health supplies, and a circular economy.○
D. By limiting trade in agricultural products to protect domestic farmers.
C. By promoting cooperation in areas like clean energy, food security, health supplies, and a circular economy.○
●
What has contributed to the shift away from the “less-state-is-better” consensus in economic policy?○
A. The unqualified success of global free trade in delivering shared prosperity.○
B. Concerns about income inequality, national security, climate change, and the perceived threat from China’s state-backed companies.○
C. The belief that governments should not interfere in the economy.○
D. The absence of any need for government support in fostering innovation.
B. Concerns about income inequality, national security, climate change, and the perceived threat from China’s state-backed companies.○
What is the “Apollo model” of industrial policy, as discussed in “The new industrial policy”?○
A. A hands-off approach to economic development, relying solely on market forces.○
B. A system of trade barriers and protectionist measures to shield domestic industries.○
C. Government-led initiatives focused on achieving ambitious technological goals, often inspired by the US space programme.○
D. A strategy of prioritising economic growth at all costs, regardless of social or environmental consequences.
C. Government-led initiatives focused on achieving ambitious technological goals, often inspired by the US space programme.○
