Global Economy Exam 2

European Union # of Members

27

1-5 EU Mem

• Austria

• Belgium

• Bulgaria

• Croatia

• Cyprus

6-10 of EU

• Czech Republic (Czechia)

• Denmark

• Estonia

• Finland

• France

11-15 of EU

• Germany

• Greece

• Hungary

• Ireland

• Italy

16-20 of EU

• Latvia

• Lithuania

• Luxembourg

• Malta

• Netherland

21-25 of EU

• Poland

• Portugal

• Romania

• Slovakia

• Slovenia

26-27 of EU

• Spain

• Sweden

Who left the EU?

The UK

How many countries in the G7?

7

who are the members of the G7?

• UK

• US

• Japan

• Germany

• Italy

• Canada

• France

How many members in the G20?

19 countries and 2 regional bodies = 21

1-5 of G20?

• Argentina

• Australia

• Brazil

• Canada

• China

6-10 G20?

• France

• Germany

• India

• Indonesia

• Italy

11-15 of G20?

• Japan

• Republic of Korea

• Mexico

• Russia

• Saudi Arabia

16-19 of G20?

• South Africa

• Türkiye

• United Kingdom

• United States

2 regional bodies of G20?

European Union (EU) and African Union (AU) 

How many countries are full members of the EAEU/EEU?

5

what are the 5 members of the EAEU/EEU?

• Russia

• Belarus

• Kazakhstan

• Kyrgyzstan

• Armenia

(know these on map)

What was the main goal of the post-1945 economic reconstruction?

To rebuild global trade and finance under stable institutions that would prevent another Great Depression or world war.

What system established fixed exchange rates and capital controls after WWII?

The Bretton Woods system.

Which institutions were created at Bretton Woods?

The IMF and the World Bank (and later, the GATT).

What characterized the global economy from 1945–1973?

Rapid growth, rising trade, and industrial expansion in Western Europe, Japan, and North America

What was the role of GATT in global trade?

It promoted trade liberalization by reducing tariffs and trade barriers through negotiation rounds.

How did regional integration evolve?

Regional trade agreements like the EEC (European Economic Community) and ASEAN deepened economic ties among members.

Which of the following was not a lesson from the interwar period for postwar allied planners:

the US should play a small role in the new system

States which benefitted economically from the Cold War included:

Japan, South Korea and Taiwan

Embedded liberalism refers to:

liberal international economy limited by the desire to preserve national social programs

Three key international organisations created to support the post 1945 liberal international economic order were:

IMF, Word Bank, GATT

Communist political economies:

achieved some success with extensive economic growth, but not intensive growth

Two key features of the Southern political economy were:

decolonization and development

Which state enjoyed the most success in development between 1945 and 1980?

South Korea

A Keynesian state is one in which:

the government spends money and redistributes income to smooth out economic growth

The term ‘offshore’ refers to:

areas of the global economy where states create territorial or juridical enclaves charac­terized by a reduction in regulation

The ‘competing capitalisms’ concept refers to:

the emergence of different forms of capitalism in Europe, North America and Japan

The concept of a ‘competition state’ refers to a state that:

prepares its citizens and corporations for international economic competition

The BRICS countries are:

Brazil, Russia, India, China, South Africa

A significant development in late 20th century governance was the:

democratization of state institutions

The internet is:

a site of struggle between private corporate and public interests

The role of international economic organizations since 1945 is:

a distinguishing feature of the global political economy

Payments made to industries to make their products internationally competitive are called:

subsidies

The theory of comparative advantages advises that

all countries would benefit from engaging in free trade

Liberals believe protectionism:

hurts both the country that adopts protectionism and its trading partners

Common exceptions to free trade policies are

infant industries

military industries

cultural industries

The increasing use of non-tariff barriers to trade is referred to as:

new protectionism

New Zealand’s trade liberalization policies of the 1980s resulted in:

a larger dairy export industry and increased animal waste problem

The hormone beef dispute between the EU and the US is a good example of:

• the tension between health and trade issues

• varying national sensitivities to risk

• international disputes over the role of science

• the difficulty of achieving deep integration

Which of the following has not been a key principle in the international trade regime:

economic justice

The General Agreement on Tariffs and Trade

• succeeded in greatly reducing tariffs between countries

• did not seriously address agricultural issues and the service sector

• was a source of concern for developing countries

Compared to the GATT, the WTO

implements a shift from shallow to deep integration

Developing countries at the WTO have criticised Northern protectionism in the following sectors:

agriculture and textiles

The Cairns Groups is a coalition of:

agricultural exporters from developed and developing countries

Intellectual property rights were incorporated into the WTO because:

Western pharmaceutical, entertainment and technology companies lobbied for it

Regional trade agreements:

vary greatly in their scope and content

International trade organizations and agreements:

struggle to demonstrate their legitimacy to the public

Half of the world’s largest transnational corporations are located in the following three countries:

US, China and Japan

The most represented sector in the top twenty TNCs in the Global Fortune 500 is:

petroleum sector

A global commodity chain is:

a network of labour and production which creates a finished commodity

Portfolio investment:

injects cash into an enterprise but does not bring operational control

A vertically integrated TNC:

incorporates different stages of the production process within a single firm

Liberals argue that FDI:

boosts national tax revenues and increases local access to world markets

Export Processing Zones:

in textiles and electronics sectors mostly employ women

The Fordist system is characterized by:

mass consumption and mass production

Which of the following is the largest TNC:

walmart

States tend to have a positive view of TNC investment because:

• liberal economic theory is dominant and supports FDI

• the failure of alternative development approaches such as ISI

• the example of the success of East Asian industrialized countries

• a belief that public policy can increase the returns from hosting FDI

Developing countries that have been open to foreign investment

have tended to develop faster than those that have restricted it

TNC corporate decision making is based on:

global production strategies and efficiency

In state – firm bargaining the upper hand is held by:

the state or the TNC depending upon their resources and power

Which of the following has not been central to the globalization of production:

Protectionist policies

Economists and political scientists first began analysing the rise of transnational production in the:

1970’s