INTL-3200 Midterm Questions

Here are the questions from the midterms with the correct answers.

What was the relationship between mercantilism and monopolies?

Mercantilism relied on monopolies to favor the mother country over its colonies and its competitors.

Which of the following encouraged European powers to prioritize free trade in the 1800s?

Technological Advancements

The great powers cooperated more and fought less during the nineteenth century, in part because of

Increasingly free trade between countries

When Burundi imposes a new tax on imports into its country, it expects that the tax will go into place without interference from other countries' governments, even if those countries are harmed by the import tax. This is an example of what concept?

Sovereignty

What occurred around 1492 that fundamentally altered the course of the world

European states led expeditions around the world

Why did the adoption of the gold standard facilitate global trade?

It created a predictable way to exchange international currencies.

One of the reasons the United States and its allies created international institutions at the end of World War II was

In order to create a stable free-trade economic system

How did the Great Depression help lead to the outbreak of World War II?

It led to the rise of extreme right-wing, nationalistic governments in several key European nations

Under mercantilism, a country wishing to expand would best start by

Building up its military power

What effect did new political pressures such as the French Revolution and other democratic revolutions have on European powers in the nineteenth century?

They led to greater cooperation among European Powers

Which of the following is an example of cooperation?

A group of friends contributing money to throw a party

___ are considered the basic unit for the analysis of international politics and can be composed of either individuals or groups of people.

Actors

If the United Nations Security Council decides not to intervene to stop genocide, the reversion outcome would be that

The genocide would continue

How did the norm of election monitoring spread even to less democratic elections?

Pseudo-democrats began copying true democrats in order to access financial aid.

What kind of problem does the Prisoner's Dilemma story illustrate?

Collaboration

Which of the following is a potential example of state loss of sovereignty?

A corporation successfully takes over the enactment and adjudication of a state's law.

Two states have a disagreement over territory along their shared border, and the larger, more powerful state sends in its military in order to occupy the disrupted territory. In part they are able to accomplish this because there is no international organization that can credibly threaten to prevent them from doing so. This is an example of

Anarchy

Which of the following is an example of a public good?

The clean air resulting from laws reducing pollution.

Which category of interest is usually considered the most basic and a prerequisite for other goals?

Security

Which of the following is an example of an institution helping to verify compliance?

International Atomic Energy Agency inspectors searching for nuclear weapons that would violate the Treaty on the Non-Proliferation of Nuclear Weapons.

According to the strict definition of war, which of the following conflicts is a war?

A conflict between India and Pakistan where 2,000 soldiers are killed.

What is not a requirement for a conflict to be classified as a war

More than one state must be involved

Once the Soviet Union and the United States acquired large supplies of nuclear weapons, the chances of direct military conflict between the two decreased. This is an example of which way that states can reduce the likelihood of war occuring?

Increasing the costs of going to war

Resolve is difficult to measure because it depends on

How much a state is willing to pay and risk in order to achieve a particular goal.

Which of the following is an example of deterrence

The United States threatening to attack Iran if it did not cease developing nuclear weapons.

Why might audience costs affect the possibility of war?

An elected leader may make a threat and be compelled to carry it out in order to get reelected.

Why is it difficult to make a threat of attack seem credible to an opponent?

The threat of such a war can seem too costly to be a reasonable option.

A state that provokes a crisis would most prefer

That the other state capitulates completely

In the case of the threat by the United States to attack Afghanistan in 2001, the status quo was

Taliban control of Afghanistan

Which of the following is an example of a civil war?

Armed conflict between FARC guerillas and the Colombian national army

Why does the rally effect occur?

Members of a group feel greater loyalty when they come into conflict with outsiders.

When a country goes to war with a rival, the leaders of that country attempt to rally the public to support the war based on claims of the importance of their shared identity as a people. This is an example of

Nationalism

What is the difference between a hawk and a dove as the terms are used in international relations?

A hawk tends to prefer military solutions, whereas a dove tends to prefer diplomatic and economic ones.

What is the most likely result for a leader after the outcome of a war?

A democratic leader who loses a war is likely to lose power.

In which of the following cases would the influence of interest groups make conflict less likely?

A small group of investors wants to increase trade with another country.

Which of the following is an institutional explanation for the Kargil War?

There is a weak civilian control in Pakistan, and events are often dictated by the military.

Under what circumstances can nationalism undermine domestic unity rather than reinforce it?

When a country is multinational or otherwise divided among several competing nationalities.

How can complementary interests ;ead states to form an alliance?

If each state can bring something to the table that the other state values, that can make forming an alliance easier.

In which of the following ways is an alliance likely to affect conflict?

Alliances can decrease the individual costs of fighting for each state in the alliance

At the beginning of World War I, why was Great Britain's role especially important?

Britain's intentions were unclear, which made German leaders doubt whether Britain would enter the war.

What effect does a disagreement among allies about the intentions of a possible enemy state have on the bargaining model of war?

It can heighten the probability that a bargaining failure will lead to war.

Which of the following is a way that a collective security organization, like the United Nations, could help resolve a commitment problem?

The organization can send in peacekeepers to reduce the chances of a surprise attack.

Are alliances institutions or actors?

It makes more sense to think of them as institutions because they are formed by states in response to common interests.

In which of the following ways has the United Nations benefited world security?

It has provided legitimacy to military actions in Kuwait and Korea.

Which of the following is not necessary for a conflict to be considered a civil war by scholars?

Ethnic or religious differences between combatants

What is the essential credible commitment problem for rebel groups to lay down their arms for peace?

Once they disarm, they have no easy to be sure that the government will keep the deal.

What was the effect of the involvement of neighboring countries and cross-border flows of fighters in the Rwandan genocide?

The DRC descended into its own civil war.

How might terrorism prolong a conflict?

By avoiding direct confrontation with a state's military, which would lead to the quick destruction of terrorist rebels.

Which of the following best describes insurgents?

They rarely wear distinctive uniforms and attempt to blend in with the population

States refusing to negotiate with terrorists are trying to overcome what kind of problem created by bargaining with terrotists?

Commitment Problems

What is the difference between a moderate and an extremist?

Extremist views are less widely shared.

What does the word "comparative" in comparative advantage refer to?

Comparing the things a country could do and choosing to specialize in what they are most efficient in.

Which of the following trade policy results would be most expected given the logic of collective action?

Automobile manufacturers successfully lobbying for higher tariffs on imported automobiles.

Why does division of labor make international trade profitable?

Countries focus on producing things that they are most efficient at producing.

Which of the following is an example of absolute advantage?

The United States makes software more efficiently than any other country.

When the United States established steel tariffs in 2002, who benefitted?

Producers of steel in the United States

Which of the following would be expected by Heckscher-Ohlin trade theory?

A country with abundant fertile land exporting agricultural products

Which of the following statements is correct?

Comparative advantage helps a specific country while absolute advantage helps the world as a whole.

Not every country will have a comparative advantage in something, but every country has an absolute advantage in some good or service.

Not every country will have an absolute advantage in something, but every country has a comparative advantage in some good or service.

Both absolute and comparative advantages are permanent and once a country achieves them, they rarely lose them.

Not every country will have an absolute advantage in something, but every country has a comparative advantage in some good or service.

Which of the following arguments would be most consistent with neo-mercantilism?

The goal of trade policy is to encourage exports and discourage imports so as to run a trade surplus.

Which of the following describes comparative advantage?

A country specializing in what they do most well or least poorly.

What are two broad categories of foreign investment?

Direct and Portfolio Investment

Which type of investment has typically been the most politically fraught and the most likely to lead to a debt crisis?

Sovereign Lending

As an individual person, you are most likely to engage in international finance through

Portfolio Investment

What is concessional finance?

When money is lent to developing countries at below-market interest rates

Debt forgiveness is most likely to be granted to

Poorer nations who cannot afford to pay back their loans.

Which of the following best characterizes the majority of international investment in the world?

Individuals in rich countries investing in other rich countries

Sovereign lending is when

Governments borrow money from private financial institutions

Why do developing countries allow foreign direct investment?

They need capital in order to develop, and FDI is often the best source.

Which of the following illustrates how international conditions can affect debtor nations?

Mexican oil exports decreased because higher US interest rates precipitated a recession

Why is there no effective international institution that helps regulate foreign direct investment (FDI)?

There are few accepted global concerns with FDI, and there is no strong demand for cooperation in dealing with MNCs.

What event sparked the 1980s debt crisis?

The Mexican government announced it could not make its debt payment.

Which of the following is the most prominent international financial institution, especially in times of economic distress?

The International Monetary Fund

How did Intel cause problems in Costa Rica?

Their assembly plant employed such a large proportion of the Costa Rican population that when they closed it, the country experienced a depression.

What is often the effect of austerity measures in a country?

A recession or depression.

Which organization was set up in the 1930s and is composed of the world's principal central banks?

Bank for International Settlements

Which of the following is an example of a default?

Brazil announced in 1987 that it would not repay its international loans.

A multinational corporation is created by what type of investment?

Foreign Direct Investment

Which of the following is an example of a bilateral investment treaty?

A treaty between Norway and Sweden protecting their investors from government expropriation.

Why did investors lend little money to developing countries before 1965?

Most countries had not repaid their debts during the Great Depression

Which of the following is an example of foreign direct investment?

Ford Motor Company builds an automobile factory in Argentina

The International Monetary Fund is controversial because some believe that

The organization takes unfair advantage of debtor nations

Portfolio investments are those

In which investors have no role in managing the investment

At virtually all international airports there are businesses who (for a fee) will convert currency for the customers from one country's currency to another. If a customer wants to convert his or her US dollars to euros, the amount of euros he or she will get back for $100 is based on

The exchange rate between the two currencies

What is the exchange rate?

The price of a national currency relative to other national currencies

What did the classical gold standard era and the Bretton Woods System have in common?

The world's major powers cooperated in maintaining the system.

Why might a central bank oppose a country moving to a fixed exchange rate?

Fixed exchange rates limit the ability of central banks to change interest rates to affect the domestic economy.

A currency that has depreciated is one that

Has been devalued

In a floating exchange-rate system, how are exchange rates determined?

They are based on changes in the supply and demand of the currencies in question.

If the Argentine peso appreciates in relation to the US dollar, it means that

The Argentine peso has increased in value relative to the dollar.

What is one interest all domestic actors share with regard to the national currency?

All domestic actors favor a currency policy that ensures stable prices.