IR Exam 2

Q: What is the definition of terrorism?
A: The use of violence or threat of violence to create fear, often for political purposes.
Q: What is dissident terrorism?
A: When non-state actors use violence against the state, e.g., ISIS or Al-Qaeda.
Q: What is state terrorism?
A: When a government uses violence against its own citizens to maintain control.
Q: What is state-sponsored terrorism?
A: When a government supports non-state terrorist groups, often through funding or logistics.

Q: What are the three types of WMDs?
A: Biological, Chemical, and Nuclear weapons.
Q: What is the Biological Weapons Convention?
A: A treaty from 1972 that bans the development, production, and stockpiling of biological weapons.
Q: What are the three pillars of the Nuclear Non-Proliferation Treaty (NPT)?
A: Nonproliferation, disarmament, and peaceful use of nuclear energy.
Q: What is vertical proliferation?
A: An increase in the number of WMDs a single country possesses.
Q: What is horizontal proliferation?
A: The spread of WMDs to new countries that previously did not have them.

Q: What is the Gravity Model of Trade?
A: A model that predicts trade flow between two countries based on their economic size (GDP) and distance between them.
Q: What is the formula for the Gravity Model of Trade?
A: Trade=GDP1×GDP2DistanceTrade=DistanceGDP1×GDP2.
Q: Why does the Gravity Model predict high trade between Canada and Mexico?
A: Because both countries have large economies and are geographically close to each other.

Q: What is North-North (N-N) FDI?
A: Foreign Direct Investment between developed countries, often to avoid tariffs.
Q: What is North-South (N-S) FDI?
A: Foreign Direct Investment from developed countries to developing countries, often for resources and cheap labor.
Q: What are some benefits of FDI for developing countries?
A: FDI can create jobs, bring capital, improve human capital, and introduce new technologies.

Q: What does the ICC (International Criminal Court) prosecute?
A: Genocide, crimes against humanity, war crimes, and crimes of aggression.
Q: What is the ICC's role as the "court of last resort"?
A: The ICC only prosecutes individuals when national courts are unwilling or unable to do so.
Q: What is the key difference between the ICC and the ICJ?
A: The ICC prosecutes individuals for international crimes, while the ICJ handles disputes between states.

Q: What is the Most Favored Nation (MFN) principle in the WTO?
A: A principle that requires WTO members to treat all other members equally in terms of trade.
Q: What is the role of the WTO's Dispute Settlement Body?
A: It handles trade disputes between member countries and ensures that trade rules are followed.
Q: What is the main goal of the WTO?
A: To promote free trade by ensuring that member countries follow agreed-upon trade rules.

Q: What is the role of the International Monetary Fund (IMF)?
A: To provide financial assistance to countries facing economic crises.
Q: How does the IMF’s quota system work?
A: It determines how much a country can borrow and its voting power within the IMF.
Q: What conditions are often attached to IMF loans?
A: Countries must agree to implement economic reforms, often related to fiscal discipline, in exchange for financial support.

Q: What is the difference between a trade deficit and a trade surplus?
A: A trade deficit occurs when a country imports more than it exports; a trade surplus occurs when a country exports more than it imports.
Q: What are tariffs, and how do they protect domestic industries?
A: Tariffs are taxes on imported goods, which make foreign products more expensive and protect domestic industries from competition.
Q: What is the purpose of a quota in trade?
A: A quota limits the amount of a product that can be imported, protecting domestic industries by reducing competition.

Q: What is a floating exchange rate system?
A: A system where the value of a currency is determined by market forces without direct government control (e.g., the U.S. after 1971).
Q: What is a fixed exchange rate system?
A: A system where a country’s currency value is tied to another currency or a commodity like gold, and the government intervenes to maintain that value.
Q: How can a government defend a fixed exchange rate?
A: By adjusting the money supply, either decreasing it to stop depreciation or increasing it to prevent appreciation.