This quiz works best with JavaScript enabled. Home > International > Political Economy > International Political Economy – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Political Economy Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the purpose of a portfolio investment? A) To acquire controlling positions in domestic firms or joint ventures. B) To earn a return or grow in value over time through passive ownership of assets. C) To actively manage ownership of assets in foreign countries. D) To develop a multinational presence in foreign markets. Show Answer Correct Answer: B) To earn a return or grow in value over time through passive ownership of assets. 2. Which countries are categorized as low income countries? A) Madagascar. B) Vietnam. C) Tibet. D) None of above. Show Answer Correct Answer: A) Madagascar. 3. The purpose of investment agreements in international production is: A) To create a complex set of rules and standards for foreign investment. B) To ensure that TNCs receive preferential treatment in foreign countries. C) To regulate the production of goods in different countries. D) To provide a framework for resolving disputes between TNCs and states. Show Answer Correct Answer: D) To provide a framework for resolving disputes between TNCs and states. 4. How do multinationals influence the global supply chain? A) By reducing their market power and resources. B) By promoting fair trade and ethical business practices. C) By focusing only on local supply chains. D) Through their extensive networks, resources, and market power. Show Answer Correct Answer: D) Through their extensive networks, resources, and market power. 5. What is the perspective of international political economy studies? A) Constructivism. B) LIberalism. C) Comparative. D) None of above. Show Answer Correct Answer: B) LIberalism. 6. Liberals argue that international cooperation: A) Can be facilitated by international organisations. B) Requires a hegemonic state. C) Primarily benefits the strongest states. D) Is impossible because of anarchy. Show Answer Correct Answer: A) Can be facilitated by international organisations. 7. What is the purpose of the International Criminal Court (ICC)? A) To hear cases on genocide, war crimes, and crimes against humanity. B) To restrict biological weapons research. C) To outlaw the testing of nuclear weapons. D) To decrease the number of strategic nuclear weapons. Show Answer Correct Answer: A) To hear cases on genocide, war crimes, and crimes against humanity. 8. Which decade was considered less pressing for security issues in Europe and the US? A) The 1990s. B) The 1980s. C) The 1970s. D) The 1960s. Show Answer Correct Answer: A) The 1990s. 9. International Political Economy study focus about? A) Migration. B) Political and Economy Actors. C) Security. D) None of above. Show Answer Correct Answer: B) Political and Economy Actors. 10. Which of the following is a principle of the World Trade Organization (WTO)? A) Tariff escalation. B) Import substitution. C) Bilateralism. D) Non-discrimination. Show Answer Correct Answer: D) Non-discrimination. 11. What are some of the positive impacts of multinationals on host countries? A) Political instability, increased income inequality, and reduced access to resources. B) Job creation, technology transfer, and economic growth. C) Environmental degradation, exploitation of local labor, and increased poverty. D) Cultural homogenization, decreased competition, and reduced innovation. Show Answer Correct Answer: B) Job creation, technology transfer, and economic growth. 12. How do multinational corporations influence trade policies? A) Engaging in fair and transparent negotiations with government officials. B) Offering bribes to government officials. C) Using economic power and influence to persuade government officials, participating in trade associations, and engaging in direct lobbying efforts. D) Using social media campaigns and public protests. Show Answer Correct Answer: C) Using economic power and influence to persuade government officials, participating in trade associations, and engaging in direct lobbying efforts. 13. What does the UN Peacekeeping involve? A) Periodic use of member-state troops to help resolve conflicts. B) Prohibiting the export of missiles and related technologies. C) Eliminating all chemical weapons by 2007. D) Hearing cases on genocide, war crimes, and crimes against humanity. Show Answer Correct Answer: A) Periodic use of member-state troops to help resolve conflicts. 14. What are some of the regulations imposed on multinationals in the international economy? A) Exemption from environmental regulations. B) Adherence to international trade laws and regulations. C) Unrestricted access to resources. D) No requirement to follow labor laws. Show Answer Correct Answer: B) Adherence to international trade laws and regulations. 15. How do economic tools can be used to influence the behaviour of states? A) By imposing trade restrictions, financial penalties or asset freeze. B) Cultural exchange and cooperation. C) Military interventions and force. D) Diplomatic negotiation and dialogues. Show Answer Correct Answer: A) By imposing trade restrictions, financial penalties or asset freeze. 16. What is one recommendation for the government to get economic benefits from globalisation? A) Limit trade and financial flows. B) Encourage migration of workers. C) Borrow money against future income. D) Remove obstacles to trade and financial flows. Show Answer Correct Answer: D) Remove obstacles to trade and financial flows. 17. How does the refugee crisis impact the political economy of host countries? A) It has no impact on the political economy. B) It puts pressure on public services, increases competition for jobs, and potentially strains social cohesion. C) It reduces competition for jobs. D) It strengthens social cohesion. Show Answer Correct Answer: B) It puts pressure on public services, increases competition for jobs, and potentially strains social cohesion. 18. What are some of the potential negative impacts of multinational corporations on local economies? A) Creating job opportunities, stimulating economic growth, and transferring technology and knowledge. B) Increasing poverty and income inequality. C) Exploiting natural resources and causing environmental degradation. D) Promoting corruption and unethical business practices. Show Answer Correct Answer: B) Increasing poverty and income inequality. 19. How do migration policies affect the labor market of the host country? A) Increasing the demand for labor and driving up wages. B) Reducing the number of available jobs for local workers. C) Having no impact on the labor market. D) Regulating the entry of foreign workers and impacting the supply of labor and wages. Show Answer Correct Answer: D) Regulating the entry of foreign workers and impacting the supply of labor and wages. 20. The international financial system means A) A system of exchange rates and international payments that allows countries to conduct business with one another. B) A platform for risk management, such as derivatives and currency hedging. C) A system of fixed exchange rates that was in place from 1944 to 1971. D) A network of organisations, regulations, and markets that promote international trade and capital flow between nations. Show Answer Correct Answer: D) A network of organisations, regulations, and markets that promote international trade and capital flow between nations. ← PreviousNext →Related QuizzesInternational QuizzesInternational Political Economy Quiz 1International Political Economy Quiz 3International Political Economy Quiz 4International Political Economy Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books