This quiz works best with JavaScript enabled. Home > International > Political Economy > International Political Economy – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Political Economy Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. US President Donald Trump's 'America First' policy is an example of: A) Liberalism. B) Economic nationalism. C) Neo-Marxism. D) Neo-liberalism. Show Answer Correct Answer: B) Economic nationalism. 2. We can have economics without politics. A) True. B) False. Show Answer Correct Answer: B) False. 3. Name one major global financial institution that focuses on providing development assistance and poverty reduction. A) Goldman Sachs. B) International Monetary Fund. C) JPMorgan Chase. D) World Bank. Show Answer Correct Answer: D) World Bank. 4. Discuss the relationship between migration and foreign direct investment (FDI). A) FDI has no influence on migration. B) Migrants decrease FDI in the host country. C) Migrants often contribute to the labor force in the host country, attracting FDI from multinational corporations seeking skilled workers or new markets. D) Migrants have no impact on FDI. Show Answer Correct Answer: C) Migrants often contribute to the labor force in the host country, attracting FDI from multinational corporations seeking skilled workers or new markets. 5. What is an example of a WTO agreement? A) European Union (EU). B) North American Free Trade Agreement (NAFTA). C) Gulf Cooperation Council (GCC). D) Trade-Related Investment Measures (TRIMS). Show Answer Correct Answer: D) Trade-Related Investment Measures (TRIMS). 6. Comparative advantage is central to: A) Liberalism. B) Economic nationalism. C) Critical thought. D) Feminism. Show Answer Correct Answer: A) Liberalism. 7. According to mercantilism, which countries are at the top of the hierarchy of power in IPE? A) The US and several other major economic and military powers. B) The relative weaker powers of Western Europe, Asia, Latin America, and Africa. C) The majority of poor developing nations and weak states. D) UN agencies and NATO. Show Answer Correct Answer: A) The US and several other major economic and military powers. 8. What is a common result of poverty exacerbating tensions between different ethnic and religious communities? A) Human rights violations. B) Economic growth and spread of capitalism. C) Environmental problems and epidemic diseases. D) Cooperation with allies and use of nonmilitary instruments. Show Answer Correct Answer: A) Human rights violations. 9. The main challenge to the international trade system posed by the BRICS countries is: A) Decreased global trade. B) Isolationist policies. C) Shift in power and influence. D) Increased trade barriers. Show Answer Correct Answer: C) Shift in power and influence. 10. What are the main motives behind the formation of regional trade agreements? A) Diverting trade from non-member countries and reducing market access. B) Limiting market competition, protecting domestic industries, and enforcing trade barriers. C) Enhancing economic efficiency, promoting political cooperation, and increasing market access. D) Promoting political cooperation and decreasing economic interdependence. Show Answer Correct Answer: C) Enhancing economic efficiency, promoting political cooperation, and increasing market access. 11. How do global financial institutions influence the economic policies of sovereign nations? A) By controlling the weather patterns. B) By providing military support. C) Through providing financial assistance, setting conditions for loans, and influencing international trade agreements. D) By influencing cultural exchange programs. Show Answer Correct Answer: C) Through providing financial assistance, setting conditions for loans, and influencing international trade agreements. 12. How do multinationals contribute to the economic development of host countries? A) Multinationals contribute by increasing poverty and income inequality. B) Multinationals contribute through job creation, technology transfer, infrastructure development, and tax revenue generation. C) Multinationals contribute by creating environmental degradation and pollution. D) Multinationals contribute by causing unemployment and exploiting local labor. Show Answer Correct Answer: B) Multinationals contribute through job creation, technology transfer, infrastructure development, and tax revenue generation. 13. What is the primary objective of the state according to mercantilism? A) Security. B) Economic growth. C) Environmental protection. D) Cooperation with allies. Show Answer Correct Answer: A) Security. 14. What are the three main theories in IPE? A) Realism, Liberalism, Nationalism. B) Neoliberalism, Critical theory, Structuralism. C) Nationalism, Liberalism, Structuralism. D) Idealism, Realism, Nationalism. Show Answer Correct Answer: C) Nationalism, Liberalism, Structuralism. 15. What are the functions of global financial institutions in the context of international political economy? A) Regulating national currencies and interest rates. B) Promoting environmental conservation and sustainability. C) Facilitating international trade and investment, promoting economic development, and providing financial stability. D) Advocating for human rights and social justice. Show Answer Correct Answer: C) Facilitating international trade and investment, promoting economic development, and providing financial stability. 16. What role do multinationals play in promoting ethical business practices in the global economy? A) By promoting fair trade and ethical business practices. B) By focusing only on local supply chains. C) By investing in foreign markets, creating jobs, and facilitating the exchange of goods and services across borders. D) By hindering the exchange of goods and services across borders. Show Answer Correct Answer: A) By promoting fair trade and ethical business practices. 17. Liberals believe that: A) Relative and absolute gains are equally important. B) Relative gains are more important than absolute gains. C) Absolute gains are more important than relative gains. D) Discussion or relative and absolute gains is unnecessary. Show Answer Correct Answer: C) Absolute gains are more important than relative gains. 18. The field of international political economy: A) Examines the relationship between national and international politics. B) Examines the relationship between economics and politics. C) Draws upon disciplines such as history, political science, economics, and sociology. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. What are some of the ethical challenges faced by multinational corporations in their operations? A) Engaging in fair and transparent negotiations with government officials. B) Offering bribes to government officials. C) Ignoring labor laws and regulations. D) Adhering to international trade laws and regulations. Show Answer Correct Answer: B) Offering bribes to government officials. 20. What is the central thesis of Adam Smith's 'The Wealth of Nations'? A) Individual need to fulfil self-interest results in societal benefit. B) Free trade hinders economic growth. C) Mercantilism is the key to economic prosperity. D) Government interference in market activities is necessary. Show Answer Correct Answer: A) Individual need to fulfil self-interest results in societal benefit. ← PreviousNext →Related QuizzesInternational QuizzesInternational Political Economy Quiz 1International Political Economy Quiz 2International Political Economy Quiz 4International Political Economy Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books