This quiz works best with JavaScript enabled. Home > Political Science > International > Political Economy > International Political Economy – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Political Economy Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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. 8. 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. 9. 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. 10. 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. 11. US President Donald Trump's 'America First' policy is an example of: A) Liberalism. B) Neo-Marxism. C) Economic nationalism. D) Neo-liberalism. Show Answer Correct Answer: C) Economic nationalism. 12. We can have economics without politics. A) False. B) True. Show Answer Correct Answer: A) False. 13. Name one major global financial institution that focuses on providing development assistance and poverty reduction. A) World Bank. B) Goldman Sachs. C) JPMorgan Chase. D) International Monetary Fund. Show Answer Correct Answer: A) World Bank. 14. Discuss the relationship between migration and foreign direct investment (FDI). A) Migrants often contribute to the labor force in the host country, attracting FDI from multinational corporations seeking skilled workers or new markets. B) FDI has no influence on migration. C) Migrants decrease FDI in the host country. D) Migrants have no impact on FDI. Show Answer Correct Answer: A) Migrants often contribute to the labor force in the host country, attracting FDI from multinational corporations seeking skilled workers or new markets. 15. What is an example of a WTO agreement? A) Trade-Related Investment Measures (TRIMS). B) European Union (EU). C) Gulf Cooperation Council (GCC). D) North American Free Trade Agreement (NAFTA). Show Answer Correct Answer: A) Trade-Related Investment Measures (TRIMS). 16. Comparative advantage is central to: A) Feminism. B) Liberalism. C) Critical thought. D) Economic nationalism. Show Answer Correct Answer: B) Liberalism. 17. 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. 18. 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. 19. 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. 20. 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. 21. 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. 22. 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. 23. 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. 24. What are the three main theories in IPE? A) Nationalism, Liberalism, Structuralism. B) Neoliberalism, Critical theory, Structuralism. C) Idealism, Realism, Nationalism. D) Realism, Liberalism, Nationalism. Show Answer Correct Answer: A) Nationalism, Liberalism, Structuralism. 25. 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. 26. 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. 27. 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. 28. 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. 29. 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. 30. What is the central thesis of Adam Smith's 'The Wealth of Nations'? A) Free trade hinders economic growth. B) Mercantilism is the key to economic prosperity. C) Government interference in market activities is necessary. D) Individual need to fulfil self-interest results in societal benefit. Show Answer Correct Answer: D) Individual need to fulfil self-interest results in societal benefit. ← PreviousNext →Related QuizzesInternational QuizzesPolitical Science QuizzesInternational Political Economy Quiz 1International Political Economy Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books