This quiz works best with JavaScript enabled. Home > Political Science > International > Political Economy > International Political Economy – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Political Economy Quiz 3 (29 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the challenge and opportunities for the G 20? A) Energy Security. B) Regionalism. C) Power. D) None of above. Show Answer Correct Answer: A) Energy Security. 2. The transformational view of globalisation is: A) Acknowledges the existence of globalisation but does not agree with the totalising nature of globalisation. B) Believes that much of the economic activity still takes place within national boundaries. C) Believes that national economies are less significant. D) Believes that globalisation is a myth to justify the free market capitalist system. Show Answer Correct Answer: A) Acknowledges the existence of globalisation but does not agree with the totalising nature of globalisation. 3. What are the economic implications of strict migration policies on the host country? A) Increase in job opportunities for locals. B) Decrease in government spending on social services. C) Labor shortages, impact on economic growth, and changes in the demographic composition of the workforce. D) Strengthening of the national currency. Show Answer Correct Answer: C) Labor shortages, impact on economic growth, and changes in the demographic composition of the workforce. 4. According to research, the estimate inflation per year is 3-5%. A) True. B) False. Show Answer Correct Answer: A) True. 5. Which two institutions were created as a part of the Bretton Woods Systems? A) Organization for Economic Cooperation and Development (OECD) and European Central Bank (ECB). B) International Monetary Fund (IMF) and World Bank. C) North Atlantic Treaty Organization (NATO) and Organization of Petroleum Exporting Countries (OPEC). D) World Trade Organization (WTO) and United Nations (UN). Show Answer Correct Answer: B) International Monetary Fund (IMF) and World Bank. 6. It means the good use of resources to produce the most goods and service. A) Efficiency. B) Equity. C) Effectivity. D) None of above. Show Answer Correct Answer: A) Efficiency. 7. Why is the security structure considered one of the most important structures in the IPE? A) Because it connects major players such as nation-states, IOs, NGOs, international business, and subnational groups. B) Because it focuses on economic growth and spread of capitalism. C) Because it deals with environmental problems and epidemic diseases. D) Because it promotes cooperation with allies and use of nonmilitary instruments. Show Answer Correct Answer: A) Because it connects major players such as nation-states, IOs, NGOs, international business, and subnational groups. 8. How do multinational corporations contribute to 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: C) By investing in foreign markets, creating jobs, and facilitating the exchange of goods and services across borders. 9. How many countries were divided after the world war II? A) 3 category. B) 4 category. C) 2 category. D) None of above. Show Answer Correct Answer: C) 2 category. 10. What important role does the UN play in promoting peace and security? A) Serving as a forum for negotiations resulting in treaties. B) Handling regional peacekeeping efforts. C) Creating a permanent International Criminal Court. D) All of the above. Show Answer Correct Answer: A) Serving as a forum for negotiations resulting in treaties. 11. How does the exchange rate regime affect a country's trade balance and economic stability? A) It can affect a country's trade balance and economic stability by influencing the competitiveness of its exports and imports, as well as the level of exchange rate volatility. B) It has no impact on trade balance and economic stability. C) It only affects the stock market. D) It leads to increased government spending. Show Answer Correct Answer: A) It can affect a country's trade balance and economic stability by influencing the competitiveness of its exports and imports, as well as the level of exchange rate volatility. 12. What is the impact of globalization on national sovereignty? A) Complete loss of national sovereignty. B) Increase in national sovereignty. C) No impact on national sovereignty. D) Reduction in national sovereignty. Show Answer Correct Answer: D) Reduction in national sovereignty. 13. What are the factors that contribute to labor migration in the era of globalization? A) Climate change, technological advancement. B) Religious beliefs, cultural traditions. C) Language barriers, lack of education. D) Economic disparities, demand for labor, ease of travel and communication, political instability. Show Answer Correct Answer: D) Economic disparities, demand for labor, ease of travel and communication, political instability. 14. What event awakened many officials and experts to the pressing security issues? A) The September 11, 2001 attacks. B) The collapse of the Soviet Union. C) The US-led invasions of Iraq and Afghanistan. D) The tensions between the US and Soviet Union during the Cold War. Show Answer Correct Answer: A) The September 11, 2001 attacks. 15. In IPE, it has been said that the "winner takes it all" which means that whoever tops has all of the perks in coping the dynamic globalization. A) True. B) False. Show Answer Correct Answer: A) True. 16. What approach did the Clinton administration take towards the international distribution of power? A) Nonmilitary instruments to deal with opponents. B) Multipolar best served by a multilateral approach. C) Bipolar centered on the Soviet Union. D) Unipolar centered on the US. Show Answer Correct Answer: B) Multipolar best served by a multilateral approach. 17. What is the contemporary international monetary arrangement where the value of a currency is determined by the forces of supply and demand in the foreign exchange market? A) Floating exchange rate system. B) Eurodollar market system. C) Reserve currencies system. D) Fixed exchange rate system. Show Answer Correct Answer: A) Floating exchange rate system. 18. What are the potential 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: A) Creating job opportunities, stimulating economic growth, and transferring technology and knowledge. 19. Explain the concept of 'conditionality' in the context of global financial institutions. A) The process of making financial decisions based on certain conditions. B) Terms and conditions imposed on borrowing countries in exchange for financial assistance. C) The requirement for global financial institutions to meet certain criteria for funding. D) The practice of providing financial aid without any strings attached. Show Answer Correct Answer: B) Terms and conditions imposed on borrowing countries in exchange for financial assistance. 20. ..... was a key opponent of mercantilism. A) Adam Smith. B) David Rizzio. C) David Bacardi. D) John Maynard Keynes. Show Answer Correct Answer: A) Adam Smith. 21. The European Union ..... A) Can do nothing unless all of its member states agree. B) Is under the complete control of unelected bureaucrats. C) Requires member states to "pool" sovereignty in a number of policy areas. D) Has already developed all of the key features of a centralized, unitary state. Show Answer Correct Answer: C) Requires member states to "pool" sovereignty in a number of policy areas. 22. How do international organizations monitor and regulate the activities of multinationals? A) By offering tax breaks and incentives to encourage compliance. B) By relying on self-reporting and trusting the companies to regulate themselves. C) Through various mechanisms such as setting international standards, conducting inspections, and imposing sanctions. D) By ignoring their activities and focusing on domestic companies instead. Show Answer Correct Answer: C) Through various mechanisms such as setting international standards, conducting inspections, and imposing sanctions. 23. Globalization is like the survival of the fittest ..... the best who can adjust to the environment are the most successful in surviving and reproducing. A) False. B) True. Show Answer Correct Answer: B) True. 24. Explain the role of the International Monetary Fund (IMF) in the global financial system. A) To regulate global trade agreements. B) To provide long-term financial assistance to countries. C) To promote international military cooperation. D) To promote international monetary cooperation, exchange stability, and provide temporary financial assistance to countries in need. Show Answer Correct Answer: D) To promote international monetary cooperation, exchange stability, and provide temporary financial assistance to countries in need. 25. How do multinational corporations contribute to sustainable development in developing countries? A) By bringing in foreign direct investment, creating job opportunities, transferring technology and knowledge, and stimulating competition in the local market. B) By increasing poverty and income inequality. C) By exploiting natural resources and causing environmental degradation. D) By promoting corruption and unethical business practices. Show Answer Correct Answer: A) By bringing in foreign direct investment, creating job opportunities, transferring technology and knowledge, and stimulating competition in the local market. 26. What were some of the objectives of Obama's multilateral outlook and security agenda? A) Working more positively with all US allies and potential partners. B) Decreasing the number of strategic nuclear weapons. C) Continuing the war against terrorism at reduced costs. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. What role do multinationals play in global trade? A) They play a significant role by investing in foreign markets, creating jobs, and facilitating the exchange of goods and services across borders. B) They hinder the exchange of goods and services across borders. C) They have no impact on global trade. D) They only focus on domestic markets. Show Answer Correct Answer: A) They play a significant role by investing in foreign markets, creating jobs, and facilitating the exchange of goods and services across borders. 28. Political economy involves: A) The integration of politics and economic. B) The application of economic methods to political problems. C) The application of Marxist methods. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. What are the key factors that influence exchange rate movements in the foreign exchange market? A) Social media trends, celebrity endorsements, and fashion industry. B) Weather patterns, agricultural production, and technological advancements. C) Interest rates, inflation, political stability, economic performance, and market speculation. D) Currency color, design, and material used for printing. Show Answer Correct Answer: C) Interest rates, inflation, political stability, economic performance, and market speculation. ← PreviousRelated QuizzesInternational QuizzesPolitical Science QuizzesInternational Political Economy Quiz 1International Political Economy Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books