Global Issues Exam 2.pdf - Practice Questions Global Issues...

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Practice Questions- Global Issues Exam 2 Colonies: - Saw the introduction of key European ideas, such as nationalism, individualism, and justice - Were generally drained of human commodities, human capital, and/or money - Often saw the development of significant infrastructure that helped get commodities out of the areas - Were often restructured by the dominant country to produce one particular crop or mineral resource The difference between foreign direct investment (FDI) and foreign portfolio investment (FPI) is that: - FDI is investing more in fixed assets (companies and real estate), as opposed stocks and bonds (which is portfolio investment) European colonial economic policies can be described as: - mercantilist Mercantilism is: - States controlling trade, often protecting home markets while seeking to sell products abroad, so as to gain as much profit and power as possible For people and countries to develop and prosper, they need: - Capital (goods, services, and money) Under colonialism: - Colonies provide cheap labor and resources, and serve as markets for the colonizers goods - A core dominant country generally controls the political and economic loves of foreign peoples - Vast revenues and resources typically flow out of the colonies, with relatively little capital flowing back in The primary role of IMF loans is to: - Help stabilize a country’s economy when the country has severe budgetary imbalances The General Agreement on Tariffs and Trade (GATT) was the precursor to the: - World Trade Organization (WTO) The decision to help Europe and Japan rebuild, such as with the Marshall Plan in Europe, showed that: - The US needed rebounding markets for trade and investment During the Cold War: - Superpower competition between the US and USSR led to proxy wars in many developing countries, helping bring real economic development to a standstill The World Bank and the IMF are part of what post-World War II system?
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- Bretton Woods system As noted in the introduction to this lesson, “contemporary liberalism” (often associate economically with the ideas of John Maynard Keynes): - Is tied to the idea that classical liberalism is volatile and prone to recessions and depressions, so states should try to manage capitalism and maintain “aggregate demand” LDCs have often been unable to take advantage of their “comparative advantages” in agricultural production because: - MDCs protect their own agricultural production from cheaper imports from LDCs - Corrupt leaders in LDCs have stolen profits and/or siphoned off outside loans meant to strengthen comparative advantages >Through ( Structural Adjustment Programs), the IMF and World Bank set a series of often stiff requirements when establishing an agreement with a borrowing country, pressing such steps as trade liberalization, fiscal responsibility, and privatization.
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