Chapter: Global Economic Development and Foreign Capital
1.

Which of the following resulted from the Great Depression?

A. Increased trade barriers and devalued currencies.
B. A stable exchange rate system.
C. Free international capital flows.
D. None of the options given is correct.
Answer» A. Increased trade barriers and devalued currencies.
2.

What is the main role of the IMF?

A. To ensure a stable exchange rate regime and provide emergency assistance to countries facing crises in balance of payments.
B. To be a forum for trade and liberalization.
C. To assist countries in development.
D. To facilitate private investment around the world.
Answer» A. To ensure a stable exchange rate regime and provide emergency assistance to countries facing crises in balance of payments.
3.

What is the main role of the World Bank?

A. To be a forum for trade and liberalization.
B. To assist countries in development.
C. To facilitate private investment around the wor
Answer» B. To assist countries in development.
4.

What is meant by the 'Washington Consensus'?

A. The consensus in Washington about matters of foreign policy.
B. The ten-point guideline to liberal economic reform for development around the world.
C. The ten-point guideline for economic growth in Europe.
D. The ten-point neo-liberal guideline for progress in the US.
Answer» B. The ten-point guideline to liberal economic reform for development around the world.
5.

Why do states undertake protectionist measures?

A. To assist private investment.
B. To keep competitive foreign goods from flooding the market.
C. To keep stable exchange rates.
D. All of the options given are correct.
Answer» B. To keep competitive foreign goods from flooding the market.
6.

What does structural adjustment involve?

A. Measures to reduce inflation.
B. Measures to curb government expenditure.
C. Deregulation.
D. All of the options given are correct
Answer» D. All of the options given are correct
7.

What is the mercantilist view of IPE?

A. The world economy is where states seek to maximize their wealth and independence relative to other states.
B. The world economy is an arena of capitalist competition in which social groups are always in conflict.
C. Free trade and free movement of capital shape the policies of governments and economic actors.
D. None of the options given are correct.
Answer» A. The world economy is where states seek to maximize their wealth and independence relative to other states.
8.

What is Dependency Theory?

A. Economic activity in the richer countries often leads to serious economic problems in the poorer countries.
B. Economic development of poorer countries is positively dependent on economic growth of richer countries.
C. Economic growth is beneficial to all.
D. None of the options given are correct.
Answer» A. Economic activity in the richer countries often leads to serious economic problems in the poorer countries.
9.

The constructivist approach pays attention to what?

A. The rational actor.
B. How rational choice can be applied to constructing social groups.
C. How actors construct their interests within a structure of ideas, culture, and
D. How states and other actors construct their preferences, highlighting the role of identities, beliefs, tradition, and values.
Answer» D. How states and other actors construct their preferences, highlighting the role of identities, beliefs, tradition, and values.
10.

Under what conditions will states create international institutions?

A. For mutual gains.
B. Only where position relative to other states is not affected.
C. They arise as reflections of identities and interest of states and groups which are themselves forged through interactions.
D. Depends on the school of thought.
Answer» D. Depends on the school of thought.
11.

Amalgamation and rapid unification between countries can be identified as

A. Globalisation
B. Liberalisation
C. Socialisation
D. Privatisation
Answer» A. Globalisation
12.

Globalisation has improved in the living structure of

A. All the people
B. Workers in developing countries
C. People in developed countries
D. None of the above.
Answer» B. Workers in developing countries
13.

Which Indian industries have been hit by globalisation?

A. Cement
B. Jute
C. Toy making
D. Information Technology (IT)
Answer» C. Toy making
14.

Which organisations strain on the liberalisation of foreign investment and foreign trade?

A. International Monetary Fund
B. World Health Organisation
C. World Trade Organisation
D. International Labour Organisation
Answer» C. World Trade Organisation
15.

Tax on imports can be treated as

A. Collateral
B. Trade Barriers
C. Foreign Trade
D. Terms of Trade
Answer» B. Trade Barriers
16.

The main reason behind MNCs investments are

A. To benefit foreign countries
B. To provide financial support to the country’s government
C. For the welfare of underprivileged people.
D. To increase the assets and earn profits.
Answer» D. To increase the assets and earn profits.
17.

Which institute supports investments and foreign trade in India?

A. International Monetary Fund (IMF)
B. World Trade Organisation (WTO)
C. World Bank
D. International Labour Organisation (ILO)
Answer» B. World Trade Organisation (WTO)
18.

When did the government remove the barriers for investment and investment in India?

A. 1990
B. 1991
C. 1992
D. 1993
Answer» B. 1991
19.

Which of the following is referred to as the predecessor to WTO?

A. GATT
B. OPEC
C. World Bank
D. IMF
Answer» A. GATT
20.

Hyperglobalization is a process of globalization which —

A. emphasizes the rise of regionalism
B. emphasizes the rise of the TNC and decline of the nation state
C. emphasizes the rise of nation states
D. emphasizes the decline of the TNC
Answer» B. emphasizes the rise of the TNC and decline of the nation state
21.

Economic globalization is characterized by —

A. cross-cultural flows of ideas
B. rise of regionalism
C. international migration
D. international trade and investment flows
Answer» D. international trade and investment flows
22.

Ethnocentric orientation is a predisposition towards —

A. the global economy
B. geographically proximate regions
C. the home country
D. regionalism
Answer» C. the home country
23.

Business entities engaged in international business activity are commonly known as —

A. State-trading corporations
B. EOUs
C. TNCs
D. NGOs
Answer» C. TNCs
24.

Who founded Facebook in 2004?

A. Mark Zuckerberg
B. Sean Fanning
C. Jack Dorsy
D. Steve Jobs
Answer» A. Mark Zuckerberg
25.

International orientation refers to —

A. a gradual process of internationalization
B. an attitude or strategic predisposition of a TNC towards internationalization
C. a firm’s modes of entry into international business
D. the stage theory of internationalization
Answer» B. an attitude or strategic predisposition of a TNC towards internationalization
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