What is International Political Economy (IPE)?
a) The study of only domestic economic policies
b) The study of the interaction between politics and economics on a global scale
c) The study of government structure without economic influence
d) A branch of physics related to trade theories
Which of the following is a key focus of IPE?
a) The relationship between states and markets in global affairs
b) The study of ancient civilizations
c) The impact of literature on international relations
d) The influence of climate change on local economies
Which major theoretical perspective in IPE focuses on free markets and limited government intervention?
a) Mercantilism
b) Liberalism
c) Marxism
d) Realism
Mercantilism, as a theory in IPE, promotes which economic principle?
a) Free trade with no restrictions
b) Maximizing national wealth through trade surplus and government intervention
c) Eliminating all government influence on trade
d) Equal wealth distribution among all nations
Which IPE theory argues that global capitalism leads to economic inequality?
a) Liberalism
b) Marxism
c) Realism
d) Constructivism
What is the primary role of the International Monetary Fund (IMF)?
a) To provide short-term loans to countries facing financial crises
b) To regulate stock markets globally
c) To create trade barriers between countries
d) To control the supply of global oil
Which international organization is responsible for regulating global trade?
a) United Nations (UN)
b) World Bank
c) World Trade Organization (WTO)
d) NATO
How does globalization impact International Political Economy?
a) It decreases interdependence between nations
b) It increases economic and political interdependence among states
c) It eliminates the need for international trade
d) It restricts cross-border investments
Which of the following is a negative effect of globalization in IPE?
a) Increased technological innovation
b) The widening gap between rich and poor nations
c) Enhanced global cooperation
d) Expansion of global trade networks
Which of the following best describes economic nationalism in IPE?
a) A policy favoring open markets and globalization
b) A strategy that prioritizes domestic industries and economic self-sufficiency
c) The elimination of all trade barriers
d) The expansion of free trade agreements
Which international agreement promotes free trade among Canada, the U.S., and Mexico?
a) ASEAN
b) NAFTA (now USMCA)
c) European Union (EU)
d) BRICS
What is a major criticism of multinational corporations in IPE?
a) They increase government revenues in host countries
b) They exploit cheap labor and avoid taxes through offshore accounts
c) They always promote sustainable development
d) They support small businesses globally
Which factor has the greatest influence on exchange rate fluctuations in IPE?
a) The number of multinational corporations in a country
b) Supply and demand for a country’s currency
c) The presence of free trade agreements
d) The number of political parties in a nation
Which institution provides long-term development loans to poor nations?
a) World Bank
b) United Nations Security Council
c) International Criminal Court
d) International Red Cross
Which of the following is an example of economic protectionism?
a) Removing all tariffs on imports
b) Increasing tariffs and imposing import quotas
c) Promoting free trade across all borders
d) Eliminating government control over industries
What is the role of the G20 in IPE?
a) To regulate global military operations
b) To discuss and coordinate global economic policies
c) To enforce international human rights laws
d) To restrict multinational corporations
Which of the following is a common goal of regional trade agreements?
a) To eliminate all competition between member countries
b) To facilitate trade by reducing tariffs and barriers
c) To impose economic sanctions on non-member countries
d) To promote economic isolationism
Which of the following best describes the “race to the bottom” in IPE?
a) Countries lowering labor and environmental standards to attract investment
b) Nations competing to achieve the highest economic growth
c) A strategy to improve workers’ wages
d) The expansion of free trade agreements
What is the purpose of economic sanctions in IPE?
a) To punish countries by restricting trade and financial transactions
b) To promote globalization
c) To encourage free trade
d) To increase international aid
Which economic ideology advocates state ownership of major industries?
a) Liberalism
b) Socialism
c) Capitalism
d) Neoliberalism
Which country is known for playing a dominant role in the global economy?
a) Switzerland
b) United States
c) Portugal
d) New Zealand
Which factor is a key driver of economic interdependence in IPE?
a) Increased trade and investment across borders
b) Reduced foreign direct investment
c) Strict economic protectionism
d) The elimination of global markets
