IPE TEST

What is a characteristic of foreign direct investments (FDIs)?

• They are short-term investments with quick returns

• They do not involve controlling positions in domestic firms

• They are passive investments without active involvement in management

• They involve lasting investments and active management participation

What is one key reason why light government regulation is prized when considering foreign direct investments (FDIs)?

• It ensures strict control over decision-making processes

• It simplifies the process of establishing effective control over foreign businesses

• It allows for more flexibility and ease in conducting business operations

• It limits growth prospects for investors

Which view of globalisation believes national economies are less significant in a global order dominated by transnational forces?

• Hyperglobalist view

• Skeptical view

• Transformation view

• Nationalist view

Which theory emphasizes the importance of understanding the roles and relationships of various actors in shaping the international trade system?

• Complex Interdependence Theory

• Liberalism Theory

• Structuralism Theory

• Mercantilism Theory

What distinguishes portfolio investment from foreign direct investment (FDI)?

• Portfolio investment involves active management roles, while FDI does not.

• Portfolio investment focuses on short-term gains, while FDI is long-term.

• Portfolio investment involves ownership of financial assets, while FDI involves physical assets.

• Portfolio investment is limited to domestic concerns, while FDI is international.

What is the main idea behind free trade policies?

• Encouraging competition among domestic industries

• Imposing tariffs on imports and encouraging exports

• Allowing countries to trade goods and services without barriers

• Allowing consumers access to a variety of goods and paying some taxes

What was one key aspect of mercantilist views on international trade during the 16th and 18th centuries?

• Emphasis on promoting pure free trade without any restrictions or regulations globally.

• Focus on encouraging the equal distribution of wealth among all participating nations equally through open borders.

• Prioritization of enhancing national wealth, power, and prestige through strategic export-oriented policies with protectionism measures.

• Advocacy for eliminating all tariffs, taxes, quotas, or other barriers hindering global commerce relations.

What was the view raised by Friedrich List against liberal trade doctrine from a mercantilist perspective?

• Liberal trade doctrine promotes fair competition among nations.

• Free trade benefits all countries equally without any drawbacks.

• Free trade allows dominant states like England to exploit their trading partners.

• Protectionist measures hinder economic growth and development globally.

Who challenged liberal trade doctrine from a mercantilist perspective?

• Alexander Hamilton and Friedrich List

• Kenneth Pomeranz and Steven Topik

• International Trade Organizations

• Mercantilist economists from England

What was one argument made by Alexander Hamilton regarding protectionist trade measures?

• Supporting U.S. infant industries required free trade policies.

• Achieving national independence necessitated reliance on international markets.

• Maintaining dominant advantage over trading partners.

• Encouraging unrestricted competition among big companies was beneficial.