Political Science 007 - Contemporary World Affairs » Spring 2022 » Chapter 09
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Question #1
Building a factory in a foreign country is an example of __________.
A.
foreign direct investment
B.
remittances
C.
government transactions
D.
indirect portfolio investment
Question #2
Buying stocks and bonds in a foreign country is an example of __________.
A.
remittances
B.
indirect portfolio investment
C.
foreign direct investment
D.
government transactions
Question #3
With respect to its position in the international economy, the United States __________.
A.
has had high unemployment since the mid-1990s
B.
has had a trade deficit since the early 1980s
C.
was once the world's leading debtor state, but is now the leading lender state
D.
is as strong relative to other countries as it was in the 1950s
Question #4
Which of the following is a reason states go into debt?
A.
borrowing to pay for government budget surpluses
B.
due to bad investments
C.
to create greater standing wealth
D.
due to a trade deficit
Question #5
How is monetary policy distinguished from fiscal policy?
A.
Monetary policy is government policy about printing and circulating money, whereas fiscal policy is government policy about spending and taxation.
B.
Monetary policy can cause inflation, whereas fiscal policy contributes to standing wealth.
C.
Monetary policy is set by national governments, whereas fiscal policy is set by the World Bank.
D.
Monetary policy is the favored approach of the United States to managing the economy, whereas fiscal policy is the favored approach of European countries.
Question #6
Which of the following is an example of Keynesian economics?
A.
Greece adopting austerity measures during the recent debt crisis
B.
the United States decreasing deficit spending during the last financial crisis
C.
the European Union bailing out Portugal and Spain during the recent debt crisis
D.
the United States increasing deficit spending during the last financial crisis
Question #7
How does foreign direct investment compare with indirect portfolio investment?
A.
Foreign direct investment involves investments such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment involves such things as taking loans from a foreign company.
B.
Foreign direct investment involves investments such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.
C.
Foreign direct investment involves actions such as trading in the currency of a foreign country, whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.
D.
Foreign direct investment involves making loans to a foreign company, whereas indirect portfolio investment involves taking loans from a foreign company.
Question #8
Which statement is true about multinational corporations in international political relations?
A.
Their actions frequently reflect states' national interests.
B.
National governments act as agents of NGOs.
C.
They are "citizens of the world," beholden to no government.
D.
They act as agents of intergovernmental organizations.
Question #9
The most important types of multinational corporations are __________ corporations.
A.
agricultural
B.
service
C.
financial
D.
industrial
Question #10
MNCs and the countries in which they invest often come into conflict over __________.
A.
monetary policy and trade policy
B.
fiscal policy and the language to be used in negotiations
C.
taxation and the method of transportation of goods to and from the country
D.
inflation rates
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