Global Trends Final Exam – Addis Ababa University

Choose the correct answer from the given alternatives

1. All of the following is true regarding the New Deal of 1930s American reform program:

A. The government of the state strengthened economic liberalization undermining state involvement in the economy
B. The federal government took the responsibility of the issue of unemployment and promoting economic equity and social welfare
C. The economic ideal of a self-regulating economy was further undermined by the government of Franklin D. Roosevelt
D. The program played a great role in making the economy of the USA recover from the 1920s and 1930s great economic crisis, called the Great Depression

2. In one of the following country’s economy there are alliances between major corporations and large private banks, especially in the large production sectors

A. Japan
B. Germany
D. None

3. Which one best describes the gist of Structuralism theoretical perspective in IPE?

A. Removing impediments (barriers) to the free flow of goods and services among countries
B. Development based on industrialization via import substitution based on protectionist policies
C. Benevolent hegemon (powerful state or Institution) is decisive to avoid problems in international economy
D. The role of government should be restricted to correcting market failure and Provision of public goods

4. All of the following are criticism of the international development and financial institutions except:

A. They are neutral in governing the global financial system
B. They represent the interest of the US and other capitalist countries
C. They are wrong doctors prescribing the same medication for the different disease
D. All of the above 

5. All of the following are the core features of Developmentalism (Developmental State Approach), except:

A. Existence of bureaucratic apparatus to efficiently and effectively implement the planned process of development
B. Strong interventionism, and using instruments such as tax credits, subsidies, import controls, export promotion
C. Existence of active participation and response of the private sector to state intervention
D. Regime legitimacy built on the extent to which the rights of the People are respected, not by development result

6. In one of the following countries foreign direct investment is discouraged to protect the weak and defenseless production lines so that domestic harmony can be maintained

A. Japan
C. Germany
D. None

7. Which one of the following is wrong regarding the nexus among regionalism, globalization and state?

A. The nature of interaction among the three is identical regarding issues of security and economy
B. Economic regionalism is more mixed than security regionalism
C. Regionalization of security is less likely to be universal, like forming economic regionalism
D. All

8. Theoretical perspective of the IPE named ‘Liberalism’ can be expressed by all of the following, except:

A. Economics should determine politics
B. Free market system (trade liberalization & free financial and FDI flow)
C. Use of protectionist policies, and greater control of state over the market
D. Government should have an ‘invisible hand’ in the economy

9. Which is true about the political economy of Japan?

A. The economy is subordinate to the social and political objectives of society
B. A concerted effort by the state to guide the evolution and functioning of their economy
C. The national economic policy of Japan is best characterized as neo-mercantilism
D. All
E. None

10. Which term is used to characterize the distinctive nature of the Japanese system of political economy?

A. Collective capitalism
B. Welfare corporatism
C. Developmental state capitalism
D. All
E. None

11. Which one of the following perspective in the IPE influenced the establishment of governing institutions like IMF, WB and WTO?

A. Structuralism
B. Marxism
C. Hegemonic Stability Theory
D. Mercantilism

12. Which one of the following is wrong about the IPE theory of Mercantilism/Economic Nationalism?

A. National strength is increased by preponderance of export over import
B. State should have a heavy hand on the economy
C. Politics (the state) derives the economics (the market)
D. Gain through Specialization (Comparative advantage)

13. Which statement is true about the political economy of Germany?

A. There is high emphasis given for the consumer economy
B. greater representation of labor in the governance of corporate affairs
C. The state highly controls the market system to regulate its flow
D. All
E. None

14. Shareholders (stockholders) have an important role in the governance of _____ business

A. Germany
B. Japan
D. A & B
E. None

15. The more the political economy of a state focuses on individual consumers, the more _____ 

A. The State is sidestepped from meddling in the national economy
B. The State will protect the domestic industries of the country
C. The State regulates the national economy by controlling the market
D. All
E. None

16. All are the negative consequence of globalization on Africa except,

A. Economic marginalization
B. Distorted pattern of production
C. Cultural autonomy
D. Increased unemployment and poverty
E. None

17. At the core of transformationalist school of thought is:

A. globalization brings nothing new
B. Globalization creates a new global order marked by uniform cultural values
C. Globalization reconstituting or reengineering the power and authority of national governments
D. Globalization is purely state centric

18. One of the following argues that Western region is more integrated and globalized than Africa and Asia

A. Transformationalist
B. Super globalist
C. Neo-functionalist
D. All of the above
E. None

19. An explanation about regional integration where the integration process is facilitated and led by elitist groups or autonomous institutions like political parties is given by:

A. lnter-governmentalism perspective of regional integration
B. Supra-national theory of regional integration
C. Neo-functionalism explanation of regional integration
D. All

20. Which one of the following can be an example of regional organization?


21. A theory of regional integration that considers the state as a rational actor to make the integration process real is:

A. Liberal inter-governmentalism
B. Supra-nationalism
C. Functionalism
D. Inter-governmentalism
E. A and D

22. Which one of the following is false about the negative impact of globalization in Ethiopia?

A. The rise of religious radicalism
B. Cultural infiltration of western valves
C. Challenged the social bond of the society
D. It has served as knowledge transfer

23. An ideological critique of capitalism like ‘global and national inequality, and exploitation of labor’ mostly raised by one of the following IPE theoretical perspectives. Which one?  

A. Structuralism
B. Hegemonic Stability theory
C. Developmentalism
D. Marxism

24. One of the following is the reason for the establishment of World Bank

A. To support the development of African countries through Promoting neo-liberal reforms
B. To re-build war torn Europe
C. To institutionalize the unequal structural inequality of the developed and developing world
D. To liberate Africans from colonialism

25. Which one of the following is an example of international financial institution?

A. World Trade Organization
B. International Monetary Fund
C. African Development Bank
D. European Union

26. Identify the wrong statement about globalization

A. Americanization of the world
B. Homogenization of the world
C. Supranational process bringing the world into one village
D. A process of time-space compression

27. In a purely floating-rate system,

A. The value of a currency is determined merely by money supply and demand
B. The value of a particular currency is fixed against the value of another single currency
C. It exists only when there is absolutely no intervention by governments
D. A and C are answers

28. Identify the correct statement about the market oriented capitalism

A. The distribution of wealth among the people of the state gain primary importance in the system
B. The primary purpose of economic activity is to benefit consumers while maximizing wealth creation
C. The economic policy mainly characterized by the Primacy of the producer over the consumer
D. The State highly involve in the economy and determines what to produce, how to Produce and for whom to produce

29. Of the following, one is not a divergent trend in the process of globalization?

A. Forces of nationalism that oppose the state, regionalism and globalization
B. A policy of autarky that promotes economic self-reliance and stands against cooperation and interdependence
C. Reinforcing legitimacy and loyalties at the national or even sub-national levels to discourage forces of globalization
D. Transnational thinking and loyalty that perceives one’s loyalty should be to supranational institutions
E. A policy of localization and solving regional problems by regional means and institutions

30. _____ refers to the framework of rules, agreements, institutions, and practices that facilitate the transnational flow of financial capital for the purposes of investment and trade financing

A. Credit system
B. Monetary system
C. Exchange rate system
D. Fixed exchange rate system

31. Which one of the following assumptions of supra-national perspective is highly advisable to the regional integration be real?

A. Transfer of allegiances from national to supra-national institution
B. Greater autonomy of supra-national institutions
C. Integration of states in some sectors provokes them in other sectors too
D. All

32. According to “convergence”, regionalism may serve as a component of globalization through all of the following except:

A. helping national economies to become more competitive in the world market
B. adoption of mercantilist and protectionist trade policies that help regions
C. regional integration that lead to multilateral cooperation on a global scale
D. the adoption of liberal principles about cooperation and interdependence
E. the opening of the local economies for international market

33. Which region of the world can be regarded as influential for the genesis of regional integration?

A. North America
B. Asia
C. Africa
D. Europe

34. Which one following is true about the nature of classical idea of citizenship?

A. States ceased to be the sole actors and referents of international relations and diplomacy
B. It has a limited national borders and defined by nationalism and patriotism
C. It share shared responsibility of the global society
D. It has strengthened international interdependence

35. Which one following is false about the concept of regionalism?

A. It is a process of sustained cooperation among governments, non-governmental organizations, or the private sectors in three or more countries
B. It is intensifying political and/or economic processes of cooperation among states
C. It is a linkage of geographical relationship and by a degree of mutual interdependence
D. It is a process of building an empire

36. One of the following statements is true about old regionalism

A. It is predominantly a post-World War II phenomenon
B. Its roots in the devastating experience of inter-war nationalism
C. European integration as the ‘model’ of regional integration
D. All

37. One of the following statements is false about new regionalism

A. It is an externally oriented and less protectionist type of regionalism
B. It is an anti-hegemonic type of regionalism
C. It is the rise of a more multi-dimensional type of regionalism
D. It has controlled by super powers

38. One of the following statements is true about the concept of Glocalization

A. It is a process of integration to the world and differentiation to the given context area
B. It is a process eroding the sovereignty of non-Western countries
C. It is a process of threatening of non-Western age-old traditions
D. All

39. Globalization caused the dissemination of concepts of democracy, right and nationalism which fomented the formation of new states. This trend refers to:

A. Convergence
B. Overlapping
C. Divergence
D. both convergence and divergence

40. One of the following is not correct about globalization and the state?

A. Forces of globalization undermined the states’ sovereignty and role in a highly globalized world
B. Challenging states’ sovereignty at the same time enhancing them in science and technology is one of the paradoxes of globalization
C. Despite hyper globalist’s claim to make the state obsolete, states are still vital forces in era of globalization
D. States’ role and influence has been totally replaced by non-state actors as agents of globalization

41. what is the central idea of “divergence” in relation between regionalism and globalization

A. It holds the view that globalization is formless, undemocratic and merciless to regions
B. It opposes the neoliberal ‘harmony of interest’ view of the world economy in favor of regions
C. It views state and regional nationalisms positively contribute to globalization and regional integration
D. It formulates pluralistic/humanistic frameworks that create trade blocs and integration
E. All Except C

42. The two factors that made both globalization and regionalism as a parallel developments and processes are:

A. Information technology and communication
B. Democratization and neoliberalism
C. Economy and security
D. Culture and trade

43. _____ is a concept which shared the responsibility of the global society for protecting vulnerable groups from human right violations and victimization

A. Imagined Citizenship
B. Global Citizenship
C. Welfare Citizenship
D. All

44. What are the active players between the forces of regionalism and globalization?

A. States
B. Non state actors
C. leaders
D. Supra national institution
E. legal regimes

45. The type of trade between two parties that involves the exchange of goods or services for another goods or services is:

A. Barter Trade
B. Free Trade
C. Monetary System
D. Credit System

46. According to hyper globalists,

A. State is a powerless institution unable to regulate its economy and boundary
B. There is denationalization and de-territorialization of economic activities
C. Globalization brings a new pattern of losers and winners in the international economy
D. All
E. All except B

47. The principle of political integration and political agency where political actors from varied settings shift their loyalties and political activities to the newly formed center is an explanation by a theory of regional integration called:

A. Neo-functionalism
B. Inter-governmentalism
C. Supra-nationalism
D. Functionalism

48. A theoretical perspective of regional integration that views regionalism as a response to common problems faced by states is known as:

A. Neo-functionalism
B. Inter-governmentalism
C. Supra-nationalism
D. Functionalism

49. Which one of the following is the positive impact globalization for Africa

A. Erosion of Sovereignty
B. Development of anti-developmentalism
C. Erosion of the national ethos of solidarity and reciprocity
D. Opening of African countries to intense external scrutiny
E. None

50. At the core of the _____ system of political economy is their central bank (Bundesbank)

B. Japan
C. Germany
D. None

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