Q1. Which approach to International Political Economy considers the state as the primary actor and emphasizes national interest and protectionism?

1. Structuralism

2. Mercantilism

3. Liberalism

4. Constructivism

Answer: 2
Explanation: Mercantilism focuses on state power, national wealth and trade protection.

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Q2. The Bretton Woods Conference was held in—

1. 1930

2. 1944

3. 1947

4. 1950

Answer: 2
Explanation: Created IMF, World Bank & established a system of fixed exchange rates.

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Q3. Which theory argues that global capitalism perpetuates inequality between rich and poor countries?

1. Liberalism

2. Socialist theory

3. Dependency theory

4. Behaviouralism

Answer: 3
Explanation: Dependency theorists say underdevelopment is created through exploitative trade and production relations.

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Q4. WTO was established in—

1. 1985

2. 1991

3. 1995

4. 2000

Answer: 3
Explanation: Replaced GATT and regulates global trade liberalization.

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Q5. FDI refers to—

1. Private international loans

2. Investment by a company in another country

3. Government-to-government grants

4. Remittances by migrants

Answer: 2
Explanation: FDI includes capital investment, technology transfer and market expansion.

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Q6. The term “Washington Consensus” refers to—

1. Socialist planning

2. Neo-liberal economic reforms

3. Protectionist trade model

4. Marxist development strategy

Answer: 2
Explanation: Refers to IMF–World Bank policy package promoting deregulation, privatization & free markets.

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Q7. The main purpose of the IMF is—

1. Promote world peace

2. Monitor exchange rates and lend to countries in crisis

3. Regulate trade disputes

4. Provide humanitarian relief

Answer: 2
Explanation: IMF stabilizes international monetary system and provides financial support.

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Q8. MNCs are criticized for—

1. Increasing employment

2. Enhancing technology

3. Exploiting resources & labour in developing countries

4. Increasing exports

Answer: 3
Explanation: Critics say MNCs extract maximum profit with minimal concern for welfare.

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Q9. Which of the following is an example of a regional economic bloc?

1. NAM

2. EU

3. SAARC Cultural Forum

4. G-77

Answer: 2
Explanation: EU is a regional economic & political union.

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Q10. Sustainable Development emphasizes—

1. Unlimited industrial growth

2. Development without environmental harm

3. Military expansion

4. Privatization of resources

Answer: 2
Explanation: SD balances economic growth, social equity & environment protection.

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Assertion – Reason Questions

Q11

Assertion (A): Globalization has increased economic interdependence among states.
Reason (R): There has been rapid growth of trade, investment and technology flows.

Answer: A & R both true, R explains A

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Q12

Assertion (A): WTO supports free trade policies.
Reason (R): WTO promotes tariff reduction and removal of trade barriers.

Answer: A & R both true, R explains A

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Match the Following

Q13

Answer: A-1, B-2, C-3, D-4

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Q14

Answer: A-1, B-2, C-3, D-4

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Short Notes (Simple & Concise)

1. Approaches to IPE

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2. Globalization

• Economic, technological, cultural integration

• Free flow of goods, capital & information

• Criticism: inequality, cultural homogenization, environmental harm

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3. Bretton Woods Institutions

• IMF: financial stability, lending during crises

• World Bank: long-term development projects

• WTO: global trade rules & dispute resolution

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4. MNCs

• Private corporations operating in multiple countries

• Pros: capital, jobs, technology

• Cons: resource extraction, tax avoidance, labour exploitation

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5. North–South & South–South cooperation

• Address developmental inequality

• G-77, BRICS, IBSA promote multi-polar world

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6. Sustainable Development

• Development meeting present needs without harming future needs