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Tag: Unit 9 — International Political Economy

  • UGC NET Political ScienceUnit 9 — International Political Economy – Top Questions

    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.

    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.

    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.

    Q4. WTO was established in—

    1. 1985

    2. 1991

    3. 1995

    4. 2000

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

    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.

    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.

    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.

    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.

    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.

    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.

    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

    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

    Match the Following

    Q13

    List I List II
    A. IMF 1. Crisis lending & monetary supervision
    B. World Bank 2. Development finance
    C. WTO 3. Trade regulation
    D. UNCTAD 4. Global South development issues

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

    Q14

    List I (Theory) List II
    A. Mercantilism 1. Protectionism
    B. Liberalism 2. Free markets
    C. Dependency 3. Exploitation by core/periphery
    D. Structuralism 4. State intervention

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

    Short Notes (Simple & Concise)

    1. Approaches to IPE

    Approach Key Idea
    Mercantilism State power, protectionism, trade surplus
    Liberalism Free trade, markets regulate economy
    Structuralism/Dependency Inequality rooted in capitalist exploitation

    2. Globalization

    • Economic, technological, cultural integration

    • Free flow of goods, capital & information

    • Criticism: inequality, cultural homogenization, environmental harm

    3. Bretton Woods Institutions

    • IMF: financial stability, lending during crises

    • World Bank: long-term development projects

    • WTO: global trade rules & dispute resolution

    4. MNCs

    • Private corporations operating in multiple countries

    • Pros: capital, jobs, technology

    • Cons: resource extraction, tax avoidance, labour exploitation

    5. North–South & South–South cooperation

    • Address developmental inequality

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

    6. Sustainable Development

    • Development meeting present needs without harming future needs