International Trade and Economic Systems Quiz

A development model based on Marxist ideas criticizing the unequal relationship between developed and developing countries. It argues for import substitution and protectionist policies to promote domestic manufacturing over primary production.

A development model that advocates for a strong role of the state in guiding and directing economic development.

A key feature of the developmental state approach, where the government uses various tools like taxes, subsidies, and import controls to steer the economy.

A characteristic of the developmental state, where an efficient and effective bureaucracy implements the government's development plans.

A key element of the developmental state approach, where the private sector actively participates and responds to government policies.

An important aspect of the developmental state approach, where a government's legitimacy comes from achieving development results and distributing the benefits equitably.

The American economic system, characterized by consumer benefits and wealth creation as its primary goals, with wealth distribution being secondary.

The American economic system closely resembles the neoclassical model, where individuals maximize their own interests and businesses maximize profits.

A system where large corporations dominate the economy, rather than individual entrepreneurs.

A type of market where a small number of businesses control the majority of the market share.

The economic policy shift in the 1930s where the government played a more active role in regulating the economy and promoting social welfare.

The belief that the government should maintain full employment and ensure the economy thrives.

An economic approach emphasizing minimal government intervention and free markets.

A type of capitalism where the government actively directs economic development by supporting specific industries.

The strategy of promoting exports and protecting domestic industries through government intervention.

A term used to describe the Japanese economic system, characterized by government intervention and industry collaboration.

A system where the value of a currency is determined solely by market forces (supply and demand) with no government intervention.

A system where the value of a currency is fixed against another currency or a basket of currencies.

The amount of money a member country pays to the IMF, determining its voting power and influence.

The organization designed to govern the global financial system, with its structure reflecting the interests of major developed countries, especially the US.

The influence a country exerts on IMF decision-making, determined by its quota size. The US has the largest quota, giving it the most power.

International organization overseeing global financial institutions and regulations, with 184 member countries but unequal voting power, where the top 10 countries hold 55% of the votes.

The relationship and exchange rates between national currencies, forming the foundation of the global financial system.

A framework of rules, agreements, institutions, and practices facilitating the global flow of financial capital for investments and trade.

The price of one national currency in terms of another.

The World Bank was created after World War II (1945) to support developing nations.

The World Bank often faces criticism for setting economic agendas for developing countries, attaching conditions to loans, and pushing free market reforms.

The World Trade Organization (WTO) operates on a basis of unanimous decisions, but major economic powers like the US, EU and Japan often influence the rules in their favor.

Developing countries often complain about non-transparent procedures and being pressured by powerful nations in the WTO.

The primary goal of a national economy determines how much the government intervenes. In societies where individual consumer welfare and market freedom are prioritized, the state's role is limited. But when collective goals are more important, the government plays a more active role.

The way a country's corporations are structured and how private businesses operate are key features of its political economy.

In the US, shareholder power is significant in corporate governance. In Japan and Germany, banks play a larger role. This highlights how different countries prioritize different stakeholders in their corporate structures.

American companies often invest and produce in other countries, while Japanese firms prefer to keep those activities within their borders. These differences reflect distinct economic strategies.

The United States has a laissez-faire approach to managing the economy, with minimal government intervention. Japan, however, has a more interventionist approach, with the government playing a significant role in economic management.

National political economies are shaped by the interplay of different elements, including the goals of economic activity, the role of the government, and the structure of the corporate sector.

The U.S. economy emphasizes the welfare of consumers and wealth creation, while placing less emphasis on wealth distribution.

The US economic model shares similarities with the neoclassical model, where individuals pursue their own interests, and businesses strive for profit maximization.

A political-economic system that emphasizes exports, national savings, and investment more than consumption, while also allowing the market to function with considerable freedom. It balances social concerns and market efficiency through social welfare programs and cooperation between government, labor, and capital.

The German central bank responsible for maintaining a stable macroeconomic environment and low interest rates, crucial for the competitiveness of German industry.

The practice of government, labor unions, and business working together to manage the economy and address social concerns.

A system where the state plays a significant role in providing social services and welfare, aiming to improve living standards for its citizens.

The German economic system emphasizes exports and national savings rather than domestic consumption.

The German government's limited intervention in the day-to-day operations of businesses within specific sectors, while still supporting research and development and providing subsidies to certain industries.

A system where the state facilitates a favorable environment for private businesses, promoting economic growth through regulation and encouragement of savings.

The German government, like other industrialized nations, spends heavily on research and development to promote technological advance and economic growth.