International Studies Test Review
International Studies Test Review
*Use examples*
1-1) The world banks and the international monetary fund lend money to developing countries for the same reasons. False. GAAT came out of Bretton woods conference when powers could not agree on international trade. IN 1995 the powers agreed on trade and made WTO and is successor to GAAT. Although world bank and IMF lend money to developing countries, the reasons, type, and strings attached to loans are different. World bank does medium to long term for development projects. Ex. Building a road from rural to city for trade and transportation. IMF lender of last resort. World bank is not. IMF is entity that a developing country would go to after exhausting options in private capital markets. Attach any conditionality’s of the loan because they know how desperate the country is. Short term loans, high interest rate. Focus of loan is to balance books of country through structural adjustments by opening up to the world market. For Structural reform. Cuts social spending and government involvement. Example Greece and the Caribbean.
1-2) Within the neoliberal perspective, the role of the state should be confined to regulating prices and wages, and involving itself in productive activities. False Neoliberalism is (Pgs40-42) Adam Smith and Ricardo. Invisible hand in market. Government is not involved. Individuals decided how to buy and sell. Creates equilibrium through buying and selling without government regulation. IN the context of neoliberalism the state needs to focus on making itself as attractive as it can to foreign investors. Ex Free zone no tariffs and taxes or limitations. The state will stand back and the market will do its thing. State in terms of productive activities has an extremely limited role
1-3) International Studies is made up of the following disciplines: Geography; History; International Relations; and Culture. International studies is made up of economics, law, and anthropology which
*Use examples*
1-1) The world banks and the international monetary fund lend money to developing countries for the same reasons. False. GAAT came out of Bretton woods conference when powers could not agree on international trade. IN 1995 the powers agreed on trade and made WTO and is successor to GAAT. Although world bank and IMF lend money to developing countries, the reasons, type, and strings attached to loans are different. World bank does medium to long term for development projects. Ex. Building a road from rural to city for trade and transportation. IMF lender of last resort. World bank is not. IMF is entity that a developing country would go to after exhausting options in private capital markets. Attach any conditionality’s of the loan because they know how desperate the country is. Short term loans, high interest rate. Focus of loan is to balance books of country through structural adjustments by opening up to the world market. For Structural reform. Cuts social spending and government involvement. Example Greece and the Caribbean.
1-2) Within the neoliberal perspective, the role of the state should be confined to regulating prices and wages, and involving itself in productive activities. False Neoliberalism is (Pgs40-42) Adam Smith and Ricardo. Invisible hand in market. Government is not involved. Individuals decided how to buy and sell. Creates equilibrium through buying and selling without government regulation. IN the context of neoliberalism the state needs to focus on making itself as attractive as it can to foreign investors. Ex Free zone no tariffs and taxes or limitations. The state will stand back and the market will do its thing. State in terms of productive activities has an extremely limited role
1-3) International Studies is made up of the following disciplines: Geography; History; International Relations; and Culture. International studies is made up of economics, law, and anthropology which