PLSC 14 Exam 3 Piazza Penn State Questions and Answers 100% Pass

PLSC 14 Exam 3 Piazza Penn State Questions and Answers 100% Pass tools states use to project economic power - Answer- aids and sanctions bilateral aid - Answer- Where aid is given by one country directly to another. multilateral aid - Answer- numerous different governments and organizations such as the world bank or the UN Types of aid - Answer- development, military, democracy, humanitarian the Marshall plan - Answer- Massive transfer of aid money to help rebuild postwar Western Europe, intended to bolster capitalist and democratic governments and prevent domestic communist groups from riding poverty and misery to power. The plan was first announced by Secretary of State George Marshall at Harvard's commencement in June 1947. criticisms of aid - Answer- 1. effectiveness? 2. Jesse Helms criticized aid to African countries saying it was wasteful 3. prompts moral hazard and dependency 4. does not always get to intended target 5. can foster corruption 6. should come with conditions 7. a form of Neo imperialism smart/targeted sanctions - Answer- aim to directly impact a certain group or organization total/comprehensive sanctions - Answer- more broad, like blocking an entire country Sanctions against Iran - Answer- 1. bilateral sanctions by US after 1979 hostage crisis 2. trade embargo 3. freezing of 12 billion in Iranian assets 4. UN security council sanctions to prompt Iran to comply with nuclear inspections criticisms of sanctions - Answer- 1. effectiveness 2. too slow 3. punish the wrong people 4. can be manipulated and foster corruption protectionism - Answer- goods and services are restricted in moving across borders to protect domestic producers goal of protectionism - Answer- increase domestic production by limiting the ability to buy products abroad. achieved by making it more expensive or limiting access tariffs - Answer- taxes on goods produced overseas, paid for by the companies that import or consumers quotas - Answer- limits to the number of products produced overseas bogus standards - Answer- rules and standards whose real purpose is to exclude a good or service produced overseas subsidies - Answer- gov assistance to domestic producers that makes their products cheaper and more competitive currency manipulation - Answer- changing the exchange rate of a national currency (by lowering it) to obtain trade advantages National Economy Era 1600s-1700s - Answer- Large pre and early modern empires mercantilism highly protectionist associated w colonialism private companies given rights by state to assist in colonial administration, extract resources for colony and enjoy exclusive trade rights places state and company in fierce competition w other mercantilist states and companies Mercantilism - Answer- an economic system to increase a nation's we