PSU PLSC 14 EXAM 3 Questions and Answers 100% Pass

Types of Sanctions - Answer- Types of this include: bilateral, multilateral, trade, aid, financial, smart/targeted, total/comprehensive, and third party Bilateral Sanctions - Answer- Sanction from one country to another Multilateral Sanctions - Answer- Sanction from a group of countries to another Smart/Targeted Sanctions - Answer- Sanctions that are meant to focus their impact on leaders, political elites, and segments of society believed to be responsible for objectionable behavior, while reducing the impact on the general population. Total/Comprehensive Sanctions - Answer- Sanctions that prohibit all direct and indirect imports/exports Sanctions Against Iran - Answer- Bilateral sanctions issued by US after 1979 Hostage Crisis. Included a trade embargo, military aid embargo, and the freezing of $12 billion in Iranian assets. UN Security Counsel sanctions to prompt Iran to comply with nuclear inspections. Criticism of Sanctions - Answer- Effectiveness comes into question, too slow, often punish the wrong people, can be manipulated or foster corruption. Imports - Answer- Goods or services bought from sellers abroad Exports - Answer- Goods or services sold to buyers abroad Free Trade - Answer- Policy where goods and services are allowed to move freely across international borders without barriers. Tariffs - Answer- Taxes on products or services produced overseas, paid for either by the companies that import or consumers Quotas - Answer- Limits to the number of products or services produced overseas Bogus Standards - Answer- Rules and standards whose real purpose is to exclude a good or service produced overseas Subsidies - Answer- Government assistance to domestic producers that makes their products cheaper, more competitive Currency Manipulation - Answer- Process of changing the exchange rate of a national currency (usually by lowering it) to obtain trade advantages. National Economy Era - Answer- (1600s-1700s) First Era of large, pre and early- modern empires and mercantilism. Highly protectionist, associated with colonialism. Private companies given rights by state to assist in colonial administration, extract resources for colony and enjoy exclusive trade rights with colony and metropole. (Places state and company in fierce competition with other mercantilist states and companies) International Economy Era - Answer- (1800s-WWI) Second Era of the "Classical Liberal" revolution in thought, industrial revolution (Revocation of Corn Laws in UK). David Ricardo, doctrine of Comparative Advantage; separation of state from business, the economy. Free Trade across nations Classical Liberalism - Answer- A term given to the philosophy of John Locke and other 17th and 18th century advocates of the protection of individual rights and liberties by limiting government power. autarchy - Answer- rule by an absolute sovereign Autarchy, Economic Nationalism, Interwar Years - Answer- (1920s-1930s) Third Era during interwar years (). Economic Nationalism, world depression, hyperinflation; all of these lead to adoption of policy of autarchy. (Associated with political extremism, fascism of era. Failure, probably exacerbated depression) Global Economy Era - Answer- (1945-Today) Fourth Era of Post World War II. US seeking to rebuild global political and economic order. (Note: Soviet Union and Communist world excluded. They have command economies and trade amongst themselves.) 1944 Bretton Woods Agreement - Answer- fixed currency based on the US dollar, creation of the GATT, IMF, and World bank 1971 - Answer- Year that Bretton Woods switched from fixed to floating exchange ra