POLSCI 369 - Chapter 3

In the post-World War II era, what kinds of mercantilist policies has the United States adopted, and in pursuit of what goals?

- currency discrimination (Capital controls) until 1958 - multipolar security structure - petroleum reserve - import quotas - maintain control of capital, open more doors for trade, rely less on other nations/force nations to cooperate, protect domestic industries

Explain: "bloody hands and the invisible hand often worked in concert." What do they mean? What examples does the textbook provide to illustrate this point?

- people often utilize whatever means necessary in the support of self-interest; unchecked self-interest leads to violence and manipulation - genocide of Native Americans/indigenous peoples of the Belgian Congo; spread commodities in order to tax new populations

Brief quotations from the writings of Alexander Hamilton and Friedrich List are given in this chapter. Based on these short bits of writing, compare the ideas of these two political economists with those of two contemporary political economists. What do they have in common that makes them all mercantilists? How do they differ in the policies that they suggest nations take?

- support strong role of manufacturing over strong agriculture - economic nationalists - against free trade; thought trade surplus was in U.S. best interest (high import tax; subsidize exports) - favor infrastructure and military - modern: more for outsourcing and manipulation of less-developed countries

The United States has a strategic stockpile of which resources? a) Oil b) Vaccines c) Tantalum d) All of the above

All of the above

Which of the following U.S. policies before World War II could be considered mercantilist? a) Creating land-grant colleges b) The New Deal c) The Smoot-Hawley Tariff Act d) All of the above

All of the above

Which political economist stated that "the power of producing is infinitely more important than wealth itself"? a) David Ricardo b) Friedrich List c) Alexander Hamilton d) John Maynard Keynes

Friedrich List

Alexander Hamilton and Friedrich List both wrote that a strong state is necessary if a nation intends to compete with the manufactured goods of the leading industrial power of its day. The dominant industrial power at the time they wrote was: a) the United States. b) Great Britain. c) Germany. d) Japan.

Great Britain

Which of the following nations have at various times used strongly neomercantilist policies to achieve economic growth in the post-World War II era? a) Japan b) South Korea c) China d) All of the above

Japan

Which is the best statement of the relationship between wealth and power according to the mercantilist thought? a) National wealth creates national power, and national power secures national wealth. b) A nation needs either wealth or power, but not both. c) If a nation has many wealthy individuals, it will be secure. d) If a nation has a large army, it will be wealthy.

National wealth creates national power, and national power secures national wealth.

A mercantilist would most likely agree with which of the following statements about trade? a) Specialization in comparative advantage benefits all the parties engaged in trade. b) A persistent trade surplus will significantly harm a country. c) Trade rules should be grounded in the principle of most favored nation treatment. d) None of the above

None of the above

Most members of the Arctic Council are eager to exploit oil and natural gas resources in the Arctic region as its ice cover disappears. Which of the following countries is not a member of the Arctic Council? a) Russia b) Denmark c) Norway d) United Kingdom e) Canada

United Kingdom

Some experts believe that the conflict over rare earths between Japan and China in 2010 was really about control over resources in: a) the Mediterranean. b) the Arctic. c) the South China Seas. d) the Pacific Rim.

the South China Seas

Which period of history is often called the "mercantilist period"? a) the fourteenth century b) the period when the GATT defined international trade policies c) the era of the Spanish Armada d) the period of nation-building in Europe—roughly 1600 to 1850

the period of nation-building in Europe—roughly 1600 to 1850