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Chapter 4
Liberalism
Multiple Choice
1) Adam Smith
a) supported laissez-faire policies that opposed any government
intervention.
b) is closely associated with the theory of absolute advantage
c) believed that states should institute free trade policies unilaterally if
necessary to permit the market to operate.
d) is closely associated with the theory of comparative advantage.
2) Most modernization theorists believed that
a) LDC development problems resulted from domestic as well as
international factors.
b) LDCs should adopt Western norms and institutions.
c) changes required for development would not create dislocation and
hardship.
d) LDCs could follow different routes to development.
3) The embedded liberal compromise
a) was supported by a domestic class compromise between business
and labor
b) was a term used by Karl Polanyi to warn against the self-regulating
market
c) was a term coined by Keynes to indicate his commitment to
interventionist liberalism.
d) indicates that postwar efforts to maintain an open liberal
international economy were embedded in institutions to ensure that there
was some regulation
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4) John Maynard Keynes
a) viewed limits on imports as sometimes justifiable.
b) favored internationalist policies at Bretton Woods because of his
commitment to free trade.
c) did not accept a large extension of the traditional functions of
government.
d) was accepting of the forceful nationalism of the interwar years.
5) Interventionist liberals are more concerned than orthodox liberals with
a) international institutions
b) negative freedom
c) distributional issues
d) domestic-international interactions
6) Friedrich Hayek and Milton Friedman
a) reluctantly accepted the move to embedded liberalism in the 1940s
to 1960s.
b) preferred economic planning only in some circumstances.
c) tried to reach some consensus with interventionist liberals.
d) supported a strict separation between politics and economics.
7) In their approach to interdependence, Robert Keohane and Joseph Nye
devoted more attention than Richard Cooper to
a) the systematic study of economic interdependence.
c) the relationship between domestic and foreign policies.
d) the political aspects of interdependence.
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8) In two-level game theory
a) states that are subject to strong domestic pressures have a weaker
bargaining position internationally.
b) win-sets are all possible level 2 agreements that would gain
ratification at level 1.
c) win-sets are all possible level 1 agreements that would gain
ratification at level 2.
d) concentrated domestic interests always have more influence than
9) Neomercantilists are more skeptical than liberals that states can move to
Pareto-optimal outcomes in p because
balanced and equitable.
b) they are very concerned about free riding by states.
c) they view the prisoners as rational, self-interested individuals.
d) they see cheating as a major problem.
10) Unlike liberals, neomercantilists believe that
a) states in institutions can cheat on each other.
b) regimes do not have a role in IPE.
c) having common interests is the only way to ensure cooperation
among states.
d) state concerns with relative gains pose a serious obstacle to
cooperation in international institutions.
11) Many liberal theorists shifted their focus from regimes to global
governance because
a) global governance studies tend to be less state-centric than regime
studies.
b) the global governance concept is usually more conducive to the
development of useful theories.
c) global governance studies tend to focus more on order and
cooperation among states.
d) global governance studies usually focus more on issue areas.
12) Robert Keohane and Joseph Nye
a) believe there is a hierarchy of issue areas in international relations.
b) view interdependence as having a fairly uniform effect on states.
c) believe that asymmetrical interdependence can be a source of
power.
d) expect larger states to be successful in most cases with smaller
states in complex interdependent relationships.
13) Interventionist liberals
a) point to the inequalities between the North and the South.
b) do not consider domestic inefficiencies in LDCs to be a serious
problem.
c) oppose any protectionism for LDC industries.
d) raise questions as to whether private enterprise is the best answer
for LDCs.
14) Two states are interdependent when
a) they have many transactions between them.
b) they have many common interests.
c) they do not use military force against each other.
d) their transactions have reciprocal costly effects.
15) Liberals
a) are not attuned to the role of power in interdependent relationships.
b) see technological change as an important force behind
globalization.
c) are not concerned with distributional issues.
d) assume that states are likely to gain equally from open economic
relationships.
True-False
1) A Pareto-optimal outcome is the best possible outcome for a prisoner in
2) Regime studies tend to be less state-centric than governance studies.
3) In two-level game theory, negotiators may have weaker bargaining
positions if they are not subject to strong domestic pressures.
4) Interventionist liberals such as Keynes put a higher priority than orthodox
liberals on specialization and international trade.
5) Liberals tend to view economics and politics as separate and autonomous
spheres of activity.
6) Institutional liberals tend to emphasize negative freedom.
7) Most modernization theorists were deterministic, advising the South to
follow the same path to development as the North.
1) Karl Polanyi believed that the orthodox liberal commitment to the
________________ produced such disasters as the Great Depression.
2) Robert Putnam coined the term in reference to the
one hand, and domestic interactions within the state on the other.
3) T are __________________.
4) In an _______________ relationship, transactions have reciprocal (but
not necessarily symmetrical) costly effects.
5) John Gerard Ruggie coined the term in reference to the
postwar balance between an open liberal international economy, and societal
efforts to promote domestic security and stability for individuals.
6) The best collective outcome in is a _____________
outcome.
7) International are principles, norms, rules, and decision-making
procedures around which converge in an area of
international relations.
Essay
1) What are the similarities and differences between, orthodox,
interventionist, and institutional liberalism?
2) In what ways have studies of foreign economic policy-making,
concentrated and diffuse domestic interests, and two-level game theory
increased our understanding of domestic-international interactions in IPE?
3) When did neoliberalism emerge and why? How did it draw on the ideas
of Milton Friedman? How did it differ from the liberalism of Adam Smith?
4) What are the similarities and differences between the orthodox liberal and
interventionist liberal approach to North-South relations? What are some of
the criticisms of the liberal approach to North-South relations in general?
5) Wh become so important after
World War II, and how did it draw on the ideas of Keynes and Polanyi?
6)
How and why do neomercantilists and liberals differ in their views regarding
7) What are the major strengths and shortcomings of regime theory? Do you
think that global governance is a more useful concept than regimes and
why?
8) What are international regimes, and what are the views of theorists
regarding the formation, maintenance, and results of regimes?
9) What is endogenous growth theory, and what are the implications of this
theory for North-South relations?
10)
view of interdependence, and the views of Robert Keohane and Joseph Nye?