Homework 1

Due: Thursday, Apr 16 at 11:59 PM via Canvas

TECON 325

Homework 1

Name: ___________________________________________ (Total points = 30)

Fill in the blanks in the following sentences with appropriate words (1 point each):

1. International political economy (IPE) examines the intersection of _______________and _______________at the international level.

2. Global economic exchange creates both the winners and losers. The_______________ fight against integration, while ______________fight for it.

3. The study of the global economy primarily includes four areas of study, viz., the international trade system, international monetary system, economic development, and _______________

4. 2 points for this question. (Please choose the correct word below) The Bush Steel Tariffs (2002 – 2003) raised the domestic price of steel, making the production of U.S. steel more profitable. As a result, the investment in U.S. steel is (increased/decreased) and (more/less) jobs were created for steel workers.

5. (Please choose the correct word below) The Mercantilist school of international political economy believes that governments should discourage (imports/exports) whenever possible.

Please answer any four out of the following five questions. Be sure to address each point in the question and explain your reasoning carefully. (6 points each)

1. What is international political economy (IPE)? What does it mean by living in a global economy?

2. Why did the Bush administration impose Steel Tariffs (2002 - 2003)? Highlight the distributional consequences of Steel Tariffs.

3. Multinational Corporations (MNCs) have powerful political influence in the countries that host them. Please discuss why.

4. What are the three central propositions of classical mercantilism? How do liberals, such as Adam Smith and David Ricardo, challenge these propositions?

5. How do mercantilists, liberals, and Marxists differ in their image of international economic system?

Instructor: Durga Gautam Date: April 10, 2020