International Political Economy MCQs 2026

International Political Economy (IPE) studies

1. Aonly domestic poetry✓
2. Binteraction of politics and economics in global relations✓
3. Conly planetary astronomy only✓
4. Donly sports leagues only✓

Mercantilism in IPE emphasizes

1. Alaissez-faire free trade without state role✓
2. Bcomplete abolition of all commerce✓
3. Caccumulation of bullion and favourable balance of trade via state regulation✓
4. Donly cultural exchange without goods✓

Economic liberalism in IPE supports

1. Aautarky and closed borders always✓
2. Bcomplete state monopoly of all trade always✓
3. Cfree trade and comparative advantage through market exchange✓
4. Dbanning all foreign investment always✓

Comparative advantage explains trade by

1. Adifferences in relative opportunity costs of production✓
2. Bidentical costs in all countries always✓
3. Conly military power alone✓
4. Donly population size alone without productivity✓

Infant industry argument justifies

1. Atemporary protection to nurture new domestic industries✓
2. Bpermanent autarky without any goal✓
3. Cfree trade with zero exceptions always✓
4. Dbanning all learning and technology✓

Most favoured nation (MFN) status means

1. Atrade advantages granted to one partner must extend to others✓
2. Bexclusive discrimination against all partners✓
3. Ccomplete trade embargo✓
4. Dzero tariffs only for military allies without rule✓

Comparative vs absolute advantage: Ricardo focused on

1. Aonly absolute productivityLead in all goods required to trade✓
2. Bbanning imports always✓
3. Cmilitary conquest as trade substitute always✓
4. Drelative efficiency differences driving mutually beneficial trade✓

Offshore financial centres in IPE enable

1. Aonly transparent public accounting always✓
2. Bzero cross-border capital flows✓
3. Conly subsistence farming✓
4. Dtax avoidance, secrecy and regulatory arbitrage✓

Neo-liberal institutionalism in IPE argues institutions

1. Areduce transaction costs and enable cooperation despite anarchy✓
2. Bnever matter in world politics✓
3. Creplace all states completely✓
4. Deliminate power asymmetries entirely✓

Embedded liberalism (Ruggie) described post-1945 compromise as

1. Apure laissez-faire without social policy✓
2. Bcomplete closed economies globally✓
3. Cabolition of all multilateral bodies✓
4. Dopen trade combined with domestic welfare safeguards✓

Transnational relations in IPE include roles of

1. AMNCs, NGOs and cross-border networks beyond states alone✓
2. Bonly heads of state at summits✓
3. Conly municipal mayors without external ties✓
4. Donly ancient empires without firms✓

Currency hegemony refers to

1. Aequal use of all currencies always with no leader✓
2. Babsence of foreign exchange markets✓
3. Cdominance of one currency (e.g., US dollar) in trade and reserves✓
4. Donly barter globally✓

Balance of payments records

1. Aonly military troop counts✓
2. Bonly cultural exports without finance✓
3. Conly domestic GDP without external sector✓
4. Dall economic transactions between a country and the world✓

Trade deficit means

1. Aexports exceed imports always✓
2. Bno foreign trade occurs✓
3. Cgovernment budget is always balanced✓
4. Dimports of goods and services exceed exports✓

New International Economic Order (1970s) demanded

1. Apermanent Western monopoly without change✓
2. Babolition of all trade forever✓
3. Cmore equitable global economic rules favouring developing states✓
4. Dignore commodity price issues completely✓

Imperialism of free trade (Gallagher and Robinson) suggests

1. Ainformal economic dominance can substitute formal colonial rule✓
2. Bcolonies were irrelevant to British power always✓
3. Ctrade never accompanied gunboats✓
4. Dempire ended before industrialization✓

Triad in IPE often denotes

1. Aonly three villages in one country✓
2. Bonly OPEC members exclusively✓
3. Conly landlocked African states only✓
4. DNorth America, Europe and Japan as core advanced economies✓

Race to the bottom in IPE refers to

1. Auniversal rise in labour protections always✓
2. Bfixed global minimum wage by UN law always✓
3. Cabsence of any investment flows✓
4. Dcompetition to lower standards to attract investment✓

Global value chains mean production is

1. Aalways done in one factory locally always✓
2. Bunrelated to trade statistics✓
3. Cimmune to politics entirely✓
4. Dsplit across countries in sequential stages✓

Economic statecraft uses

1. Aonly military parades without finance✓
2. Bonly sports without policy✓
3. Ceconomic tools to achieve political and security objectives✓
4. Donly weather control fiction✓

Belt and Road Initiative reflects

1. AChina's infrastructure-led connectivity and investment diplomacy✓
2. BUS Marshall Plan of 1948 identically✓
3. Ccomplete withdrawal from trade✓
4. Donly cultural exchange without projects✓

CPEC in Pakistan's IPE context is

1. Aa major China–Pakistan economic corridor of infrastructure and energy projects✓
2. Ba NATO military pact only✓
3. Can EU membership treaty✓
4. Da Antarctic research station only✓

South–South cooperation in IPE emphasizes

1. Aexclusive reliance on former colonial powers only✓
2. Bcomplete isolation among Global South✓
3. Cdeveloping states collaborating on trade, aid and technology✓
4. Donly military blocs in Europe✓

Digital trade and e-commerce in IPE raise

1. Ano cross-border data flows ever✓
2. Bdata localization, taxation and platform regulation issues✓
3. Conly 19th-century tariff schedules apply✓
4. Dzero need for new rules✓

Fair trade movement seeks to

1. Aimprove producer wages and conditions through certified ethical trade✓
2. Bmaximize only cheapest labour costs always✓
3. Cabolish all international commerce✓
4. Dignore consumer information completely✓

Neo-Marxism in IPE views global capitalism as

1. Aharmonious win-win for all classes always✓
2. Bunrelated to imperial history✓
3. Conly about consumer fashion trends✓
4. Dstructured by class conflict and exploitation across borders✓

Dependency theory argues developing states remain dependent because

1. Athey lack any natural resources always✓
2. Bcore states extract resources and constrain peripheral industrialization✓
3. Cthey trade too little with everyone✓
4. Dtechnology is identical globally always✓

Imperialism in classical Marxist IPE (Lenin) links to

1. Apure free trade without power always✓
2. Bcomplete equality among nations always✓
3. Cmonopoly capitalism and export of capital seeking profits abroad✓
4. Dabsence of any banks or finance✓

Hobson's critique of imperialism stressed

1. Apurely cultural curiosity only✓
2. Bunderconsumption and search for outlets for surplus capital✓
3. Ccomplete absence of economic motives✓
4. Donly religious missions without finance✓

Complex interdependence (Keohane and Nye) suggests

1. Acomplete autarky always✓
2. Bmultiple channels, issue asymmetry and reduced military salience among tied states✓
3. Conly one issue—security—matters always✓
4. Dzero transnational actors exist✓

Hegemonic stability theory holds that

1. Aa dominant liberal hegemon facilitates open trade and monetary order✓
2. Bweak states always create global order alone✓
3. Cclosed blocs maximize stability always✓
4. Dtrade needs no institutions ever✓

Relative gains concern in IPE means states may cooperate less if

1. Aabsolute gains never matter✓
2. Ball states ignore power completely always✓
3. Ctrade has no security externalities ever✓
4. Dpartners gain more from exchange, affecting power balance✓

Protectionism uses tools such as

1. Atariffs, quotas and subsidies to shield domestic industry✓
2. Bonly free trade agreements without barriers✓
3. Conly cultural diplomacy alone✓
4. Donly space exploration funding only✓

Free trade agreements aim to

1. Aban all cross-border exchange✓
2. Breduce barriers and integrate markets among members✓
3. Craise all tariffs uniformly✓
4. Deliminate all governments✓

Multinational corporations in IPE are significant because they

1. Aoperate only within one village always✓
2. Bnever affect labour or environment✓
3. Care identical to UN agencies✓
4. Dcontrol cross-border production and influence host-state policy✓

Structural power in IPE (Susan Strange) includes

1. Aonly military tanks alone✓
2. Bonly ceremonial diplomacy alone✓
3. Cpower to decide frameworks within which others must operate✓
4. Donly sports rules alone✓

Bretton Woods (1944) established

1. AWTO and permanent floating rates immediately✓
2. BIMF and World Bank and fixed exchange rate order✓
3. Conly NATO military command✓
4. Donly EU political union✓

The Washington Consensus refers to

1. Amarket-oriented policy prescriptions for developing economies✓
2. Bsocialist central planning only✓
3. Ccomplete trade autarky globally✓
4. Dabolition of all private property worldwide✓

Globalization in IPE implies

1. Aincreased flows of goods, capital, information and people across borders✓
2. Bcomplete isolation of all states✓
3. Cend of all technology transfer✓
4. Dzero cross-border finance ever✓

Terms of trade for primary exporters concern

1. Aonly military alliances✓
2. Bprice of exports relative to imports affecting development prospects✓
3. Conly embassy staffing levels✓
4. Donly anthem lyrics✓

Prebisch–Singer hypothesis suggests

1. Amanufactures always fall in price forever✓
2. Btrade always benefits periphery most✓
3. Cprimary commodity terms of trade deteriorate over time for periphery✓
4. Dtechnology never changes✓

Foreign direct investment (FDI) involves

1. Aonly short-term stock speculation without control always✓
2. Blasting interest and control in enterprises abroad✓
3. Conly tourist travel without business✓
4. Donly foreign aid grants without ownership✓

Sovereign debt crises in IPE raise issues of

1. Aonly cultural festivals✓
2. Bconditionality, austerity and lender-of-last-resort roles✓
3. Conly Olympic bidding✓
4. Donly local parking rules✓

Economic sanctions are used to

1. Aguarantee unconditional aid always✓
2. Beliminate all economic contact with zero political aim✓
3. Ccoerce target states by restricting trade or finance✓
4. Donly reward allies with extra trade always✓

Resource curse thesis argues resource wealth may

1. Aautomatically create stable democracy always✓
2. Bundermine institutions and development through rent-seeking✓
3. Cguarantee industrialization always✓
4. Dhave no political effects ever✓

WTO dispute settlement differs from GATT era by having

1. Ano rules on trade at all✓
2. Bonly advisory opinions without effect✓
3. Cmore binding adjudication and enforcement mechanisms✓
4. Donly bilateral duels without panels✓

Capital flight harms developing economies by

1. Aalways increasing domestic investment✓
2. Bdraining investable resources and weakening currency✓
3. Cguaranteeing stable growth always✓
4. Dhaving no macroeconomic effect ever✓

Trade openness index measures

1. Aonly military spending share✓
2. Bonly population density✓
3. Cexports plus imports relative to GDP✓
4. Donly forest cover alone✓

Structural adjustment programmes often require

1. Aunlimited money printing without reforms✓
2. Bfiscal austerity, privatization and market liberalization in borrowing states✓
3. Ccomplete trade autarky as condition always✓
4. Dabolition of all international lenders only✓