University of Florida

INR 3034

Spring 2006

International Political Economy

2^nd mid-term examination

April 7, 2006

Answer six of the following eight questions. Answers should both define the concepts in question, and note the relevance of the concepts to the study of international political economy.

1) What is the difference between the concept of comparative advantage and the concept of competitive advantage?

2) What is the difference between a free trade area and a single market? What are examples of each?

3) What are the key differences in policy prescriptions of modernization theory and dependency theory?

4) What factors are necessary to make an international resource cartel work?

5) What is the aid trap and how does it work?

6) What caused the Argentine currency crisis in 2001?

7) In what way does the IMF create moral hazard?

8) What are the major issues under discussion in the Doha Round negotiations?