Review Questions/Topics

Final (final is cumulative - use other exam review sections also)

  1. What does import substitution mean? What does export promotion mean? What is the difference/similarites between the two?
  2. What are some of the pros and cons for IS and EP? Can you explain them in your own words? Can you come up with a hypothetical example for each pro and con?
  3. How is it difficult to "empirically know" whether free trade or IS/EP are better policies for economic development?
  4. How can a regional trading bloc help countries grow? How are these reasons like the benefits of international trade? How do they differ?
  5. What is a MNC? What are some basic characteristics of MNCs?
  6. What is FDI? What is an example of FDI?
  7. What are some of the economic arguments for FDI? What are the rebuttals to these arguments? What are some additional social concerns with FDI?
  8. What are the criteria for being considered "foreign aid"?
  9. What are the measurement issues with foreign aid? Can you give a hypothetical example of each issue?
  10. Who gives foreign aid? How "generous" are different countries' governments?
  11. Why do developed countries give aid?
  12. Why do developing countries accept aid?
  13. Why is it difficult to empirically "know" whether foreign aid helps economic development?
  14. What are some potential negative consequences from foreign aid?

note: this is NOT a sample exam nor is this an exhaustive list of all the potential questions that might be on the exam. It is only meant to help guide your studying.