POL S 203 Final Exam Questions with Complete Solutions (Latest 2025) Liberalism and Free Trade - Correct Answers ✅Politics and Economics should be separate Markets will work effectively Free market is most effective Absolute Gains - Correct Answers ✅As long as both sides gain, it doesn't matter by how much Positive Sum - Correct Answers ✅Both sides win
Liberalism: Trade promotes peace - Correct Answers
✅Politics divides, economics brings together
NAFTA 1994
Ricardo's Comparative Advantage - Correct Answers ✅Countries engage in international trade even when one country's workers are more efficient at producing every single good than workers in other countries.Non-Tariff Barriers - Correct Answers ✅Put strict regulations on a product such as apples, and a country will be unable to meet them, reducing trade Quota - Correct Answers ✅Numerical cap on imports 1 / 3
POL S 203 Final Exam Questions with Complete Solutions (Latest 2025) Keep other countries out once cap is reached US Farm Subsidies - Correct Answers ✅Govt. aid to farmers was $27 billion Allows farmers to export at a lower price than what is cost to produce Paid farmers to no over-grow crops
Protectionism: Cotton Subsidies - Correct Answers ✅West
Africa hurt by subsidized US cotton
Brazil's WTO victory over the US: US was paying Brazil so
they could continue to illegally subsidize Realism & Free Trade (Mercantilism) - Correct Answers ✅Politics drives economics Economics is subordinate to state interests Obsessed with power of state Focuses on relative gains 2 / 3
POL S 203 Final Exam Questions with Complete Solutions (Latest 2025) Relative Gains - Correct Answers ✅Only state can get richer with the loss of other states Wealth is power, and power is relative Zero Sum - Correct Answers ✅My gain is your loss One sided Realist View on Comparative Advantage - Correct Answers ✅Fear of dependence on others Subsidize inefficient industries Strategic Trade - Correct Answers ✅Comparative advantage justifies interference in markets
Comparative advantage can be creative for realists:
Interference in markets today, and create advantage tomorrow.Marxism and Free Trade - Correct Answers ✅Economics determines politics
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