Deck 3: Wealth and Power: the Mercantilist Perspective

Question 1

Explain the different ways that the term mercantilism has come to be used, both theoretically and with regard to two specific policy problems. Cover the reading for the class on the subject and use at least one newspaper, magazine, or journal article for support.

Answer 1

No Answer.

Question 2

Brief quotations from the writings of Alexander Hamilton and Friedrich List are given in this chapter. Based on these short bits of writing, compare the ideas of these two political economists with those of two contemporary political economists. What do they have in common that makes them all mercantilists or neomercantilists? How do they differ in the policies that they suggest nations take?

Answer 2

No Answer.

Question 3

Kenneth Pomeranz and Steven Topik state that, historically, "bloody hands and the invisible hand often worked in concert." What do they mean? What examples do they provide to illustrate this point? What other historical examples can you cite as supporting this point?

Answer 3

No Answer.

Question 4

What major changes in the international economy and security structure caused states to adopt more neomercantilist policies?

Question 5

In what ways are defensive (benign) and offensive (malevolent) mercantilism different? Why is it sometimes difficult to tell the difference between them? Give examples from the reading.

Question 6

In the post-World War II era, what kinds of mercantilist policies has the United States adopted, and in pursuit of what goals?

Question 7

Balaam and Dillman argue that Trump is not a "genuine" neomercantilist, even though he supports significant trade protectionism and increased military spending. What beliefs and policies of President Trump appear to be inconsistent with the mercantilist perspective? Include references to his actions toward the U.S. state apparatus, ways in which his policies clearly favor partisan or class interests rather than the national interest, and ways in which his foreign policies might be harming U.S. national security.

Question 8

Which period of history is often called the "mercantilist period"?

A) the fourteenth century
B) the period when the GATT defined international trade policies
C) the era of the Spanish Armada
D) the period of nation-building in Europe-roughly 1600 to 1850

Question 9

Which political economist stated that "the power of producing is infinitely more important than wealth itself"?

A) David Ricardo
B) Friedrich List
C) Alexander Hamilton
D) John Maynard Keynes

Question 10

Which is the best statement of the relationship between wealth and power according the mercantilist thought?

A) National wealth creates national power, and national power secures national wealth.
B) A nation needs either wealth or power, but not both.
C) If a nation has many wealthy individuals, it will be secure.
D) If a nation has a large army, it will be wealthy.

Question 11

Alexander Hamilton and Friedrich List both wrote that a strong state is necessary if a nation intends to compete with the manufactured goods of the leading industrial power of its day. The dominant industrial power at the time they wrote was

A) the United States.
B) Great Britain.
C) Germany.
D) Japan.

Question 12

A mercantilist would most likely agree with which of the following statements about trade?

A) Specialization in comparative advantage benefits all the parties engaged in trade.
B) A persistent trade surplus will significantly harm a country.
C) Trade rules should be grounded in the principle of most favored nation treatment.
D) None of the above.

Question 13

Which of the following U.S. policies before World War II could be considered mercantilist?

A) Creating land-grant colleges
B) The New Deal
C) The Smoot-Hawley Tariff Act
D) All of the above

Question 14

Which of the following nations have at various times used strongly neomercantilist policies to achieve economic growth in the post-World War II era?

A) Japan
B) South Korea
C) China
D) All of the above

Question 15

Neomercantilism differs from economic nationalism in that

A) it makes greater use of tariffs and quotas.
B) it takes greater account of the interdependencies that exists among nations.
C) it takes greater heed of the need for military security.
D) neomercantilism favors free trade, whereas economic nationalism favors protectionism.

Question 16

Which of the following neomercantilist policies is most likely to be viewed as malevolent?

A) Voluntary export agreements
B) State subsidies for R&D in the private sector
C) Trade embargoes
D) National strategic reserves
E) Export subsidies

Question 17

The United States has a strategic stockpile of which resources?

A) Oil
B) Vaccines
C) Tantalum
D) All of the above

Question 18

The United States uses DARPA as an instrument of

A) Procurement.
B) industrial policy
C) control over foreign investments.
D) job creation.

Question 19

According to Patricia Goff, which non-traditional mercantilist goal have Canada and the EU pursued in recent decades?

A) Protection of indigenous peoples
B) Preservation of manufacturing jobs
C) Protection of their steel and coal industries
D) Preservation of cultural sovereignty

Question 20

Some experts believe that the conflict over rare earths between Japan and China in 2010 was really about control over resources in

A) the Mediterranean.
B) the Arctic.
C) the South China Seas.
D) the Pacific Rim.

Question 21

Most members of the Arctic Council are eager to exploit oil and natural gas resources in the Arctic region as its ice cover disappears. Which of the following countries is not a member of the Arctic Council?

A) Russia
B) Denmark
C) Norway
D) United Kingdom
E) Canada