KÜRESEL POLİTİK EKONOMİ - Deneme Sınavı - 6

The correct choice is C.

The correct choice is A.

The correct choice is D.

The correct choice is B.

The correct choice is A.

In terms of transition to a free-market economy, Yeltsin and his main aid Gaidar applied what economists called shock therapy to the Russian economy in order to finish this transition period as soon as possible. In economics, the sudden withdrawal of currency and price controls over markets and fast trade liberalization, privatization, and cuts in social spending is a shock therapy.

Poland was an exception compared to other countries in the bloc as it had milder authoritarianism because of earlier started resistance to full-scale Soviet control. After 1976 it’s civic associations, especially the Solidarity trade union, began its democratization demands against single-party government. Also in 1989, Polish regime under general Jaruzelski was the first in Eastern Europe in terms of initiation for democratic multi-party elections. That multi-party election framework was negotiated with the opposition groups. Poland created a semi-presidential system under Lech Walesa’s leadership and consolidated its democratic transition earlier than others. In Linz and Stephan’s words, this consolidation usually means that consecutive multi-party elections are held without significant disturbance and the country sees a change of leadership in that period of transition. Other issues that helped Poland in this relatively easier political transition were, first, Catholic church in the country had some autonomy from the Communist-led governments and began a culture of resistance with the help of papacy.

China has transformed itself from an isolated state into the manufacturing workshop of the world in the last three decades since the 1980s. At the beginning of 1980, China’s total share of world production was 2.6 percent, while this decade that number rose to almost 9 percent of the total world output. So, one can predict the enormous transformation that China went through with the expanding globalization of production. But what made those changes in China? If we look at the features of the Chinese revolution in 1949, it was different from Soviet experience in terms of the dominance of peasants over the culture and politics of the country. So China did not develop even early Soviet democracy. Maoist largely accused the USSR in the 1950s for collaborating with the world capitalist system.

In today’s China, one can argue that more than half of the total production was made by private sector, though they had strict guidelines from the state and government plan. So China can be accepted as a mixed economy that successfully combines private initiative and profit motive with general industrial plans of the state. But also since 2001 when China entered into WTO ( World Trade Organization) most economists in the WTO classified Chinese enterprises as not different from private corporate entities in terms of decision making autonomy. That means these state-owned corporations usually decide production and marketing according to the market price signals.

Recession: The decline in real GDP due to a decline in economic activities of a state in at least two quarters, a stage of pause and contraction in economic activities. The correct answer is E.

Inflation: A continuous increase in the general price level of goods and services. The correct answer is D.

Lastly, external debt crisis mean that a country is faced with the inability to pay its current foreign debts for public and/or private sectors. The correct answer is E.

The monetary crisis, also known as the foreign exchange crisis, is defined as the disappearance of the confidence in the currency of a country, speculative funds to leave the country as a result, in spite of all the efforts of the Central Bank, the failure to maintain the current exchange rate, the devaluation of the national currency, or leaving the national currency to fluctuate altogether (Turgut, 2006: 37). The correct answer is B.

In the simplest definition, banking crises can be defined as the loss of confidence in one or more banks, people applying to withdraw their deposits in banks suddenly and widely, and that banks cannot meet this demand. The correct answer is C.

The Mexican crisis is another of the exchange rate crises. The reason for this crisis is referred in the literature as the “Tequila Crisis” is that it had influenced the part of South America which consists of Brazil, Paraguay, Argentina, and Uruguay. The crisis, which had an expansionist effect in the Latin America region, had become more and more felt all over the world and had become deeper and deeper. This crisis, which was mainly due to the spread of Neoliberalism, wrong monetary policies, speculation and domestic political events in Mexico, was effective in the global system until 2001 (Balı & Büyükşalvarcı, 2011: 157). The correct answer is A.

The first wave regionalization was created by the developing countries in the Cold War political environment, which is generally close to each other in the framework of a bipolar world order. The second wave regionalization is composed of developed countries, in a world order shifting to multipolarity.

The Global Financial Crisis, also known as the Mortgage Crisis, which began in September 2008 in the United States, is not the first crisis of the capitalist system, but in many respects it can be considered as the deepest crisis. The correct answer is A.

Following the unsuccessful European Defense Community initiative, the EEC and the European Atomic Energy Community were established in 1957 under the Treaty of Rome. In 1992, the Treaty of Maastricht, also known as the Treaty of the EU, was signed and entered into force in 1993. The EU organized a summit in Amsterdam in 1997 and the objectives of addressing the deficiencies of the Maastricht Treaty were defined as the Amsterdam Treaty.

In 2004, the EU member states signed a Constitutional Treaty for Europe. However, this draft did not come into force after France and the Netherlands rejected the constitution draft for various reasons.

In 2004, Poland, Hungary, Estonia, Latvia, Lithuania, Malta, the Czech Republic, Slovenia, Slovakia and South Cyprus, in 2007 Bulgaria and Romania became members of the EU. Croatia also became a member in 2013, the number of EU member states reached 28.