In the 1980s and 1990s, an Increasing Number of States

question 4

Multiple Choice

In the 1980s and 1990s, an increasing number of states removed the restrictions on capital flows, one by one, that had been part of every state's policies since World War II. Which is NOT a reason that states removed these controls?

• A) Actors who controlled a lot of capital put pressure on governments to allow freer movement.
• B) States removed these controls because allowing capital mobility provided access to massive amounts of international capital.
• C) Liberalization is the belief that markets are better than governments at allocating economic resources.
• D) The WTO required free capital flow for membership.

---

Definitions:

Cognitive Development

Cognitive Development is the process by which a child learns to reason, solve problems, and gain knowledge through interaction with the world around them, as described in theories such as those by Piaget.

Piaget's Stages

A theory of cognitive development devised by Jean Piaget, which describes how children's understanding of the world changes through four stages of development.

Object Permanence

A cognitive development milestone in which an infant realizes that objects continue to exist even when they cannot be seen or heard.

Sensorimotor

The stage in Jean Piaget's theory of cognitive development where infants learn to interact with their environment through physical actions, from birth to about 2 years of age.