POLI-155 Midterm 1
exploit
(v.) to make use of, develop; to make improper use of for personal profit; (n.) a feat, deed
Mercantilism
A 17th century ideology that made accumulation of gold and silver for trade. Nowadays seen as a policy that justifies the government's regulation to intervene in international economics to increase state power and security.
General Agreement on Trade in Services (GATS)
A WTO agreement governing the international trade of services; liberalized trade in banking, insurance, transport, and telecommunications services by applying the principles of national treatment and most favored nation to them.
nation/nation-state
A country who's population share a common identity.
Imperialism
A policy of extending a country's power and influence through diplomacy or military force.
Globalization
A process of global economic integration driven by liberal ideas and policies. Also spread of the western cultural influences all over the world.
Regime
A set of rules, norms, institutions, and decision making procedures that conditions actor expectations and behavior regarding a global issue. Refers to people in power.
positive sum game
A situation in which all countries can benefit even if some benefit more than others
voluntary export restraint
Agreements that limit the quantity of a good that one country can export to another. Importers ask exporters to "voluntarily" set limits on the numbers of exports, backed by an implied threat of economic sanctions or some form of retaliation if the exporter does not comply with the importers request. US and Japan example.
NAFTA (North American Free Trade Agreement)
Allows open trade between the US, Mexico, and Canada.
Corn Laws
British laws that enacted the corn laws in 1815, system of tarries and regulations on grain exports, repealed in 1846, conflict between liberalism and mercantilism. These laws were made to ensure that it did not become on uncertain foreign supplies. In economic interests of members of the Parliament. page 32
Arctic Council
Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden, and the United States come together to discuss issues about the arctic pg 66
Realism
Emphasizes that states seek to gain more power to enhance security. Individuals tend to act in their own self interests.
Industrial policies
Government policies designed to support the growth of the industrial sector of an economy. It may include support for infant industries through tax cuts, grants, low interest loans, and etc, as well as investment in human capital, research and development, or infrastructure development. national innovation projects are a part of industrial policies.
How do liberals such as David Ricardo view international trade? Why do they hold this opinion? Explain how the Corn Laws debate in nineteenth-century Britain illustrates the conflict between mercantilist and economic liberal views of international trade.
He was a particular champion of free trade, which made him part of the minority in Britains Parliament in his day. He opposed the Corn Laws, which restricted agricultural trade. Economic liberals fire the outcomes of state, market, and society relations as a positive-sum game, in which everyone can potentially get more by making bargains with others as to not trading with them. Mercantilists on the other hand view economic transitions as a zero- sum game, in which gains by one person or group necessarily come at the expense of others.
John Stuart Mill and John Maynard Keynes thought that government could and should play a positive role in correcting problems in the market. Discuss the specific types of "market failures" that Mill and Keynes perceived and the types of government actions they advocated. What kinds of policy recommendations do you think Mill and Keynes would favor today? Explain.
Mill acknowledged the problems created by the markets inherent inequality; parents should be required to educate their children. Keynes believed that the Great Depression was evidence that. the invisible hand of the market sometimes is mistaken in harmful ways. For Keynes, constructive state action enhances economic stability, states should take power to improve the market but not along the aggressive, nationalists lines of mercantilism. He also helped reconstruct Western Europe after WWII. Greater regulation of business, higher taxes on wealthy, greater state spending made capitalism more compatible with domestic stability and democratic demands. They would be in favor of welfare programs, food stamps, wic, etc.
Non-tariff barriers (NTBs)
Restrictions other than tariffs designed to reduce imports; That GATT's Tokyo Round addressed the growing numbers of these.
A scholar studying how climate change, free trade, and changes in technology constrain the choices of political elites is focusing on which level of analysis?
The System/global level /"Third Image" (international)
Trans-Pacific Partnership Agreement (TPP)
The Trans-Pacific Partnership (TPP) writes the rules for global trade—rules that will help increase Made-in-America exports, grow the American economy, support well-paying American jobs, and strengthen the American middle class. President trump abandoned.
The Production Structure
The issue of who produces what and on what terms
Economic Liberalism
The nations are best off when the states role in the economy is minimized. Obtains in part from fear of state abuse of power and in part from fear of state abuse and part from philosophy of individualism .
Sovereignty
The right to exercise supreme authority in polity? For realists-mercantilists it may also mean states freedom from being controlled by an outside power.
"bloody hands and the invisible hand often worked in concert." What do they mean? What examples does the textbook provide to illustrate this point ?
The role of violence in international trade is clear, especially when trade and violence were in the same hands—either public (e.g., in Portugal and Spain) or private (e.g., in the Netherlands and England)—and particularly when we consider the various aspects of the so-called primary accumulation, which involved slavery and plunder.
comparitive advantage
The situation where someone can produce a good at lower opportunity cost than someone else can
TTIP (Transatlantic Trade and Investment Partnership)
Trade agreement that the EU and the US began negotiating in 2013; the goal of the proposed agreement is to increase economic growth in both parties by eliminating most tariffs, harmonizing regulations, and liberalizing investment procedures.
Doha Round
Trade negotiations between WTO members that began in 2001 and that aimed to lower tariffs on manufactured goods and reduce trade barriers in sensitive areas such as services and agriculture. The frequently deadlocked negations ended in 2015 without a new multilateral trade agreement.
General Agreement on Tariffs and Trade (GATT)
US and allies formed to lower trade barriers and promote Wests political objective during the Cold War
Level of Analysis: global levels
We look at global economic constraints and opportunities resulting from changes in technology, global markets, and the natural environment.
national treatment
a country must treat imported goods the same as domestically produced goods.
embedded liberalism
a liberal international economic order based on the pursuit of free trade but allowing an appropriate role for state intervention in the market in support of national security and national and global stability
Strategic Resources
a resource that is important for a country's industries or national security (i.e. petroleum→ gasoline, lead→ ammunition, chromite→ jet engines) States seek to control these resources Fear being overly dependent on other states fo there resources
zero-sum game- mercantilists
a situation in which an economic gain by one country results in an economic loss by another
zero-sum game
a situation in which multiple players interact, and winners win only by taking from other players
Uruguay Round
a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization; established new rules and principles to limit protectionist measures such as dumping (selling goods at below fair market prices) and the use of state subsidies
Embedded liberalism can be summed up in which of the following statements?
a) International markets should be subject to political regulations in order to protect domestic social interests. PG 35
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.
In the liberal view today, a hegemony is,
a) a rich and powerful state that supplies the international public goods necessary for a peaceful and prosperous global economy.
3) Which one of the following refers to the privately-owned assets used to produce the commodities in an economy?
a) the means of production
The basic idea behind "structuralism" is that
a) the structure of the international political economy—namely capitalism—conditions its outcome.
Which country or region has the highest share of global merchandise exports?
a. China
Which of these statements is correct?
a. In 2014 approximately 15 percent of total U.S. post-tax income went to the top 1 percent of Americans. b. In 2014 approximately 20 percent of total U.S. post-tax income went to the bottom 50 percent of Americans. c. In 2014 approximately 40 percent of total U.S. post-tax income went to the top 10 percent of Americans. All of these statement are correct.
Who is most closely associated with the concept of the levels of analysis?
a. Kenneth Waltz
A mercantilist would most likely agree with which of the following statements about trade?
a. Neomercantalists beleive Specialization in comparative advantage benefits all the parties engaged in trade. ? Contemporary mercantilists support liberal trade to the extent that it serves the interest of ones nations state.
Which of the following is mismatched when it comes to the levels of analysis?
a. President Trump's outlook on climate change: the state-society level
For which region of the world do agricultural exports constitute the largest share of its overall merchandise exports?
a. South and Central America
U.S. president Donald Trump has promoted all of the following policies except
a. strengthening relations with traditional U.S. allies in Europe.
Regional Trade Agreements (RTAs)
agreements among three or more countries in a region to reduce barriers to trade among themselves The GATT agreement allowed exception from its general trade rules for RTA's and product such as textiles and agricultural goods.
The Trade Structure
agreements and regulation shape the flow of goods and services across borders
Which political economist stated that "the power of producing is infinitely more important than wealth itself"?
b) Friedrich List
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
b) Great Britain.
How does neoimperialism differ from classical imperialism?
b) States no longer need to occupy other countries in order to exploit them.
A measure that restricts the quantity of an item that can be brought into a country is called
b) an import quota.
Lenin believed that capitalism was able to postpone its crisis by:
b) exploiting less developed countries through imperialism.
Adam Smith favored "laissez-faire" policies, where individuals, guided by the "invisible hand," would produce social benefits. The invisible hand stands for
b) individual self-interests and choices.
According to the theory of comparative advantage, mutually advantageous international trade is based on differences in
b) the relative cost of producing a good in different countries.
Level of Analysis: state-societal level
bureaucratic decision making and the type of governmental shape outcomes. Lobbying, electoral pressures, culture, and a country class structure; U.S farmers, American Dreams
Which of the following most closely resembles Marx's definition of class?
c) Classes are delineated based on property ownership.
David Ricardo favored free international markets. Which of the following ideas about free, open markets is not associated with Ricardo?
c) Free trade is a zero-sum game
According to dependency theory, why do LDCs remain underdeveloped?
c) Their dependency on industrialized nations prevents them from acquiring capital and technology for their own development.
The process by which inherently unstable opposing economic forces and counterforces lead to crisis, revolution, and to the next stage of history is called
c) a dialectical process.
Which of the following is not one of the main elements of capitalism listed by the authors
c) democratic institutions
Technically, the United States has a comparative advantage over the European Union in the production of commercial aircraft if
c) production of airplanes in the U.S. requires less sacrifice of other goods than would similar airplane production in the EU.
John Stuart Mill is most noted for changing liberalism to reflect
c) that selective state action is needed when individual initiative inadequately promote social welfare.
Some experts believe that the conflict over rare earths between Japan and China in 2010 was really about control over resources in
c) the South China Seas.
Which level of analysis would focus on the actions of different national legislatures when it comes to dealing with the global financial crisis?
c. The System/global level /"Third Image" (international)
Which of the following is not a factor that would be considered at the state/societal level of analysis?
c. The worldview of Donald Trump
Keynesian Compromise
class compromise where owners of capital would share gains from growth and rising productivity with workers in the form of rising wages and benefits, while workers maintained social peace and accepted legitimacy of the liberal capitalist system.
The Security Structure
comprised of those persons, states, intl organizations, and NGOs that seek to provide safety for all people everywhere
Which of the following statements about the views of President Reagan and Prime Minister Thatcher is incorrect?
d) They both agreed that the United States should have an empire like Great Britain did in the nineteenth century.
Which period of history is often called the "mercantilist period"?
d) the period of nation-building in Europe—roughly 1600 to 1850
Which of the following U.S. policies before World War II could be considered mercantilist?
d. All of the above How?
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*
d. All of the above*
A mercantilist would most likely agree with which of the following statements about trade?
d. None of the above.
Which of the following is not usually regarded as typical of a populist-authoritarian political leader?
d. Support for globalization
Which country is the worlds largest exporter of commercial services?
d. The US
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?
d. United Kingdom
The United States has a strategic stockpile of which resource? a. oil b. vaccines c. tantalum d. all of the above
d. all of the above pg64
The Finance and Monetary Structure
determines who has access to money on what terms, and thus how capital is distributed between nations, tules and obligations as,=money moves from one nation to another in form of loans that must be repaid
Classical Mercantilism
efforts by states to promote exports and limit imports, thereby generating trade surpluses that would strengthen the nation while protecting certain groups within society
strategic trade policy
efforts by states to simulate exports and hinder foreign access to domestic markets through non-tarrif measures; often involved extending support to infant industries ad providing export subsidies to large companies.
Mercantilism
explains the compulsion of nation- states to use power to protect themselves and generate wealth for their citizens; Emphasized using the economy to protect the nation-state from any number of real or imagined threats.
International Political Economy
he interdisciplinary social science that examines the relationship between states, markets, and societies in an international context. Seeks to understand how power is used in those relationships to affect the distribution of scarce resources.
The Knowledge Structure
includes institutions affecting intellectual Property, technology transfers, and migration opportunities for skilled workers
Level of Analysis: Individual
individual policymakers do to cause or influence events. Psychology, goals, and ideology of state leaders.
key assumptions and assertions of classical liberalism
individualism, liberty, and equal rights. They believed these goals required a free economy with minimal government interference.
Global Governance
management of transnational problems it encompasses the rules, institutions, and process that shape intl cooperation environmental damage and organized crime. The concept emphasizes many different actors (states, transitional cooperations, intl cooperations, etc) cooperate through voluntary and flexible mechanisms to achieve common goals.
Trade in Services Agreement (TiSA)
multilateral trade deal being negotiated between the EU and the United States
In the post-World War II era, what kinds of mercantilist policies has the United States adopted, and in pursuit of what goals?
no free trade?American colonists began to control more and more of the Atlantic trade- large increase in wealth for colonies; resulted in the Molasses Act (1733): placed a high tariff on French molasses; although Britain discouraged trade with other countries, colonists routinely smuggled goods; Currency Act (1751): first of two currency acts; prohibited the colonies from issuing paper money
most favored nation treatment
not giving preferential treatment to the imports of one country over the other
Economic Nationalism
people's strong sense of identification with and loyalty to their nation-state, became even more entrenched in international relations, which in turn helped generate a second wave of imperialism when Germany, Japan, Italy, and the US began acquiring their own states
Level of Analysis
problem teaches us to be very concientious about how we frame questions, what data we look at, and what we expect to find.
special and differential treatment
provisions in the WTO agreements that give developing countries and exemptions from certain trade rules or let them delay implementing certain WTO obligations.
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
required countries to maintain minimum standards for protection of patents, copyrights, and trademarks- and to effectively enforce those standards.
fair trade
seeks to give workers in developing countries higher prices for certified goods such as coffee, chocolate, and hand crafted items and timber.
Hegemonic Stability Theory
the argument that regimes are most effective when power in the international system is most concentrated, and the hegemon accepts the costs associated with keeping them open for the benefit of both itself and its allies by providing them with certain intl public goods.
Keynesianism
the belief the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation- form of liberalism pg 34
Nondiscrimination
the idea that countries would extend preferential trade status to all their trade partners- one of the basic principles of GATT
infant industries
those industries that are just getting started, perhaps requiring trade restrictions, most mercantilists and even more economic liberals suggest that protective measures such as high tariffs on imports are justified until the newer industries are able to compete fairly with mature foreign industries.
Level of Analysis: interstate level
we analyze how the relationships between states affect global outcomes.