GOV 312 Exam 3

Describe the shift in approach by the Trump administration during and after the Hanoi Summit! How did this shift affect prospects for a deal on North Korea's nuclear program?

Trump administration shifted from a step-by-step approach to a grand bargain approach before and after the Hanoi Summit respectively. The deal with NK concerning denuclearization became very unlikely, since NK wants the former step by step approach considering their lack of trust in the US.

What did President Trump and Kim Jong Un agree to at the Singapore Summit in June 2018? What was the main problem critics highlighted about the results of this summit?

Trump and Un agreed to improving their relations, creating stable peace, denuclearizing NK, recover MIA remains. Trump becoming allies with NK?

What is an externality?

A cost or benefit of some economic activity that accrues to third-parties who are not directed participants in any exchange relationship relative to that economic activity. If the factory mentioned earlier is sold to plastic factory in China, people living in the town that do not work at the plant still suffer some of the costs associated with production, in terms of worse quality of water despite no participation at the plant or purchase chemical products from the company.

How do trade and globalization shape political relations and order in the international system?

Trade and globalization shape political relations and order in the international system by opening local and nationalistic perspectives to a broader outlook involving the interconnected/interdependent world with free transfer of capital, goods, and services. People trade with friendly people and trade can be used to punish others.

What is the Paris climate accord? How might it operate to reduce carbon emissions and limit the increase of average temperatures? How did it navigate the tension between developed and developing countries?

A multilateral agreement among 190 countries to limit the increase in global temperature increases to 2 degrees celsius from pre-Industrial Revolution levels. Each nation sets its own goals and publically states policies as a way of binding them to reach those targets. 100 billion USD in climate finance to help developing countries fund costs.

What are the positions of the Conservative Party, Labour Party, and Liberal Democratic Party regarding Brexit in the general election campaign?

Conservative: want Brexit to pass through Parliament, happy with deal that Johnson struck with the EU Labour: want to focus on other issues for the upcoming election, internal division over Brexit, want to talk about social issues. Liberal: do not want Brexit to happen - desire to stay in EU; end it

What are the domestic distributional consequences of globalization? Which groups win and lose from globalization inside the United States?

Critics include groups such as environmentalists, anti-poverty campaigners and trade unionists. Globalization operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries.

What are the central arguments in favor of impeachment made by Democrats in light of the testimonies provided on the first day of public hearings in the impeachment inquiry?

Democrats believe the ambassador/witness testimony demonstrates a concerted effort to pressure Ukraine to publicly launch Biden investigation. Trump is at the center of quid pro quo scheme by using leverage aid and presidential visits and the use of Giuliani to conduct foreign policy outside of official channels, believing Trump should be impeached even if he ATTEMPTED to commit a crime and failed. Attempted anything is still a crime.

Describe the differences in the way that Democratic Representative Adam Schiff characterized the impeachment inquiry and the way that Republican Representative Devan Nunes characterized the impeachment inquiry in their opening statements.

Democrats: Concerned with Ukraine's security (vulnerable to Russian attack) and strategic importance to the US. It is a major abuse of power if Trump leveraged military/financial aid to a vulnerable country for investigations that would benefit him electorally. This is important because Trump did this action while he was President. Russia-backed separatists fighting for survival as a sovereign nation. Trump sought to exploit Ukraine's vulnerability, decision impacts future Presidents. Republicans: believe Democrats are simply trying to undo the 2016 election in a different manner since the Mueller Report failed to indict Trump. Nunes beseeches witnesses, invalidating their arguments. There is a conspiracy with Russia, Mueller Report, and Ukraine to meet goal of impeachment.

Which group of countries will be the recipients of foreign aid under the Paris Climate Accord? How did this aid help facilitate the construction of this international agreement? And how might this aid help countries fulfill their emission targets?

Developing countries, eases costs of energies and costs of climate changes. As part of these plans, developed countries and private group committed at least hundreds of million dollars in aid payments every year from 2020-2025 to developing countries. Enable poor countries to adapt their energy consumption and help reduce the negative environmental consequences of climate change, like floods and damage to food.

How did the Hanoi Summit end? Why did President Trump walk away from a deal with North Korea at this summit?

Hanoi summit ended with NO DEAL for denuclearization. Trump rejected deal because he wants a grand bargain approach - denuclearize completely all at once and remove all economic sanctions.

How does North Korea's development of intercontinental ballistic missiles (ICBMs) change the balance of power between North Korea and the United States?

ICBM is an attempt to combine nuclear weapons to reach major cities in the US offsetting their military advantage. North Korea could make adequate demands of the US with credible threats of nuclear devastation. ICBM is all about range, how far and miniature the missile can get. MAD here for NK means different than it does between US and USSR. NK does not have the same arsenal as the US, but could still pose a cost to US with their capability to do so. NK needs these weapons to survive.

What is the International Monetary Fund? What are its main functions? What is the main source of its influence in the international economy? What is conditionality and how does the IMF use it to promote economic reforms within countries? Why does the U.S. have so much influence within the IMF?

IMF acts like a bank: oversees pool of capital created by member countries. Limit exchange rate fluctuations (prevent currency wars from depression that interrupted trade). When a country's currency falls, exports become competitive, takes market share from exporting firms in other countries. Intentional currency devaluation can be a device to shift wealth to domestic firms away from foreign films. Trump complains about China keeping currency low. International trade is often facilitated through exchange rate stability. Euro exists to eliminate exchange rate risks and disruptive effects on trade by eliminating different currencies. Up until the 1970s, countries needed approval from IMF before moving large price values in currency. IMF serves as a lender of last resort to help governments in exchange rate crisis stabilization reserve through loans. When banks and governments of a country cannot borrow in private capital markets, IMF extends loan in global economy, like in the Euro crisis. IMF uses a pool a capital when a member faces something - a balance of payments crisis - when a country as a whole cannot make a loan payment to foreign lender. Country needs to get new loans in the form of dollars to make these loan payments but also unable to do so. Seeing this, private investors pull their capital out of the country because they don't think the government can protect the value of the currency and maintain a sound monetary policy. Private capital holders punish the government and its currency by selling financial assets denominated in that currency space and sell that country's stocks and government-issued bonds. These sales put downward pressure on the stock markets, bond markets, and currency which make it more difficult for the country to raise capital to make its loan payments or renegotiate these loans.In these crises, governments can appeal to the IMF for an emergency loan and IMF steps in and grant loans with conditionality arrangements, terms designed to stabilize the country's finances and ensure its longtime ability to pay its debts to international creditors. IMF enforces arrangements by dispersing these loans in partial payments. It gives country a series of reforms to continue receiving pay. A domestic political cost then arises which imposes real economic pain on an economy. IMF will insist on trade liberalization by cutting tariffs or allowing foreign investors to take a majority ownership stake in key firms. Tariffs help insulate domestic firms from international competition so removing them exposes these firms to more competition and puts them out of business. IMF also insists onsevere fiscal austerity- pushing government to raise taxes and cut spending. Tax hikes take money out of people's pockets and hurts economic growth. When government cuts spending, people get laid off. Conditions impose economic pain on country. Country agrees to these conditions because IMF is last resort. US: not all countries are equal in the IMF, determined by the amount contributed to fund. So the US has a lot of power to place terms on the emergency loans that fit their interests and goals.

According to the Mastro Reading, What do Chinese leaders want for their country when it comes to global hegemony? How has China managed its growing international influence? How should the U.S respond to Chinese challenges in the South China Sea?

Mastro begins by saying China has carefully avoided US, arguing they don't seek global hegemony. Unlike the US with active leadership roles in global alliances like NATO, IMF. Truly believes China's claim to not seek global hegemony. Does not imply China wants to simply coexist with the US and let them maintain global leadership but instead displace the US as a global hegemony. They don't want to take US place at the top of international hegemony and take on burdens and restraints. Resulting in China's failure to undertake aspects of hegemony, like building an international order in its image or establishing a globally dominant military. China has managed to increase power by setting up hundreds of Confucian institutes in foreign countries. It also monitors what Chinese citizens are saying to other Chinese citizens to ensure the image of China is not negative. In the economic realm, China has used economic power in enormous foreign investments and infrastructure, particularly in developing countries to make foreign governments more cooperative. Unlike the Western approach this investment does not come with the conditions like economic reforms or better governments, but it does expect recipient countries to abide by certain Chinese priorities like the non recognition of Tawain. Countries who receive these investments must abide by policies. .In the military realm China has used subtle and non-threatening moves to further their economic development. China has followed a pick and choose strategy with US led international order. China Joined WTO and integrated economy into global capitalist economy and benefited greatly in terms of job creation, economic growth, and lifting a huge part of its population out of poverty. When it has challenged parts of international order not central to US. Chinas clandestine efforts to build man made islands in the south china sea making claims of sovereignty over key-trading routes. Mastro argues that China has entered a new phase in which it has more directly challenged US like in the SCS. According to Mastro, the US should not confront China on every turn, but instead builds power and influence in other regions outside of China. Mastro argues that we should rekindle alliances with traditional allies in Europe, and its historical aid alliance ties with key allies like Japan and South Korea. US must enhance rather than retreat from the liberal international order based organizations, multilateralism, and free trade that it build after WW2. Mastro liked the Trans-Pacific Partnership trade agreement(TPP)supported by Obama. Would have increased trade between the economies of 12 countries across Pacific, excluded China in a clear attempt to maintain its hegemony in the region and contain the rise of China. Trump withdrew because it was a "bad deal that hurt US manufacturing." Mastro argues that this was a strategic mistake, enabling China to fill the void after the US withdrew from the trade pact by constructing its own trade agreement with countries in the region.

Why did the heightened tensions and threats between Trump and Kim in early 2017 not result in a war between the U.S. and North Korea?

Neither had military options that would help them achieve their goals. US war with NK would result in deaths of Americans and South Koreans in South Korea, an attack on a key ally. SK does not want to go to war.

What does Prime Minister Boris Johnson hope to accomplish in the December 12thelection in regards to Brexit? Why is a general election a risk for Prime Minister Johnson's strategy if his party does not achieve a majority in the British parliament?

PM Johnson and general election: wants a Conservative majority in Parliament to push Brexit through and wants the public to break the deadlock through an election. Risk: if there is no conservative majority, Brexit plan is up in the air again with more possibilities, Brexit could be lost, further delays, or a no-deal Brexit is reached with harsher penalties.

What is the tragedy of the commons? Why is it rational for individuals to overuse public goods? How does this phenomenon help to explain the difficulty of managing the sustainable use of commonly held public property? Know some examples.

Tragedy of the commons emerges with public property or resources for which it is difficult (costly) to restrict their use (consumption). Encourages OVERUSE of resources because people don't face the consequences of overuse, like bodies of water and fisheries. With these resources, it is costly to limit or restrict the consumption of individuals or groups. For example, factories emit high levels of CO2 because it relies on coal as a principle, energy source. The commonly held resource is the atmosphere and clean air. By polluting, the industry is degrading air quality in its immediate locality. It is costly to restrict consumption of individuals or groups. If a city shuts the factory down, or forces it to move to another place, it loses all the jobs that it creates → divergence between private benefits and social costs. There is a divergence between private benefits and social costs: individually rational for people states to consume, but diffused costs to society insufficient to prevent overuse. Individuals, polluting firm, choose not to take any responsibilities associated with conservation because it's irrational, if you forgo the common pool resource, you run the risk of it running out because you get a chance to do so, because others want to consume it as well. Factory owner might say competitor isn't paying the cost to move to solar power, relies on coal. If I have to pay those investment costs, I run the risk of going out of business because it will push my cost curve up both short- and long- run. Governments often subsidize fishermen to make them more competitive and facilitate capital investments in their fishing equipment that increases the size of their catches. If one government does so, others will follow. More fish will be caught and an absent-agreement among governments to control subsidies, competition limits the incentives for private conservation on the part of the fishermen. All fishermen rationally make the same decision: accept government subsidies that help push the size of their catches and their profits up, depleting the supply of fish. Factory upstream from city dumps pollutants into the river, which is a key resource for the city. People get sick but depend on factory for job. Forces them to pay costs of treated water. Tell factory to change production process → is this optimal or efficiently allocating resources over long-run, forcing factory to assume all costs of adjustments though the community may reap benefits with new jobs. High production costs may drive factory out of business, despite the government already subsidizing the factory's production because the cost function is not realizing the true social costs of production, which includes the health hazards posed by unsafe drinking water to the citizens. How do you define property rights over a common resource, absence leads to overuse of public resources.

What are the demands of each side in the U.S.-China trade war regarding the so-called mini-deal? Why do both the United States and China have incentives to make this deal?

US demands that China buys billions of dollars in agricultural exports; China demands that US lifts existing tariffs rather than not imposing new tariffs. Incentives include the suffering US and Chinese economies due to the tariffs placed by each country.

How is international migration a part of the broader phenomenon of globalization? How does the international flow of labor through international migration create winners and losers within domestic economies?

As the increased movement of goods and services through international trade increases the aggregate wealth of countries, the movement of labor across national borders also increases economic growth in the aggregate. However, like international trade, migration creates income distributional effects, creating winners and losers. High tech wants to employ high-skilled workers to keep costs down and agriculture, construction and service desire low-skilled and low-cost workers to keep costs down (high tech firms oppose Trump's travel ban). Lower labor costs also benefit consumers through lower prices and increase economic growth. Migrants increase demand for goods, spurring economic growth, but the costs of immigration are borne by unskilled workers (unions) and taxpayers. By pushing labor supply up in certain sectors, labor wages are driven down, foring US government to increase wages for american workers. Immigrants present cost to social services, paid through taxes.

What is the collective action problem? How might it be applied to the challenges of managing climate change? What are some of the political solutions to the collective action problem in the case of carbon dioxide emissions?

Because public goods are nonexcludable and nonrivalrous, countries fail to provide public good sufficiently, i.e. limiting carbon dioxide emissions. No country cannot force another country to stop consuming air unless war is brought. Some countries might include the relative absence of emissions standards on automobile manufacturers and consumers, including regulation on exploration, production, and consumption of fossil fuels. This leads to individual countries failing to adhere to growing CO2 emissions by citizens and businesses. A leadership solution arises where large actors provide public good on their own. US or China absorbs the cost of free-riding because they benefit enough individually by its supply; radical, unilateral cuts by either would make sizable impacts on global emissions. Enforcement mechanism is required which solves the collective action problem since cooperation is sustained by credible threat of punishment. Markets undersupply public goods, so market solution will not work, rather international agreements are required.

Describe the relationship between North Korea and the United States under the Trump administration. How has the relationship between President Trump and North Korean leader Kim Jong Un evolved since the beginning of Trump's presidency?

Beginning: leaders of NK and US exchanged insults and threats (personal attacks through a war of words) getting the other to stand down with a serious communication to pursue their goals, i.e. willingness to go to war. Later: US imposes economic sanctions on NK leading to escalation of crisis. June 2018 at Singapore Summit, sudden shift to diplomacy and dialogue between the country's leaders. Now: After Hanoi Summit, no deal was reached to denuclearize or relieve economic sanctions because of differing approaches - US unwilling to compromise for step-by-step; NK continues to test missiles to send a signal to the US to make concessions.

What is an exchange rate? How do shifts in exchange rates alter patterns of imports and exports? How can exchange rate changes influence trade policy?

Captures the price at which one currency can be traded for another. Indicates the relative value of two currencies. The value of a dollar is always assessed relative to another currency. Dollar-euro exchange rate tells us how many euros a single dollar will buy, or vice-versa.As the dollar depreciates, it can buy fewer units of foreign currency. Multinational corporations, consumers and governments care about 2. What is an exchange rate? How do shifts in exchange rates alter patterns of imports and exports? How can exchange rate changes influence trade policy? exchange rates because ER influence aggregate train flows among economies → imports and exports. When the dollar appreciates in value relative to another country, imports from that country become cheaper, i.e. if the US dollar rises relative to Japan, imports from Japan become cheaper. When money appreciates, imports go up because the foreign products (bought by more valuable $) are cheaper. They undermine domestic competitive firms. For example, US accuses China for currency manipulation and try to drive their money down relative to dollar, accusing China that they're trying to push the value of the dollar up. This exchange rate of Chinese government can stimulate more exports of Chinese products to US consumers and promote a protectionist backlash in the US. Greater Chinese imports carry the risk of displacing US manufacturing by unfairly supporting its business through manipulation of exchange rates and pushing RMB down and the dollar up. When dollar appreciates, exports goes down because priced with US dollars, which is more expensive to foreign consumers and opposite with depreciating currency→ helps exports, slows imports. Large swings in ERs alter trade patterns between countries can undermine the profitability of US firms competing against foregin firms. Appreciate → increased exports, less imports; Deprecated → decreased exports, more imports in the US, i.e. exporting firms like a falling dollar because it makes their exports cheaper to foreign customers.

What is power transition theory? What causes shifts in the distribution of power among great powers and how can they alter the larger international political order and heighten the risks of war?

Changes in the distribution of power between countries will destabilize the international order and increase the chance for war. Caused by a rising state experience economic growth, or spending more on military. Can also happen if a dominant state is no longer willing to accept the costs of being dominant. People don't wanna pay for military spending! War is more likely because rising state becomes more assertive and tries to make changes(China and their military expansions in the South China Sea, effectively trying to change the current dynamics of power in that region). Declining state becomes more conventional in an attempt to preserve the current international order/status quo leading them to war. Commitment problem here is that a weak GP can't prevent its future powerful self from revising the economic, territorial and political rules of the world.

What is the Bretton Woods economic order? What were the main forces that served as an impetus for the U.S. to construct the Bretton Woods order? What are the main organizations that emerged from Bretton Woods?

Emerged in the final stages of WW2 (1944): US supports creation of international organizations to ensure economic growth through international trade. Meetings in Bretton Woods, NH with allied states. Allies believed the collapse of economic cooperation helped cause GD and created the conditions that led to Nazis, which caused WWII. Allied representatives saw the direct connection between the collapse of the global economy in the 1920s and renewed imperial competition and outbreak of WWII. Remedies grew out of his logic. Allies sought to construct an international order post-WWII to prevent a repeat of global economic and political dynamic. Allies believed that a series of international agreements supporting open trade, exchange rate stability and loans for economic reconstruction in war zones could help international trade and peace. By wanting to institutionalize globalization to prevent world wars, US could support as a leader. However, ifstate gains from economic specialization, then any barrier that limits trade discourage such specialization and prevents other states from achieving levels of economic growth. ● Organizations with institutional precursors set up among allied states post-great depression. A diagnosis in response to a global problem caused by ○ Collapse of economic cooperation, Great Depression, Nazi takeover, imperial rivalry ● Solution ○ Construction of IO's that support reduction of trade barriers like the WTO ○ political cooperation to sustain globalization ○ peace and economic growth ○ institutionalize globalization to prevent war and promote economic growth ● Hurdles to Cooperation ○ Commitment problem ○ difference in information/states lie ○ challenging to monitor compliance ○ distributional hurdles ■ ex. Trump says NATO is unfair to US● Emerging Organizations ○ Should be the World Bank not The World Trade Organization (WTO):enforcement mechanism, judicial panel holds states accountable for their actions ○ The International Monetary Fund (IMF): conditionality, requires concessions to join, provides info and sends signals to others

Using the module's reading, describe historical waves of democracy and the possible causes of these waves such as demonstration effects, neighborhood effects, conditionality of international organizations, and the influence of hegemons.

Demonstration effects - describe the fact that developments in one place will often act as a catalyst in another place Neighborhood effects - is an economic and social science concept that posits that neighbourhoodshave either a direct or indirect effecton individual behaviors. In the waves, Democracy transitions from authoritarian rule tend to be regionally concentrated and occur over a span of time → there have been three waves, with each followed by a partial reverse wave where democratic government breaks down and replaced by autocracies. 1st Wave: Wilson → expand number of democracies, i.e. Germany and WWI using self-determination. Most of the 19th century and lead up of WWI. Over 100 years, partial democratic regimes emerge in Europe and US followed by a reverse wave in interwar period between WWI and WWII.Breakdown of fragile democracies in Germany and Italy and rise of racist government under Hitler and Mussolini 2nd Wave: Post-WWII → democracy promotion took a backseat during the Cold War, allied with friendly authoritarian regimes, boom for democracy. W Europe saw the emergence of democratic government in W Germany, Italy and Austria supported by an American hegemony. Japan influenced by US and LA saw some democratic experiments. Reverse wave in the 60s and 70s where Latin America saw breakdown and emergence of dictatorships. 3rd Wave: began in the 1970s with democratization of Spain, Portugal, and Greece in Europe followed by widespread collapse of military rule in Latin American and replacement with democracies in the late 70s and 80s. End of 80s: communist regimes collapsed in E Europe and eventually in Soviet Union → most replaced with Democracy, but some reverted to autocratic rule. Argued that that is now being followed by a reverse wave by Russia and company. Post 3rd Wave: 2011 mass protests in N Africa and ME countries → old authoritarian regimes are replaced with new ones or clash with rising democracies, i.e. Syria.

What are some critiques of the democratic peace theory?

Despite these arguments, there are critiques of the democratic peace theory that question the causal relationship between democrats and presence/absence of war when two democratic in contact with one another. Scholars pointed out that, while established democracies, democrats have been around a long time and have well-developed institutions which tend to not fight, countries undergoing democratic transitions from authoritarian systems to democratic tend to be more likely to experience war:(1) More likely to have war than established dictatorships. (2) for example, during the breakup of Yugoslavia, democractic transitions helped to fuel inter-state conflicts between successor Yugoslav states like Serbia, Croatia, Bosnia, and Herzegovina. Scholars offered alternative explanations for the absence of war between democratic states, particularly after WW2. Peace between West European states like GB, FR, and West Germany during CW and after was not due to common democratic regime type, but rather because they had a common enemy in the USSR. Great power settlement after WWII: peace is a product of US hegemony in W Europe and Soviet hegemony in E Europe. Each superpower maintained peace among the countries within their own spheres of influence and the nuclear standoff between the two superpowers kept these two alliances from fighting. Correlation of rise in democrats, especially in W Europe, and absence of war was because of correlation, not a cause. US imposed or at least helped to develop democracy in W Europe but also imposed peaceful relations through hegemonic region over the region.

What is a Nationally Determined Contribution?

Each country, within the treaty, submits NDCs, sizes of pledges to reduce carbon emissions are not negotiated among parties, rather set nationally by political and economic challenges that different to each country. Post-2020: climate actions countries intended to take under the new international agreement, set at UN Framework Convention on Climate Challenge.

Why does North Korea want to acquire and maintain its nuclear weapon program? How does the experience of other states such as Iraq and Libya affect North Korea's perceptions regarding its nuclear program?

Ensure regime survival if they can have nuclear weapons considering the US wants them to change their regime structure. Iraq and Libya gave up nuclear weapons at the request of the US and the US instituted regime change anyways which further reinforces the fears of North Korea.

What has President Trump signaled by not rescinding the invitation for a White House visit to Turkey's President Erdogan after Turkey's attack on Kurdish militias? How did Senate Republicans, like Lindsey Graham, react to this visit?

Erdogan and Trump are best buddies and welcomed him despite Turkey facing backlash. Frank and productive conversation on the situation with Syria and ending with hostilities. WH visit signals commitment and no remorse to decision to remove all troops from Syria. Trump and Erdogan want to repair relations. Reaction: many still oppose Trump's decision to have relations with Turkey and abandon Kurdish allies, unhappy that Trump allowed an invasion, Graham reacted cold, unwelcoming, skeptical and critical. Pile of manure and you can still find a pony.

What are the main components of the Paris Climate Accord? How should it operate to limit the growth of carbon dioxide emissions?

Goal to limit temperature increases to <2 degrees celsius, then 1.5. Binding process for monitoring and reporting updates on emissions targets and progress (plans made public every 5 years, and stronger than previous). Give foreign aid to developing countries to ease costs of alternative energies, and costs of climate change.

What are the two main dilemmas facing NATO? How has the Trump administration addressed these dilemmas?

First: Europeans shirking(neglect their responsibility), restrains US military power and is burdened by too many demands from other countries. European countries shirking their responsibilities not fulfilling their responsibilities to provide own military security by not spending enough on their militaries during or after CW. Eisenhower complained after NATO was formed that EU allies in NATO saying they won't make sacrifices to provide the soldiers, a bipartisan policy among US representatives. US carries too much of the burden of NATO's collective security and is a recurring problem in Trump's transatlantic relationship. Second: US is reluctant as a hegemon. Issue shines through under the Trump administration. Now, NATO provides a lot of benefits for the US, but remains a huge burden. Trump has challenged the basic foundations of NATO and EU security and questioned trade-off arguing the costs of NATO outweigh the US benefits. The complaints of EU shirking by Trump admin and the argument that the cost of an institution like NATO are real and need to be addressed as prominent challenges facing the military and alliance. Remedies considered by Trump will break US FP. Trump has called NATO obsolete, and called out EU members to increase domestic spending to levels expected by treaty or US will fail to abide to NATO's principles. This position strikes the heart of NATO collective security arrangement by the US as its hegemony by questioning leadership and the apparatus that maintains peace. Western Europe wanted to make sure that the Americans provided security against the Soviet Union (Americans in, the Russians out), and to ensure that Germany would not re-establish is military power in the European continent (keep Germany out).

According to this module's reading, what is the Mundell-Fleming Trilemma? How does it create tradeoffs in a country's exchange rate policies?

Free flow of water, contractionary and expansionary monetary policy, and capital mobility. The tension between monetary policy autonomy, exchange rate stability, and capital mobilityis known as the Mundell-Fleming Trilemma. Although governments often want monetary policy autonomy, exchange rate stability and capital mobility, they cannot simultaneously possess all three. Instead, they must choose two with the trade-off of the third. In the post-Bretton Woods era, the U.S manages this trade off by allowing open capital flows and maintaining monetary policy autonomy, but opting for a floating exchange rate system, which is not very painful for the U.S. because the dollar is not prone to severe volatility, being able to absorb many shocks. However, the trade off comes with the lack of control in exchange rate determined by its market. Consumers would like the government to maintain monetary policy autonomy to occasionally use contractionary policy, like raising interest rates to slow inflation.Other actors, like laborers, worry about government's ability to intervene to provide stimulus in the form of expansionary policy--lowering interest rates, thus encouraging spending and borrowing, when the economy is in recession or slump, i.e. unemployment rises. However, economic principles dictate that these two goals → stability in currency value and monetary policy autonomy are incompatible in an environment of capital mobility across international borders. Small countries peg currency to large country and give up monetary policy autonomy for stability. China uses capital controls, yen outflows are putting depreciative pressure on exchange rate and would like to avoid large-scale devaluation, or downward adjustment in ER or keep yen low to boost exports.

10. What is the GATT? What is the WTO? How does these organizations differ? What are some of the norms, principles, and rules associated with the GATT and WTO? How does the dispute settlement mechanism in the WTO support international trade?

GATT is the General Agreement on Tariffs and Trade, a precursor to the WTO, multilateral international organizations designed to support reduction of trade barriers on a reciprocal basis among states. Reciprocity and expectation among states that any concession or tariff cut would prompt some set of tariff cuts by another state in return. GATT provided a series of rules that would guide negotiating rounds during CW. One important thing: No enforcement capabilities, trade disputes handled on bilateral basis. Membership in GATT boosted a country's aggregate trade flow during CW. Increased international trade. Despite the construction of trade deals, no mechanism was present to resolve trade disputes among members when one country accused another of violation. States could exploit GATT rules to secure better access to another country's markets and temporarily reimpose new tariffs with limited penalties. Expected countries to handle trade disputes on bilateral basis is highly inefficient and variable across countries. In 1995, GATT became the WTO. Institutionalized a dispute settlement mechanism with established procedures for filing grievance, investigating complaints, and punishing defection → judicial means to settle trade conflicts. It was designed to ensure that states upheld existing trade concessions through tariff cuts negotiated with GATT/WTO → deters violations of agreement. Judicial panel can enforce these obligations by authorizing compensation to injured party in the form of trade sanctions. Plaintiff has a lot of discretion on where to impose retaliatory tariffs and a lot of autonomy. Includes an appeal process for those accused. If a defendant is found guilty of violating a trade policy, the panel determines the 9. Describe the main elements of international economic cooperation. Why is political cooperation between states on international economic affairs difficult to achieve? How might international economic organizations, like the WTO and the IMF, facilitate economic cooperation among states and higher levels of international trade? economic injury size to the plaintiff country and empowers panel to impose tariffs. WTO can punish sectors of economy with most political clout. European countries using WTO to punish Bush for steel tariffs and would impose tariffs on orange juice if the US won ruling. Bush just won a very close election in Florida in 2000 so penalty tariffs imposed by WTO designed to impose economic costs on voters most important to victory. WTO enforcement capacity keeps global economy open by punishing states pursuing protection → pushes upholding policies to avoid punishment. Global effort has dwindled in the past decade, does not impose effect on international trade, but the mechanism is affected in preserving obligations, but there has been resistance to big trade liberalization like US, Japan, China and Russia hindering progress to it. If you have an enforcement mechanism that equalizes the playing field, then maybe they are less-willing to further trade liberalization.

How can global capital markets discipline or influence the economic policy of governments?

Global capital markets also have power to discipline/punish the policy decisions of governments. They do this by selling financial assets that are denominated in the home currency of the government or by selling government bonds.These sales drive down the value of the currency and raise the government's borrowing costs. As the borrowing costs increase, governments have to take political unpopular steps through raising interest rates, cutting public spending, or raising taxes. Sometimes major participants in global capital markets, like pension funds, hedge funds, investment banks, can discipline and change policy of governments through market-based transactions. When foreign capital holders lose confidence in a government's monetary policy, they tend to sell assets denominated in that currency. Currency depreciates influencing government to reassure its investors (or bring them back) by: raising taxes or cutting government spending, offering higher returns, i.e. pushing interest rates up, but these measures push domestic economy into recession, i.e. Greece in the Euro crisis. Greece triggered by global financial crisis in 2008, government had long-run, un-sustainable government budget deficits. As the financial crisis spread, investors began to worry about whether Greece could repay its exploding debt levels. These investors started selling Greek bonds, sales drove down the price of Greek government bonds, which increased the interest rate that the Greek government had to pay to get investors to lend it money and meet its spending obligations. These sales drove interest rates in Greece to unsustainable levels. By early Jan 2012, Greece had to pay 30% IR on 10-year loans. US pays between 1.5-3%. These market-based pressured, which resulted from the decisions of global capital holders to sell greek bonds, altering economic policy of Greece and forcing it to induce a recession in Greece pushing unemployment to 20%.Underpressure from IMF, Germany, and the EU, Greece adopted harsh measures of economic austerity by cutting government spending and raising taxes to reduce deficit and reassure capital holders it would repay debts. Slowed down economic activity within Greece and small businesses and citizens affected. Long-term sustainability of US budget deficit under scrutiny. How long can global markets fund US budget deficits. End of 2017, 20.5 trillion debt. Deficits are not sustainable → eventually capital holders will decide it wants higher premiums for continuing to fund debt of the US → increasing borrowing cost of the government and interest rate payments of this debt will consume higher levels of federal spending, which forces the government to raise taxes to pay for this debt. If it cannot on its own, global capital markets will be there to pressure the US to do so.

What does globalization in financial terms look like?

Globalization in financial terms is the movement of capital across national borders. Capital movements make it possible for foreigners to invest in the US economy. For example, Honda and Toyota build factories in the US and only employ US workers to sell to US consumers. Our government uses foreign capital inflows to run large budget deficits and spend more money most years taken in as tax revenue.

According to the reading(CH.20 Great Power Politics) what is hegemonic stability and how does it relate to the provision of public goods and the free-rider problem.

Hegemonic stability theory holds that concentration of global economic activity in a single state, the hegemon, stimulates high levels of trade among all states in the international economy. The leading economy of hegemon, produces these systematic economic outcomes through its self interest economic leadership. Because a significant proportion of total global economic activity occurs within a hegemon, it cannot remain hidden from the costs of global economic slowdowns or recessions. Furthermore, it can sustain its own internal economic development by fostering trades among states in the global economy This theory implies that the hegemonic decline can undermine the supply of these public goods that support international trade and reduce international trade flows. These trade promoting policies impose costs on the hegemon causing its relative economic advantage over the rest of the world to diminishes. The hegemon may have fewer resources to shoulder the costs of public goods provision for the global economy. An example could be the elimination of tariff barriers at home hurting the economic competitiveness of domestic business. This puts people out of work and activates domestic political opposition to a government. Similarly, a global military presence that protects shipping lanes also requires costly diversion of domestic economic resources to military uses not vital to national security. Faced with its own economic decline, a hegemon may seek to then push these leadership costs to another state. The stability of the International System requires a single dominant state to articulate and enforce the rules of interaction among the most important members of the system. Theory indicates that the international system is more likely to remain stable when a single nation is the dominant world power, hegemony; presence of an indispensable nation. Theory suggests that an international system a large actor, the hegemony, pays the cost of providing public good on its own because the benefits it receives are good enough compensation offset the costs. The free rider problem is when people enjoy the benefits of a public good without paying for it. Global public goods: Protection of the environment, Protection of global shipping lanes, Stable and open international economy. etc.

1. What is democracy? Describe Robert Dahl's three "procedural minimal" conditions of democracy.

If a country has this, free and fair elections, then it is democracy. If not, then no democracy. What does it take to hold fair and free elections? While this singular element, competitive elections, may seem like a low threshold for democracy, it requires several other conditions that make a democracy more difficult as a political system to attain and maintain. Robert Dahl, political theorist of democracy, provided a number of other preconditions that need to be met to ensure multi-party elections that are truly free and fair. Public contestation- requires multiple parties competing in an election (electoral competition) and civil rights and liberties - right of citizens to freely express themselves from associations and receive info from the media (freedom of press → individual freedoms). Without all these, even multi-party elections, these elections would not be free and fair and would not be democractic. Inclusion - must allow universal and equal participation by all segments of society. If a group, such as women or ethnic minority, is systematically excluded from the political process, then that polity does not meet the minimal threshold of democracy → universal suffrage. Democratic sovereignty- democratic election must result in establishment of truly powerful decision making bodies such as Legislatures and Chief Executives. If a country holds truly competitive elections, but the important decisions are made by unelected bodies like military or religious authorities, then the country is NOT a democracy. For elections, two bodies without any real political power do not count. For example, competitive elections in Iran will not make Iran democratic until non-elected power such as religious authorities remove their power.

How does international migration intersect with national security? According to your reading for this module, how does international migration present challenges for national security but also resources that can enhance a country's security?

Immigration raises fears of infiltration by terrorists through lack of regulation. Leads to calls for stricter control/regulation of access through borders, especially of refugees and migrants from countries experiencing war (Trump Travel Ban). The challenge security arises since state worries about the slippery slope if others perceive them as weak and challenge sovereignty. However, one can accept migrants and increase security through the improvement of relations with other nations by taking in their migrants, or pressure adversaries by taking in the refugees the adversaries oppressed.

What are institutions? What is the difference between an institution and organization? What are some examples of both in domestic and international politics?

Institutions are humanly devised constraints that structure incentives and interactions. Organizations are political actors in the system. Organizations pursue political objectives, while institutions are the set of rules that structure the behavior. Examples of institutions in domestic politics include not speeding or stealing, Institutions in international politics include sovereignty and chemical weapons. International Organizations(IO), comprise formal intergovernmental bodies that posses agency, the capability to make decisions and issue directives. Political actors in the international system include individuals and actors of many states, often members are nation-states who posses agency and pursue political objectives. These IOs are created by states to fulfill larger sets of political goals that their individual members share, but IO still possesses agency and political incentives that drive behavior in international order. These include NATO, UN, WTO. The WTO was created to promote and defend a series of international institutions designed to eliminate trade barriers between states. Institutions cannot act, they rules created by humans to design, shape, and constrain behavior. International institutions are the "rules of the game" that shape how states interact. They include rules codified in treaties- domestic documents that create legal obligations for the state. Also includes norms, which are tacit or unstated, but widely understood behaviors that shape states expectations about their interactions. International Organizations comprise of formal intergovernmental bodies that possess agency, or the capability to make decisions and issue directives. Examples of Institutions Domestic: Don't speed, winner majority of electoral college votes is president. International: Soveriegnty (once states recognize other states as independent members of the international system, simultaneously gives them rules of sovereignty.)AKA don't. interfere with political outcomes, respect boundaries, etc. Examples of organizations United Nations NATO World Trade Organization

Understand, explain, and give examples of how international institutions shape international politics through the following mechanisms: a) guiding behavior and shaping expectations; b) providing information about state interests and incentives to comply; c) allocating and generating power for states.

Institutions have rules that guide interactions among states, such as sovereignty as legal recognition of a governments right to regulate people within its boundaries. These include not violating the territory of other countries and fostering expectations of non-interference in others domestic politics. It also helps define inappropriate behavior of states, norms are designed to minimize conflict in the international system. Another example includes how trade liberalization, GATT serving as a general agreement on tariffs and trade + access to domestic foreign market companies, an acceptance for the spread of international trade. By showing willingness to live within current rules of international trade, a long term commitment is shown for trade liberalization. They allocate and generate power for the states by creating international law with judicial activism at WTO and set an agenda in favor of some by veto power in the UN with security council.An example is the UN keeping recognition of Palestine off the agenda. For example the US uses the UN security council to prevent Germany, Brazil, Japan or India from having the capacity to veto UN resolutions or influence their capacity to set the agenda. Ikenberry argues that the US entry into IO like NATO, helps solve the problem of politics at the international level through free trade, the lock-in policies which help the US and benefit them

Discuss the global patterns of international migration. What are the countries with the largest inflows of international migration and which countries have the largest inflows of refugees?

International migration has increased, total number of migrants has increased, faster than global population growth, differs from countries, US is the top receiving country in terms of raw numbers of total migrants living in the country, refer to migrant stock in the country, who were born elsewhere and migrated, does not mean annual inflow of migrants, which is smaller. US has 4x more than Saudi Arabia and Germany. As percentage of population, ME countries dominate since their workers are made up of migrants, i.e. UAE and Saudi Arabia, Canada and Australia. India, Mexico, Russia and China send the most immigrants. People move from less developed to more developed countries. Not the case with forced migration → Turkey receives the largest flows fleeing war and persecution. Thus, accepting and protecting refugees falls to poorer countries in the world (Asia, Africa and ME), which are least equipped to meet those demands, Germany is the only western country on the list.

Describe the main elements of international economic cooperation. Why is political cooperation between states on international economic affairs difficult to achieve? How might international economic organizations, like the WTO and the IMF, facilitate economic cooperation among states and higher levels of international trade?

Joint reduction on tariff barriers, foreign aid, emergency landing funds, and monetary cooperation with the stabilization of exchange rates all serve as main elements in global, economic cooperation.Some difficulties include: states experiencing commitment problems and cheat their concessions, uncertainty about the level of interest or cooperation from other states so they will also not cooperate (mano a mano), and monitoring compliance and distributional balance is difficult. Some solutions include reinforcement mechanisms through punishments: the WTO and Judicial Panel and IMF and conditions being met to receive aid.

What are remittances? How do remittances help to redistribute wealth from wealthy countries to poorer ones?

Money sent from migrant's family and friends back home. Represent one of the largest transfer of capital across international borders. Financial transfers (redistribution of wealth/capital from developed countries to developing ones). Pros: cannot be withdrawn and are unconditional, avoid government structures and avoid corruption and provide a valuable form of social insurance, credit and investment in countries that lack these markets.

What are the Cold War origins of the North Atlantic Treaty Organization (NATO)? What did Lord Ismay mean when he said the goal of NATO was "to keep the Russians out, the Americans in, and the Germans down"?

NATO was formed as a collective security organization meant to counter the Soviet threat in Eastern Europe (the threat of the USSR and the Warsaw Pact). Ismay meant that NATO was created to keep Soviet influence out of Eastern Europe, keep the US committed/involved in Europe's defense, and prevent Germany from reconstituting and becoming a threat once more, fostering peace between democratic powers in Europe.

What is the status of renewed talks between the United States and North Korea regarding North Korea's nuclear program? What has been North Korea's response to American gestures such as the suspension of military exercises with South Korea?

NK rejected offer to renew negotiations or talks. NK gave the US until the end of the year to show GREATER flexibility and adopt a novel approach.

What are the three different distributional struggles related to the problem of climate change?

Occurs within societies/countries over the costs and benefits of reorienting how an economy consumes and generates energy (within): electricity and heat. US could rely less on oil, but needs to find another resource. New investments would be required and solar industry would benefit, but coal miners lose jobs and redistribute wealth among the US hurting sectors affected by transformation of energy inputs. Oil and coal therefore invest in lobbying. Distributional issue concerns how global costs of controlling carbon emissions will be distributed (among)countries: developed nations change energy usage with solar and conservation of oil, but countries which are developing, Brazil/Russia/India want to be compensated by the developed world for altering energy consumption by arguing US didn't have to pay total social costs of industrialization efforts in the 19th century which severely impacted CO2 levels in late 1900s. US and Europe should assume more burden and developing countries ask why they should reorient their energy despite the fact it harms them. Any international agreement will face distributional challenges across developed/developing countries. Intertemporal gap (across): conflict among generations: costs fall on future generations, pace of climate change is speeding up, pressuring governments to react now despite it being a long-term problem. Our grand-children cannot directly vote and despite best intentions, our politicians listen to constituents rather than future ones. The intergenerational distributional struggle impedes political cooperation to address climate change, because the costs are more likely to be borne in the long-run by future generations that are not with us today. The costs of transition are born by groups that live today and have much more political power.

According to your reading for this module, how does international migration affect the demographic composition of countries? How do these demographic changes create conflict within countries over issues of national identity?

People consider the national language, religion, etc. It is important to national identity. Immigrants with different languages, religion would cause changes to national identity. These racial/social and cultural changes cause fear to those in dominance. Majority ethnic groups may feel their privileged social status and dominant political power are under threat because immigration introduces new minority groups that may not share their values. In the US, this is manifest in debates over as English as primary language and national identity rooted in Anglo-Protestant culture. In Europe, manifest largely concerns over Muslim integration, demonstrated by strong public sentiment that knowing the national language and being Christian is vital to national identity.

What is polarity? How does the distribution of power between great powers influence their relations? What is the difference between unipolar, bipolar, and multipolar systems and how does each affect relations between great powers?

Polarity is the distribution of capabilities among great powers in the international system. The distribution of power can set the level of threat between states and influence coalition dynamics. The distribution of power structures coalition dynamics sets up abandonment of one ally to another great power. We are currently transitioning from Unipolarity to Multipolarity. Coalition agreements are less stable in multipolar systems with 3 or more GPs. Cold War was a bipolar system, some scholars argue that bipolarity is more peaceful and stable. When 2 dominant powers are so far ahead of every other middle power they don't have to worry about abandonment by an ally. Some scholars argue that unipolarity is even more peaceful. Single GP son far ahead of everyone else, no mid power has the incentive to challenge military. Unipolarity is used to understand the relative absence of GP challenges to our military dominance since 1991. While Russia is seeking to limit military influence in the Mid East by moving closer to Turkey, Iran, and Syria, it is not threatening to fight a war against the US! Similarly, while China is advancing interests in the South China Sea, it is not threatening to fight a war against US to eject US from positions of influence in South, Korea, Japan, Australia and Taiwan. Unipolar US after the USSR collapsed. Bipolar- USSR and US in Cold War. Can limit the risk of abandonment. Like if a state like Italy not much would change. War is unlikely. Multipolar Systems- have three or more great powers and have the highest chance of war. In the multipolar system, alliances are important but can change. Rival powers try to cause trouble among other rivals and get other states to change sides. Since there are more actors, more drama. Everyone wants to be on top. Think Pre WW1 and the complex alliance system. WW2 era as well, axis and allies were not singular states but multiple actors.

How can power transition theory be used to understand the evolution of the maritime disputes in the South China Sea?

Power transition theory explains why a country who gained hegemonic power may go to war with another great power. The US keeps naval carriers 12 miles near China's artificial islands built to claim sovereignty within the South China Sea. all following the UN's convention on the law of the sea. Other countries base their claim to one of the important resources in the world through and Exclusive Economic Zone(EEZ)- a UN law permitting a country to extend 200 miles beyond their territories. China uses the historical claims to draw borders to the sea. Using the cabbage strategy building islands and placing as many ships around it to increase claims to control the waters. Tensions arose because of Chinese actions, by building Islands in South China Sea, by placing sand on reefs that support commercial and military developments. US fears that China may use these to reinforce claims to the islands and assert its right to exclusively control the area they claim sovereign. Because China is asserting itself, it is a growing power challenging the US unipolarity and may spark a potential war. Decreases in American presence in the area would lead to full Chinese control of the region, explaining why we have at least aircraft carriers in the region to deter Chinese expansion and protect local allies claim to the territory. US conducts naval exercises by passing ships within 12 miles of the islands to demonstrate that we don't recognize China's claims to the Islands. This provokes China

According to Urpelainen, what are the pros and cons of the Paris climate accord?

Pros: agreement actually made, necessary and first steps, previous talks failures, broad collective agreement including developing and developed countries (Kyoto only had developed - wouldn't impact significantly since developing countries had no policy). Uses voluntary national targets rather than binding agreements with imposed targets for lower emissions, every country paints their own picture and enforce themselves which appears counterintuitive. Voluntary targets is more realistic and can be adapted to international environment which countries exist in. Urp argues no deal would be present if overall, imposed target is placed since nations differ. Enforcement has to be local, because world anarchic (there is no world government capable of enforcement). Cons: how does the world avoid free riding problem. Weak targets can be imposed and countries can not follow through because punishment is self-imposed. Development is traded off with environmentalism. Individual countries and the world benefit when poor countries lose economic advancement, driven by fossil fuels which add to climate change. Countries need a route out of poverty, there is an issue between western countries built by IR while poor nations need that route out. Developing countries should not absorb burden.

Why is there a gap between public opinion regarding the preferred levels of immigration and immigration policies adopted by democracies? How does the collective action problem help to explain this gap?

Public immigration open policy is not popular. Smaller groups are better able to mobilize and affect policy. Agriculture benefits from migration, because of lower labor costs, but laborers and taxpayers lose. In the US, immigration is partisan issue → Latinos believe different policies and serve as a swing on this issue. Republicans worry that majority vote Democrat; permanent political status as minority party in key-electoral states, like Texas and Florida. Powerful interests experience concentrated benefits from immigration while the costs are distributed widely across less organized interests. CAP: powerful interest groups with less people benefit from immigration, i.e. agriculture and tech. Cost of immigration is diffused among all groups, so CAP ensues.

What are the central arguments against impeachment made by Republicans in light of the testimonies provided on the first day of public hearings in the impeachment inquiry?

Republicans respond by saying there was no quid pro quo violation since military aid was still released and no investigation was launched. Ukraine President stated he did not feel violated and also that the testimony of the ambassador was hearsay, rather secondhand information from officials that never spoke to Trump directly, no direct/clear proof. Hearsay is unreliable and claims are inaccurate. No significant opinion of public → Democrats (83%) and Republicans (10.6%)

If trade makes states wealthier, why is there political resistance to globalization?

Resistance to globalization due to distributional consequences: some gain and some lose. Globalization redistributes income within a domestic economy, pushing wages up and down. Complication in Ricardian model has part of the answer with respect to society's interest in free trade, tells us that international trade increases international income in overall economic pie. However, does not discuss national economic pie and disproportionality. Heckscher-Ohlinmodel describes that trade and globalization alter the size of the pieces of the pie.Trade helps to create jobs in sectors that rely disproportionately on resources that the US possesses in abundance. For example, job creation in financial and high-tech services because we intensively use high-skilled labor (people with college degrees) and therefore by earning a college degree, you are enabled to gain from globalization. Jobs are lost in sectors that rely disproportionately on resources scarce to the US, such as unskilled labor in manufacturing. Globalization redistributes wealth and groups that get the short end of the stick are more likely to lobby to limit imports.

What is the Ricardian model of trade? Describe the processes by which it suggests that trade and specialization can increase aggregate national income.

Ricardian model says nothing about the distribution of wealth being altered within a country as a result of trade.It implies instead thattrade makes states wealthier overall.This distinction has important domestic implications. Free trade may help a country overall but hurts specific industries, such as steelor textiles. This tension helps to provoke domestic political conflict over trade policy. Globalization helps raise national income through specialization and trade, essentially be the best at what you're good at, generating surplus enabled by specialization. Countries can specialize in fields in which they have a comparative advantage relative to other countries. This means they can produce a good/service more efficiently than another country. By specializing, countries can increase total value produced and national income. States should eliminate trade barriers to maximize economic growth. If governments want to increase national wealth, Ricardian model suggests they should do what they can to remove trade and engage in international trade even when one's country is more efficient at producing a good relative to others. Countries, like individuals, should maximize economic growth and gain from trade by specializing in the production of those goods in which they held the greatest efficiency.

What types of international behavior does power transition theory expect from global powers that are ascendant versus global powers that are in decline? What is the commitment problem in this situation and how does it help to explain the incentives for declining powers to launch a preventive war against rising powers?

Rising power will attempt to alter the status quo. Declining power is less capable of maintaining political order, therefore will launch a preventive war to weaken the rising power. Commitment problem comes in the rising powers lack of commitment to maintain status quo when becoming more powerful. A weak great power cannot prevent future great power from revising aspects of GP politics.

What is the political significance of the dollar's reserve currency status in the global economy?

Serves as a central role in the global economy. For example, the price of oil is quoted in US dollars so dollars must be bought to make transactions. Capital holders worry their investments in Japan or Greece can fall if the Yen or Euro falls. Money serves as a medium of exchange, facilitates economic growth and specialization. National governments supply for domestic economy, which supplies money for global economy. When global markets go down like they did in 2008, and 2009 we hear: used as a flight to safety → investors sell stocks/bonds of a foreign currency and buys US treasury bonds with their profit. Foreign banks hold US stocks/bonds in their reserve. Holding US government bonds is like holding cash: market for treasury bonds extremely deep and liquid (easier to sell). Banks hold these bonds as expenditure if someone wants to withdraw money. The global economy depends on the US government to run a budget deficit since it spends more money on things than it takes in tax revenues. Our government pays for this deficit by taking out loans through IOUs- treasury bonds. The US dollar is powerful and can implement policies and buy things that its people don't want to pay for: Bush admin fought wars in Iraq and Afghanistan and promised tax cut to reduce cost for US public to fight war. Another example, China bought US treasury bonds, pushed dollar value up and raised exports to the US.

According to the reading (Chapter 20: Global Governance), what are the incentives for global governance through international institutions? How are efforts at global governance confronted by the collective action problem? Once international agreements are established, what types of problems of compliance and enforcement do international organizations face?

States have incentives for global governance because of negative externalities, high transaction costs, and collective action problems. Overcoming collective action problem in global governance often proves quite difficult for several reasons. First, the problem of distributing the burden of collective goods provision can activate intense struggles among interested parties, both within and between states. Secondly, an issue for states/groups of states is enforcement, or the punishment for non-compliance. In the absence of a single enforcer, a group of states can provide enforcement. However, each country would like to enjoy the benefits of enforcement without having to pay the cost. Yet, if all countries try to shirk the responsibility of providing enforcement, enforcement is under-provided and would-be aggressors may pursue their goals without fear of reprisal. Given these incentives, establishing credible enforcement is a challenge. In other issue areas, enforcement involves large-scale costs that can make states reluctant to trigger penalties for non-compliant states. For example, if IOs want to place economic sanctions to punish a country which broke international law, sanctions could be costly and fail to produce the desired behavioral change.

Watch Jon Stewart video clip on the United Nations and explain his critique of the United Nations. Why is this critique "funny but wrong" according to lecture? Why does the United States participate in the United Nations and often abide by its decisions when it could just ignore it instead (because it possesses much greater military capacity than the UN)?

Stewart criticizes UN's inability to secure a durable ceasefire in a 2014 military conflict between Israel and Hamas. He says the UN is ineffective. However, why does everyone care about what the UN does? Why do the US and Israel try to block efforts at the UN recognition of Palestine? "Things are spiraling out of control. It's time for a higher authority to intervene. The UNSC convened an emergency meeting -- power players (the big 5).. UNSC called for an immediate unconditional ceasefire.." He is arguing that the UN is worthless in trying to secure a ceasefire in Gaze. Essentially, however frustrating UN's lack of capacity to respond to crises because of near universal membership, it is powerful nevertheless in giving states legitimacy. US seeks UN approval in its international actions, especially controversial ones, as UN approval gives it legitimacy and support from the public.

What is the basic scientific claim about the causes and extent of climate change? What are the main environmental consequences that scientists fear will result from climate change?

That CO2 is a bad heat-trapping gas where levels have increased significantly since the Industrial Revolution from 280 ppm to 400 ppm in 1800-2015. Average global temperatures have risen from +5.5 degrees F. Such claims rest on being skeptic about the scale of the scientific consensus supporting the claim that the Earth is warming. Also imply that policymakers need not alter economic activity in such a way that it harms short-term economic growth in the US to reverse environmental effects associated with this warning. However, there is still political resistance to short term costs, like reducing coal production, enforcing high mileage standards and transformation of electrical grids. CO2 levels remained at 280 for more than 10,000 years. Our current concentration is quite high and causes massive average temperature shifts. This causes extreme heatwaves, drought, change of wind patterns adding variability to weather and rising ocean levels which harm coastal communities.

How does U.S. membership in international organizations like the UN, NATO, and WTO demonstrate the ability of international institutions to solve a fundamental problem of international politics - to create and preserve coercive power and, at the same time, constrain that same power?

The delegation of authority to IO can limit domestic sovereignty. This requires some delegation of responsibility and authority for policy-making outside domestic government. By participating in an international organization, states delegate some responsibility of the designed trade policies to bureaucrats that run the WTO and states which are members. These international organizations have the power to influence American trade policy by penalizing what would otherwise be trade policy decisions made by the President and Congress through normal, legal, and domestic channels. (WTO and Steel) In 2002, Bush raised import duties on steel. Group of countries challenged these tariffs with a trade dispute at the WTO. A judicial panel rules against US in 2003 and Bush rescinded tariffs. IO helped to change domestic policy or laws inside the US. This steel case creates real tension as international organizations and institutions activate for US policy. Institutions and organizations help promote cooperation and US interests; the US strongly supported globalization and elimination of trade barriers after WWII. US believed trade barriers helped cause the Great Depression and the collapse of international cooperation. By changing policies, they prevented the repetition of these events with a series of IOs including IMF, World Bank, GATT. Trading relationships generated policy dividends. It fostered economic recovery in NW Europe and supported export-based growth in US. Moreover, NATO alliance strengthened, SK and Japan improved and gave the international community a stake. As the SU collapsed, real economic costs arose with being left out of US-led globalization. These organizations supported US-policy goals and helped reinforce US political leadership in international economy. The persument of international goals through IO can impose real political costs on the US government with delegating authority for policy making to IO. As with steel, cost of international cooperation sometimes include altering domestic policies that emerge through a democratic process. This was part of the appeal of Trump's first US agenda: his GS oriented around protection of national sovereignty which criticizes multilateral organization and stresses the negative side of lack of national sovereignty that comes with integration of IOs.

According to the reading (Chapter 25: Globalization), what are the chief indicators of the increase of globalization since World War II? What is comparative advantage and how does it contribute to aggregate economic gains for states from trade? How does trade contribute to the economic sources of order in the international system?

The most recent round of globalization has been supported by technological developments associated with the internet that has made it possible to trade services, along with the growth of imports and exports. The growing movement of people through immigration also indicates the integration of labor markets. Barriers to international commerce erode and volume of economic transactions increase as international trade has led to an increase in economic activity.

What is denuclearization? Describe the key differences in how the United States and North Korea understand this key concept.

The removal and prohibition of all nuclear weapons in one country. US desires NK denuclearizing forever with repetitive inspections to verify and US military to remain in SK to remove economic sanctions. NK is willing to denuclearize with the full removal of South Korea and the removal of a protective alliance with South Korea. US military presence in South Korea and protection of ally is vital to US control in Asian region.

What is a trade deficit? How are trade deficits related to foreign capital inflows and investment in the United States?

Trade deficit is called a current account deficit when imports exceed exports in a given year. Politicians invoke the trade deficit as evidence of unfair trade practices by other countries hurting US firms. If foreign firms export more of their products to US consumers, than US firms can export to foreign markets, meaning foreign government is either subsidizing their firms or imposing unfair tariffs on US products. If US firms have limited export access to foreign countries, than the US firms can't hire US workers. This implies that trade deficits undermine the competitiveness of domestic firms and put them out of business. Too much import competition for US businesses and when US businesses close, they layoff US workers. These complaints suggest that the trade deficit eliminates US jobs, with a great imports hurting US employment. Suggests things are a bit more nuanced: using a balance of payments, a current account deficit is offset by a capital account surplus.For example, if the US runs a trade deficit as an entire economy in a given year, it is buying more from foreigners than its selling to foreigners. US finances this deficit with loans from foreigners. Foreigners aren't supplying goods to the US for free. This capital accounts surplus shows up as more investment capital coming into the US. A trade deficit indicates a healthy investment climate in the US. Foreigners wouldn'tfinance US imports if they didn't think these debts would be repaid. Capital account surpluses, which bring foreign capital into the US, help drive domestic investment levels up by helping to compensate for very low savings rates inside the US. Foreign investment in the US, stock market, honda factories, government bonds, increase economic growthin the US. This growth is enabled by globalization and can be a symptom of trade deficits. Exchange rates can influence policy by encouraging economic interests like export-oriented firms or businesses facing foreign competition to lobby the government to change its trade policy. For instance, manufacturers facing foreign competition in the U.S.A. may lobby Congress for more tariffs in order to protect their businesses from cheaper goods from China

What is the democratic peace theory? How do the factors that contribute to democracy's influence over foreign policy in general - electoral constraints, institutional constraints on power such as checks and balances, and a shared democratic identity - help to explain, in particular, peaceful relations between democracies?

This theory holds that the likelihood of military conflict between any TWO states falls when both of them are democracies. ● Justifies for the promotion of democratic regimes ● The theory does not suggest that democracies are more peaceful than non-democraciesin general ● Democracies fight wars with authoritarian states, dictatorships, at the same rate authoritarian states fight wars with each other ● BUT democracies tend not to fight wars with other democracies ● Over the past two centuries, war between democracies has been rare and non-existent ● From 1816 to 2007, wars in which democracies fought on opposite sides accounted for less than 1/20th of 1% of all military deaths ● Empirically, democrats have tended not to fight one another ● How does democracy promote peace when two democrats come into contact with one another? Elections raise the political costs of going to war Mechanism that causes the democratic peace Democratic officials must be cautious before bringing society into war because society pays the real costs of war in terms of loss of life and economic consequences Electoral pressures raise the political costs a leader that might pay for the choice to go to war Encourages politicians to find peaceful settlements and suppress the likelihood of democracies going to war against other democracy because it's in the interest of the elected officials to find these pass away from war Institutional checks and balances associated with democratic ideals Separation of authority in executive and legislative branches helped to solve the commitment problem among democrats Settlements constructed by democrats with each other tend to be more robust because they are hard to change domestically Groups that benefit from an international status quo, that includes peace, can block any change by directly lobbying Congress or other institutions Once peace settlement is set between two democratic states, it tends to stay and remain in force more so than in relations between democratic and authoritarian regimes or authoritarian and authoritarian regimes Democracies also possess a shared democratic identity with each other that fosters expectations of nonviolent compromise and a belief that other democratic societies will view them in reciprocal terms 1. Experimental evidence that shows that the broader public in democratic societies is much less likely to support the use of military force if the adversary is another democratic state Democratic publics tend to see democracy different and have less support the use of military force against other democrats.

What is the TPP? Why did President Trump formally withdraw the United States from the TPP in 2017? Why did he consider rejoining the TPP in 2018?

Trans-Pacific Partnership. Agreement reached among twelve countries in October 2015 that reduced trade barriers, and influenced labor and environmental regulations. Trump withdraws US on Jan 2017 as would Clinton due to job losses in China and unfair trading practice that hurt US workers. Signatories, make up 40% of global GDP. Political benefits include preempt Chinese economic influence, pushing labor and environmental standards up, however US resistance remained because of potential job losses. Moreover, refocus on TPP would be that countries in the TPP might be an opportunity to find that market to export agricultural products that might be losing in trade war to China.

Describe some important steps in the emerging trade war between China and the United States.

US placed new tariffs on steel and aluminum, which China did not accept and responded with tariffs on 3 billion worth US products, i.e. nuts, fruit and wine. The value of an initial threat of Chinese tariffs calculated at $3 billion to offset their losses. US threatened 25% tariffs on China's consumer products to punish Chinese firms for violating intellectual property rights and China places tariffs on US agriculture and transport equipment. Most recently, China imposed new fees on sorghum exports. China continues to target sectors important to Trump's political base and blue collar manufacturers. Agriculture remains important in red states (Nebraska, N and S Dakota, Kansas and Iowa). Imposing economic pain on these states to force Trump to change policies.

What are the main differences between voluntary and forced migration?

Voluntary migration: legal vs. illegal, undocumented migration (overstaying visa). Someone who moves to another country for personal gain such as higher wages, improved professional opportunities, or closer proximity to family/social networks Forced migration: to escape war, repression or national disasters -- states must accept asylum seekers, but not required to accept those in voluntary migration. Refugees and human trafficking - participation of third parties using threats to force people to leave their country and become slaves. Trump and Session's definition of forced migration: must be threatened or repressed by state's authorities, dangers from non-state actors are not acceptable.

Describe some of the efforts by the United States to promote democracy around the world. What are the political challenges associated with American efforts to promote democracy? What are the benefits and drawbacks associated with promoting democracy around the world?

Wilson and Democracy promotion after WWI: wanted to leverage American participation in WWI toexpand # of democracies in world→ facilitated Democratic transitions after WWI and supportedself-determinationas to empower local groups demanding independence from colonial powers. Democracy Promotion During the Cold War:practice of democracy promotion was not as active, primary mission was to contain Communism→ in ideological contest with SU, US talked of superiority of Democracy despite aligning with friendly, authoritarian regimes who helped keep communism away. Democratization and End of CW: Boom for democracy promotion: collapse of communism undermined the idea that the US needed to choose between pursuing Democracy promotion and its security goal of containing communism. Collapse of communism led to greater security for the US and was due to internal pressure from citizens living under communism for more freedom and democracy. Democracy promotion after CW: Clinton's participation in former Yugoslavia was justified as spread of democracy. Also, used Democratic peace theory in the expansion of NATO in E Europe. 1990s: post-commnust Russia initially had movement to Democracy before Putin. Bush administration and neo-conservative movement driven by promotion of democracy → invasion of Iraq to regime change to counter the threat of terrorism. Unpopularity of Iraq led to skepticism of Democratic promotion with US military. Obama emphasized commitment to liberal values and democracy, but withdrew American military force and kept it from long-term engagement. Trump and America First diminished embracement of democracy promotion.

How and why has Democracy Promotion been a more or less important element within U.S. foreign policy over the years?

Wilson and Democracy promotion after WWI: wanted to leverage American participation in WWI toexpand # of democracies in world→ facilitated Democratic transitions after WWI and supportedself-determinationas to empower local groups demanding independence from colonial powers. Democracy Promotion During the Cold War:practice of democracy promotion was not as active, primary mission was to contain Communism→ in ideological contest with SU, US talked of superiority of Democracy despite aligning with friendly, authoritarian regimes who helped keep communism away. Democratization and End of CW: Boom for democracy promotion: collapse of communism undermined the idea that the US needed to choose between pursuing Democracy promotion and its security goal of containing communism. Collapse of communism led to greater security for the US and was due to internal pressure from citizens living under communism for more freedom and democracy. Democracy promotion after CW: Clinton's participation in former Yugoslavia was justified as spread of democracy. Also, used Democratic peace theory in the expansion of NATO in E Europe. 1990s: post-commnust Russia initially had movement to Democracy before Putin. Bush administration and neo-conservative movement driven by promotion of democracy → invasion of Iraq to regime change to counter the threat of terrorism. Unpopularity of Iraq led to skepticism of Democratic promotion with US military. Obama emphasized commitment to liberal values and democracy, but withdrew American military force and kept it from long-term engagement. Trump and America First diminished embracement of democracy promotion.