Polsci369 Quiz 1

economic liberalism

ideology and IPE perspective that holds that nations are best off when state's risk in economy is minimized. Derives in part from fear of state abuse and power and in part from philosophy of individualism and liberty of Enlightenment. Been popular since 1970's and served as a foundation for policies with globalization. Influenced by classical liberalism and laissez-faire economics of the 1800s, sometimes called neoliberalism.

the System/global level/"Third Image" (international)

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? a) The individual level b) The state/societal level c) the System/global level/"Third Image" (international)

economic liberalism

ideology and IPE perspective that holds that nations are best off when state's risk in economy is minimized. Derives in part from fear of state abuse and power and in part from philosophy of individualism and liberty of Enlightenment. Been popular since 1970's and served as foundation for policies with globalization

Keynesianism

belief that there is a positive role for state to play in domestic economic affairs and int'l affairs; advocates gov't stimulus spending during a recession to boost demand and employment; Keynes' ideas reflected in Bretton Woods institutions and renewed attention because global economic crisis

Arctic Council

countries with territory inside the Arctic Circle make up the Arctic Council - Canada, U.S., Russia, Sweden, Denmark, Norway, Iceland, and Finland. Eager to develop the Arctic's potentially lucrative offshore and onshore oil and natural gas fields. Russia and Norway moved swiftly ahead with oil and gas development to their north; Obama and Trudeau announced in late 2016 that they would bar new oil and gas exploration in their respective Arctic territorial waters - contrast to President Trump's discussion of the need to reduce U.S. dependence on Middle East petroleum and hope to become major oil exporter in future.

Uruguay Round

negotiations from 1986-1994 among the members of the General Agreement on Tariffs and Trade that focused on reducing trade barriers on manufactured goods, services, and agricultural commodities. It culminated in the creation of the WTO

IPE structures

networks of actors and institutions that determine rules governing production, trade, finance, security, and knowledge. Susan Strange says rules of each structure confer power on certain actors and constrain way states behave. Structures regulate processes by which goods and services are produced and exchanged, and they shape flows of money, technology, and information between countries.

mercantilism

seventeenth century ideology that made accumulation of gold and silver through regulated trade a major goal of state; philosophy that justifies government regulation of a nation's economy and intervention in international economic relations in order to increase a state's power and security. Policies of import restriction and export promotion (to accumulate wealth at expense of other countries).

General Agreement on Tariffs and Trade (GATT)

An international agreement in 1947 that became the basis of many rounds of international trade negotiations to reduce tariffs and trade barriers among its many member nations. At the end of the Uruguay round in 1995, GATT, which contains many rules governing trade in goods, was incorporated into World Trade Organization (WTO).

Modern world system (MWS)

Capitalist in nature, the world system largely determines political and social relations, both within and between the nations and other international entities.

Free trade is a zero-sum game

David Ricardo favored free international markets. Which of the following ideas about free, open markets is not associated with Ricardo? a) Open markets promote efficiency. b) Free trade binds nations together and promotes the universal good. c) Free trade is a zero-sum game d) Open markets lead to greater wealth.

International markets should be subject to political regulations in order to protect domestic social interests.

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. b) Foreign aid should be used in some cases where markets have failed to help the poor. c) Consumers make rational (individual) choices that result in unexpected damaging outcomes that hurt the community. d) The state needs to intervene in the economy because markets fail.

In the post-World War II era, what kinds of mercantilist policies has the United States adopted, and in pursuit of what goals? (someone should try to clean this answer up, I'm not for sure if this is right)

Farm production was subsidized heavily and used export subsidies to reduce commodity surpluses; "strategic petroleum reserve" to decrease dependence on OPEC oil; built up stronger cyber capabilities; all in pursuit of enhancing working class and employment and to enhance security

Outline some of the views structuralists have about globalization. Why do they tend to be so critical of it?

Globalization is the political of the TCC, which turns countries into self-marketers that compete for investments and showcase their advantages to TNCs. Globalization has allowed for capitalists to expand their power globally and allows for: accumulation by dispossession, responsibilization, and the rise of the precariat. Globalization effectively increases inequality between classes, as shown by the statistic that the accumulated wealth of the world's richest 1% is = to the wealth of half of humanity. The disparities that occur due to free trade and deregulated markets between capitalists and workers, and the rich and poor countries, produce exploitation, inequality, and poverty, particularly between the Global North and South.

States no longer need to occupy other countries in order to exploit them.

How does neo imperialism differ from classical imperialism? a) International organizations create laws and policies for member nations. b) States no longer need to occupy other countries in order to exploit them. c) After a war, nations install leaders of their choosing in the conquered country. d) Security interests replace economic motives for going abroad.

General Agreement on Trade in Services (GATS)

One of the WTO agreements that came into force in 1995. It liberalizes the trade in services between WTO members and establishes rules members must follow in the treatment of foreign companies delivering services in insurance, telecommunications, banking, transport, and other sectors.

TCC (Transnational Capitalist Class)

Primarily consists of the owners and managers of transnational corporations and financial institutions. They control most global financial assets and most of the stock in TNCs listed on exchanges around the world. Difference between TCC's and Capitalists pre-1970s is that they make money globally, not just in one national economy.

strategic resources

Resources such as oil, natural gas, rare earth materials, and food that are vital to an economy and its major industries. States seek to control these resources or guarantee their uninterrupted supply because the resources have important consequences for national security. Most nations fear becoming overly dependent on others for the resources they lack.

the South China Seas.

Some experts believe that the conflict over rare earths between Japan and China in 2010 was really about control over resources in a) the Mediterranean. b) the Arctic. c) the South China Seas. d) the Pacific Rim.

magine a structuralist and neoliberal having a discussion about globalization—its many positive and negative features. What sorts of ideas would they agree on and disagree about?

Stances on free movement: neoliberals support the unity of the global capitalist class and the free movement of capital and wealth. Structuralists and Marxists support "alter-globalization" in the unity of the global working class (workers of the world unite) and the free movement of labor.

All of the above

The United States has a strategic stockpile of which resources? A)Oil B) Vaccines C) Tantalum D) All of the above

the structure of the international political economy—namely capitalism—conditions its outcome.

The basic idea behind "structuralism" is that a) the structure of the international political economy—namely capitalism—conditions its outcome. b) the core exploits the proletariat. c) the state exploits the market. d) wealth is necessary for power.

Strengthening relations with traditional U.S. allies in Europe.

U.S. president Donald Trump has promoted all of the following policies except a) Strengthening relations with traditional U.S. allies in Europe. b) Increasing the level of U.S. trade protectionism. c) Confronting North Korea over its development of nuclear weapons and long-range missiles. d) Pulling the United States out of the Paris Accord on climate change

National wealth creates national power and national power secures national wealth

Which is the best statement of the relationship between wealth and power according the mercantilist thought? A)National wealth creates national power and national power secures national wealth. B) A nation needs either wealth or power, but not both. C) If a nation has wealthy individuals, it will be secure. D) If a nation has a large army, it will be wealthy.

National wealth creates national power, and national power secures national wealth.

Which is the best statement of the relationship between wealth and power according the mercantilist thought? a) National wealth creates national power, and national power secures national wealth. b) A nation needs either wealth or power, but not both. c) If a nation has many wealthy individuals, it will be secure. d) If a nation has a large army, it will be wealthy.

The System/global level /"Third Image" (international)

Which level of analysis would focus on the actions of different national legislatures when it comes to dealing with the global financial crisis? a) Man ("First Image") b) State ("Second Image") c) The System/global level /"Third Image" (international)

Friedrich List

Which political economist stated that "the power of producing is infinitely more important than wealth itself"? a) David Ricardo b) Friedrich List c) Alexander Hamilton d) John Maynard Keynes

Kenneth Waltz

Who is most closely associated with the concept of the levels of analysis? a) Kenneth Waltz b) Henry Kissinger c) Susan Strange d) Donald Trump

Keynesian compromise

class compromise after WWII where capitalists shared gains from growth and productivity with workers in form of higher wages and benefits while workers maintained social peace; this caused significant state regulation of international financial flows with goals of preserving government fiscal autonomy and achieving full employment. Dissolved in the 1970s after the rise of neoliberalism

embedded liberalism

democratic states intervene in domestic economies and place some limits on international markets to protect society, but they would also support a liberal international system that brought down trade barriers and allowed freer flows of finance between countries

levels of analysis

four levels: individual, state/social, interstate, and global. Theoretically, developed by international relations scholar Kenneth Waltz to explain different sources of international conflict and war. Each level focuses on specific factors that shape relations between states and cause certain international outcomes.

public goods

goods/services that benefit everyone simultaneously but cannot be denied selectively to person/state

non-tariff barriers (NTBs)

government-instituted measures (other than tariffs) that restrict imports, often for the purpose of protectionism. NTBs include health and safety standards, domestic content legislation, licensing and labeling requirements, voluntary export restraints, and foreign exchange controls. Such measures often make it difficult for imported goods to be marketed and raise their price.

nation and nation-state

group of people with shared sense of history and culture; tend to have common myths about origins, make claims to specific territory, and usually govern to that territory.

global governance

management of transnational problems; encompasses rules, institutions, and processes that shape international cooperation in specific issue areas. Emphasizes that many different actors cooperate through voluntary and flexible mechanisms to achieve goals.

hegemonic stability theory

one country unusually rich and powerful dominates entire international system for length of time, which it enforces rules that keep system open to trade, with sound money, and at peace. Benefits hegemon, but it bears cost to maintain.

realism

theory that emphasizes states seeking more power acquisition in order to enhance security. National interest is the determinant of state behavior; states act in their own self-interest.

Lenin argued that capitalism was able to delay its crisis through international expansion. Explain what Lenin meant by imperialism. Outline several examples of imperialism in the global political economy today.

-A: Lenin argued that imperialism was how advanced capitalist core states expanded control over and exploited "backward" colonial regions of the world, leaving them unevenly developed - some classes prospered and others mired in poverty. -Examples of imperialism today in the form of neoimperialism are: ----U.S. intervention intervened in Vietnam and other developing nations not to "contain communism", but rather to take advantage of a breakdown of British hegemony as well as the growth of monopoly capitalism. ----Motives behind U.S. efforts to promote economic liberal policies of the GATT, the IMF, the World Bank, and the WTO were also within their own security interests. ----1980s - U.S. had renewed efforts to intervene in developing nations to protect economic interests. U.S. Bush II admin invaded Iraq and Iran; Obama did not change global role and continued to give aid to Israel and negotiated free-trade agreements. ----------------Structuralists argue that militarism and empire-building are endemic to the American polity because the political structure operates on behalf of those with wealth and power.

Trans-Pacific Partnership Agreement (TPP)

A regional trade agreement signed by the US, Japan, Australia, Brunei, Malaysia, Vietnam, New Zealand, Singapore, Canada, Chile, Mexico, and Peru in 2016. Agreement would have reduced/eliminated many tariffs on goods traded between countries and strengthened intellectual property rights. After President Trump withdrew the US from TPP, remaining members began negotiating a similar agreement w/out US.

mercantilism

17th century ideology that made accumulation of gold/silver through regulated trade a major goal of the state. Today, it is a philosophy that justifies government regulation of a nation's economy and intervention in international economic relations in order to increase state power and security. This ideology emphasizes using the economy to protect the nation-state from any number of real and imagined threats - policies of import restriction and export promotion (to accumulate wealth at the expense of other countries). Characteristics of a mercantilist system are: closed economy policies (tariffs, embargoes), vulnerability, and state strength.

economic nationalism

A mercantilist philosophy promoting state intervention in the market in order to increase national wealth and power. Alexander Hamilton and Friedrich List are two famous proponents of economic nationalism. The term also refers to a people's sense of economic loyalty to their nation-state.

Trade rules should be grounded in the principle of most favored nation treatment.

A mercantilist would most likely agree with which of the following statements about trade? a.) Specialization in comparative advantage benefits all the parties engaged in trade. b.) A persistent trade surplus will significantly harm a country. c.) Trade rules should be grounded in the principle of most favored nation treatment. d.) None of the above

Their dependence on industrialized nations prevents them from acquiring capital and technology for their own development.

According to dependency theory, why do LDCs remain underdeveloped? a) They are dependent on food aid to keep their population alive. b) LDCs are unable to attract investment and thus rely on loans from international institutions. c) Their dependence on industrialized nations prevents them from acquiring capital and technology for their own development. d) They are unable to transition from capitalism to socialism.

individual self-interests and choices.

Adam Smith favored "laissez-faire" policies, where individuals, guided by the "invisible hand," would produce social benefits. The invisible hand stands for a) government regulation. b) individual self-interests and choices. c) hegemonic stability. d) hidden income taxes.

Great Britain

Alexander Hamilton and Friedrich List both wrote that a strong state is necessary if a nation intends to compete with the manufactured goods of the leading industrial power of its day. The dominant industrial power at the time they wrote was a) the United States. b) Great Britain. c) Germany. d) Japan.

Structuralism

An IPE perspective rooted in Marxist thought that focuses on how dominant economic structures shape the political order and relationships between different classes. It emphasizes the conflictual and exploitative relationships between the bourgeoisie and proletariat, the core and periphery, and the North and South. Capitalism is the dominant economic structure that determines class interests and produces inequality within and between nation-states. Much debate exists as to whether and how structural conditions can be changed.

Why do Balaam and Dillman think that the international order established after World War II is threatened? What trends do they point to suggesting that this order is weakening?

Balaam and Dillman think the international order is threatened because of a shift in society's values and culture through the rise of populism and economic nationalism and a loss of faith in globalization. Examples include supporting elites over poor and working class, changes in information and production/communication (i.e., "fake news"), and less democracy and fewer rights (support of populist/nationalist movements). We see this in the US, as opposition to Russia has weakened, movements are closer to nuclear war, and strong international relationships are suffering. Overall, rising powers have interests that international institutions have yet to accommodate.

Corn Laws

British protectionist trade barriers on imported grains; high tariffs benefited domestic farmers and landed cities but caused price of food to be high; later repealed, signifying emergence of free trade

law of comparative advantage

By David Ricardo, stating that the law holds that nations should produce and export those goods that they can produce relatively more efficiently (i.e., at lower opportunity cost) than other nations and import those items that other nations can produce relatively more efficiently. It is often cited as the foundation of free trade policy.

What specific factors do structuralists think have contributed to the rising inequality in industrialized countries since the 1980s?

Capitalism has an inherent tendency to concentrate ownership of capital - changes in the balance of power between classes can redistribute income in society. Changes in inequality are due to both political struggles and economic forces. Therefore, in industrialized countries, rise in inequality is due in part to a strategic political campaign by capitalists to weaken labor's power, downsize the welfare state, and lower taxes on the wealthy, all legitimized by the ideology of neoliberalism. Wealthiest in the world are skilled at tax avoidance, using legal loopholes and illegal tax evasion Gains from labor productivity have been taken by the elites rather than passed through to workers by higher wages and benefits

exploiting less developed countries through imperialism.

Lenin believed that capitalism was able to postpone its crisis by: a) government policies that increase the rate of profit. b) exploiting less developed countries through imperialism. c) progressive taxes that produce a more equitable distribution of income. d) Keynesian economic policies that reduce the chance of another Great Depression.

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

Hamilton believed that free-trade policies were not in the best interest of a young nation; America's infant industries could never compete with Britain's mature industries in manufacturing all the goods and services that Americans demanded. List argued that because Britain had more advanced technology and more efficient labor than the rest of Europe, their goods were more attractive to Europeans than locally produced goods. List also believed that there could be no free trade until states could compete with one another. Thus, the US should protect their infant industries until they were in the same playing level as Britain's. Both Hamilton and List shared a spirit of "patriotic economic nationalism." Ha-Joon Chang and Patricia Goff argue that state protection of certain industries with little to no FDI (mercantile policies) allows the country to grow those industries with their own local companies and preserve "cultural sovereignty". What they have in common that makes them all mercantilists is their agreement on how mercantile policies allow states to grow their infant industries for the economic benefit of the nation-state. Hamilton and List suggest that mass production, imposed taxes on imports and subsidies on exports by state will allow nations to grow their infant industries until they are on a level playing field. Chang and Goff suggest that little to no FDI allows a nation to maintain sovereignty over their industries.

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 believed in free trade, and that free commerce produces efficiency. He also believed that individual success is "admirably connected" with "universal good." The Corn Laws illustrates the conflict between mercantilist and economic liberal views, as a mercantilist would support the Corn Laws because they believe that economic trends are a "zero-sum game," while economic liberals would oppose the Corn Laws since trade to them is a "positive-sum game."

a rich and powerful state that supplies the international public goods necessary for a peaceful and prosperous global economy.

In the liberal view today, a hegemon is a) a rich and powerful state that supplies the international public goods necessary for a peaceful and prosperous global economy. b) a strong nation that uses its wealth and power to set the rules of the IPE, so as to gain more wealth and power for itself. c) a free rider. d) a strong capitalist nation that uses its power to exploit less developed countries.

that selective state action is needed when individual initiative inadequately promote social welfare.

John Stuart Mill is most noted for changing liberalism to reflect a) the need for less state regulation of the economy. b) that states should do more to stimulate industrial output and free trade. c) that selective state action is needed when individual initiative inadequately promote social welfare. d) that strong powers have legitimate interests in promoting social progress in their colonies.

Compare and contrast structuralism with mercantilism and liberalism in the following areas: -the dominant actors -political versus economic motivations behind actors' behavior -the role of the state in the economy -The dominant actor in mercantilism is the state. In structuralism/Marxism the dominant actor is the capitalist class over the workers, while the dominant actor in economic liberalism is the market.

Mercantilism has equal political and economic motivations, with its political motivations being national security and state sovereignty. The economic motivations for mercantilism are domestic stability, managed economy, and a trade surplus. This contrasts structuralism, which leans more toward political motivations. They detail social equality as well as self-sufficiency and autonomy from the international economy. Structuralism political motivations include the dictatorship of the proletariat (instead of the current dictatorship of the bourgeoisie), nationalization and socialization of resources, aid to the working class in other countries (proletarian internationalism) and central planning with the ultimate goal of communism. The economic liberal sees economic liberalism as the most economically motivated perspective, with economic efficiency, competition, free trade, and private property rights. The political upside is furthering international relations with an open, rules-based international system. The role of the state in the economy from each IPE perspective are as follows - Mercantilism has an active state that steers a mixed economy and promotes national industries and capital accumulation. Structuralism views the state as a regulator that controls the commanding heights of the economy and sets price and production through central planning. Economic liberalism looks at "Laissez-faire" and has minimal state intervention in the economy.

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 believed that the economic freedom in capitalism had not led to an improvement in society's welfare. Mill then suggested that the state take definitive action to supplement the market. He advocated selective state action in some areas where individual initiative may not be useful in improving social welfare, and believed the government should be decentralized and education should be mandatory. Keynes believed that people do not act rationally when thinking about the future, especially when the future is uncertain - he used the paradox of thrift to illustrate his point of what happens in these conditions. Therefore, he advocated for the state to use its power to improve the market, as he believed that constructive state action including regulatory policies enhances economic stability.

United Kingdom

Most members of the Arctic Council are eager to exploit oil and natural gas resources in the Arctic region as its ice cover disappears. Which of the following countries is not a member of the Arctic Council? A) Russia B) Denmark C) Norway D) United Kingdom E) Canada

President Trump's outlook on climate change: the state-society level

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 b) President Trump's preference for authoritarian leaders: the individual level c) Russian intervention in Ukraine: the interstate level d) The U.S.-North Korea summit in Singapore: the interstate level

infant industries

New industries in any nation that are at a disadvantage relative to older, more efficient, foreign industries. Most mercantilists and even some economic liberals suggest that protective measures such as high tariffs on imports are justified until newer industries are able to compete fairly with mature foreign industries.

The worldview of Donald Trump

Which of the following is not a factor that would be considered at the state/societal level of analysis? a) The political influence of U.S. banks and farmers b) The nature of a country's government institutions c) The worldview of Donald Trump d) The distribution of wealth between different classes in a country

democratic institutions

Which of the following is not one of the main elements of capitalism listed by the authors? a) the existence of markets for land, labor, commodities, and money b) freedom of enterprise c) democratic institutions d) the right to private property e) markets coordinate society's economic activities

industrial policies

State-directed economic policies designed to guide business investment and development of particular industrial sectors. Such policies often include subsidies for businesses, trade protection, infrastructure spending, and promotion of innovation.

Support for globalization

Which of the following is not usually regarded as typical of a populist-authoritarian political leader? a) Attacks on the press and journalists b) Attacks on human rights and individual freedoms c) A xenophobic outlook about migrants and refugees d) Support for globalization

Explain: "bloody hands and the invisible hand often worked in concert." What do they mean? What examples does the textbook provide to illustrate this point?

This is a view of mercantilists by Kenneth Pomeranz and Steven Topik, who believe that the spread of the free market via commerce depended on a "historic foundation of violence." Examples include slavery to build cheap labor, genocide against indigenous peoples, European powers spreading production of commodities to areas under their control in order to tax them, and Great Britain forcing China (weaker country) to open up opium exports from India.

a dialectical process.

The process by which inherently unstable opposing economic forces and counterforces lead to crisis, revolution, and to the next stage of history is called a) evolution. b) class conflict. c) a dialectical process. d) law of disproportionality.

Explain the key assumptions and assertions of classical liberalism.

There should be individual freedom in the marketplace, as it leads to an efficient allocation of resources and helps reduce potentially abusive state power. Overall, Adam Smith's philosophy, such as the "invisible hand," and that even if people pursued their own self-interests, their passions are restrained by competition that induces them to best serve the interests of others, to behave honestly, and to gain a reputation for fairness.

The Smoot-Hawley Tariff Act

Which of the following U.S. policies before World War II could be considered mercantilist? A) Creating land-grant colleges B) The New Deal C) The Smoot-Hawley Tariff Act D) All of the above

Class is determined by ownership of capital, which can be mixed with labor to form a commodity that is profitably sold.

Which of the following most closely resembles Marx's definition of class? a) Class is determined by ownership of capital, which can be mixed with labor to form a commodity that is profitably sold. b) Class is defined by income, with the amount of money earned signifying one's position. c) Classes are delineated based on property ownership. d) Class is nonexistent; all capital is communally owned.

All of the Above

Which of the following nations have at various times used strongly neo mercantilist policies to achieve economic growth in the post-World War II era? A) Japan B) South Korea C) China D) All of the Above

They both agreed that the United States should have an empire like Great Britain did in the nineteenth century.

Which of the following statements about the views of President Reagan and Prime Minister Thatcher is incorrect? a) They both favored market deregulation. b) They both owe a lot to the ideas of Adam Smith, David Ricardo, and Milton Friedman. c) They both recommended selling off (privatizing) public industries to allow for more competition and competitive pricing. d) They both agreed that the United States should have an empire like Great Britain did in the nineteenth century.

In 2014 approximately 15 percent of total U.S. post-tax income went to the top 1 percent of Americans.

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. D) All of these statement are correct.

the means of production

Which one of the following refers to the privately-owned assets used to produce the commodities in an economy? a) the means of production b) the mode of production c) false consciousness d) private property

the period of nation-building in Europe—roughly 1600 to 1850

Which period of history is often called the "mercantilist period"? a) the fourteenth century b) the period when the GATT defined international trade policies c) the era of the Spanish Armada d) the period of nation-building in Europe—roughly 1600 to 1850

North American Free Trade Agreement (NAFTA)

a free trade agreement between US, Canada, and Mexico that took effect in 1994. When fully implemented in 2005, it eliminated tariffs and quotas on most goods traded among three countries. Remains controversial; scholars disagree about how much it has benefited its members, and President Trump has insisted on renegotiating it to protect US jobs and reduce US trade deficit with Mexico

nondiscrimination

a fundamental principle of int'l trade under WTO rules stating that countries should not discriminate between their trading partners or treat imported goods and services any less favorably than domestically produced ones.

Trade in Services Agreement (TiSA)

a proposed trade agreement being negotiated between the EU, US, and 21 other WTO members to reduce barriers to trade in services such as banking, insurance, e-commerce, and telecommunications. A number of countries hope that the provisions of TiSA will eventually be incorporated into a revised GATS agreement. Negotiations put on hold in 2017.

regime

a set of rules, norms, institutions, and decision-making procedures that conditions actor expectations and behavior regarding a global issue. Also refers to people in power who comprise the government of any nation-state.

Transatlantic Trade and Investment Partnership (TTIP)

a trade agreement that the EU and 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. Negotiations stalled after the British referendum on leaving the EU and after the election of President Trump

most favored nation (MFN) treatment

a trade principle under WTO stating that trade preferences (i.e., the most favorable trade treatment) that a WTO member extends to one country should be extended to all other countries equally

sovereignty

ability and right to exercise supreme authority in a polity; also refers to a state's freedom from control by an outside power.

regional trade agreements (RTAs)

agreements between states in a geographic area to reduce trade barriers between them. Are often easier to form than global trade agreements because there are fewer interests to reconcile. Some economic liberals oppose RTAs, especially if they violate the WTO nondiscrimination principle or cause trade diversion.

voluntary export restraints

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 importer's request. Also called voluntary export agreements

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

an agreement within the WTO that requires countries to provide minimum standards of protection for copyrights, patents, trademarks, and other forms of intellectual property

national treatment

an important principle in the GATT, GATS, and TRIPS agreements that requires a country to treat imported products and services--once they have passed through customs--no less favorably than similar domestically produced goods and services. In other words, internal taxes, regulations, and requirements should not discriminate against imported goods in favor of local goods.

fair trade

an initiative spearheaded by nongovernmental organizations to provide higher prices to producers of certified commodities such as coffee, cocoa, and timber in developing countries. Tries to ensure that small farmers and producers have stable incomes, safe working conditions, and environmentally sustainable practices.

zero-sum game

an interaction whereby gains by one party create equal losses for others. Concept plays a major rule in realist-mercantilist perspective

zero-sum game

an interaction whereby gains by one party create equal losses for others. The concept plays a major role in the realist-mercantilist perspective. President Trump used as an example of one who likes to make zero-sum negotiations and deals: one side wins, the other loses.

positive-sum game

any interaction between actors that makes all participants simultaneously better off

globalization

process of global economic integration driven by economic liberal ideas and policies; connotes increasing economic interdependence as well as the spread of Western (US) cultural influence all over the world.

special and differential treatment

provisions in the WTO agreements that give developing countries exemptions from certain trade rules or let them delay implementing certain WTO obligations. Provisions also give the poorest countries preferential access to market in developed countries and technical assistance from rich countries.

strategic trade policy

state efforts to purposefully create comparative advantages for domestic industries such as steel, aircraft, semiconductors, and high tech. These efforts typically involve state subsidies for companies to innovate, export more, gain economies of scale, and achieve greater production efficiency than foreign competitors. Strategic trade practices are often associated with state industrial policies--that is, intervention in the economy to promote specific patterns of industrial development

Neoimperialism

states no longer need to occupy other countries in order to exploit or control them.

international political economy (IPE)

the interdisciplinary social science that examines the relationships between states, markets, and societies in an international context. Seeks to understand how power is used in those relationships to affect distribution of scarce resources.

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 negotiations ended in 2015 without a new multilateral trade agreement.