117 final

boomerang model

*-indirect way for TANs to push their agenda -a process through which NGOs in one state are able to activate transnational linkages to bring pressure from other states on their own governments -norms change the interactions of states and their outcomes by invoking the coercive power of other states -most likely to be effective when NGOs are blocked form influencing their own govts, common in dictatorships, activate their transnational network, graphic videos

when do states take action on human rights

-1. when states are pressed with domestic pressure to do something, explains why democratic govts are typically more likely to promote human rights, tans play important role 2. when doing so serves larger geopolitical interests, Helsinki accords applauded by west bc it pressured soviet union and allies for reform, nobody cared about saddam hussein until he invaded kuwait 3. when the gap between the principle of sovereignty and international human rights law can be bridged, non intervention often intervenes in helping, anti-aparatheid movement framed as anticolonial struggle

the hole in the ozone layer

-1980s discover of hole by CfC, skin cancer -1985 vienna convention for the protection of the ozone layer -1987 un sponsored conference leads to negotiation of montreal protocol on substances that deplete the ozone layer, 46 countries agree to reduce CFC production -initial drop in CFC concentration but production still strong and increasing in developing countries, china

dealing with climate change

-1992 un framework convention on climate change -1997 kyoto protocol: EDCs to reduce combined greenhouse gas emissions, no sanctions for failure to meet targets, countries trade emissions quotas among themselves, less developed countries exempt from specific target, 55 countries ratified it by 2002 -legally binding as of 2005 after Russia ratified it, the US didnt sign, Canada withdrew -2015-16 paris agreement: 165 countries on UN framework, -attempt at comprehensive approach to the problem: mitigating gas emissions, funds to help vulnerable areas adapt to climate change, funds for clean econ development -no clearly defined and understood, no quick international action, no strong leadership, little cooperation- unlike ozone depletion problems -no binding enforcement mechanism!

international treaties

-2nd mechanism for creating international law, negotiated and then ratified by states -typically originate in a convention that brings together a large number of states, but not necessarily all countries to negotiate a new agreement -Geneva convention -countries that sign an international convention are bound to respect the terms of the government

norms life cycle

-3-stage model of how norms diffuse within a population and achieve a "taken for granted" status -stage 1: norms entrepreneurs actively work to convince a critical mass of other individuals in other states to embrace their beliefs, geneva convention by red cross, link with preexisting norms -need to frame stuff effectively, cant have competing frames, women's movement settled on violence against women -stage 2: norms cascade, number of adherents passes a tipping point, idea has sufficient support that it becomes a universal standard of behavior, hard to determine in advance, conformity -stage 3: norms are internalized, widely accepted that they have taken for grated quality, conforming them automatic, affect the way actors conceive their interests

international financial institutions

-Bretton woods conference -free trade- general agreement on tariffs and trade GATT -stable currencies- international monetary fund IMF -joint financing of econ development- world bank group -biased against LDCs: relative powerlessness, cant safeguard their interests, protectionist farmer policies hurt LDC, everything is dominated by the rich

US concerns over foreign ownership, 2005-2006 Dubai Ports World controversy

-Dubai Ports World (Dubai govt firm) wants to buy Peninsular and Oriental Steam Navigation Company which operated several US ports -national security concern --> congressional and public debates -Dubai buys oriental buy US ports go back to US

problem with obsolescing bargain

-FDI often made in political and econ uncertainty -some FDI have large sunk costs -sunk costs can shift the balance of bargaining power from the MNC/home country to the host country over time ----the MNC has power to offer investment or not before, but once invested the MNC will lose sunk costs, host govt will renegotiate -problem for MNCs and host governments, prospect of loss prevents investment -obsolescing bargain is a problem for both actors, prospect of loss may prevent in the first place

infant industry protection in the US

-US has natural comparative advantage in agriculture ad natural resources BUT concern about instability of world market prices and potential unemployment compared to industrial production, reliance on foreign markets problematic for development and security, government intervention to promote industry costly in short run but worthwhile in long run

human rights

-Universal Declaration of Human Rights (1948) -disagreement over causes of the problem and best means for addressing it benefits: empathy, self interests, limiting contagion of repression and conflict costs: compliance costs, risk of punishment for non-compliance, infringe on sovereignty, enforcement may be costly enforcement, monitoring costs, fair distribution -rights possessed by all individuals by virtue of being human -UN charter adopted in 1945 after holocaust controversial:sovereignty, different beliefs,reflects western rights, first gen individual rights over 2nd and 3rd gen collective rights -few have obtained taken for grated quality, not yet been internalized

international law

-a body of rules that binds states and other agents in world politics and is considered to have the status of law -not simply an on issue list of rules , rules woven together by unifying principles, right now its sovereignty -status of law: body of rules that must include both primary and secondary rules -rules about how rules are made (secondary rules) soverignty unifying principal -under sovereignty only states can bind themselves to international law

FDI: multinational corporations

-a firm that controls and manages production establishments in at least two countries -MNCs emerged during late 19th century: dominated first by Britain and then the US -since the 80s, growth in firms going multinational has been booming -production-international trade-cross-border investment, buy and sell in foreign markets, produce outside of the firm's home country -highlight many of the tensions between an increasingly global economy and nationally/territorially organized political systems

floating exchange rate

-a govt permits its currency to be traded on the open market without direct govt control or intervention -this is the regime currently in place for most major currencies, including the US dollar -if a govt chooses this exchange rate regime the price of the currency moves around in line with changes in supply and demand

transnational advocacy network TAN

-a set of individuals and nongovernmental organizations acting in pursuit of a normative objective -central to spreading norms throughout the international system -comprising individuals and NGOs deeply committed to ethical beliefs -aim to persuade other individuals and groups to share their commitments -ICBL: hundreds of NGOs in it, morally bad, adopted norm -actors: international and domestic NGOS involved in research and advocasy, local social movements, foundations and other philanthropic organizations, the media, churches, trade unions -# has grown dramatically, planned parenthood vs. heartbeat international -promote norms to alter interests and change interactions at the individuals and state levels -coordinate the activities of participants around the globe and initiate, lead and actively direct collective action on issues of concern -alter the way actors define their interests by bringing global warming to attention -tans as endorsers:international agreements can be quite complex, legislators and voters can learn whether to support or oppose an agreement from TANs that track the negotiations and endorse or reject its provisions, trustworthy TANs for legislators Sierra club, green peace, provide informational shortcut , enhance prospects for cooperation between states, stops uncertainty that leads to bargaining failure tans as monitors: whether and how states comply with international law and other agreements as well as international norms by revealing info about compliance, allow states to have greater confidence that present and future agreements will be honored, trustworthy rd party, identify and call attention to violations of international agreements, ICBL monitors land minds state compliance very closely , indirect monitoring is far less expensive to states and more efficient than the alternatives, promote cooperation by facilitating monitoring and reducing its costs -globalists over exaggerate the extent to which international law and tans can substitute for govt at the global level -lack political authorty -must rely on voluntary information and compliance

import substitution industrialization ISI

-a set of policies pursued by most developing countries from the 1930s to the 1980s to reduce imports and encourage domestic manufacturing, often through trade barriers, subsidies to manufacturing, and state ownership of basic industries -latin america and later in Africa from 1930s onward -disengage from world market as much as possible, attempt to replace imports through domestic production and domestic consumption -government led development of first simple (apparel/furniture) then more complex manufacturing (cars/machines) -high barriers to trade reduce competing imports and raise revenue for reinvestment in econ -government subsidies for domestic industries -nationalization (government ownership) of industries -large government bureaucracies and public services -financing of industrial development at expense of mining, farming =formerly productive primary export sectors -followed by most LDCs: trade barriers, government incentives to industry, tax credits, cheap loans, draw investor, government provision of basic industrial services by public enterprises, electric power, telecommunications. transport -weakness: industries it encourages weak inefficient industries, many producers came to believe that their potential was restricted, little interaction with world market, vulnerable to crisis -killed by debt crisis in the 1980s

oligopoly

-a situation in which a market or industry is dominated by a few firms -firms ensure that prices rose whenever possible and didnt fall even in adverse market conditions -for manufactured goods, industrialized nations -kept prices high, making imports expensive for developing countries -dutch disease: is the negative impact on an economy of anything that gives rise to a sharp inflow of foreign currency, such as the discovery of large oil reserves. The currency inflows lead to currency appreciation, making the country's other products less price competitive on the export market.

MERCOSUR

-a trade agreement

role of initial conditions: the colonial past

-acemoglu, johnson, and robinson 2001: areas where euros could survive saw larger euro style settlements and political institutions, and areas where they died off faced resource extraction, authoritarian ruling -engerman and sokoloff 2005: different means of resource extraction led to different types of political institutions, plantations and mining led to authoritative, small farms and ranches led to more equal and inclusive structure -more representative govts had advantage in raising revenue, more willing to contribute, govt more likely to help merchants

international cooperation/law

-actions (and sometimes inaction) have consequences: positive and negative externalities -costs and benefits for stake holders other than the actor undertaking an action -externalities provide incentives for cooperation, mutual adjustment of behavior and expectations among different actors -international cooperation takes variety of forms , formal (treaties, organizations) or informal (ad hoc, verbal), hard law or soft law: variation in levels of obligation, precision, and delegation -hard law:obligatory, precisely defined, delegates alot of authority to 3rd parties (international courts) -soft law: aspirational, vague, less delgation, more often adopted -soft law leads to hard law sometimes FCCC to montreal protocol and kyoto protocol -extent of cooperation and its form varies across policy areas, most extensive on econ, international trade, finance development -preconditions: agreement on nature of the problem, manageable costs of solving the problem, large benefits, distribution of costs and benefits are fair, enforcement of cooperation not too costly or intrusive -international law under 3 dimensions: obligation, precision, and delegation

whats so good about trade

-actors engage in foreign trade for the same reason that they trade with eachother within countries: to realize the benefits of specialization -developed in response and in opposition to mercantilism (belief that trade should enhance state govt power, zero-sum gain) then merchant class gained political representation, belief that personal wealth increases national wealth, trade should enhance consumption -specialization: the division of labor, adam smith -classical: restricting market size slowed exon growth -division of labor allows gains from international trade * -economic case: trade is mutually beneficial, consumption, lower prices, more variety, better quality, economic growth, higher standard of living -non-economic case for free trade: mutually beneficial trade leads to more peaceful relations between states, gains from trade increase costliness of war, commerce fosters communication, economic interdependence increases non-economic cooperation

bilateral investment treaty

-agreement between two countries about the conditions for private investment across borders, most of these treaties include provision to protect and investment from government discrimination or expropriation without compensation, as well as establishing mechanisms to resolve disputes -not remotely similar to an IMF, suggestions that some international agreement or organization might help to create a common set of standards for FDI -there are thousands of these -regulates most FDIs

international covenant on econ, social, and cultural rights ICESCR

-agreement completed in 1966 and in force form 1976 that specifies the basic economic, social and cultural rights of individuals and nations -socialist-style rights, living wage and an education -US signed it but never ratified it

regional trade agreements RTA's

-agreements among three or more countries in a region to reduce barriers to trade among themselves -in reaction to WTO -ex. EU Nafta -some think it limits trade with nonmembers., most think as complimentary to WTO

why are some industries protected and some not

-all developed countries protect agriculture, relatively open trade in manufactured products -land is scarce in developed, farmers are protectionist, well organized, US senate favors farm regions over urban, pivotal in parliamentary systems,

foeign aid for development

-amounts of aid given are small and unlikely to grow -few countries do this, very little support -increased levels of aid wouldnt go very far toward solving the basic problems of developing countries -LDCs may act in narrow interest, misused foreign aid

world bank group

-an important international institution that provides loans at below-market interest rates to developing countries, typically to enable them to carry out developmental projects -group of international organizations -goals: euro reconstruction but in the 1950s shift to development and reduction of poverty -provides long term loans for physical and social infrastructure development, project based lending "with strings attached", technical assistance -*concessional finance:money lent to developing countries by government agencies and intergovernmental oragnizations, less controversial, more a form of aid than finance, reflects economic and political motivations -world bank loans have no interest to poorest countries -gets most money from borrowing on major financial markets, typically at low rates, can borrow at much lower interst rate

monetary policy

-an important tool of national governments to influence broad macroeconomic conditions such as unemployment, inflation,and econ growth -typically governments after their monetary policies by changing national interest rates or exchange rates -in most countries it is implemented by the central bank -monetary policy that weakens currency can help the nations producers, a weaker currency means citizens can buy less with their money so the govt has to choose which effects it finds most appealing

when currencies collapse

-argentina in 2001, dollar-peso link -over time in a fixed currency the govt has trouble, investors pull out, govt is torn, domestic interest in keeping devaluation would reduce national purchasing power, might alleviate economic distress and help national producer compete, govt runs out of time, recession -contagion -europe 1992: 1991 german raised interest rates quickly in order to reduce inflation, others faced government crisis, inverstors pulled out, contagion -mexico: nafta, wanted peso steady against dollar, unstable domestically, investors pulled out, floated the peso which promptly sank, hit by banking crisis, affected all of LA, recession East Asia: 1997 booming, then exports lagging, bubble in housing and financial markets, inflation rising, banks taking on more and more debt, investors left, instability started in thailand, contagion, recession europe 2011-2015: involved threat that a multi-country currency union might breakup, greece, ireland, portugal, and spain borrowed too much debt crisis, greece hardest-hit member, nobody liked greece,painful austerity measures in debtor nations, bailouts for the rest, euros unity preserved

commodity cartels

-associations or producers of commodities (raw materials and agricultural products) that restrict world supply and thereby cause the price of the goods to rise -opec -bargaining tool of LDCs -didnt change overal underlying institutions of the international political economy

why do polluters usually win

-bargaining problems as well as collective action problems -special interest groups domestic winners and losers: -dirty industries enhance profits by not paying full costs of production, benefit from lazy policies -industries that produce goods that harm the environment interests the oil industry -competition at home and abroad constrains firms to reduce their costs of production as much as possible race to the bottom, producing at a lower cost for consumers and producers -creates losers and winners -benefits are diffuse and the beneficiaries as a result suffer from collective action problems greener industries dont have politcal clout, bias towards status quo and against policies aimed at improving the environment

envisioned solution: industrialization

-broader range of manufactured products, manufactured goods are more valuable exports, greater export profits acan be reinvested growing the economy goal: become an advanced industrialized economy by catching up through tageted economic policies, changing the country's comparative advantage ex. US 1800 onward, Germany 1870s-1910s, SU 1920s-1940s

does international law matter

-can international law domesticate international politics, can it be found in states -supporters: effective, essential, typically comply with international law, when they fail its because they lack capacity or its the laws fault, states want to observe Geneva but they cant -skeptics:unrealistic and utopian, reflection of state interest, severe constraint on state action, law not precise enough to deal with every possible interaction, product of states interests and interactions, the fact that they comply with the rules that they made isnt surprising -dependence on self-help -generally followed bc of very relative and important benefits of cooperation -obligation and precision important for facilitating cooperation, set expectations for the behaviors of others and reduce the range within which states can argue that the law doesnt apply to their interactions -the more states have to lose, the more international law will shape their interactions -US, international treaties are superior to domestic laws, override domestic laws -compliance constituencies within states that then have interests in ensuring that their govts follow the rules, militaries uphold the geneva conventions

group of 77

-coalition of developing countries in the UN formed in 1964 with 77 members; grown to over 130 members, variant of non aligned movement, attempt to use the collective power of numbers in the world political arena to reform the economic order in factor of the developing world -attempts to remedy the bias of international institutions -non aligned movement: many countries gained independence after WW2 and grouped themselves to focus on their own developing nations, didnt want to align with american led west or the soviet led east -fought for new international exon order, more in line with their need, curtailing the rights of foreign investors in developing countries, revising trade agreements, enhancing influence of LDC government, little was accomplished -more successful at using their control over natural resources to strengthen bargaining position OPEC

overexploitation

-consumption of a good at a rate that is collectively undesirable even if its efficient from the view of any single actor -instead of failing to contibute, as in the case of public goods, actors are likely to overuse the resource ex. whaling

externalities

-costs or benefits for stakeholders other than the actor undertaking an action. when an externality exists, the decision maker doesnt bear all the costs or reap all the gains from his or her action -collective action and the environment -create a divergence between the individual costs or benefits of an action and the broader costs and actions -public good -create a disjuncture between individual interests and collective welfare, interactions of large numbers of individuals or countries can produce outcomes tht are undesirable for society, choices that are reasonable for a single actor can create collectively tragic results

less developed countries LDCs

-countries at a relatively low level of economic development -want to develop, but steps to do so threaten certain actors at home or abroad -geographic location: worlds tropical regions are generally poor, temperate rich, less inductive to industrialization and urbanization, disease, european coloniazers who were affected by disease were more predatory in tropical areas -extremem economic inequality translated into political inequality -domestic factors: interests interactions and institutions, infrastructure, public goods to contribute, security of property, commitment to protect private property, stable and reliable environment for which people can make economic plans for the future, govt commitment why it cant: lack of expertise, actors with bad interests, wealthy landowners, labor intensive plantations, sub saharan africa exploiting farmers for industrialization, hostility and conflict among ethnic groups, -domestic institutions: societies that rely on exploitation of natural resources, elites create societies biased against popular participation, resource curse, national governmetn policies, -many argue that international conditions havent been helpful

international criminal court (ICC)

-court of last resort for human rights cases that possesses jurisdiction only if the accused is a national of a state party, the crime took place on the territory of a state party, or the UN security council has referred the case to the prosecutor -international treaty Rome Statute in 1998, came into force in 2002 -prosecutes particular types of crimes, genocide, crimes against humanity, war crimes, crimes of aggression -stemmed from Nuremberg trials and ad hoc tribunals dealing with war crimes in the Former Republic of Yugoslavia and Rwanda -provides PERMANENT institutional framework instead of ad hoc tribunals -states opt in by signing and ratifying rome statute -only has jurisdiction if the country is a member of the ICC -"court of last resort", only active if domestic jurisdiction fails to investigate -picks cases by referral by a member state, or the UN security council, or as result of ICC prosecutors office, -voluntary membership: US and China not members, states can withdraw -may be biased against Africa -unequal distribution of benefits and costs and risks associated with operation, insufficiently accountable and lacks oversight mechanisms -selective in prosecutions, membership, excludes main human rights violations, states can leave, is it worth having? -attempt to translate the UDHR into legally binding and internationally enforceable treaties -has only handed down 1 conviction

delegation

-degree to which 3rd parties such as courts/arbitrators/mediators, are given authority to implement/interpret/ and apply international legal rules, to resolve disputes over the rules, or to make additional rules -when delegation is high and statutes are imprecise, courts through their interpretations may actually make new law, a result sometimes decried by critics as judicial activism -states are generally reluctant to delegate significant legal authority to 3rd parties, power to interpret has potential to bind states

obligation

-degree to which states are legally bound by an international rule. high obligation rules must be performed in good faith and , iff breached, require reparations to the injured party -geneva convention, crimes against humanity- high obligation law -low obligation: merely aspirational, some standard of behavior, framework convention on climate change FCCC, limited test ban treaty

why do states comply to human rights agreements

-demonstrating commitment to democracy and political liberalization -in order to retain power -shed autocratic and possibly abusive past in attempt to lock in their new institutions and improved practices, this also explains why established democracies are reluctant to sign, have less need to bind themselves but they're starting to sign anyway (except for the US) -induced to do so by contingent rewards provided by others, a form of linkage, established for new democracies, financial assistance Nato, Eu -those with poor human rights practicies most frequently ratify human rights treaties -moral and philosophical motives, natural disasters, our status as humans that creates our rights -self-interest motivations: promoting peace and prosperity in the globalized world, democratic peace, domestic peace, control contagion, interdependent world -TANs are gaining influence

global economy present and future challenges

-domestic and international inequalities in wealth, income, and opportunity -is globalization reversible -who will lead international economic integration (TPP)

2005-2006 dubai ports world controversy -us concerns over foreign ownership

-dubai ports makes offer to buy peninsular and oriental stream navigation company which operates US ports -controversial after lobbyist in florida raises national security concern -congressional and public debates -sale is completed but dubai ports world first transfers operation of US ports to US entity

multinational corporation MNC

-enterprise that operates in a number of countries, with production or service facilities outside its country of origin -buy and sell in foreign markets, produce outside of home country -footloose and easily regulated by national law

international cooperation present and future challenges

-environmental cooperation -neo-malthusian view: population growth outpaces environments capacity, we must limit consumption -cornucopian view: technology will help us, solution requires only ingenuity not limits on consumption -the overall relationship between income and environmental protection is nonlinearly positive -africa is the least green, western europe is the greenest -the costs of global warming are largely unknown -human rights -future of the UN (security council, activities, resources) -future of western security alliances, NATO!

individual petition

-european convention on human rights -a right that permits individuals to petition appropriate international legal bodies directly if they believe a state has violated their rights -future of human rights -european convention on human rights and fundamental freedoms ECHR, enforcement is informally overseen by the EU -individuals can petition to the court directly profound effect on human rights practices in europe -states act as gatekeepers, blocking international courts from hearing cases that they might lose -people want to spread it to every supranational court -found now in ICCPR

export oriented growth

-ex. South korea, taiwan, hong kong in 1960s -emphasis on production of manufactured goods for export -initial step similar to import substitution industrialization: simple to complex -over time selective import liberalization -protection of infant industries against foreign competition -focus on promotion of education and acquisition of skills -creation of special incentives for export production -incentives for investment in particular industries ( subsidized government loans) -became dominant strategy throughout the developing world -whethered 1980 debt crisis better than ISI -trade liberalization, privatization, fiscal and monetary policies to avoid large deficits and high inflation, openness to foreign investment and international capital flows -1997 asian financial crisis sparked in thailand, inflow of foreign capital made bubbles on housing and currencies -shift to globalization

armed conflict: present and future challenges

-failed and failing states -great power rivalries -the changing face of battle

international monetary regime

-formal or informal arrangement among governments to govern relations among their currencies; the agreement is shared by most countries in the world econ -after bretton woods collapsed in the 70s, the iMF gradually took on a more directly financial role -provides predictability in the value of a trusted money and the prices of goods -no global institution to provide global monetary order, gold standard bretton woods -disagreements over the nature of this system, diff actors with conflicting interests -in the best interest of everyone, features of a public good, cooperation and conflict -national decisions to float or to fix their currencies interact to create this -1. clear whether currency values are fixed floating or mix, contemporary its floating -2. agreement about whether there will be a mutually accepted benchmark against which values are measured, common base, commodity standard (uses a good with value of its own, gold)/commodity-backed paper standard (bretton woods, fixed value in terms of gold, commit to )/national paper currency standard(only backed by the commitments of their issuing governments to support them, people want their currency to become valuable, not a fixed rate, current system) -benefits: facilitates international econ trade, -costs: national sacrifices today: has been floating since 1973, requires major national govts to work together, IMF important still, fundamental disagreements over how to share the costs of stabilizing the system, lack of trust and commitments, try to avoid monetary disturbances cooperatively but exchange rates fluctuate widely, not monolithic or organized, smaller countries hate the floating and often link their currency to a larger nation, regional monetary systems

common pool resources

-goods that are available to everyone, such as open ocean fisheries; its difficult to exclude anyone from using the common pool, but one user's consumption reduces the amount available for others -other kind of externality -collective action problem -open ocean fisheries, wildlife -difficult to exclude anyone -leads to overexploitation

fixed exchange rate

-government commits itself to keep its currency at or around a specific value in terms of another currency or a commodity, such as gold -simplest choice in respect to currency is to fix it or let it float -gold standard -a govt that commits itself to a fixed exchange rate also commits itself to the policies necessary to maintain the set rate, adjust interest rates

why invest abroad

-heckscher-ohlin theorem- a country will export goods that make intensive use of the factors of production in which it is well endowed, thus a labor rich country will export goods that make intensive use of labor, capital relatively abundant in some countries, countries export abundant factor, relative abundance=lower price, loans are cheaper for borrowers but less profitable for lenders -capital is relatively scarce in other countries so they import it, relative scarcity=higher price, more profitable for lenders and more expensive for borrowers -capital from relatively capital-abundant countries seeks higher profits in capital-scarce countries BUT most foreign investment flows between advanced industrialized countries due to risks -*most foreign investment flows from advanced insutrialized countries to advanced industrialized countries -locational advantages can derive from a countrys underlying comparative advantage or be the product of government policies (natural resources, large markets, barriers to imports, lower factors cost) -market imperfections may make it difficult for firms to profit from locational advantages- horizontal (production of the sam good in diff locations) and vertical integrations (production of different parts of the same good in different locations)

boko haram human rights example

-helping fight boko haram appeals to domestic sentiment, -allows the US to sell military equipment to Nigeria, -and since they're fighting the rebel group, sovereignty isn't a problem

economic development through targeted strategies

-import substitution industrialization -export oriented growth -efforts to change the international trading order

reciprocity

-in international trade in relations, a mutual agreement to lower tariffs and other barriers to trade, involves an implicit or explicit arrangement for one govt to exchange trade policies with another -linkage politics

norms entrepreneurs

-individuals and groups who seek to advance principled standards or behavior for states and other actors -part of TANs -international campaign to ban land mines (ICBL) how a group of committed activists were able to call attention to an issue and convince many people that this is morally wrong

future of human rights

-innovations: individual petition, universal jurisdiction, transitional justice -better transparency, increased communication, tech and social media -increased awareness, secondary trauma, costs to be informed -healing the injured, transitional justice, truth and reconciliation commissions, international criminal court -transitional justice:new forms include truth and reconciliation commissions that aim to document past human rights abuses, lustration (govt policies of limiting members of the previous regime from serving in political positions), better for society not to focus on criminal prosecutions, amnesty -individual petition: european convention on human rights -ICC -harnessing material interests: proliferation of RTAs with human rights provisions

world trade organization (WTO)

-institution created in 1995 to succeed the GATT and to govern international trade relations. the WTO encourages and polices the multilateral reduction of barriers to trade and it oversees the resolution of trade disputes -replaced the GATT -successful in purpose of reducing barriers, world trade growth -organize series of rounds during which member states negotiate multilateral reductions in trade barriers -loose rule of reciprocity that balances concessions -all members have a formally equal vote, US and EU dominates, and japan, they can set agenda for negotiations ex. Doha round, developing nations accuse developed of not caring, want them to liberalize farming, failed -sets standards of behavior, verifies compliance, eases joint decision making, resolves disputes -US love WTO -antiglobalizations says its too pro business, disregard environment -cant punish violators, nor can it mandate that other states do, each victimized country is alone, dependence on self-help *made to deal with new issues, future of trade agreements, ability to enforce agreement and settle disputes, wto created with formal structure, permanent staff, institution to monitor trade policies and handle disputes and enforce -when the doga trade round failed RTAs took over

central bank

-institution that regulates monetary conditions in an econ, typically by affecting interest rates and the quantity of money in circulation -implements monetary policy in developed countries by raising or lowering interest rates -the interest rates also affects the exchange rate, higher interest rates make the currency more attractive and tend to raise its value, national monetary policy can also have a powerful impact on the value of national currency -it can lower interest rates so its currency depreciates, weaker currency makes local goods cheaper to foreigners and spurs exports, makes foreign goods more expensive to local residents and reduces imports

why have national trade polices varied over time

-interests may change, competition may change -coldwar, pro american western alliance reinforced wester trading system, manufacturing interest in exporting

the world court

-international court of justice ICJ established in UN charter in 1945 -15 judges, 9 year term -US withdraws from compulsory jurisdiction in 1986 but other states still use it -legal disputes -icc punishes people while the icj settles arguments between countries -hague, netherlands -parties explicitly refer case to icj, treaties may include its jurisdiction automatically in clauses, states can declare that they accept it -decisions are binding but not setting precedent, enforcement through UNSC is possible, advisory opinions dont create binging obligations

international political econ of trade

-international econ conditions have powerful impact on both the policies a country might like to pursue and their likely effects -low incentive to link econ to dynamic world markets after great depression -countries retaliate -joint behavior, collective action, strategic interaction -farm trade between US and euro not liberalized, cooperation problem, prisoners dilemma -dumping: selling exports below their true cost of production in order to drive out competitors, widely accepted to be an unfair trading practice, govt subsidies also unfair-small numbers make it easier for govts to monitor each others behavior;less free riding among small groups of countries -hegemonic stability: the existence of a single very powerful nation facilitates the solution of problems of collective action and free riding, willing to solve problems for world affairs (great britain and US), EU Nafta, -information important in negotiations, failures of cooperation are due to fears of hidden actions, (US and canada timber dumping) -repeated interaction between govts on a continuing basis is a reason to avoid cheating -linking concessions granted in one arena to concessions received in another, lower barriers in steel for some other industry, WTO, bilateral treaties

Montreal protocol

-international treaty signed in 1989, thats designed to protect the ozone layer by phasing out the production of a number of CFCs and other chemical compounds

foreign direct investment FDI

-investment in a foreign country via the acquisition of a local facility or the establishment of a new facility. direct investors maintain managerial control of the foreign operation -made by a company that owns facilities in another country, facilities ever which the company maintains control ex. when toyota opens a factory in thailand, or when disney opens a theme park in france -differs from foreign portfolio investment most importantly bc the investor maintains managerial control -also bears the full long-term risk of the investment -direct investors have full authority to run their investments, but they take most of the associated risks as well *-a firm that controls and manages production in at least 2 countries -dominated first by britain and then the US, since the 80s unprecedented growth -no truly international regulation, just bargaining

portfolio investment

-investment in a foreign country via the purchase of stocks (equities), bonds, or other financial instruments. -portfolio investors dont have managerial control of the foreign operation -investors have little or no role in how investment is managed -stocks/equities/bonds/loans (private and sovereign lending)

prisoners of conscience POCs

-label coined and used by the humans rights organization amnesty international to refer to individuals imprisoned solely bc of their beliefs -Liu Xiaobo, POC in china for proposal for political and legal reform

international migration: when people move instead of capital

-labor is a factor of production that moves across borders -labor can leave one country in order to work for capital in another -international migration is a feature of a globalized world economy, occurred higher before WW1 -immigration is a politically contentious issue -labor responds to differential rates of return -hecksher theory: an inflow of unskilled labor from abroad will reduce the wages of local unskilled workers -unskilled workers are attracted to developed countries -immigration benefits for host countries: employees gain, agriculture and constriction, econ profits from large labor force and from lower cost of production, -domestic distributional effect of immigration combined with national political institutions explain changes in policies over time power of unions vs. employers and their influence in govt,

why do states violate human rights

-lack of state capacity -defense of national security POCs, Mandela, -under attack or perceived attack, red scare -preserve their own governments, weaken and deter opponents -fear of other within a society who may undermine the state, genocides, armenian genocide in Turkey during WW1, and in germany, and in rwanda -autocracies and unstable democracies are more likely to violate the human rights of their citizens than established democracies where political competition is respected and channeled through regular elections which the incumbent govts accept defeat and leave office

recent borrowing and debt crisis

-lending since 1960s -1982 mexican debt default, self-reinforcing nature, lenders stopped lending, govt left without financial cushion, so they stopped making payments, everyone freaked, more developing countries ran out of money, the less bankers rent, which goes back to hurt developing countries, in the space of weeks rapidly growing econs were suddenly cut off -by 1938 34 developing and socialist countries were renegotiating their debts -1994 Mexican finances collapsed again -late 90s, east asia collapsed -1998-russia and brazil, 2000 argentina -in all these cases intervention by the IMF wasn't sufficient -debt crisis was dwarfed by a financial collapse in 2008

quantitative restriction (quota)

-limit placed on the amount of a particular good thats allowed to be imported -due to quotas, the price of sugar in the US is higher compared to the rest of the world

sovereign lending

-loans from private financial institutions in one country to govts in other countries, not foreign aid and not private borrowing abroad NOT a govt lending money to another govt -benefits of accepting: capital scarcity, finance economic development, weather hard economic times -risks of accepting: need to repay loan with interest, need to refinance or default on loan, MNCs competition for domestic business limit benefits by MNC; prevent spillover, repatriation, national security (developed) -benefits of lending: lending=investment, profit derived from repayment of loan with interest -risks of lending: repayment isnt guaranteed and difficult to enforce

the firm-level: econ reasons for going multinational

-locational advantages due to comparative advantage or govt policies -solution for market imperfections: horizontal and vertical integration

losers of protectionism

-losers of trade protection: consumers of the imported good including consuming industries (american steel companies importing from mexico), exporters worry of retaliation from foreign markets (american farmers and china), citizens in general(1980s many people in communist countries blamed the stagnation of their economies on protectionism), consumers in developing countries bc free trade will lead to reduced prices for themselves

trans-pacific partnership

-lowering tariff barriers especially on agricultural products -more protections for foregin investors in disputes with governments -intellectual property rights, patents for pharmaceuticals -12 countries, 40% of the worlds GDP -caused anti-globalization retaliation *

international monetary fund

-major international economic institutions, 1944, to manage international monetary relations and that has gradually reoriented itself to focus on the international financial system, especially debt and currency crises -international organization, members pay into joint pool of money -original goal: guarantee stability of the global financial system through emergency loans to struggling countries, need to ensure stability of exchange rates to promote global trade -mid 1970s move toward aiding heavily indebted countries, loans with strings attached -conditionality designed to promote (force) changes in economic policies in borrower countries -includes both borrowing and lending countries -US has big say because they contribute alot -complaints that its a tool of its richer and most powerful members -needs substantial funds -the most substantial and most powerful international economic institution -unusual because it negotiates agreements directly with an individuals country's government, typically closely tied to relations between the debtor govt and private international creditors -biased in favor of creditors and against debtors, tool of international financiers, biased agency whose actions reinforce the subordinate position of debtor nations and do little to assist them in achieving econ growth and development -plays important role in managing the international financial system, orderly resolution of debtor-creditor problems -advised indonesia in 1997 to cut subsidies during crisis

Universal Declaration of Human Rights (1948)

-masks extensive disagreements over content and value of particular human rights, individual not group rights, physical integrity, political and economic rights -governed only by soft law, authoritative standard of human rights -dignity, liberty, equality, and brotherhood -2nd gen of rights under industrial rev along with enlightenment rights -convention on the prevention and punishment of the crime of genocide: first human rights treaty with clearly defined obligations and precise rights, the genocide convention

does international human rights law make a difference

-mixed evidence -signing agreements isnt actually important -international human rights agreements may make no difference on practice or even have a neg effect once other factors that affect state practice are taken into account -dependent on self-help -absence of 3rd party enforcers, burden is on victim -give appearance of conforming to civilized norms of behavior while actually not doing it -very difficult to determine -some have found that it improves practices -limited in the short term, may exert benefits in the long run -empowers social actors to conceive of thir interests in new ways, emboldens societies ex. Helsinki Final Act of 1975 established the applicability of human rights in all of europe, allowed activists to mobilize within communist bloc -international human rights law permits TANs to bring pressure to bear on governments to enforce human rights standards, naming and shaming, public awareness, political pressure

Ricardo-Viner (specific-factors) model

-model of trade relations that emphasizes the sector in which factors of production are employed rather than the nature of the factor itself, this differentiates it from the Hecksher-ohlin approach, for which the nature of the factor-labor, land, capital- is the principal consideration -focuses on why whole industries often act together -key feature that differentiates it fron stolper: some factors of production are tied to their industry, are industry specific -the relevant actors not classes but industrial sectors -based on the approach that the factors of production are not very mobile, that its difficult for labor or capital to move from use to use ex. capital in the steel industry largely takes the form of steel factories and machienery, strong incentive to safeguard their current use -intersts of individuals flow from the sectors of the exon in which they are employed, actors associate their interests with the sector in which they are employed *-trade benefits internationally competitive industries and all their factors of production, hurts industries that are not competitive against foreign imports, industry based distinctions

bretton woods monetary system

-monetary order negotiated among the WW2 allies in 1944, which lasted until the 1970s, and which was based on a US dollar tied to gold, other currencies were fixed to the dollar but were permitted to adjust their exchange rates -compromise, based on a fix rate and gold standard for the US and on a fixed but adjustable rate for other governments, adjustable peg -meant US dollar's value could not change -seen as a middle ground between gold-standard rigidity and complete unpredictability -US liked it, europeans less enthusiastic -allies formed it -IMF was established to monitor interstate interaction on exchange rates, helped with stability -US eventually felt constrained -made GATT, IMF, and World Bank group

econ sanctions

-more effective when threatened/imposed multilaterally -costly to the users as well, may hurt innocents and victims, may lead to rally around the flag affect -US is world leader at this ex. US sanctions against China ex. saddam husseins regimes sanctions in the 1990s increased iraqi infant mortality dramatically ex. the un reacted to apartheid policies in South Africa by imposing an arms embargo on South Africa

do states observe human rights law

-most frequent and deadliest form of violence in the world today is by governments against their own citizens, including civil war -democide: when a govt kills its own citizens -in violation of ICCPR govts continue to inflict violence against political dissidents -defying the ICESCR govts also violate human rights by misguided economic or social policies ex. Great Leap Forward in China 1958-62 killed alot, nationwide famine, 38 million dead -few systematic complications of the human rights practices of states over an extended period -20th century appears to be more violent, but this is due to improved tech -we dont know whether states today treat their citizens better than, worse than, or about the same as in the past -human rights practices have improved fairly significantly in recent decades, wave of democratization

why do some countries have higher trade barriers than others

-national policies differ -interests matter -different factor endowments or sectoral features -national institutions, party system, legislative structures biased for protectionist class

globalization backlash

-near derailment of CETA (EU and Canada trade agreement) over Belgian opposition -news reports about lack of growth in international trade -IMF and World bank have tried to address some LDC criticism *- first wave in 1850s saw growth in world trade but also industrial strife and anti immigrant sentiment -peak in 1999 in seattle WTO meeting -trade creates winners and losers -state soverignty being compromised -near derailment of CETA agreement (agreement between EU and Canada) over Belgian opposition -news reports about lack of growth in international trade were economists wrong?: overstate case for free trade while downplaying potential problems, lack of compensation for losers, globalization risks and benefits

the politics of FDI and multinational corporations

-no truly international regulation of FDI -national regulations and bargaining between relevant actors -bilateral investment treaties represent agreements between: MNC-host government and home goverment-host government -why go multinational: local resources, trade barriers, cheap labor, profit -FDI controversial in origin countries, fault MNCs for not investing in home, outsourcing, move capital away, human rights activists and environmentalists, reduce diversity -countries welcome foreign corporations bc: skills, development, expertise

sovereignty bound and unbound

-norm enshrined in international agreements -agreements are voluntary agreements that are sometimes enforced -norms and agreements make actions of governments and other actros predictable which leads to successful bargaining and cooperation

unmanned frones and international humanitarian law

-norms to regulate warfare have long history, just war or regular war -we regulate to shape expectations of states and combatants, avoid escalation, ease post-war return to normal relations -1856 declaration of paris, 1863 lieber code, human treatment 1865, geneva convention, 1899 and 1907 hague conventions -tech advances immediately blur these lines -drone warfare, outrun existing norms and the development of new norms, one-sided warfare may make postwar coexistence difficult -fewer limits on escalation, fewer incentives to pursue political instead of military solutions

general agreement of tariffs and trade (GATT)

-not a formal institution, just a trade agreement created in 1947 in which member countries committed to reduce barriers to trade and to provide similar trading conditions to all other members. in 1995, the GATT was replaced by the WTO * -bretton woods institutions -lessons from great depression and world wars: link between mutually beneficial commerce and peace and stability, place holder for planned trade organization -promotion of trade liberalization but with recognition of national needs -multilateral trade negotiations (trade rounds), norms of reciprocity, national safeguards

bank for international settlements

-one of the oldest international financial organizations,, created in 1930, its members include the world's principal central banks, and under its auspices they attempt to cooperate in the financial realm -instituion of international finance -made to oversee Germany when it was a debtor nation

2008 financial crisis

-originated in the US -major foreign borrowing spree -2001 deficit form borrowing abroad, encouraged american households to borrow heavily -much of the borrowing went for housing, american refinanced their homes or bought new ones, -underwent borrowing boom -unsustainable bubble in housing market -eventually housing prices began to fall, couldnt pay dent, faced losses -2007-2008 losses spread, largest bankruptcy in american history, Lehman Brothers collapsed -US government got protectionist with bail outs, WTO got mad -EU torn up, widely different views -nobody knows whats good

criticisms of FDI and multinational corporations

-outsourcing -sweatshops -face to the bottom- comp for FDI among host countries leads to erosion of govt regulations that protect workers etc. -MNCs exercise too much power over nat govts, undermining sovereignty and democratic governance -disagreement over division of benefits -insensitive to national social, cultural, political norms -interactions: exploitative natural resources in 1920s, unwelcome impact on local parties ex. coup in Chile from ITT international telephone and telegraph country -whatever in the past 25 years theres been a positive attitude toward the FDI -FDI lacks multilateral institution, leads to much less debate than conflict between debtors and creditors

Domestic political economy of protection: why govts restrict trade

-people hate free trade -trade barriers reflect domestic concerns, national producers start to complain, jobs, trade barriers assist national producers -cons: tariffs and quotas raise the domestic price of imported goods and may lead to price increases for similar domestically produced goods, producers gain and consumers lose, redistributive effect (income is redistributed from consumers to protected industry), efficiency or the welfare of the society as a whole, economic inefficiencies, not the country's comparative advantage -trade liberalization might hurt some, but overall gains are large enough that they can be compensated, US trade adjustment assistance to workers harmed by foreign trade, social policies implemented to help after WW2, wages of unskilled workers hurt and trade with developing countries have contributed

controversy with washington

-perceived loss of sovereignty over economic policy -voting power and bargaining power in IMF biased in favor of large western economies -changes in economic policies create winners and losers -prescriptions have not been universally succcessful

arguments against free trade

-policy makers argue that exports are good because they create jobs, imports are bad because they take away jobs, governments should stimulate the national economy by restricting imports and encouraging exports -economic logic insists the opposite *-free trade has never been the rule; states usually impose some restrictions waves of globalization and protectionism domestic:winners and losers, long-run benefits and short-run costs, need for adjustment to international competition *factor-price equalization: under free trade, the relative prices of goods (and the relative prices of their factors) should equalize in countries that trade with eachother do to arbitrage (if prices of similar goods differ across markets both will to to profit, which leads to disappearance of differences) -labor groups in the US tend to favor protectionism

types of international financial flows

-portfolio investment: investors have little or no role in how investment is manages (stocks, bonds, loans, private and sovereign lending) -(foreign) direct investment: investors retain control over investment (greenfield, mergers and acquisitions, joint ventures) MNCs -potential benefits and risks -closely linked to international trade, important for econ development

US sanctions against China

-pro democracy protests in China since 1980s, Tiananmen square -Chinese government orders dispersion, kills a lot -Bush initially suspends arms sales, then reverses course and lifts all sanctions -secondary response 1989-1994 is annual discussion over removing special trade benefits unless Chinese govt improves human rights, measures have some bipartisan support but not passed by congress -china has Most-Favored_nation trade status (MFN), means that we grant each other the same llow tariffs on trade that they grant all ovther states, removal of mFN would immediatley make trade with china more expensive, bills to remove this status hasnt passes -trade with china and other countries that violate human rights is profitable, making economic sanctions very costly. to producers of goods traded with china, consumers of their goods, and politicians who depend on donations and votes

Stolper-Samuelson theorem

-protection benefits the scarce factor of production -this view flows from the Hecksher-Ohlin theory; if a country imports goods that make intensive use of its scarce factor then limiting imports will help that factor, so in a labor-scarce country, labor benefits from the protection and loses from trade liberalization -one explanation of who will support and who will oppose protection -reducing trade in a labor rich country will harm labor ex. bangladesh -protection in a capital scarce country helps owners of capital and hurts workers, we expect investors to support protection ad workers to oppose it -US labor scarce, abundant capital, imports labor intensive and exports capital intensive, protection restricts american supply of labor intensive product and raises their price, increases american production of labor intensive products, raises wages of unskilled workers -we expect owners of the scarce factors of production to be protectionist and owners of the abundant factors to favor free trade, in rich countries capitalists and skilled workers should be free traders while unskilled workers should be protectionists *- trade benefits owners of the abundant factor of production and hurts owners of the scarce factor, class-based distinctions; labor v. capital

trade restrictions are the rule not the exception

-protectionism, trade barriers, tariffs, quotas, nontariff barriers to trade -all govts restrict at least some imports -tariff is most common -the effect of these policies is to shelter domestic producers from foreign competition -mercantilism to trade liberalization to hostile trading (WW1 and great depression) -after 1945 the western world under american leadership moved gradually to reduce trade barriers among the developed nations, industrialized world liberalized, 1980s rich countries very open, move towards economic globalization, communist countries joined in, 199- open like before 1914 -US was one of the most protectionist nations in the world throughout most of the 19th and early 20th century, by the 60s led way for trade liberalization -trade among european countries was quite free from the 1860s until 1914, in the 1920s and 1930s the regions nations erected highly strict barriers to trade among themselves,; today trade among the 28 EU members is completely unrestricted

primary products

-raw materials and agricultural products typically unprocessed or only slightly processed, the primary sectors are distinguished from secondary sectors (industry) and tertiary sectors (services) -prices of the LDCs products tend to devline over time relative to the prices of the industrialized countries products -LDCs sell mainly primary products, markets are very competitive, prices move up and down very easily

the euro

-regional monetary arrangement -EU after the collapse of the bretton woods monetary system, made to limit fluctuations of exchange rates, invest in eachother -costs: austerity measures, interest clash, complex, currencies fixed to the deutschmark -broke deutschmark link when germany reunified in 1991 due to either raising inflation or facing recession -in the 1990s germany's exports were the highests as a percentage of its GDP -made euro, ECB based in germany, constitution would be very similar to german, reduction in currency volatility

non-derogable rights

-rights that cant be suspended for any reason, including at times of public emergency -in the ICCPR some rights can be suspended for emergency, but nonderogable rights cant -freedom from torture or cruel and degrading punishment, person before the law -none of the rightes in the ICESCR are nonderogabel, can all be limited by states -gained special support within human rights TANs, amnesty international

un convention on the law of the seas

-roots in 16th century european imperialism -national ownership v. freedom of the seas -1982 convention, into force 1994: outcome of length negotiations and 3 UN coferences, US was a major driver 0comprehensive legal framework to regulate ocean space, its uses and resources -state parties commit to peaceful settlements of disputes -establishes dispute settlement bodoes that can issue binging rulings -high obligation, high precision, high delegation

cap-and-trade

-sets limits on emissions, which are then lowered over time to reduce pollutants released into the atmosphere. firms can sell credits when they emit less than their allocation or must buy from others when they emit more than their allocation -ETS emissions trading scheme, covers its five dirtiest industries -system creates incentives for businesses to reduce emissions by selling the credits they havent used themselves, thereby privaticing the public good of the atmosphere in a way that benefits the commons -reduces incentives to free ride -global commons is now restricted and emissions can be bought and sold -designed to create a market in pollution credits that will correct previous incentive to free-ride on others

depression

-severe downturn in the business cycle, typically associated with a major decline in economic activity production, and investment; a severe contraction of credit; and sustained high unemployment -borrowing is popular in borrowing countries, until ts not -developing countries are by definition short of capital, but sovereign debts can quickly become a burden to debtor nations, cut spending and raise taxes to pay off loans, weakens domestic economy, causes recession or depression ex. collapse of thai econ, pushed interest rates up

global trade may be slowing down due to

-slowing econ growth and financial disturbances in china -failure of Doha Round (WTO multilateral trade negotiations) to make new trade liberalization -new tariff barriers and fears about creeping protectionism, difficulty of concluding new trade agreements (TTP), increasing anti trade/anti globalization rhetoric -protectionism: the imposition of barriers to restrict imports -tariff:tax imposed on imports, this raises the domestic price of the imported good and may be applied for the purpose of protecting domestic producers from foreign competition -series of financial and currecny crisis that affected deeloping countries -integration has costs and benefits -not everyone grows, income becomes less equally distributed

norms constitutive/procedural/regualtive *

-standards of behaviors for actors with a given identity -they rest on a community's beliefs about what is appropriate for an actor under some specified condition -may be codified into international law -norms as institutions can exist and be respected by members of a community informally as well, nuclear taboo -norms affect the interactions of states because they are understood by people, define what we should do, shapes our understanding of our interests -constitutive norms: defines who is a legitimate or appropriate actor under what circumstances, what it means to be a state (flag, national anthem), shape what it means to be sovereign -procedural norms: defines how devisions involving multiple actors should get made, analogous to secondary rules in international law, often well structured, powerful states have special rights and more responsibility -regulative norms:governs the behavior of actors in their interactions with other actors, norm of election monitoring, nuclear taboo, dont want to be branded as immoral -difficult to identity, when deeply internalized actors do not even think about violating them -territorial integrity norm, this aggression will not stand

exchange rates and consumers and business

-strong exchange rate allows consumers and others to buy more of the world's products, thereby increasing national purchasing power costs: domestic goods more expensive to foreigners, harms national producers -manufacturers dont like a strong currency: cheaper imports and dampens exports -weak currency gives a big boost to national producers: encourages exports, common in developing countries, domestic producers, costs: reduces national purchasing power, consumers are worse off ex. china, may be an unfair trading practice

comparative advantage

-the ability of a country or firm to produce a particular good or service more efficiently than other goods or services such that its resources are most efficiently employed in this activity, the comparison is to the efficiency of other econ activities that the actor might undertake, not to the efficiency of their countries or firms -core concept of the economics of trade -can earn as much as possible in order to pay for imports of the best products of other countries -each country will be best off if it produces what its best at producing and exchanges with other countries in return for imports of things its not as good as producing -not necessary for the country to have an absolute advantage in producing something for it to be profitable, all thats necessary is comparative -trade protection is harmful to the economy as a whole -trade protection raises the price of imports and reduces the efficiency of domestic production -free trade induces a country to follow its comparative advantage, and economic logic implies that its the ideal policy

international covenant on civil and political rights ICCPR

-the agreement completed in1966 and in force in 1976 that details the basic civil and political rights of individuals and nations -western style rights -details basic rights of individuals and nations, more precise, life liberty freedom of movement, innocence, restrict death penalty, -US agreed but it was not self-executing

austerity

-the application of policies to reduce consumption, typically by cutting government spending, raising taxes, and restricting wages -when debtors and creditors enter into conflict, each side has clear interests at stake, debtor nations have to commit suterity

precision

-the degree to which international legal obligations are fully specified -more precise rules narrow the scope for reasonable interpretation -much of international law is quite precise -states often seek to retain control over international law and to limit future interpretations by being as precise as possible -commercial treaties are not precise

gold standard

-the monetary system that prevailed between 1870 and 1914 -countries tied their currencies to gold at a legally fixed price -made country's currency equivalent to gold, and interchangable at a fixed rate with the money of any other gold standard country -exchange rates were stable enough to encourage international trade and investment -everyone except china and russia, ruled between britain, france and germany -fixed rate system costs and benefits, the US mixed feelings -died after WW1, was floating until bretton woods

terms of trade

-the relationship between a country's export prices and its import prices -countries that specialize in primary products had this deteriorate, they got less for what they sold and paid more for what they bought -countries that specialized in producing raw materials and farm products for world markets are at a fundamental disadvantage -price of primary commodities tend to grow more slowly than price of manufactured goods, costs of imported manufactured goods comes to exceed revenue from primary commodity exports

solving collective action problems

-the smaller the gorup, the more likely actors swill contribute ex. acid rain few actors was solved -if a small number of actors contributes. the ozone -bundle it with private goods -a privileged group comprises one or a small number of actors who receive sufficient benefits themselves from the public good that they are willing to bear the cost of providing the good for all ex. the US ozone depletion for all -unfair burden on americans

Hecksher-ohlin trade theory

-the theory that a country will export goods that make intensive use of the factors of production in which it is well endowed, thus a labor-rich country will export goods that make intensive use of labor -tries to explain national comparative advantage and therefore national trading patters -in terms of the material and human resources it possesses, these economic features are summarized according to basic factors of production, resources essential for econ activity (land, labor, capital for investment, human capital) -explain what determines national comparative advantage and what countries produce and export -poor countries with little capital import capital-intensive products -the relative abundance or scarcity of factors of production has a powerful impact on the economic activities of actors within a society -explains changes over time in a country's trade relations -important implications for the domestic politics of trade policy -nonecon factors like geography, diplomatic and military relations, national trade policies: how countries represent their constituents ex. WW2 and Nato, political and econ line up, international diplomatic realities and international trade are closely related *states vary in endowment with factors of production:land labor capital, production of specific goods require these factors in different proportion, the more abundant a factor of production, the lower its price, comparative advantage in production of goods that rely more extensively on a country's relatively abundant factor of production, states should export goods that use the locally abundant factor of production intensively and import everything else

default

-to fail to make payments on a debt austerity -when the great depression of the 1930s drowve down prices and demand for debtors products, t caused almsot every debtor nation to default -debtor nations dont keep ip on their payments, some people prefer that their govts default in order to force a reduction in the debt burden -lending nations only have a problem with foreign investment when this shit happens, and usually give more loans to reverse damage bail out, -principal bargaining weapon available to the debtor government -creditors weapons: cut off debtor govt from future lending, freezing debtor govts bank accounts, taking govt owned properties, get home governments to use broader foreign policy considerations to induce compliance

domestic institutions and trade policy

-trade protection tends to help relatively narrow and concentrated groups, tends to harm the con and consumers as a whole -the organization of interests: trade protection affects large groups in a good way and in a bad way, raises possibility of free riding, labor unions tend to be organized by industry, might be difficult for all unions to express their interests, an organization reflection the concerns of all workers is more likely to ignore the demands of specific groups representation of interests through political institutions: political institutions that are tied to narrow interests are more likely to favor trade protection that institutions that reflect broader interests, democracies reflect broad interests while dictatorships are restrictive, politicians with local political constituencies tend to be more responsive to local interest groups while nationally elected politicians have less reason to cater to particular local concerns, the american president has strong incentive to consider the impact of trade policies on the country as a whole while members of congress have little reason, partisan effects

US sovereign debt as an investment

-us govt issues treasury bonds to finance expenditures -banks and foreign govts buy treasury bonds as an investment -sovereign debt is an attractive and widely owned investment, profits smaller bc interest rates are lower but it is a sager investment bc the US is reliable for interest payments -ability to borrow has political and econ advantages, smooths spending in hard times, no need to cut spending, allows high military spending without higher taxes or spending cuts

customary international law

-usually develops slowly, over time, as states recognize practices as appropriate and correct -mechanism for making international law -custom or accepted practice based on a subjective belief that na aaction is legal obligation -law of diplomatic immunity is a classic example, permits embassy personnel to carry out their jobs of reporting on the host country, negotiation, and gnerally proting their home countries interst,prevents potential misunderstanding, best just to send them home rather than imprison them -kind of vague

exchange rates and governments

-whether currency should be fixed floating or in between -fixed: like gold standard or a peg to the dollar, provide currency stability and predictability, facilitates international trade, businessmen investors and immigrants dont have to worry about changes in exchange rates, stimulus for trade, in the interest of those engaged in cross-border trade and those who want to keep inflation low costs: committed to maintaining its currency's value, even if economic conditions could be improved with a change, reduces or eliminates a govts ability to have its own independent monetary policy cant lower interest rates in a recession, caused argentine crisis, EU at 2008 global financial crisis -floating: gives govts freedom to pursue its own monetary policies, can move around a great deal costs: less incentive for international trade and investment -depends on structure of govt, interest groups, and exchange rates

vienna convention

a framework convention adopted in 1985 to regulate activities, especially emissions of CFCs that damage the ozone layer

export oriented industrialization EOI

a set of policies, originally pursued in the late 1960s by several East Asian countries, to spur manufacturing for export, often through subsidies and incentives for export production

most-favored nation (MFN) status

a status established by most modern trade agreements guaranteeing that the signatories will extend to each other any favorable trading terms offered in agreements with 3rd parties -linkage politics -called normal trade relations in the US, link negotiations between two countries to all their multilateral trade relations

universal declaration of human rights UDHR

adopted by the UN general assembly in 1948, this declaration defines a "common standard of achievement for all peoples" and forms the foundation of modern human rights law

kyoto protocol

an amendment to the UN frame work convention on climate change, adopted in 1997 and entered into force in 2005, that establishes specific targets for reducing emissions of carbon and 5 other greenhouse gases -privatizes a public good that previously existed -before hyoto environment was treated as a global commons, free for anyone to use, countries do not have the right to regulate their own emissions

Framework Convention on Climate Change FCCC

an international agreement enacted in 1992, and entered into force in 1994, that provided an overall framework for intergovernmental efforts on climate change

infrastructure

basic structures necessary for social activity, such a s transportation and telecommunications networks, and power and water supply

(foreign) direct investment for the host country

benefits of allowing investment: acquire needed capital, positive impact on national economy (jobs, revenue, economic growth/development), spillover effect (technology expertise transfer) -gets capital it would have, companies that borrow from abroad can expand their businesses, govts that borrow can finance projects that spur development -increases domestic consumption, investment, and econ activity risks: compromising national policy autonomy (sovereignty), promised benefits may not happen, you do have to pay your debt, debt crisis

(foreign) direct investment for investor

benefits: greater profits, access to natural resources, access to markets, ability to control production process and keep trade secrets from getting out risks: host country laws and investor protection may be less favorable than in their home country, loss of investment due to nationalization during economic or political hard times, a foreign govt over which the investor has no influence may do things that reduce the value of the investment, debtor nations world rather pay less of what they owe -want to move money from where profits are lower to where profits are higher -hecksher theory: country's avg profit rate depends on how plentiful capital is, where land an labor is plentiful, its cheap, in a poor country capital is scarce and therefore expensive, borrowers pay higher interest rates for something short in supply, profits are higher -scarcity of capital encourages capital to flow from rich countries to poor countries -investment in rich countries is much less risky than investment in poor countries, industrialized nations are more economically and politically stable, reliable history of treating foreign investors well -regulated by bilateral treaties

non excludable

characteristic of a public good: i the good is available to one actor to consume, then other actors cant be prevented from consuming it as well

nonrival in consumption

characteristic of a public good: one actor's consumption of the good doesnt diminish the quantity available for others to consume as well -ones individual enjoymennt of lower UV levels does not diminish others ability to enjoy it, we all suffer or not together

chlorofluorocarbons CFCs

chemical compounds used in aerosols, insulating materials, refrigerator and air-condition coolants and other products. CFCs are widely banned today due to their damaging effect on the ozone layer -ruins public good, nobody can be excluded form damage, is non excludable, negative externality -phased out with the montreal protocol

Washington consensus

conditionality: IMF and world bank loans are made available after negotiations with potential borrower country -borrower countries must agree to set of policy changes -payout of loans in installments to ensure compliance with conditions -package of policy prescriptions for developing countries, designed to return them to economic growth: "stabilize, privatize, liberalize" -[policies dictate by western advanced industrialized economies designed to replicate their own econ structure, remove trade barriers, privatise enterprises, lower govt spending, decrease gvt deficits and debt

human rights

controversial: wester, liberal, democratic beliefs and practices not universally embraces, weaker states may see foreign efforts to promote individual political rights as a means of increasing western influence why are they violated: interpretation, conflicting rights, state capacity, to maintain power, security why nobody does shit: motives to punish another state can be weak or costly, naming and shaming may provoke target, punishing reduces bargaining leverage on other issues, economic sanctions impose costs on target as well as sanctioning state when do we see action : domestic demands for action, action against human rights abusers serves the country's larger political interests, action can be depicted as consistent with the norms of sovereignty and non interference

political tradeoffs in sovereign lending (borrowing and repayment)

costs and benefits of borrowing and lending are often unevenly distributed throughout the national economy *governments can only pick 2: low debt/low taxes/high spending

sovereign debt as an investment

example: US federal debt -US govt treasury bonds (I.O.U.s) to finance expenditures, banks (and foreign govts) buy these bonds as an investment -US govt (sovereign) debt is an attractive investment, profits smaller than others but safer, considered reliable for interest payments -ability to borrow has political and econ advantages, smooths spending in hard times and allows high military spending

trade barriers

government limitations on the international exchange of goods, tariffs, quantitative restrictions (quotas), import licenses, requirements that governments only buy domestically produced goods, and health and safety standards that discriminate against foreign goods

horizontal and vertical integration

horizontal: production of same goods in different locations vertical: production of different parts of the same good in different locations

(foreign) direct investment

investors retain control over investment -greenfield, mergers and acquisitions, joint ventures

problems with import substitution industrialization

long run political: created econ interests that would resist necessary policy change later on, empowered these interests politically long run economic problems: continued dependence on foreign imports for industrialization, ballooning government expenditures, inefficiencies and corruption, destruction of productive income base (agriculture) GROWING FOREIGN DEBT -oil crisis of 1973 and 1979 raise world price of oil with 2 important consequences for ISI countries, need more lans tofinance oil purchases which makes oil countries rich and eager for investment opportunities"petro-dollar recycling"*

each sides bargaining power/ leverage when negotiating an investment agreement

market power of investor vs. host country: who stands to gain more? market for investments

adjustable peg

monetary system of fixed by adjustable rates, govts are expected to keep their currencies fixed for extensive periods but are permitted to adjust the exchange rate from time to time as economic conditions change -bretton woods system

labor and/or land abundance

natural comparative advantage in labor-intensive products and/or primary commodities -focus on small range of exports -economic instability due to dependence on demand by developed countries and declining terms of trade -industrial manufacturing base underdevelped

nontariff barriers to trade

obstacles to imports other than tariffs (trade taxes) ex. quotas,regulations that favor domestic over imported products, and other measures that discriminate against foreign goods or sercices

international bill of rights

refers collectively to the UDHR, ICCPR, ICESCR, together, these 3 agreements form the core of the international human rights regime -additional rights have been added -controversial

absolute advantage

the ability of a country or a firm to produce more of a particular good or service than other countries or firms using the same amount of effort and resources

extraterritoriality

the attempt by a state to prosecute its citizens for human rights abuses in another country

studying human rights

we need to be able to measure the human rights in order to judge how well we are doing at protecting human rights -this is difficult when states have an incentive to hide their violation

factor price eqalization

when wages become more similar across countries as trade increases