Gov 312l moser exam 3

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

$ as the Global Reserve Currency Money as a medium of exchange facilitates economic growth and specialization National governments supply for the domestic economy, who supplies money for the global economy? Dollar as the global currency See this role whenever there is a flight to safety The political and economic benefits of the dollar's reserve currency status Global liquidity or money supply generated via treasury bonds Government issues Treasury bonds when it runs a budget deficit Budget deficit - expenditures exceed (tax) revenues The ability to rely on foreigners to finance budget deficits helps fund domestic and foreign policies that Americans unwilling to fund through taxes Tenure - repay after 10 yrs Is the US being exploited for its global economic leadership? The US has leverage since $ is the global reserve currency The US derives a benefit from this Paid for wars and tax cuts in post 9/11 period

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

-Democratic peace theory has long justified American efforts to expand democracy...means more partners for cooperation, more trade, and more peace -Post-cold war brought new idea that the spread of democracy aligned with greater security for the US

What is interstate cooperation?

-Interstate cooperation: occurs when a collection of states subordinate their sovereignty in order to establish a supranational set of rules that governs conduct between them to achieve a desirable outcome for all states involved

What are some critiques of the democratic peace theory?

-The small outbreak of war between democratic countries is simply based on chance, and may not prove that democracy is a peaceful political structure. -Because there were few democratic countries before the 20th century, and after that there could not be conflicts between democratic countries to deal with the common enemy of the Soviet Union during the Cold War. - Now that the international market is active, many companies are opposed to having hostile relations with other countries. Rather, companies whose domestic market is the main customer generally support the nation's aggressive diplomacy (not wanting to compete with foreign products). But most countries agree to free trade.

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

-US entry into international organizations helps to solve fundamental problems of politics at international level... need coercive power and authority -preserve US hegemony -they help defend policy ideas consistent with American interests (democracy, free trade, human rights) -constraints help legitimate American power It creates expectations to how states will conduct relations with each other Provides info about national interest which is used to make predictions about the futures can help to lock in old distributions Allows the United States to have the most influence, but they are not able to force other countries to do things Constrained by their role as a leader

Describe some of the efforts by the United States to promote democracy around the world.

-Wilson sought to leverage American participation in WWI to expand democracies in the world -promoting democracy took a back seat aftmer WWII >primarily to contain communism -United States used democracy promotion in Germany and Japan after WWII -The end of the cold war was a boom for democracy promotion and democracy promotes greater security for the US -After the Cold War, Clinton intervened in Yugoslavia under humanitarian grounds (to stop genocide) and the goal of democracy promotion -Iraq: Bush (neo-conservatives) with regime change and democracy promotion in the Middle East was his strategy of countering terrorism after 911 resulted in invasion through military forces

Describe the tradeoffs associated with participation in international organizations and national sovereignty.

-delegation of authority to international organizations can limit domestic authority. Ex: Bush raised import duties on steel. Countries challenged tariffs with trade disputes at WTO. Judicial panel ruled against the US and Bush had to take away tariffs. -international organization helped change domestic politics and laws in the US -institutions and organizations can help US interests (getting rid of trade barriers) and help alliance relationships and economies. However, pursuit of these goals can alter domestic policies that emerge through democratic processes (like how the WTO made the US change trade policies). -part of appeal for Trump's "America first"; want to protect American sovereignty.

Discuss how restrictions on voting rights affected American democracy. What are the major historical expansions of voting rights during American history and how have expanded voting rights affected descriptive representation of women and ethnic minorities? How has universal suffrage affected election outcomes?

1. Democracy broadens its social scope by enabling public participation in politics through elections. - In a democratic country, people choose the parties and people they want by revealing their pledges and promoting them to the people. - In the dictatorship, political affairs are entrusted to important institutions. 2. Democracy creates a punishment mechanism that pressures all to implement policies. -If a person from the selected party fails to fulfill his or her pledge properly, supporters can vote for another party figure in the next election. 3. Democracy brings out various institutional views within the country and balances society. - Even when there is a disagreement on diplomacy, they can express their opinions by supporting a party with the same opinion. •Five stages of expansion of voting rights in the U.S. -Expansion of white male suffrage in 19th century -15th amendment (1870) prohibits voting restrictions based on race or color •Voter suppression prevented African Americans from voting, especially in the South, for decades -19th amendment (1920) prohibits voting restrictions based on sex -Voting Right Act of 1965 enforces racial equality at the polls -26th amendment (1971) sets minimum voting age at 18

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

3 primary waves each followed by a partial reverse wave in which democratic governments broke down and were replaced by autocracies 1st wave: lasted most of the 19th century until the beginning of the 20th century leading up to the WWI partial democratic regimes emerged primarily in EU and the US democracy remained rare & outnumbered by non-democratic regimes followed by a reverse wave in the interwar period b/w WWI & WWII 2nd wave of democracy followed WWII: W. EU saw the emergence of democratic gov in W. Germany, Italy, and Austria supported mostly by American hegemony Japan also established a democratic government Brief democratic experiments launched in Latin America Reverse wave took place in the 1960s and 1970s w/ breakdowns of democratic regimes across Latin America and the emergence of military dictatorships across the region 3rd wave of democracy: took hold beginning in the 1970s with the democratization of Spain, Portugal, and Greece in Europe and then the widespread collapse of military rule in Latin America and its replacement with democracies in the late 1970s and early 1980s now being followed by a 3rd reverse wave as countries such as Russia have returned to authoritarian rule; Demonstration effects: Significant mass events that successfully challenge the autocratic regimes create demonstration effects among opposition leaders and mass publics in other countries who then try to emulate the same actions and outcomes Neighborhood effects: States tend to emulate the level of democracy of their neighboring states. This creates regional environments that are more or less conducive to the emergence of democracy. Influence of hegemons: The actions of the US and the Soviet Union were instrumental in the spread of democracy or lack thereof during the cold war

What are the political challenges associated with American efforts to promote democracy? What are the benefits and drawbacks associated with promoting democracy around the world?

>other democracies means that there is less chance for war and this means a more stable world order. This means that it is in the interest of big democracies to promote more democracies. Drawbacks: >Can cause people to distrust democracies because it is often achieved thru military intervention >The US promoting democracy in places like latin america during the cold war gave the US a bad reputation because of the CIA constantly intervening in elections (made latin America almost frightened of the US) >Cost is a huge drawback when it comes to democracy promotion, as the bill racks up when you start promoting democracy in every country that you deem it necessary >you take away some of the autonomy and sovereignty of a nation when you determining that their way of running things is not the correct way, and try to promote your own system. >it probably pisses a lot of other countries off when the US comes in and tells them (or in a lot of cases, forces them) how to run their country. So the drawback would be the resentment other countries feel toward the United States

What is a trade deficit?

A trade deficit is when imports exceed exports

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

Advantages: Broad collective agreement- previous climate agreements only included developed countries or failed altogether Voluntary approach instead of binding agreements is more realistic Addresses needs of developing countries: has 100 billion to help developing countries break out of poverty without contributing to climate change Disadvantages Challenge of executing and deepening the Paris deal Current targets created by states will not meet the target of an increase global temperature of less than 2 degrees celsius Watchdog groups show that countries are not meeting their voluntary NDC's How might it operate... members countries pledge to reduce emissions by a certain amount by a certain date How did it navigate... Paris Accord required both developed and developing countries to pledge to reduce emissions Everyone needs to participate to affect immediate change ability of states to set own targets meant each type of country was able to determine for self what their goal should be

Why did the United States launch a trade war against China in 2018?

After joining the WTO - China became an economic superpower America says that China achieved growth by not playing fair US and China have different domestic systems China's state managed capitalism create unfair advantages Less government support for US firms - limited role Grand strategy of America First Long argued that the rest of the world has been taking advantage of the U.S. for decades Arguing that globalization has fueled China's rise and weakened the U.S. Deeper skepticism for free trade US imports more than exports - deficit Wants to raise tariffs on Chinese products Hurts American manufacturing and jobs Consistent with domestic political strategy of Trump Trump's demands specific to trade with China China should boost imports of US products, specifically agricultural products Protection of US intellectual property No currency manipulation Raise tariffs on Chinese goods so China will likely change its trade policies towards the US.

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

Americans & Europeans increasingly concerned that open borders that facilitate immigration will increase the risk of more terrorists strikes Terrorists attacks in San Bernardino, Paris, & Brussels reenforce these fears Immigration raises fears of infiltration by terrorists through lack of regulation Leads to calls for stricter control/regulation of access through borders, especially of migrants and refugees from countries experiencing war More pronounced in Europe, especially in countries on the front lines of the migrant crisis caused by the Syrian Civil War & instability in the Middle East

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

As new migrants with different racial & ethnic & religious identities enter a country, they change the relative size of the minority and majority population, accentuating racial & ethnic conflict In the US- debates of English as the primary language & national identity rooted in anglo protestant culture In Europe- concerns over muslim immigration There is strong public sentiment that knowing the national language and identifying as a Christian is important to national identity Fear of losing dominant social status- switch from voting Obama in 2012 to Trump 2016 Racial anxiety > economic anxiety for a small group of voters that helped swing votes in 2016

How might a future President Biden reverse President Trump's decisions on the Paris climate accord? Why would other countries potentially question the stability of the U.S. commitment to the agreement of a Democratic president reenters the Paris accord?

Biden intends to reenter the agreement. The rentery waiting time is approximately 30 days. However, other countries may question the stability of the nation, especially if in the future the country is to reexit the agreement, other countries are unlikely to push for significant reductions while allowing the US, the world's second largest carbon emitter to continue free riding.

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

Causes of democratic peace: Electoral Constraints raise the political costs associated with war. Encourages making peace. Institutional checks and balances make peace settlements more durable because democracy help solve commitment problem Shared democratic identity: Democracies externalize norms of conciliation and compromise with each other and there is less public support for using military force against fellow democracy.

According to the reading, what are the chief indicators of the increase of globalization since World War II?

Chief indicators of the increase of globalization since WWII is the elimination of natural, technological, and political barriers to trade that limit the distance over which commerce can profitably occur. Post WWII era of global economic integration has been fueled by a global trading regime - centered on the General Agreement on tariffs and Trade (GATT) and the WTO - that has encouraged and sustained dramatic reductions in political barriers to trade, such as reduction of import tariffs

How have domestic political considerations (and the distributional consequences of trade) in the United States contributed to this trade war?

China has intentionally targeted sectors and regions of the US economy that are more likely to vote for Trump China hopes to leverage U.S. elections to pressure Trump into making concessions in the trade war

What is the democratic peace theory?

Claim that military conflict (low levels, including threat to use force; and war) is less likely between two democratic states Democracies will be peaceful towards other democracies, but not peaceful towards autocracies.

What is the collective action problem? How might it be applied to the challenges of managing climate change?

Collective action problem a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action Common Pool Resource A resource that is both nonexcludable and rivalrous There are many incentives to overproduce greenhouse gas emissions but the only incentive to stop is future costs associated with climate change

What is comparative advantage and how does it contribute to aggregate economic gains for states from trade? How does trade contribute to the economic sources of order in the international system?

Comparative advantage - economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners Suggests that governments can boost national income through a mix of policies that promote international trade (such as cutting tariffs and encourage greater specialization in sectors that possess greater efficiency advantages over the rest of the domestic economy

What is conditionality and how does the IMF use it to promote economic reforms within countries?

Conditionality and how does the IMF use it? Conditionality: demands conditions that change economic conditions in country and enhance long term ability to repay Conditions may include cut tariff barriers, cut budget deficits, raise taxes, cut spending IMF will give partial money and then state needs to follow through with conditions before getting more money

What is the basic scientific claim about the causes and extent of climate change?

Consequences: the doubling of CO2 in the atmosphere will increase average global temperature by 5.5 fahrenheit, more extreme heat waves (droughts, wind patterns), ocean levels rising ( ice sheets melting) endangering coastal communities, warming of the atmosphere may reach a point where its irreversible (no amount of CO2 cuts will restore atmospheric temperatures to pre-industrial rangers) so coastal communities will have to relocate

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

Current account (ratio of exports to imports) = Capital account (ratio of capital outflows to inflows) Current account surplus (net exporter) = Capital account deficit (net lender) *Current account deficit (net importer) = Capital account surplus (net borrower) If the US runs a trade deficit in a given year - it is buying more than it is selling Loans from foreigners Healthy investment climate Compensate for low savings rates

What is the Paris climate accord?

Deal reached Dec 2015 Designed to reduce global carbon emissions as a way to avoid some of the effects of climate change US played important role in the final terms of agreement, but pulled back on some of its pledges in this agreement after Trump as voted into office multilateral agreement between countries on a process by which states would reduce carbon emissions to keep average global temperature increases below 2 degrees Celcius with an ultimate goal of below 1.5 degrees C, and therefore limit increasing average temperatures It is a voluntary agreement where states set targets that are not legally binding Member countries pledge to reduce emissions that progress every five years Main components of agreement States not adopting legally binding emission targets- countries would voluntarily submit their carbon emission targets (promotes compliance through naming & shaming) Fund to transfer 100 billion dollars from developed to developing countries Helps developing countries pay for costs & as compensation for the fact developed countries are more responsible for this problem due to industrialization

What is WHO

Designed to ensure that states uphold existing trade concessions (e.g. tariff cuts) negotiated through GATT/WTO Judicial panel can enforce these obligations by authorizing compensation to injured party in form of trade sanctions Interesting: plaintiff gives a lot of discretion on where to impose retaliatory tariffs on the defendant to give them pain Political logic: WTO enforcement capacity keeps global economy open by punishing states pursuing protection While successful at preserving existing trade concessions, WTO relatively ineffective over the last decade in securing further trade liberalization because of limited support in the developed world (US, Europe, Japan)- it make sense because when there's enforcement mechanism, it level up the playing fields, big countries are less likely to get what they want.

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

Developing countries (BRIC) will be the recipients of foreign aid under the Paris Climate Accord for actions on climate change adaptation and mitigation It relieved tension between developed and developing countries about who should shoulder the burden of mitigating climate change It will help developing countries switch to forms of renewable energy so they can continue to grow without emitting as much carbon as fossil fuels do

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

Dilemmas of NATO 1.) European shirking their responsibilities to provide their own security President Eisenhower on European shirking in NATO: they won't make the sacrifices to provide the soldiers for their own defense 2.) The US as a reluctant hegemon Trump Administration and NATO Challenging the basic foundations of NATO and European security Demanding Europeans step up and spend more - spend 2% of GDP at least. The costs of international institutions outweigh the benefits Remedies (radical) NATO is obsolete If European countries don't raise expense levels, may not fully honor article 5 of NATO's founding treaty Attack on any member of NATO is an attack on all members Collective security arrangement (the US as the hegemon)

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

Distributional struggle within countries: Coal vs solar Oil vs general public winners would be investors in clean energy losers are carbon-dependent industries because new reduction requirements have extra costs that could be an expense for industries and create a loss Distributional struggle among countries: Developed (US, Europe) vs developing (Brazil, China, India, Russia) Industrial era- Developed countries should pay for the carbon emissions- why should developing countries pay if they haven't even caught up yet Variation in carbon emissions across countries means different levels of preparedness for changes US: carbon consumption in electricity, transportation, industry Industry (& carbon emissions) shifting to developing world: caps would impede their growth production of gases is unequal Who do you put the burden on? Most industrialized, industrializing, etc? also the ability to implement change varies depending on the level of industrialization of a country across generations: the intertemporal gap; costs are diffused over time costs are going to fall on our children, while the costs of transition fall on current generations who have much more political power

What are some examples of institutions in domestic and international politics?

Domestic: don't speed, don't steal, win a majority of electoral votes to become president International: sovereignty (states recognize states as an independent [reciprocal]), laws discouraging chemical/nuclear weapons use Provide standards for behavior

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

Dramatic growth of migrants overtime- number of migrants grown by 50% since 2000 Flow from undeveloped to developed countries (for voluntary migration) Flow from war torn states to neighboring countries (for forced migration) Developing countries like Turkey receive immigrants fleeing war & natural disaster because they neighbor war-torn states Germany also receives lots of refugees US, Saudi Arabia, Germany are top receiving countries India, Russia, China, Mexico are top sending countries US has the greatest cumulative stock of immigrants (people who moved throughout the years) However, migrants make up a greater percent of total population in Australia, Canada, United Arab, Saudi Arabia

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

Emerges in final stages of WWII, US supports creation of international organizations to ensure economic growth through international trade Impetus from Great depressions & WWII Diagnosis of global strategic problem at Bretton Woods Collapse of economic cooperation- great depression- Nazi takeover, imperial rivalry, WWII Plan for institutional solution at Bretton Woods Construction of international organizations that support reduction of trade barriers- political cooperation to sustain globalization- peace & economic growth Political cooperation in international economic affairs Joint reduction in tariff barriers Monetary cooperation- multiple countries coordinate monetary policies to preserve stable exchange rates Foreign aid Emergency lending Why is political cooperation hard to achieve Problem of contracting over time- states cheat Uncertainty about political interests of other states Monitoring compliance Distribution hurdles: which side is getting a better deal?\ International organizations help resolve some challenges associated with cooperation Provide enforcement mechanisms (WTO, IMF) Help to reveal info about state interests Monitor compliance Reduce distributional challenges 44 nations met to discuss ways to manage economic cooperation in the post-war world order. The main forces that serves as an impetus for the Bretton Woods order were the collapse of the First Era of Globalization in 1914 with the onset of WWI, as well as the unraveling of economic cooperation in the interwar period that contributed to economic downturn, volatility, and helped lead to the onset of WWII. The main organizations that emerged from the Bretton Woods order were the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development, also known as the World Bank.

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

Emerges with public property or resources for which it is difficult (costly) to restrict their use (consumption) Divergence between private benefits and social cost (individual rational for people to consume, but diffused costs to society) Resources get depleted oil fields, common grazing lands, overpopulation, fisheries, atmosphere Ex: factory dumps pollutants in river which is key water resource for the city: people get sick but also depend on factory for job Factory adapts alt energy source to cut emissions, but becomes less profitable, out of business City pays factory to cut emissions, simultaneously subsidize production Problem: how to define property rights over a common pool resource Absence of property rights leads to overuse & limits incentives for conservation Private & social costs diverge Factory pays nothing for pollution (no private costs) while people pay health costs (social cost) Factory distributes cost to everyone else

2. Describe the main elements of international economic cooperation. Why is political cooperation between states on international economic affairs difficult to achieve?

Enforcement mechanisms to deter states from cheating which takes in the form of withdrawing economic concessions that have been promised Cooperation because joining an organization signals FP interests, it requires concessions that are costly domestically for future government policies that reduce uncertainty that it might change policies in the future states cheat; fail to honor concessions; won't come to agreement if this might happen states are uncertain about interests of other states; states might lie can be challenging to monitor behavior of other states face distribution challenges; one side might benefit more than the other

How can exchange rate changes influence trade policy?

Exchange rates are important: Shape the price of conducting international trade When the dollar appreciates, imports go up because the foreign products (bought by more valuable $) are cheaper When the dollar appreciates, exports go down because they are priced in $ and more expensive to foreign consumers Opposite with depreciating currency Helps exports, slows imports

What is an exchange rate?

Exchange rates reflect differences in the value of respective currencies; price of one currency in terms of another

What do the Fed's actions say about the costs and benefits of American hegemony/leadership in the global economy?

Fed wants to prevent foreigners from selling US Treasury (drive down the value of the dollar) Got more aggressive recently Cost to the US would go up substantially

What emergency actions did the Federal Reserve undertake to help prevent a broader global financial crisis during the COVID-19 pandemic?

Federal reserve emergency actions in the COVID-19 pandemic Federal reserve - bank of largest banks in the US (insulated from pressures from elected officials) Hold deposits at the fed reserve Regulate the banking system Make monetary policy Influence interest rates Provide credit The Fed has undertaken EXTRAORDINARY, UNPRECEDENTED actions during the past five weeks to prevent the economic shutdown associated with COVID-19 from triggering a global financial crisis If it gets to the banks Using part of the 2008 playbook and then going way beyond that Powel - Trump doesn't like that he slowed the economy just before COVID hit Changes to the Fed's balance sheet in the last decade Measures the Fed's assets or its outstanding loans Less than $1 trillion in Sep. 2008 $4.15 trillion on Feb. 24, 2020 $6.1 trillion on April 9 Buying US Treasury bonds; mortgage-backed securities; corporate debt; making loans to businesses smaller than 10k employees; loans to state and local governments; and debt collateralized with student loans/auto loans Buys these assets by creating reserves for the financial institutions that sell them to the Fed Creating deposits or (electronic) money Doing this to encourage private financial institutions to continue lending in this crisis Fed Monetary policy actions in March and April 2020 March 3: dropped federal funds rate target to 0.00 to 0.25 (overnight interest rate charged to largest banks) Multiple rounds of quantitative easing (asset purchases that increase the size of its balance sheet) 3/15 - announce purchases of $700 billion (Treasuries and mortgage-backed securities) 3/23 - announced that purchases open-ended (NEW) Direct lending to large corporations (NEW) Treasury (the US taxpayer) provides a backstop to take on up to $75 billion in losses April 9: indirect lending to small and medium-sized businesses (NEW) Fund 95% of loans originated by other domestic financial institutions Direct lending to state and local governments, up to $500 billion (NEW) Swap lines (exchange dollars for foreign currencies) to 14 most trusted central banks March 31: FIMA Repo Facility (Foreign and International monetary authorities) - Fed will lend dollars (create reserves) to foreign actors that hold and post US Treasury bonds as collateral (NEW) Preventing a global run on the dollar so foreign financial institutions (banks, hedge funds, pension funds, etc.) don't have to sell US Treasury bonds (and drive down their price) to cover other losses

How is immigration policy related to partisanship in the United States?

Free market republicans were willing to work with democrats to construct a political solution that could've given legal status to the 12 million undocumented immigrants in the US at the time Economics interests that served as the core constituency of the Republican party (big businesses) favored relatively open immigration, which was reflected in Bush's immigration reform plan By Bush's 2nd term, he was unpopular because of the war in Iraq & didn't have enough political capitol left to put together a grand bipartisan compromise on the immigration issue Much of the Republican party developed a tougher stance on immigraion Viewed the policy issue of undocumented indiciduals through law & order & national secirity prisms which demands that the illegal immigrants should be deported before receiving any economic and political benefits associated with citizenship Only became an issue when Trump forced it on the agenda (usually would not be on the agenda) Democrats more likely to support friendly immigration policies while Republicans more likely to oppose them Republicans worried about voting, immigrants might vote for the Democrats

What is GATT

GATT or General Agreement on Tariffs and Trade (precursor to the WTO) A multilateral international organization designed to support the reduction of trade barriers on a reciprocal basis among states Reciprocity is the key to the GATT (expectation among states that any concession or tariff cut taken by a state would prompt some set of tariff cuts by another country) It provided a series of rules that would guide negotiating rounds and boosted a country's aggregate trade flows during the Cold War (ultimately increased international trade) However, did not provide a mechanism to adjudicate trade disputes Important: no enforcement capabilities, trade disputes handled on a bilateral basis (bigger countries have higher leverage)

How can the two main bodies of the UN confer legitimacy?

General Assembly - Includes all member states, meaning rarely agreement but provides powerful political vehicle to secure international legitimacy for some foreign policy actions Security Council Most important actions occur here Five permanent members with veto power (US, UK, China, Russia, France) - victors of WW2 Difficult to agree on things Confer legitimacy on states Ten rotating members

What are the two main political bodies of the UN?

General Assembly and Security Council

How does the status of the U.S. dollar as the reserve currency of the global economy help the Federal Reserve to take such dramatic steps during the pandemic to support the U.S. economy? How is this related to the Hegemonic Stability Theory?

Global demand for dollars is helping Congress to run massive deficits (at near zero percent interest) and Fed to print trillions of dollars to backstop US financial institutions and the domestic economy If the US runs a $4 trillion deficit this year with 5% interest Interest payments would increase the US deficit by $200 billion Instead, the real annual interest rate is around 0.5% Interest payments would increase the US deficit $20 billion Huge implications for hegemonic stability theory The concentration of economic capabilities in the hands of the US creates positive economic benefits for the global economy, hoping to expand international trade and global economic growth

How did the stress of globalization change the domestic political order in the United States, particularly within the Republican party?

Globalization backlash reorients political interests of manufacturing workers to Trump and Republicans Globalization and urbanization fuels urban/rural divide Globalization and immigration activate political conflict over future membership (and voting power) in US polity Globalization backlash activates distributional conflict among states (allies) and reduces domestic support for US leadership and participation in multilateral organizations, like NATO and the WTO

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

How institutions/organizations influence international relations Institutions as rules that structure behavior Provide info about how states might act; and how to define appropriate and inappropriate behavior Organizations facilitate interstate cooperation Mitigate collective action problem Reduce transaction costs associated with reaching settlements Sometimes help enforce agreements Enforcement mechanism Violate, can initiate judicial proceedings Authorize tariff penalties on the side that violate an agreement International Organizations and Tension with Sovereignty Delegation of authority to IOs can limit domestic sovereignty EXAMPLE: WTO and steel Bush raised a tariff on steel in 2002 Rescind tariffs in 2003 Tension/tradeoff: sovereignty v. gains from cooperation Costs with being left out

What is the International Monetary Fund?

IMF: International Monetary Fund Acts like a bank Overseas pool of capital created by countries apart of the organization

What are some of the primary impediments the state face when trying to reach cooperative settlements with each other?

Impediments states face trying to reach cooperative settlements: -Collective action problem: when everyone agrees about the benefits of a common goal, but no one will pay to realize that goal -Free rider problem -Many actors would much rather avoid costs that come with reaching a cooperative settlement -Sometimes there is a lack of rules or a lack of enforcement of the rules placed to avoid the free rider problem -The problem of distributing the burden of collective goods provision can activate intense struggles among interested parties, -There are some winners and some losers; in a perfect world, nobody would lose but that isn't the case so those on the losing side would want to push back. Every state desires to achieve the maximum benefits while minimizing concessions, leading to conflict.

What is the difference between institutions and organizations?

International Organizations Political actors in the international system - often their members are nation states. Organizations defend institutions Possess agency and pursue political objectives INTERNATIONAL EXAMPLES: United Nations, North Atlantic Treaty Organization (NATO), World Trade Organization (WTO)

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

International migration is part of the broader phenomenon of globalization Movement of labor across national borders increases economic growth in the aggregate People often migrate to the US in search of higher wages Migration creates income distributional effects, which creates economic winners & losers High tech wants to employ high skilled workers to keep costs down Agriculture, construction, service wants to employ low skill foreign workers for lower labor costs Low labor costs also benefit consumers through lower prices & can increase economic growth Migrants also increase demand for public goods, spurring economic growth Costs of immigration are borne by workers & taxpayers By pushing labor supply, real wages are driven down Migrants also present a cost through increased demands for social services such as schools, public safety, and health care paid through taxes

What is democracy?

Liberal democracy is a representative system of government marked by free and fair elections and limited government powers that protect the rights of individuals under the rule of law. Some scholars have warned against the electoralist fallacy—that is, (wrongly) equating the holding of competitive elections with democracy if such elections are not accompanied by crucial political freedoms, such as freedom of speech and freedom of the press. •Five stages of expansion of voting rights in the U.S. -Expansion of white male suffrage in 19th century -15th amendment (1870) prohibits voting restrictions based on race or color •Voter suppression prevented African Americans from voting, especially in the South, for decades -19th amendment (1920) prohibits voting restrictions based on sex -Voting Right Act of 1965 enforces racial equality at the polls -26th amendment (1971) sets minimum voting age at 18

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

Main components Goal: limit global temp increases under 2.0 °C with new goal to get under 1.5 °C. (In 2015: avg temps +1.0 °C since 1880) Binding process for monitoring and reporting pledges on emission targets and progress in upholding those pledges. Need to make a national plan public every 5 years, each plan needs to be as strong or stronger than the prior one. Foreign aid from developed to developing countries. Ease costs of alt energies Compensate for costs of climate change.

What are IMFs main functions?

Main functions Limits exchange rate fluctuations (prevent currency wars form depression that interrupted trade) Lender of last resort: helps governments in exchange rate crisis stabilize reserves with loans

What is the main source of its influence in the international economy?

Main source of influence Control over exchange rate stability - prevents global economic order from collapsing Conditionality/loans - powerful because they'll loan when no one wants to (getting that money back will provide enough reputation for private investors to reinvest)

Describe how President Obama's use of executive orders to commit to the Paris climate accord made the U.S. commitment to the agreement vulnerable. Describe how President Trump undermined the Paris climate accord when he came into office and then withdrew the U.S. from the agreement.

Obama based his pledge for American carbon emission reductions on executive orders- vulnerable because the next president could reverse them unilaterally Trump administration undermined the American commitments to the Paris agreement before formally withdrawing by rescinding Obama's executive orders Even if the US rejoined, other states would question the stability of their commitment Other countries are unlikely to push for significant emission reduction while allowing the US (the world's second largest carbon emitter) to free ride They are vulnerable because the next president could reverse them unilaterally (which happened when Trump was elected) Trump announced the withdrawal from the Paris Agreement in 11/2017. There is a 3 year waiting period, so the US was formally exited on 11/03/2020, a day before the presidential elections.

How has the coronavirus pandemic accelerated some of the challenges associated with the backlash against globalization?

Policy response by most states to the pandemic was to pull back from globalization Short-term halt to travel Medium to long term threat to supply chains Declining support for new trade deals Accentuates US-China conflict, which is reinforced by the election Threats to US leadership Implication: if in a critical juncture, US election this fall will cast a long historical shadow

How did the challenge of a rising China change the political support for globalization in the international order?

Political triangulation and the China challenge Trump: New great power order defined by the US-China conflict and new constraints on economic relations between the two Trump thinks China is on the rise and not playing fair; China is benefitting more than the US

What are some of the political solutions to the collective action problem in the case of carbon dioxide emissions?

Possible Solutions: Affected parties negotiate a solution that preserves sustainability and distributes burden according to all parties' joint preferences Only arises w/ small number of parties and few barriers to negotiation Regulation provided by institutions that can set limits on usage of common pool resources, establish rules for the provision and maintenance of common pool resources, and monitor the behaviors of the parties Faces issues in getting countries to actually alter their existing practices, and distributional issues CO2 cuts as a collective action problem Public good: nonexcludable and nonrivalous Can activate free rider problem Free riding- failing to limit own CO2 emissions Costly to exclude countries from consuming once supplied Potential solutions Large actors provide public good on own Large actors such as US or China simply absorb the cost of free riding, because they benefit enough individually from its supply International agreement to punish noncompliance Markets undersupply public goods, necessity of international agreement

According to the Baker reading, what are the economic and national security benefits of ambitious U.S. leadership in combating climate change? What are the four pillars of the Baker-Schultz plan to reduce carbon emissions?

Presents a conservative argument for US leadership in combating climate change Environmental protection & economic growth are complementary not mutually exclusive US already has a comparative advantage in low emissions manufacturing so stronger environmental protections would promote a more equal playing field for American companies Environmental protection can foster economic growth Cleaner energy is becoming more cost effective, so the US has substantially cut emissions while maintaining a strong economy Climate saving technologies can bring economic efficiencies Climate change is causing economic costs through natural disasters Environmental protection can enhance national security Climate change causes serious national security threats such as flooding of major cities & international conflicts over water scarcity & thus reducing climate change will lessen these threats Winner of clean energy race will determine the international balance of power & set rules for new clean energy economy Policy proposal- carbon pricing as the most efficient means to reduce emissions The 4 pillars of the reading are: Economic-wide, revenue neutral carbon fee. Revenue from carbon fee returned to US citizens as dividends, a family of four would receive approx. $2000 a year. Carbon pricing would replace many environmental regulations. Carbon tariff would be applied to energy-intensive imports to level the playing field.

What are the pros and cons of the Paris climate accord?

Pros: commits both developed and developing countries to change (broad collective agreement) voluntary approach more realistic; agreement could be made more quickly addresses needs of developing countries by providing money to help them industrialize w/o contributing too much to climate change Cons: current targets will not get the job done execution is not guaranteed no target set on peaking of global emissions before change so peaks will be hit at different times

How might international economic organizations, like the WTO and the IMF, facilitate economic cooperation among states and higher levels of international trade?

Provides enforcement mechanisms WTO: judicial panel (judges hear the sides and then decide whether the injured state may impose tariffs or not) IMF: conditionality (insists on conditions that must be followed by states for IMF assistance) Helps to reveal information about state interests through its own investigations Monitors compliance of all members Reducing distribution challenges

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

Public wants decreased immigration, but immigration increases in the US because of its government policies Collective action problem- powerful interests experience concentrated benefits from immigration while the costs are distributed widely across less organized interests Powerful interests such as the High-tech and agriculture sectors receive concentrated benefits from immigration through low labor costs, and therefore have high incentives to push for open immigration

Critiques of Democratic Peace

Puzzle for the democratic peace states undergoing democratic transitions experience more conflict Alternative explanations: A common enemy in the Soviet Union explains peace in Western Europe after World War II Great power settlements, not a democracy, explains peace after World War II

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

Remittances- money sent from migrants to family & friends back home (represents one of the largest transfers of capital across international borders Represents a greater distribution of wealth from wealthy countries to poorer ones than foreign aid Have certain advantages over other forms of wealth transfer such as foreign aid or investment Because they usually involve transfers between family members, remittances cannot be withdrawn & are unconditional They also avoid government structures & corruption Because they are target for individuals, they avoid costly overhead Provide a valuable form of social insurance, credit, & investment in countries that lack these markets

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

Ricardian model of trade assumes that there are two countries, producing two goods, using one factor of production, usually labor. The model is a general equilibrium model in which all markets are perfectly competitive Ricardo used the principle of comparative advantage to illustrate how international trade could generate these economic benefits. Gains trade stem from differences in the relative efficiency of individuals, firms, or whole economies in the production of some mix of goods Ricardo showed that countries could gain from trade by specializing in the production of those goods in which they held the greatest efficiency gains relative to all other goods - comparative advantage.

Describe Robert Dahl's three "procedural minimal" conditions of democracy.

Robert Dahl: "Procedural Minimal" Conditions of Democracy( pre-conditions that need to be met in order to ensure that multi-party elections are truly free & fair) if it does not have competitive elections, then it's not a democracy and vice versa I. Public Contestation Electoral competition (multiple parties competing) Individual freedoms (rights of citizens to freely express themselves, form associations, and receive info from the media-freedom of the press) II. Inclusion Universal Suffrage (the system must allow universal and equal participation by all segments of society) III. Democratic Sovereignty (democratic elections must result in the establishment of truly powerful decision-making bodies such as legislative and chief executives) - not people like the military or religious authorities

What are institutions?

Rules of the game of society: humanly devised constraints that structure incentives and interaction Constructions, not actors. Cannot act. Tell us what is and isn't permitted They include treaties and norms

What is a Nationally Determined Contribution?

Set nationally, voluntary; not negotiated internationally EU: Pledged to reduce emissions by 40% in 2030 from 1990 levels, set legally binding EU target in October 2014, already down 19%

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

Some groups see income gains and some groups see income losses International trade helps to create jobs in sectors that rely disproportionately on resources (factor endowments) that U.S. possesses in abundance Abundance drives down the costs of these factors and makes goods that rely on them as inputs relatively cheaper Jobs are lost in sectors that rely disproportionately on resources that are scarce in the US

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

Tendency of globalization to shift distribution of income within an economy - some groups see income gains Political implications: Globalization tends to activate domestic political conflict because some groups win and some groups lose This powerful reason to explain prevalence of barriers to trade that constrict national income

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

The Discipline of Global Capital (bond) Markets When foreign capital holders lose confidence in a government's monetary policy, they tend to sell assets denominated in that currency Currency depreciates The government can reassure investors (or bring them back) by Raising taxes or cutting government spending Offering higher returns (i.e. push interest rates up) But... these measures push the domestic economy into recession EXAMPLE: Greece in the Euro crisis Real policy implications - International capital markets can sharply constrain a country's monetary policy; limiting the discretion of elected officials and forcing them to push their economy into recession to reassure creditors

How did the Cold War and the Soviet threat help increase political support for globalization (and temper distributional concerns) within the U.S. and among its allies?

The cold war was important for globalization because it provided political set of interest (triangulation of interests) that provided a constituency for political support for globalization and tolerance for the distributional concerns about other countries getting a better deal from trade with the US Ex: Marshall plan - generous plan by the US to held rebuild European economies Was a genuine threat that without rebuilding West European economies, those governments would be susceptible to radical ideologies including communism US poured aid into Marshall Plan on condition that they would be allied and economically integrated with the US and economy

What does globalization in financial terms look like?

The movement of capital across national boundaries

What is globalization and how has it affected the international order since World War I? What are the economic and political benefits of globalization? How does globalization foster peace among states?

Think of globalizations as integration of national markets into larger global markets Associated with higher levels of trade, capital flows, migration, global supply chains Sharpens trade off between domestic monetary autonomy and exchange rate stability Globalization and international order Economic benefits Consumer gains in the form of lower prices Innovation New market opportunities for US businesses Political benefits: conventional wisdom holds that globalization fosters peace among states Foundation for common political interests among states Eliminates incentives for territorial conquest Strengthens domestic constituencies that support open markets and restrain foreign policy Fosters democratic political reform

What is the tragedy of the commons?

Tragedy of the commons- encourages overuse of common pool resources (atmosphere, bodies of water, fisheries) because individuals making consumption/use decisions of the resources do not bear the full social consequences of their overuse

How did Donald Trump harness the backlash against globalization and a rising China into a domestic constituency for his America First foreign policy and trade policies?

Trump harnessed the costs associated with globalization to remake the Republican party and undermine center right groups that embrace capitalism and globalization and are much more willing to support new trade restrictions that actually slow globalization Trade war as a device to slow China's rise

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

US and NATO: Cold War Origins General Lord Ismay, NATO first secretary-general, on the goal of NATO: to keep the Russians out, the Americans in, and the Germans down Spread democracy NATO and protection of Europe from the Soviet threat NATO as a binding mechanism for American military power Work multilaterally (think about others in NATO) NATO and peace between democratic powers in Europe led by an outsider, the US

What are some of the important stages in this trade war between China and the United States?

US creates tariff on Steel and Aluminum imports and doesn't exempt china -China responds with $3B on US imports -US responds with 25% tariff on 1,300 chinese products ($50B) -China responds with 25% tariff on goods like transportation equipment and soybeans -US responds with $1B tariffs on sorghum exports China is targeting Trump's voting base so it hurts

Why does the United States participate in the United Nations and often abide by its decisions when it could just ignore it instead (because it possesses much greater military capacity than the UN)?

US key player because of the seat on Security Council Can ignore, but... why participate regularly (e.g. seek approval for the 2003 Iraq war)? Source of legitimacy abroad and at home UN reflect global public opinion, easier to gain allies if support The domestic public more likely to support policies that have secured UN approval (Chapman - UT)

Which states have the most power within these political bodies?

US key player because of the seat on Security Council Can ignore, but... why participate regularly (e.g. seek approval for the 2003 Iraq war)? Source of legitimacy abroad and at home UN reflect global public opinion, easier to gain allies if support The domestic public more likely to support policies that have secured UN approval (Chapman - UT) US and International Organizations Real tension: might need to gain legitimacy for policy, secure additional support to implement policies, but... Can require some surrender of sovereignty or authority of elected officials in US set policy of the US

How do shifts in exchange rates alter patterns of imports and exports?

Value relative to another currency As $ appreciates, it can buy MORE units of a foreign currency As $ depreciates, it buys FEWER units of a foreign currency EXAMPLE: February 2018 - $ buys 0.81 euros May 2020 - $ buys 0.91 euros Dollar appreciates relative to euro from 2018-2020

What are the main differences between voluntary and forced migration?

Voluntary- moving to another country for personal gain, usually economic opportunity Can be obtained through legal & illegal (undocumented) means Forced migration- leave home country to escape war, repression, or natural disaster Refugees, human traffiking States are required to take in forced migration but not required to take voluntary migrants

What is the difference between WHO AND GATT

WHO institutionalized a dispute settlement mechanism with established procedures for filing grievance, investigating complaints, and punishing defection (enforcement tool!)

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

When governments open their domestic economies to international trade, their consumers gain access to more competitive, lower-cost produces from other countries Policies that promote trade and globalization can also become the target of voter angst and scorn if they effectively replace local workers with foreign ones By building new economic connections across national boundaries, global economic integration increases the role played by the markets in generating order in the international system Markets influence the distribution of political authority within and between states and help create political order in the international system The Wealth of Nations by Adam Smith argued that commerce and foreign trade would gradually enhance individual liberty by altering the distribution of property rights within a society Growing political influence of a commercial class has stimulated successful democratic transitions in some countries If globalization increases income levels, this can imply that globalization supports democracy more broadly in the international system because literature shows that rising income levels within countries make the presence of democracy more likely Economic development can facilitate democratic transitions and prevent democracies from collapsing back into autocratic regimes Commercial integration also alters the quality of political interactions among states Global economic integration strengthens commercial groups within states opposed to war, making it harder for governments to secure domestic political support for war

Why does the U.S. have so much influence within the IMF?

Why is US so influential over IMF All countries are not equal: voting power and political power influences the capital in the pool of capital that IMF owns US is the biggest shareholder, therefore it has a lot of influence on the emergency loans US will often relax conditions for strategic reasons (such as being allies with US)

What is an externality?

a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved Costs borne by actors not directly involved in a process

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

externalities -- costs/benefits applying to those who are not directly involved in interactions; outside parties have a distributional stake in outcomes; instead of renegotiating cooperation, states can establish forms of multilateral governance (general set of rules) to reduce transaction costs way to streamline their interactions in order to manage increasing complexity or to make their interactions more efficient provision of public goods (everyone agrees about a goal but no one willing to pay the costs for it); free-rider problem; incentives difficult to enforce -- countries don't like to pay for the costs of enforcement; many states will still cheat and find ways to avoid punishment; states often settle for self-punishment so no parties have a reason to cheat; diffused enforcement -- enforcement by decentralized members rather than a centralized governing agency; sanctions sometimes fail to produce the desired outcome

According to the Krasner reading, what are the two main tendencies within US foreign policy regarding democracy promotion and dealing with authoritarian regimes? What third option does Krasner propose in how the U.S. should deal with long-standing dictatorships?

•US foreign policy has tended to take two different approaches toward authoritarian regimes: -On the one hand, presidents like George W. Bush have tried to transform dictatorships into liberal democracies. Believed in idea that democracy can be achieved all around the world - idea held since Woodrow Wilson's presidency. -On the other hand, presidents like Donald Trump and Barack Obama have taken a more hands off approach, choosing to demonstrate the virtues of democracy by example through a well-functioning American political system, but doing little to promote democratic regime change. Borrows from isolationism and offshore balancing. •Both of these approaches are seriously flawed: -In the first one, America devotes enormous resources into a project, implanting democracy that is almost always unsuccessful at best and often backfires, especially when using military intervention, as shown in Iraq and Afghanistan. -In the second instance, America ignores problems at its own peril, allowing radical elements to fester and gain strength to threaten the U.S. homeland and vital American interests with attack. Ex: Al-Qaeda and 9/11. -Krasner highlights a common dilemma of democracy promotion. The U.S. faces a no-win situation. Overly ambitious democracy promotion does not work but withdrawal from the world's problems has costs as well. •Krasner offers a third option - promoting good enough governance, which emphasizes greater security, economic growth, and better provision of some services - Middle ground between overly aggressive approach for regime change and overly restrained approach. •Main elements of promoting good enough governance: -The world's states can be categorized into three groups: consolidated democracies, transitional countries, and despotic regimes. Each category needs a different approach. -For consolidated democracies, the U.S. needs to maintain its alliance and trade commitments to help sustain successful democracy -For transitional countries, the U.S. should work with other democracies to gently nudge these countries toward greater democracy by identifying good local leaders to support. -For despotic regimes, democracy is probably not viable in the short-term. In these cases, the U.S. should also identify good local leaders, regardless if they are committed to democracy or not, and provide them assistance to improve security, economic growth, and provision of important services like health care. •Critique: How should the U.S. respond to authoritarian regimes, like China, that arguably provide good enough governance but also severely oppress many of their citizens?