Government 312L Exam 3 Review Sheet
How did the stress of globalization change the domestic political order in the United States, particularly within the Republican party?
Trump remade the republican party to undermine center right groups that embrace globalization. He leveraged groups hurt by globalization to remake the republican party and constructed a new narrative about the array of threats to the US with China being the main concerning threat.
How might international economic organizations, like the WTO and the IMF, facilitate economic cooperation among states and higher levels of international trade?
- Certain provisions of the IMF were also dedicated to structuring countries' exchange rate commitments in ways that would facilitate commitment to exchange rate levels and to open capital flows. -IMF was intended as a way to assist in longer-term economic development goals by providing a source of subsidized capital to countries rebuilding in the aftermath of World War II. -The WTO was created to act as a "lender of last resort" that could provide a short-term injection of liquidity to governments during financial crises that would allow them to pay off creditors and restore investor confidence.
What are some of the political solutions to the collective action problem in the case of carbon dioxide emissions?
- Large actors, like the US, EU, and China, taking steps to cut emissions on their own because they will benefit enough from just cutting their own outputs -Allow affected parties to negotiate some solution that would preserve sustainability and distribute the burden of doing so according to their joint preferences -Institutions set clear limits on the use of common pool resources, also set rules for monitoring the behavior of parties to ensure compliance; International agreements to punish non compliance (Paris Climate Accord does this)
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
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
If trade makes states wealthier, why is there political resistance to globalization?
-There is political resistance to globalization because the benefits are not distributed evenly across society. -The domestic distributional consequences are that there are winners AND there are losers.
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?
Bretton woods economic order (1944): US supports creation of international organizations to ensure economic growth through international trade 44 nations met to discuss ways to manage economic cooperation in the post-war world order ------- 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 ------ International Monetary Fund (IMF) and the International Bank for Reconstruction and Development, also known as the World Bank
What is comparative advantage and how does it contribute to aggregate economic gains for states from trade?
Comparative advantage is Gains from trade stem from differences in the relative efficiency of individuals, firms, or whole economies in the production of some mix of goods It contributes By narrowing the range of economic tasks for which an asset is used, specialization enables states to be deployed in their most efficient function
How does these organizations (GATT AND WTO) differ?
GATT does not have an enforcement mechanism while WTO does.
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?
He leveraged the backlash of globalization (groups hurt by globalization) to remake the republican party which use to think barriers to international trade and migration were bad. They no longer do that and supports neo-mercantilist agenda of Trump which is to renegotiate a series of trade deals, pull back from multilateral trade organizations and constructed a new narrative (listed in the two questions above) He leveraged economic consequences and mobilized groups hurt by globalization to take a much more hostile line to China He is using the costs associated with globalization to remake republican party to undermine those who support globalization
How is immigration policy related to partisanship in the United States?
In the US, immigration policy is closely tied to partisanship. How will immigrants vote? Republicans worry that majority will vote for Democrats. Permanent political status as minority party in key electoral states like Texas and Florida.
What are institutions? What is the difference between institutions and organizations? What are some examples of institutions in domestic and international politics?
Institutions: rules of society or humanly devised constraints that shape human interaction; provide incentives for behaving, incentives for human exchange, whether political, social or econ Organizations: act/enforce rules; can have rules that govern their internal working and external relations; these rules are institutions, not organizations Ex. domestic institutions: electoral rule, legislative rule, federalism, constitutions, etc. Congress is an organization, but the rules governing when a debate on a bill can close, etc. are institutions Intl institutions can be sovereignty as legal recognitions by other states (possissing legal rights to set laws), trade liberalization (reducing tariffs))
What is an exchange rate?
Reflect differences in value of respective currencies; price of one currency in terms of another
How have domestic political considerations (and the distributional consequences of trade) in the United States contributed to this trade war?
Sources of underlying conflict -China's economic rise and the potential shift in global distribution of power -Different domestic systems **China's state-managed capitalism create unfair advantages **Less government support for US firms-Reorientation of US economic policy with Trump election
What are the two main political bodies of the UN? How can they confer legitimacy? Which states have the most power within these political bodies?
The two main bodies are -General Assembly -Security Council They confer legitimacy by: UN reflects global public opinion making it easier to gain allies support and domestic public more likely to support policies that have secured UN approval The states that hold the most power are : US UK China Russia France
What are the main differences between voluntary and forced migration?
Voluntary: -Someone who moves to another country for personal gain such as higher wages, improved professional opportunities, or closer proximity to family and social networks Forced: -Migrants who leave their countries to escape war, repression, or natural disasters -Trump & Session's definition of forced migration: >Must be threatened or repressed by state authorities, dangers from non-state actors are not acceptable.
How can global capital markets discipline or influence the economic policy of governments?
When foreign capital holders lose confidence in a government's monetary policy, they tend to sell assets denominated in that currency a. Raises government's borrowing costs b. Limiting discretion of elected officials and forcing them to push their economy into recession to reassure creditors
What does globalization in financial terms look like?
a. The free flow of capital and goods across international borders b. The rise of multinational firms who can leverage cheaper labor, cheaper capital, or advantageous government policies by changing where they do business
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?
Globalization in financial terms: -The free flow of capital and goods across international borders -The rise of multinational firms who can leverage cheaper labor, cheaper capital, or advantageous government policies by changing where they do business. ------ .... ------- 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 conquests -strengthens domestic constituencies that support open markets and restrained foreign policy -fosters democratic political reform ---- Globalization fosters peace among states with trade: trade fosters peace both directly, by reducing the risk of military conflict, and indirectly, by promoting prosperity and democracy.
What is the Paris climate accord?
- Agreement reached by over 190 countries that was negotiated within the UN framework on climate change from 1992; replaced this framework - Goal of keeping average global temperature increases <2 degrees C above 1880's level (ie pre industrial revolution level) -Deal reached Dec 2015-US played important role in the final terms of agreement -multilateral agreement between countries on a process by which states would reduce carbon emissions 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
What is an externality?
- Cost or benefit of some economic activity that accrues to third parties who are not direct participants in any exchange relationship relative to that activity - Think a factory in China that produces plastic for consumption in the US and that pollutes the river in the city it is in. The polluted water is an externality to population of that city that does not work for the factory.
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?
- Created a process by which states would submit voluntary emissions targets every 5 years - Has no enforcement mechanism. Instead relies on naming and shaming countries that don't make efforts to meet their targets - Public announcement of target empowers domestic constituencies, as well as other countries, to see if a country is making an effort, so they can impose their own punishments as desired (tariffs, not reelecting a politician, etc) ------ - Developed countries and private groups have committed at least $100 million a year in aid payment from 2020 to 2025 for developing countries - This aid enables developing countries to adapt their energy consumption, as well as mitigate the negative effects of climate change, such as floods and damage to food supplies
What is the WTO?
- Like GATT but institutionalized a dispute settlement mechanism with established procedures for filing grievance, investigating complaints, and punishing defection - Meant to ensure that states upheld existing trade concessions negotiated through GATT/WTO - Judicial panel created that hears legal suits by one country against another in an appeal process. If a country wins against another, they can influence economic repercussions by choosing the sectors of the other country's economy are affected - WTO effectiveness has stalled recently. Dispute settlement is still working as intended, but resistance against trade liberalization by big countries (US, Europe, Japan, China) has hindered further progress.
What is the GATT?
- Predecessor of the WTO - General Agreement on Tariffs and Trade - Multilateral international organization designed to support reduction of trade barriers on a reciprocal basis - Provided a series of rules that would guide multilateral bargaining efforts (negotiating rounds) during the Cold War - Members of GATT saw boosted aggregate trade flow - It lacked enforcement capabilities and expected disputes to be settled on a bilateral basis
What is the tragedy of the commons?
- Rational for an individual to use common resources to their advantage, even if it will deplete the resource, as everyone else is also using the resource to their gain - Think a factory that produces pollution will not stop producing the pollution because it is in their interest to continue producing, and their competitors are not spending money to reduce pollution. However, this leads to clean air being "depleted"
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?
-Grown drastically since 2000, even higher than the global population growth -In general, global migration patterns involve a net flow of people from less developed to more developed countries (global south to global north) >U.S., Saudi Arabia, Germany are top receiving countries >India, Mexico, Russia, China are top sending countries -But not the case with refugees where developing countries like Turkey bear the main burden of receiving ------- -US is the largest receiving countries of international migration in numbers -migrants make up a greater share of total population in other countries like United Arab Emirates, Saudi Arabia, Australia, Canada (by percentage) -Trend for Voluntary Migration: >From less developed countries to more developed countries -Forced Migration: >Usually flows to countries nearby -Turkey and Germany, Lebanon, and Jordan have the largest inflows of refugees
What is the basic scientific claim about the causes and extent of climate change? What are the main environmental consequences that scientists fear will result from climate change?
-CO2 levels have increased significantly since the industrial revolution -Average global temps have increased -Ocean levels are rising and extreme weather conditions more frequent -CO2 increasing due to carbon emissions by industrialization and deforestation MAIN CONSEQUENCES: -Rising sea levels -Environmental degradation -Extreme weather events -extinction of some plants and animals
What are the domestic distributional consequences of globalization? Which groups win and lose from globalization inside the United States?
-Even though international trade increases the national wealth of the economy in the aggregate, some groups see income gains AND some groups see income losses -Groups that see income gains in the US are high tech jobs (high skilled workers) and college graduates. -A group that sees income loses is the US manufacturing sector ----------- Winners >Tech industries and jobs that require high skilled labor >helps create jobs in sectors that rely disproportionately on resources (factor endowments) that US possess in abundance Losers >Manufacturing industries >Jobs are lost in sectors that rely disproportionately on resources that are scarce in the US...such as unskilled labor in manufacturing
How does this phenomenon help to explain the difficulty of managing the sustainable use of commonly held public property? Know some examples.
-Factory dumps pollutants into river, hurts citizens, factory doesn't pay, citizens pay costs via health -fishermen with one source, each have competing market so want to catch more fish to sell but conflict of depleting all of the resource and leaving no supply for demand -w/ carbon emissions >many incentives to overproduce greenhouse gases >only seen incentive to reduce emissions is the future cost of global warming >estimate of future costs were uncertain so easy to ignore; now obvious and unwanted >future costs unequally felt by countries not responsible for bulk of emissions
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.
-First long wave of democracy lasted for most of the 19th century and beginning of the 20th century leading up to WWI: >Democracy remained rare around the world, spread mainly in Europe and the United States >Followed by reverse wave in interwar period >Breakdown of fragile democracies in Germany and Italy and rise of fascism >Autocratic Russia collapsed but replaced with communism -Second short wave of democracy followed WWII: >Western Europe influenced by American hegemony - emergence of dem in West Germany, Italy, Japan, and Austria>Reverse wave took hold in the 1960s and1970s in latin America with emergence of dictatorships -Third wave of democracy took hold beginning in the 1970s: >Democratization of Spain, Portugal, andGreece >Collapse of military rule in Latin America >End of 1980s collapse of communist regimes in Eastern Europe and Soviet Union (most tried democracy at first but ended up autocratic) *some argue now in reverse wave as countries in Russia return to authoritarian rule
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?
-High tech wants to employ high skilled workers to keep costs down and agriculture, construction, and service (hotels and restaurants) wants to employ low skilled foreigners to keep labor costs down (high tech firms oppose Trump's travel ban) -Lower labor costs also benefit consumers through lower prices and can increase economic growth. -Migrants also increase demand for goods, spurring economic growth -But, the costs of immigration are borne by unskilled workers (labor unions) and taxpayers. By pushing labor supply up in certain sectors, real wages are driven down. tries to increase wages for Americans -immigrants can also present a cost through increased consumption of social services like schools, public safety, and health care that are paid through taxes
How does international migration intersect with national security? According to your reading for this module, how does international migration present challenges for national security but also resources that can enhance a country's security?
-Immigration raises fears of infiltration by terrorists through lack of regulation -Leads to calls for stricter control/regulation of access through borders, especially of refugees and migrants from countries experiencing war (Trump travel ban) ----- -Challenge security:Immigration raises fears of infiltration by terrorists through lack of regulation -Challenge state sovereignty and worries about the slippery slope if others perceive them as weak -Leads to stricter control/regulation of access through borders, especially of refugees and migrants from countries experiencing war -Enhance security:Accepting migrants increases security by improving relations with other nations by taking in their migrants, or pressuring adversaries by taking in the refugees the adversaries oppressed
What is interstate cooperation? What are some of the primary impediments state face when trying to reach cooperative settlements with each other?
-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 -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
According to your reading for this module, how does international migration affect the demographic composition of countries? How do these demographic changes create conflict within countries over issues of national identity?
-People considered the national language, religion, etc. important to national identityImmigrants with different languages, religions, etc. would cause changes to national identity -These social/racial/cultural changes cause fear of losing these dominance -Majority ethnic groups may feel their privileged social status and dominant political power are under threat because immigration introduces new minority groups that may not share their values. >In US, this is manifested in debates over English as primary language and national identity rooted in Anglo -Protestant culture >In Europe, manifest largely over concerns over Muslim immigration. These concerns are demonstrated by strong public sentiment that knowing the national language and identifying as a Christian is important to national identity.
Why did the United States launch a trade war against China in 2018?
-President Donald Trump in 2018 began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are "unfair trade practices". -The trade war has negatively impacted the economies of both the United States and China. **In the United States, it has led to higher prices for consumers and financial difficulties for farmers and manufacturers. **In China, economic growth and growth of manufacturing activity have slowed to their lowest rates in decades. ------- Grand strategy of America FirstDeeper skepticism of free trade -Hurts American manufacturing and jobs -Consistent with domestic political strategy of TrumpTrump's demands specific to trade with China -China should boost imports of US products-Protection of US intellectual property -No currency manipulationTrade deficit-Indicator of unfair trade policies
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 open immigration policy is not popular -Smaller groups are better able to mobilize and affect policy -Agriculture benefit from migration (winners, lower labor costs) -labor and taxpayers (losers) -Immigration Policy and Partisanship:>In the US, immigration policy is closely tied to partisanship. >How will immigrants vote? (distribution of latino votes between parties) -Republicans worry that majority will vote for Democrats. -Permanent political status as minority party in key electoral states like Texas and Florida. ----- -Powerful interests experience concentrated benefits from immigration while the costs are distributed widely across less organized interests. -Collective Action Problem: >Powerful interest groups with less people benefit from immigration (lower labor cost): *Agriculture *Tech >But cost of immigration is diffused among all groups, so collective action problem ensues
What are some of the norms, principles, and rules associated with the GATT and WTO? How does the dispute settlement mechanism in the WTO support international trade?
-Sets up reciprocity in trade making -Helps facilitate cooperation -Leads to increased aggregate trade ------ can only authorize retaliation for violations of trade rules, defendants are required to participate when complainants file disputes. In some cases noncompliance persists even after a pro-complainant ruling, but like under the GATT, compliance rates remain generally high.
What emergency actions did the Federal Reserve undertake to help prevent a broader global financial crisis during the COVID-19 pandemic?
-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 -Using part of the 2008 playbook and then going way beyond that-Fed supposed to be politically independent from a lot of **Hard for president to fire someone from the board of governors **Set interests rates and monetary policy
How do trade and globalization shape political relations and order in the international system?
-The desire to harness these economic gains from trade can spur cooperative International agreements like the European Union (EU) and the World Trade Organization (WTO) that facilitate the coordination of economic policy among states and sustain globalization. -Alternatively, the heightened economic competition associated with globalization can also activate a deeper economic and political backlash that tries to limit these market pressures and reassert national political control over economic outcomes.
What are some of the important stages in this trade war between China and the United States?
-Trump imposes tariffs on all imports -China imposes tariffs of on 128 U.S. products -The U.S. bans Chinese telecoms giant Huawei Technologies Co Ltd [HWT.UL] from buying parts and components from U.S. companies. -Trump and Xi agree by phone to rekindle trade talks. -China halts purchases of U.S. agricultural products
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 problem 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
What are some critiques of the democratic peace theory?
-While established democracies tend not to fight each other, ones undergoing transition to democracy tend to be more likely to experience war, even more than established dictatorships -Alternative explanation for absence of war: >Not because of regime type, but because of common enemies -Ex? Soviet Union against European democracies after/during Cold War >The great power settlement post -WWII...peace a product of American hegemony in western Europe and soviet hegemony in East (each kept peace in own sphere)
Describe some of the efforts by the United States to promote democracy around the world. What are the political challenges associated with American efforts to promote democracy? What are the benefits and drawbacks associated with promoting democracy around the world?
-Wilson sought to leverage American participation in WWI to expand democracies in the world -promoting democracy took a back seat after 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) with 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
What is a Nationally Determined Contribution?
-are intended reductions in greenhouse gas emissions under the United Nations Framework Convention on Climate Change (UNFCCC); Set nationally, voluntary, and 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%
Describe the tradeoffs associated with participation in international organizations and national sovereignty.
-delegation of authority to international orgs can limit domestic authority. Ex: Bush raised import duties on steel. Countries challenged tariffs with trade dispute at WTO. Judicial panel ruled against US and Bush had to take away tariffs. -international org. 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 process (like how the WTO made US change trade policies). -part of appeal for Trump's "America first"; want to protect American sovereignty.
What is the Ricardian model of trade? Describe the processes by which it suggests that trade and specialization can increase aggregate national income.
-states that globalization helps to raise national income through specialization and trade. -Ricardo used the principle of comparative advantage to illustrate how international trade could generate economic benefits.- These gains from 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.
According to the Baker reading, what are the economic and national security benefits of ambitious U.S. leadership in combatting climate change? What are the four pillars of the Baker-Schultz plan to reduce carbon emissions?
... ------- - Economy-wide, revenue-neutral carbon fee. This would cost less than subsidies and regulations - Revenue from carbon fee returned to American citizens as dividends. A family of four would receive approximately $2000 per year - Carbon pricing would replace many environmental regulations- Carbon tariff would be applied to energy -intensive imports to level playing field
What are the two main dilemmas facing NATO and how has the Trump administration addressed these dilemmas?
1. European shirkinga. European countries aren't fulfilling their responsibilities be it economically or militarily 2. US as a reluctant hegemon a. First the US is demanding that European countries spend 2% of their GDP on their own military security instead of relying on the US to provide them all with security for free b. Part of Trump's policy to bring the US out of unfair agreements that are more expensive for us
How can exchange rate changes influence trade policy?
As the dollar appreciates, imports from the foreign country becomes cheaper, so they tend to increase. It is the opposite when the dollar depreciates. Exporting firms seem to like falling dollar, because it makes their exports cheaper to foreign customers.
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?
1States have incentives for global governance because of negative externalities, high transaction costs, and collective action problems. 2 Overcoming collective action problem in global governance often prove quite difficult for several reasons. First, the problem of distributing the burden of collective goods provision can activate intense struggles among interested parties, both within and between states. The second problem for states or groups of states is one of enforcement, or the punishment for noncompliance. 3 In the absence of a single enforcer, a group of states can provide enforcement. However, each country would like to enjoy the benefits of enforcement without having to pay the cost. Yet if all countries try to shirk the responsibility of providing enforcement, enforcement is under-provided, and would- be aggressors may pursue their goals without fear of reprisal. Given these incentives, establishing credible enforcement is a challenge. In other issue areas, enforcement involves large-scale costs that can make states reluctant to trigger penalties for non-compliant states. For example, if international organizations want to put economic sanctions to punish a country that broke an international agreement o law, sanctions could be costly. Moreover, sanctions sometimes fail to produce the desired behavioral change.
What is a trade deficit? How are trade deficits related to foreign capital inflows and investment in the United States?
Also called a current account deficit, occurs when imports exceed exports in a given year. If foreign firms export more of their products to American consumers than American firms can export to foreign markets ------- a. Foreign investment in US helps to increase economic growth in US b. A trade deficit indicates a healthy investment climate inside US c. The global economy actually depends on the US government to run a budget deficit
How do shifts in exchange rates alter patterns of imports and exports?
Appreciation a. Exports go down because they are priced in $ and more expensive to foreign consumers b. Imports go up because the foreign products are cheaper c. A central bank can contract the money supply to make it more valuable. As $ appreciates, it can buy MORE units of a foreign currency Depreciation a. Helps exports, slows imports b. A reduction in the value of a currency. As $ depreciates, it buys FEWER units of a foreign currency
What is conditionality and how does the IMF use it to promote economic reforms within countries? Why does the U.S. have so much influence within the IMF?
Conditionality: demands conditions that change economic conditions in country and enhance long term ability to repay. Get partial money then must implement reforms to get more. Raise taxes and cut spending in order to borrow from the IMF, countries are asked to "tighten their belt" so that they do not find themselves in repeated debt crises. ------ The US has so much influence within the iMF because of a consequence of the system, however, is that the political interests of countries with large quotas often influence lending decisions. For instance, the United States has a 16.52% vote share as of 2018. This gives the United States considerable power in the Executive Board
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?
Covid changes to federal deficit and balance sheet of Federal Reserve -US annual deficit: from $1.1 trillion pre-Covid to $4 trillion post Covid (estimate) **This means spending more ($7.4 trillion) than twice revenues (~3.4 trillion) this year -Fed Balance sheet: From $4 trillion to $6+ trillionThe U.S. dollar as the reserve currency Huge implications for hegemonic stability theory and U.S. leadership -US at center of global economy since 1919 **Long term investments in political and economic order that benefits US: funds allies in WWI, WWII, rebuilds Europe with Marshall Plan aid, protects flow of oil out of Middle East, provides military and financial aid to countries opposing Soviet Union, opens domestic markets to international trade **All of this creates dependence on US economy, US capital, and steady demand for the dollar (or financial assets denominated in dollars)
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 ------ This aid Relieved tension between developed and developing countries about who should shoulder the burden of mitigating climate change ------ 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 three different distributional struggles related to the problem of climate change?
Distributional struggle within countries (domestic) - If energy infrastructure is moved from coal/oil to solar/wind, the solar/wind sectors will benefit greatly. - Large cost associated with changing infrastructure, so energy costs will increase for the consumer. - Coal/oil sector will be negatively affected as demand for their products fall, so the sectors will resist any changes.Distributional struggle among countries - The developed world has an easier time meeting the costs associated with changing energy infrastructure to lower emissions - The developing world wants to be compensated by the developed world as they alter their energy consumption, as they argue things are worse from developed countries actions in the past, as well as changing the infrastructure takes resources, slowing the economic development of the country.Distributional struggle across generations - Effects of global warming will be felt way more by our children/grandchildren, so current constituents would rather push the problem off than shoulder the costs, as it does not really affect them all that much.
Why is it rational for individuals to overuse public goods?
Everyone else is doing it, so I should as well to benefit myself. -Many incentives to use goods, not a lot of incentives to limit/restrict use - Individually rational for people to consume, but diffused costs to society insufficient to prevent overuse -benefits in short terms, but has long term downsides
What does it mean to think systemically?
Examining how political, economic, and social developments outside the United States shape life inside the United States and its foreign policy choices. An example is immigration.
How did the challenge of a rising China change the political support for globalization in the international order?
It changed the political support for globalization because Soviet threat is no more. Trump states that globalization is hurting Americans and helping China which is more politically powerful than US and we need to rethink relationship. Helping China more than the US. Leveraging groups hurt by globalization to remake republican party. He constructed a new narrative about the array of threats to the US: China being the main one. Need to solve with government intervention through tariffs.
How has the coronavirus pandemic accelerated some of the challenges associated with the backlash against globalization?
It has accelerated some of the challenges by reinforcing the skepticism of the conventional wisdom of globalization and its benefits. Most governments reacted to the pandemic pulled away from globalization for public health. Global travel came to an immediate halt and there was a disruption in the medium extending into the long term threat of global supply chains that helped to drive down costs for automobiles and cell phones became vulnerable. Suddenly there is a downside to having these global supply chains because we could no longer access them. Covid changed immigration and led to a decline for trade deals. When Chinese government hid information about the pandemic from the world it contributed to global spread of pandemic which further adds to another reason for a US-China conflict. Trump regularly blames China for pandemic. So Adding this to all the other problems leads to a devastating effect on US and the world. COVID-19 was a critical juncture and lead to a further reason for US-China conflict.
What is the International Monetary Fund? What are its main functions? What is the main source of its influence in the international economy?
Its purpose is two-fold.First, it was meant to help manage the system of monetary commitments under the Bretton Woods Gold Standard. Second, it was created to serve as a "lender of last resort" that could provide countries with injections of liquidity in order to stave off default and avoid financial crises. The latter function is what the IMF is more known for today since the Bretton Woods Gold Standard was abandoned when the U.S. moved to floating currency in 1971. ------ operates on a quota-based voting system. Each member has a quota - an amount denominated in the IMF's own currency, the Special Drawing Right (SDR). Members pay their quota into the fund and, in turn, receive vote shares on the IMF Executive Board proportional to their quota. In essence, states get more influence over IMF decisions if they are willing to contribute more to the Fund. In practice, this means that larger economies tend to have greater discretion over IMF decisions-Power of IMF stems from ability to loan when no one else will
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 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. ------- -Binding process for monitoring and reporting pledges on emission targets and progress in upholding those pledges. -Need to make 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. to ease costs of alt energies and compensate for costs of climate change.
What is democracy? Describe Robert Dahl's three "procedural minimal" conditions of democracy.
Robert Dahl argues that competitive elections are the basis of democracy. But there are more conditions that need to be met: Public Contestation Multiple parties competing in elections and the right to people to receive information and assemble to hold free and fair elections Electoral Competition. Individual freedoms. Inclusion Civil rights and liberties guaranteed, but also equal and universal participation. This precondition is difficult to meet even for US (Quiz answer: American democracy is only existent from the 1960s Voting Rights Act). Democratic Sovereignty If unelected bodies like military make the decisions, then the country is not a democracy.Ex: Iran.
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
What are the Cold War origins of the North Atlantic Treaty Organization (NATO)? What did Lord Ismay mean when he said the goal of NATO was "to keep the Russians out, the Americans in, and the Germans down"?
Protect Europe from the Soviet threat. Binding mechanism for American military power. Peace between democratic powers in Europe.
What are remittances? How do remittances help to redistribute wealth from wealthy countries to poorer ones?
Remittances are a sum of money sent, especially by mail, in payment for goods or services or as a gift; a transfer of money by a foreign worker to an individual in his or her home country ---- -Money sent from migrants to family and friends back home -Represent one of the largest transfer of capital across international borders- Financial Transfers (redistribution of wealth/capital from developed countries to developing (Asia/ Latin America/Africa) ones)
What is the collective action problem? How might it be applied to the challenges of managing climate change?
The Collective Action Problem is the situation in which multiple individuals would all benefit from a certain action, but has an associated cost making it implausible that any individual can or will undertake and solve it alone. ------ - Lower carbon emissions is a public good for the whole world - Another country taking steps to reduce their emissions benefits everyone - Thus, it is rational for a country to do nothing and let their neighbors cut emissions on their own and free ride
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 led the US to accept some of the costs of globalization because they had a bigger goal in mind: the containment of the Soviet Union and communism. The Cold War was important for the mission of globalization because it provided the triangulation of interests and tolerance for the distributional concern of other countries getting a better deal from trades with the US. ----- Triangulation of interests: Soviet threat increases political support for globalization (and tempers distributional concerns) within Atlantic alliance Example: Marshall Plan aid Need to rebuild european economies to contain Soviet union communism -Important implications for fraying of Atlantic alliance today
What is the democratic peace theory? How do the factors that contribute to democracy's influence over foreign policy in general - electoral constraints, institutional constraints on power such as checks and balances, and a shared democratic identity - help to explain, in particular, peaceful relations between democracies?
The democratic peace theory is: -Military conflict should be less likely among two democracies than among all other combinations of regimes -Democratic states fight each other less, but does not reduce the likelihood for say Democracy vs Autocracy. -Electoral constraints: >Elections raise the domestic political costs of going to war >Fear of electoral punishment helps prevent democratic leaders from entering war in the first place -Checks and balances/institutional constraints: >Can help solve the commitment problem>Empower domestic groups to block FP changes that they oppose >Solves commitment problem by ensuring deal hold over time as democracies are expected to keep deals because of pressure from domestic audience -Shared democratic identity: >Fosters expectations of nonviolent compromise >There is less public support for using military force against fellow democracy
According to the Krasner reading, what are the two main tendencies within US foreign policy regarding democracy promotion and dealing with authoritarian regimes?
Two main tendencies: -On the one hand, presidents like George W. Bush have tried to transform dictatorships into liberal democracies -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.
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)?
UN bestows political legitimacy abroad and at home. 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 to set policy of the United States
Understand, explain, and give examples of how international institutions shape international politics through the following mechanisms: a) guiding behavior and shaping expectations; b) providing information about state interests and incentives to comply; c) allocating and generating power for states.
a) instituitons have rules that guide interactions among states such as sovereignty as legal recognition of a govt's right to regulate ppl living w/in its boundaries (should not violate the territory of other countries, fosters expectation of noninterference in others' domestic politics) or trade liberalization: GATT rules (genearl agreement on tariffs and trade); grant access to domestic market to foreign companies (acceptance needed for spread of intl trade b) decision itself to join often dometically costly because requires concessions, demonstrates commitment to pursue line of policies (e.g. chines entry into WTO (had to make reforms but opened up trade to US); weapons inspectors: check for compliance, other states trying to acquire info about weapon capacity (helps foster cooperation); showed willingness to live w/in the current rules of intl trade (showed long term commitment to trade leberalization) c) independently powerful: creat new intl law (judicial activism at WTO), set agenda in favor of some (veto pwer of UN security council (US) helps to keep recognition of Palestine off agenda); lock-in existing power arrangements: permanent 5 on UN security council (US, Russia, China, UK, and France) function of post-WWII settlement; no Germany, Brazil, Japan, India (pwer to veto UN resolutions, influencing their capacity to set the agenda); Ikenberry: US entry to IO (intl org.) NATO, etc. helps solve fundamental problem of politics at intl level: helps free trade, way to lock in policies and regulations that benefit the uS in the long run; constraints help legitimate American hegemony; missions will survive long after American power recedes
How does trade contribute to the economic sources of order in the international system?
a. Specialization and international trade increases a state's national income b. The desire to get economic gains from trade leads to cooperative international agreements; c. Heightened economic competition activates economic and political backlash that tries to limit market pressures and reassert control over economic outcomes
What is the political significance of the dollar's reserve currency status in the global economy?
a. The biggest banks in the world hold US treasury bonds as cash or a source of a reserves b. Reserve currency status for the dollar is a source of economic and political power for the US c. This sets up a situation where the global economy depends on the US to run a budget deficit.
According to the reading, what are the chief indicators of the increase of globalization since World War II?
a. The most recent round of globalization has been supported by technological developments associated with the internet that have made it possible to trade services. b. Growth of imports and exports c. The growing movement of people through immigration also indicates the integration of labor markets d. Barriers to international commerce erode e. Volume of economic transactions increase; f. International trade has led to an increase in economic activity
What third option does Krasner propose in how the U.S. should deal with long-standing dictatorships?
promote good enough governance, which emphasizes greater security, economic growth, and better provision of some services