INR 4011 (Cunha): Final Exam

conventional economic theory

suggests that trade and immigration policy have similar material effects

the wealthy and very wealthy

the biggest winners of the elephant curve

demography (macro)

the country's age distribution can influence supply and demand for migrants

non-economic factors

the difference between trade attitudes and immigration attitudes is due to the fact that immigration attitudes are influenced by __________

cultural cleavage

the national, ethnic, religious, or cultural identity of the "people" against outsiders

88%

the percentage of manufacturing jobs in the U.S. are being displaced by robots

globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale

liberalization

the removal or loosening of restrictions on something, typically an economic or political system

outsourcing and automation

why have the working and middle class in rich countries seen little to no growth?

there are more immigrants/people in general that need to be taken care of

why is there a demand increase for labor when there are more immigrants?

there are more immigrants that can/are willing to work

why is there a supply increase for labor when there are more immigrants?

push factors (macro)

widespread unemployment, poverty, discrimination, political unrest, war, famine, drought, land shortage, overpopulation

destination

social capital, relationships, and intermediaries connect potential migrants with opportunities in (home/destination) country

national sovereignty + democratic politics

bretton woods compromise; needed a regime that would combine a national sovereignty with democratic politics

support for trade

which is higher: support for immigration or support for trade?

inequality between countries

which is higher: Inequality between countries or inequality within countries

India

#1 origin for number of migrants (2017)

USA

#1 receiving country for the number of migrants in 2017

Mexico

#2 origin for number of migrants (2017)

Saudia Arabia

#2 receiving country for the number of migrants in 2017

Russia

#3 origin for number of migrants (2017)

Germany

#3 receiving country for the number of migrants in 2017

right-wing populism

(left-wing populism/right-wing populism) supports cultural cleavage

left-wing populism

(left-wing populism/right-wing populism) supports economic cleavage

labor market competition hypothesis and fiscal burden hypothesis

2 hypotheses based on economic self-interest

global federalism and limited democracy

2 paths towards hyper-globalization

bargaining and taxation

2 possibilities as to why financial globalization increases inequality and the capital share of income

demography, push factors, pull factors

3 examples of macro-level

neoclassical approach, migration hump, and new economics of labor migration (NELM)

3 examples of micro-level

immigration

Americans see (immigration/trade) as a threat

trade

Americans see (immigration/trade) to be good for the US economy

bargaining explanation (the reason globalization increases inequality and the capital share of income)

Capital mobility ⬇ ↑ Outside option for employers ⬇ Credible threat ⬇ Accept lower wages *in simpler terms, the capital starts flowing between country's borders which leads to employers finding more options for people to work for them from other countries, this causes a threat for the workers of the native and foreign countries, which makes people willing to accept a lower wage so at least they can get a job*

efficiency cost

The term used to describe the total cost incurred by an organization as a result of an out-of-control situation

borders

________ limit globalization when it comes to political and legal jurisdiction

national sovereignty

__________ interferes with contract enforcement, leaving international transactions at risk of opportunistic behavior

redistribution

a form of exchange in which goods flow into a central place, where they are sorted, counted, and reallocated

the bottom 50%

according to the elephant curve, which group captured 12% of growth?

the top 1%

according to the elephant curve, which group captured 27% of growth?

working longer hours to pay an immigrant to do the job because you are providing an immigrant a job

comparative advantage example for immigration, which is better: working longer hours to pay an immigrant to do the job or working less hours and doing the job yourself rather than an immigrant?

robots

due to globalization are jobs being replaced by immigrants or robots?

higher

electoral districts with lots of trade experience (higher/lower) polarization

pull factors (macro)

employment opportunities, political and personal freedoms (speech, religion, right to vote, etc.), land, amenities (e.g., retirement)

does

engineers, managers, accounts (does/not) include high-skilled workers who can expand internationally

globalization trilemma

full international economic integration, national sovereignty, democracy (mass politics); can only have 2 of 3

diffused

gains from trade are (concentrated/diffused)

smaller

get (smaller/larger) efficiency gains, from further liberalization when the economy is somewhat liberalized already

larger

get (smaller/larger) redistribution effects from when globalization advances

democratic politics + full international economic integration

global federalism and global governance

full international economic integration + national sovereignty

golden straightjacket 1st globalization era (1870-1914); enforced the rights of investors and ensured the free flow of capital around the world

elephant curve

graph to show the impact of globalization on the income of different groups

Republican

if there is an area with high trade exposure, people are more likely to elect a _________ to congress

benefits

immigration (benefits/harms) innovation

reasons opinions on trade and immigration are not similar

immigration attitudes/policy reflect a set of non-economic factors; nativism, xenophobia, nationalism, etc.; consistent with natives' overall preference for high-skill over low-skill immigration regardless of natives' skill level; consistent with high-skill being less anti-immigrant than low-skill natives regardless of the category of immigrant

supported

immigration from Europe is (supported/opposed) the most (according to Goldstein and Peters)

opposed

immigration from Mexico is (supported/opposed) the most (according to Goldstein and Peters)

does not

immigration leads to economic benefits mostly, and (does/not) significantly affect wages for native-born workers

rich natives

in fiscal burden hypothesis, do rich natives or poor natives oppose low-skill immigration and favor high-skill immigration?

high-skill

in fiscal burden hypothesis, it assumes (high-skill/low-skill) immigrants are net contributors on public finance

low-skill

in fiscal burden hypothesis, it assumes (high-skill/low-skill) immigrants impose net burden on public finance

black

in hard hit localities, (white/black) voters more likely to vote for Democrats

white

in hard hit localities, (white/black) voters more likely to vote for Republicans

oppose; support

in the labor market competition hypothesis, it is believed that natives should (support/oppose) immigrants with similar skill levels, but (support/oppose) immigrants with different skill levels

increases

in the labor market competition model, Immigration (increases/decreases) supply of low-skilled labor relative to other factors

decrease

in the labor market competition model, since the supply of low-skilled labor increases, do the wages of native low-skilled workers (increase/decrease)?

increased

income inequality has (increased/decreased) since 1980 in English-speaking countries (but not in continental Europe)

pull factor for immigration

induce people to move into a new location

push factor for immigration

induce people to move out of their present location

limited democracy

keep national borders, but ensure that national jurisdictions do not get in the way of international markets, main goal is to maintain market confidence, democratic choice over economic policy must be restricted

concentrated

losses from trade are (concentrated/diffused)

demographic, political, and economic conditions

macro-level (for migration)

contract enforcement

major source of transaction costs

networks and systems

meso-level (for migration)

individuals and families

micro-level (for migration)

the lowest part of the elephant curve

middle class workers in developed companies are competing against immigrants working for cheaper labor and automated devices replacing them

immigrants working for cheap labor and automated devices

middle class workers in developed companies are competing with...

migration hump (micro)

migration is based on how small or large the wage gap is; if the wage gap is increasing, people are more likely to migrate, but if the wage gap is decreasing, people are less likely to migrate because of the costs that come with migrating

neoclassical approach (micro)

migration is based on individuals seeking to maximize higher wages because of the wage gap between the country they leave and the country to go to; migration as investment in one's "human capital"

new economics of labor migration (micro)

migration is based on the decision of the family and overall welfare of the migrant/family

similar

migration occurs primarily between countries of (different/similar) regions

taxation explanation (the reason globalization increases inequality and the capital share of income)

mobile capital is harder to tax, governments have to fund themselves by taxing less mobile things, labor and consumption *in simpler terms, capital that is mobile is hard to tax since it can flow between different countries, this leads to a government trying to find other ways to make money which would be taxing things that are not mobile, such as labor and consumption*

consumer

most people experience trade as a (producer/consumer)

decreased

opposition for populist parties have (increased/decreased) over time

labor market competition model

opposition to immigration may result from concerns about competing against immigrants for local jobs

fiscal burden model

opposition to immigration may stem from natives' unwillingness to fund public services for immigrants

human rights

people tend to migrate to Europe for the promises of __________ rather than just jobs

leave

people who feel that their life is under threat and that their future is compromised will (stay/leave)

48%

percentage of migrants that are female

70%

percentage of migrants that are of working age (ages 20-64) (2017)

global federalism

removes "border" effects, national jurisdictions do not interfere with international market, minimal transaction costs and tax differentials

Asia and Europe

the top two regions of origin and destination for migrants

economic cleavage

the wealthy groups who control the economy vs. the powerless, lower income groups

micro, meso, macro

three levels for migration

networks (meso)

translation of potential migration into actual migration requires _______ in place (hint: 1 example of meso-level)

true

true or false: migrants want to come to a country and be able to contribute, and want to be able to fill their potential

false

true or false: social welfare is part of the initial decision to migrate

the effect of globalization on income growth for people of various incomes

what does the "elephant graph" show?

they have been lifted out of extreme poverty

what has happened to the 1.1 billion people on the "back" and "head" of the elephant graph?

they can take advantage of global markets

what is the primary reason people in the top of the "trunk" of the elephant have seen the most benefits under globalization?

Goldin et al (2012)

which author(s) discuss/es the reason people migrate?

Goldin et al (2012)

which author(s) discuss/es the three levels that one may choose to migrate, the micro, meso, and macro levels?