GOV 312L Exam 3

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

- US supports these positive outcomes by providing public goods to the global economy like the dollar as a reserve currency and access to the US consumer markets, like emergency lending that the federal reserve is doing right now.

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

supported by most countries and most individual citizens around the world 1) democracy faces no viable ideological alternative in terms of a rival system of governance 2) elites even in authoritarian regimes justify their rule through a democratic lens, telling their populations that their authoritarian methods are temporary and are working toward a eventual democratic goal 3) mass support for democracy is high in all regions of the world, not just in existing democracies 4) norm of state sovereignty has weakened; this sovereignty has protected foreign dictators in the past but no longer

Describe the general level of extreme and moderate poverty in the world. Which countries and regions have the highest concentrations of poverty? Why has the percentage of the world's population living under extreme poverty declined significantly since 1990?

- 2013, over 10% of world lived under a condition of extreme poverty ($1.90 per day) - Over 28% living on less than $3.10 per day - 1990, 35% lived in extreme poverty - Represents a significant decline of global poverty over the last 30 years. - Every country has some proportion of their population lives in extreme or moderate poverty, widespread poverty within countries is regionally concentrated - Ex: Asia and Africa

What is a Nationally Determined Contribution?

- An NDC is a nationally, voluntarily set goal on carbon emissions reduction that each member of the PCC sets for themselves; avoids the binding and negotiated targets set by the Kyoto Protocol.

What is an externality?

- An externality is a cost or benefit of some transaction by people not involved in the transaction.

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

- Distributional struggle within countries Coal versus solar; Oil versus general public Distributional struggle among countries Developed (US and Europe) versus Developing (BRIC: Brazil, China, India, Russia) Variation in carbon emissions across countries means different levels of preparedness for changes US: carbon consumption in electricity, transportation, industry Europe: less in transportation Industry (and carbon emissions) shifting to developing world; caps would impede their growth Distributional conflict across generations

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?

- Foreign aid will be administered to developing countries that are likely to be future leaders in carbon emissions, such as China, by developed countries that are currently or have historically been leading carbon emission rates, such as the United States and some countries in Europe. This will help ease the costs of converting to alternative energy sources and compensate for the costs of climate change.

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 immigration- Viewed the policy issue of undocumented individuals through law & order & national security 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 does globalization in financial terms look like?

- Globalization connects global markets. It generates economic growth, can reverberate recessions, and fosters peace between states. It connects markets through imports and exports of capital.

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?

- 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

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

- 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) -Represent one of the largest transfer of capital across international borders -A much greater redistribution of wealth from wealthy countries to poorer ones than foreign aid Advantages: >Cannot be withdrawn and are unconditional >Avoid government structures and thus avoid corruption >Provide a valuable form of social insurance, credit and investment in countries that lack these markets

Why is alleviating global poverty so important? How is poverty a main driver of other social ills such as lower life expectation and poor education?

- Poverty is one of the main drivers of many worst social ills include much more than living without luxuries

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

- States will submit voluntary reduced carbon dioxide emissions target to keep mean global temperature increases less than 2.0 degrees CelsiusAn important distinction: the emission targets are not legally binding, as there is no world government that can enforce the compliance with these emission targetsEach member state needs to submit their plans for achieving emissions target for review every year, and must revise it if necessary to make it stronger or as strong as the old one

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?

- The general consensus amongst the scientific community is that the atmosphere is warming up at and alarmingly fast rate and there is overwhelming evidence that this is due to human activities, such as industrialization and deforestation - Carbon dioxide is a heat-trapping gas, which allows the sun's energy to remain within the atmosphere- Carbon dioxide levels have increased significantly since the Industrial Revolution began (from 280 parts per million in 1800 to 400 parts per million in 2015) Mean global temperatures will increase 5.5 degrees Fahrenheit from 1800 to 2050 at current rates of carbon dioxide emissions

What is the tragedy of the commons? 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.

- encourages the overuse of common land resources, like the atmosphere, oceans, fisheries, rivers and really anything that someone has equal and open access to. - This tragedy occurs when individual users are acting independently according to their own self-interest and they begin to act oppositely to the common good of all the users; they begin depleting that specific resource through their own collective action. - The tragedyis describing a problem where ALL the individuals have equal and open access to that specific resource. This emerges with public property or resources for which it is difficult (costly) to restrict their use (consumption). There is divergence between private benefits and social costs; It is individually rational for people states to consume, but diffused costs to to society are insufficient to prevent overuse. This will result in resources getting depleted. - examples: fields, common grazing lands, overpopulation, fisheries, and the atmosphere

According to the textbook reading, 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 or benefits that accrue to parties that are not directly involved in the interactions between states)- outside parties often have distributional stake in the outcomes of events (such as the formation of new trade agreements)-rather than renegotiating forms of cooperation time after time, states may establish forms of multilateral governance (in other words: form a general set or rules) to reduce transaction costs (costs associated with negotiating and establishing any form of agreement) - The provision of public goods typically involves a collective action problem, which occurs when everyone agrees about the benefits of a common goal, but no one will pay to realize that goal.- the incentive to rely on efforts of others is known as the free rider problem and is a common challenge to global cooperation- incentives (penalties or inducements) -challenge of establishing credible enforcement -a group of states can provide enforcement in the absence of a single enforcer BUT!!! Countries like to enjoy the benefits of enforcement w/o having to pay the costs so they often avoid the responsibility of providing enforcement -establishing rules is not enough if actors can cheat + avoid punishment -states often settle for self-enforcement: the idea that an agreement structures incentives so that no party has reason to cheat-diffuse enforcement: enforcement is provided by decentralized members of the system rather than by a central governing authority-enforcement involves large-scale costs that can make states reluctant to trigger penalties for non-compliant states -sanctions (forms of economic punishment aimed at compelling behavior change) sometimes fail to produce the desired change

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?

-As the increased movement of goods and services through international trade increases the aggregate wealth of countries, the movement of labor across national borders also increases economic growth in the aggregate -However, like international trade, migration creates income distributional effects, creating economic winners and losers -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

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 sendingcountries-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 moredeveloped countries -Forced Migration: >Usually flows to countries nearby -Turkey and Germany, Lebanon, and Jordan have the largest inflows of refugees

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

What is the difference between institutions and organizations?What are some examples of institutions in domestic and international politics?

-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))

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 manifest 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 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 topartisanship.>How will immigrants vote? (distribution oflatino 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 allgroups, so collective action problem ensues How is international migration a part of the broader phenomenon of globalization? -As the increased movement of goods and services through international trade increases the aggregate wealth of countries, the movement of labor across national borders also increases economic growth in the aggregate -However, like international trade, migration creates income distributional effects, creating economic winners and losers

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.

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

-they provide enforcement mechanisms -joinging an IO signals FP interest; requires concessions; provides info about intentions of state -orgs help w/ compliance problems; make sure states hold promises -some IOs help to solve ditribution problem; vary in ability to solve (in IMF, depends on how much you contribute)

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?

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 o partial democratic regimes emerged primarily in EU and the US o democracy remained rare & outnumbered by non-democratic regimes o followed by a reverse wave in the interwar period b/w WWI & WWII 2nd wave of democracy followed WWII: o W. EU saw the emergence of democratic gov in W. Germany, Italy, and Austria supported mostly by American hegemony o Japan also established a democratic government o Brief democratic experiments launched in Latin America o 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 o 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 is the International Monetary Fund? What are its main functions? What is the main source of its influence in the international economy? 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?

Acts like a bank: Overseas pool of capital created by member countries Limit exchange rate fluctuations (prevent currency wars from Depression that interrupted trade) Lender of last resort: Help governments in exchange rate crisis stabilize reserves with loans

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 USb. A trade deficit indicates a healthy investment climate inside USc. The global economy actually depends on the US government to run a budget deficit

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.

Because Obama utilized executive orders to commit to the PCA, it can be easily reversed or denied by a new president that doesn't agree with the deal.Trump disagreed with the PCA for economic reasons and officially announced his plans to withdraw in 2017.

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?

Because there is no penalty for leaving, President Biden can rejoin the PCA at no cost. This makes the US look unstable and unreliable because its membership within the PCA has the potential to change with every new presidential election.

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?

Claim that military conflict (low levels, including threat to use force; and war) is less likely between two democratic states Democracies will be peaceful toward other democracies, but not peaceful toward autocracies Causes of the Democratic Peace:Electoral constraints raise the political costs associated with warInstitutional checks and balances make peace settlements more durable because democracy helps to solve the commitment problemShared 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

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.

Competitive or "free and fair" elections have been offered as the defining aspect of democracyTheoretical formulations of prominent democratic theorists defined democracy as "that institutional arrangement for arriving at political decisions in which individuals acquire the power to decide by means of competitive struggles for the people's vote"Democracy is a process that does not guarantee particular policy outcomesPublic contestation requires that multiple parties compete in elections but also citizens have the right to freely express themselves, from associations, and receive information from alternative sources in the media (freedom of the press)Democracy must also be inclusive: system must allow universal and equal participation by all segments of society There must be democratic sovereignty! Democratic elections must result in the establishment of truly powerful decision-making bodies such as legislatures and chief executivesaves of democracy transitions away from authoritarian rule tend to be regionally concentrated and occur over a common span of time·

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 currencyHuge 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)

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?

Economic Benefits:- clean air is less costly - new technological advancements - reduced costs of tending to natural disasters National Security Benefits: - lessen threats of natural disasters to major cities - US will emerge as hegemon and determine the rules of the new economy 4 Pillar Plan:- carbon fee - revenue redistributed to US citizens - replaces environmental regulations- carbon tariffs

. 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 World War II (1944): US supports creation of international organizations to ensure economic growth through international trade Impetus from: Great DepressionWorld War II

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

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

European shirkingPresident Eisenhower on European shirking in NATO: "They won't make the sacrifices to provide the soldiers for their own defense." U.S. as reluctant hegemon Trump Administration and NATOChallenging the basic foundations of NATO and European security

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

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 a. Globalization tends to drive down returns to owners of scarce factors of production in an economy

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?

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 is foreign aid? How does the amount of foreign aid provided by the United States compare with contributions from other wealthy countries? What percentage of national government spending in the US goes to foreign aid?

Foreign aid- monetary assistance provided to developing country government or particular groups or actors within developing countries US spends most on foreign aid of any country in terms of raw dollars US provides less than .20% of Gross National Income in foreign aid. Five times less than the most generous donor, Sweden.

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

Free and fair competitive elections; 1. Public Contestation (Electoral competition and Individual freedoms) 2. Inclusion (Universal Suffrage) 3. Democratic Sovereignty.

What is the GATT? What is the WTO? How do these organizations differ? 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?

General Agreement on Tariffs and Trade Multilateral international organization designed to support reduction of trade barriers on a reciprocal basis GATT: provided a series of rules that would guide negotiating rounds during the Cold WarImportant: no enforcement capabilities, trade disputes handled on a bilateral basis Key difference: institutionalized a dispute settlement mechanism with established procedures for filing grievance, investigating complaints, and punishing defection 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 sanctionsInteresting: plaintiff has a lot of discretion on where to impose retaliatory tariffs 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 last decade in securing further trade liberalization because limited support in developed world (US, Europe, Japan)

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?

General Assembly Security Council Five permanent members with veto power (US, UK, China, Russia, France) Ten rotating members

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"?

General Lord Ismay, NATO first secretary general, on goal of NATO: "to keep the Russians out, the Americans in, and the Germans down" NATO and protection of Europe from the Soviet threat NATO as a binding mechanism for American military power NATO and peace between democratic powers in Europe

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

Grand strategy of America First Deeper skepticism of free trade 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 Protection of US intellectual property No currency manipulation Trade deficit Indicator of unfair trade policies Pressure China to cut exports and increase US opportunities

Why do countries give foreign aid at all if it does not really seem to help that much? What political, security, and economic goals are met through aid?

Humanitarian reasons As a vehicle to cultivate political influenceDomestic political gains in target state: provide economic support to governing coalition that shares foreign policy interests and want to remain in powerCan spend on internal security, distribute to regime alliesUS and Egyptian militaryFoster widely distributed economic gains via development aidPay for preferred policies/concessionsEU aid to Turkey to hold Syrian refugees US aid to C. American to limit migration to USCheaper than alternatives Can be a substitute for military intervention if helps keep target government in power US military aid to Ukraine instead of NATO commitmentWhat happens when withdraw Can destabilize local government because now part of local political and economic status quo EX: post- Cold War Africa

What are institutions?

Institutions are the rules of the game in a society or, more formally, are the humanly devised constraints that shape human interaction. In consequence they structure incentives in human exchange, whether political, social, or economic

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.

Institutions as rules that structure behavior Provide information about how states might act; and how to define appropriate and inappropriate behavior Facilitate interstate cooperation - Mitigate collective action problem - Reduce transaction costs associated with reaching settlements - Sometimes help enforce agreements

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

International trade helps to create jobs Globalization drives down

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

Money as medium of exchange, facilitates economic growth and specialization National governments supply for domestic economy, who supplies money for the global economy? Dollar as global reserve currencySee this role whenever there is a flight to safety

Why doesn't foreign aid work better to alleviate global poverty?

Not very effective Despite billions of dollars spent, there is little evidence that foreign aid improves economic development Why doesn't foreign aid work better? The world's richest countries do not provide sufficient resources to alleviate poverty Receiving states do not use foreign aid effectively Siphoned off through corruption Donor countries and organizations do not target foreign aid effectively

How does the US target its foreign aid? What objectives get more or less funding? Which countries receive the most foreign aid from the US?

Objectives:Economic aid: 71%Military aid: 29% US gives 25% of all foreign aid to five countries: Afghanistan, Israel, Jordan, Egypt and IraqMilitary aid Economic and development aid is much more dispersed Afghanistan again receives the most of any single country, but then most of the ten largest recipients are in Africa (Kenya, Nigeria, Tanzania, and Ethiopia)

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

Overall positive perspective on climate agreement -- necessary and positive first step but more should be donePros Broad collective agreement: Kyoto Protocol (previous agreement) only had emissions reductions for developed countries, while Paris includes developed and developingNew voluntary approach: no binding agreements -- instead, voluntary national targets, which are more realistic Addresses needs of developing countries: has $100 billion in "climate finance" to help developing countries fund development without contributing to climate change Cons: executing and deepening the deal will be difficult. Current targets will not get job done.

What are some critiques of the democratic peace theory?

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

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

How do different measures such as national GDP, average income (GDP per capita), and average rate of economic growth influence which countries are perceived as economically powerful and prosperous in the global economy?

Relative economic prosperity and power varies dramatically around the world Variation across countries depend on how one measures economic development - National GDP

What is an exchange rate? How do shifts in exchange rates alter patterns of imports and exports? How can exchange rate changes influence trade policy?

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

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

a. Trump imposed new tariffs on steel and aluminum (didn't exempt China). China retaliated. b. Trump threatens to impose 25% tariffs on up to 1300 Chinese products (machinery, mechanical appliances, electrical equipment) c. China targeting sectors that are important to Trump's political base

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

The Paris climate accord is a multilateral agreement among 190+ countries to limit the increase in global temperature increases to 2 degrees celsius from pre-Industrial Revolution levels. Each nation sets its own goals and publically states policies as a way of binding them to reaching their targets $100 billion in "climate finance" to help developing countries fund higher cost of using cleaner energy

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.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)?

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

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 stateauthorities, dangers from non-state actors arenot 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 Currency depreciates 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 domestic economy into recession Example: Greece in the Euro crisis Real policy implications: international capital markets can sharply constrain country's monetary policy; limiting discretion of elected officials and forcing them to push their economy into recession to reassure creditors

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

a. If governments want to increase national wealth, his theory implies that they should do all they can to eliminate barriers to trade like tariffs b. Countries engage in international trade even when one country's workers are more efficient at producing every single good than workers in other countries. Countries, like individuals, could maximize economic growth and gain from trade by specializing in the production of those goods in which they held the greatest efficiency gains relative to all other goods.

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

a. International trade helps to create jobs in sectors that rely disproportionately on resources (factor endowments) that US possesses in abundance b. Fuels job creation in industries that need high skilled labor (financial, high-tech) but hurts manufacturing a. Winners -- agriculture (disproportionately represented in the Senate) and industries in need of high-skilled labor; b. Losers -- consumers due to the collective action problem

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

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 Gains from trade stem from differences in the relative efficiency of individuals, firms, or whole economies in the production of some mix of goods By narrowing the range of economic tasks for which an asset is used, specialization enables states to be deployed in their most efficient function 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 collective action problem? How might it be applied to the challenges of managing climate change? What are some of the political solutions to the collective action problem in the case of carbon dioxide emissions?

collective action problem: describes 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. Public good: nonexcludable and nonrivalrous These attributes activate free rider problem Free riding as failing to limit own carbon dioxide emissions CO2 cuts as a public good: costly to exclude countries (and their citizens) from consuming once supplied Potential solutions Large actors provide public good on ownInternational agreement to punish noncompliance Markets undersupply public goods, necessity of international agreement

Which countries or regions have the most national wealth? Which countries have the highest average income per capita? Which countries have had the highest rate of economic growth over the last 30 years?

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