Gov 312L Exam 3 Study guide

What do the Fed's actions say about the costs and benefits of American hegemony?

*Fed monetary policy actions in March and April 2020 -March 3rd: drop Federal Funds Rate rate target to .0 to 0.25 overnight interest rate charged to largest banks --FEDERAL FUNDS RATE: interest rate that the FED charges to the largest banks in the United States for overnight loans. Short-term interest rate designed to give these Banks access to Capital so I can turn around and lend to customers. -Multiple rounds of quarantine easing assets purchases that increase size of its balance sheet --3/15 announce purchases of $700 billion (treasuries and mortgage-backed Securities) --3/23 announced that purchases open ended -Direct lending to large corporations -Treasury (the US taxpayer) provides a backdrop to take up to $75 billion in losses -April 9th and direct lending to small and medium-sized businesses --Fund 95% of loans originated by other domestic financial institutions In March and April the bed is undertaken multiple rounds with quantitative easing this policy also instituted in the 2008 crisis is designed to reduce long-term interest rates use long-term debt instruments to buy a high-value purchases like homes and cars a standard mortgage to my house is generally paid back over 30 years well in quantitative easing what the FED is doing is it by bonds if I bonds and use mortgage payments as collateralDoes this to encourage financial institutions to keep mortgage rates low for consumers has hopefully low interest rates will help you stimulate or stabilize the Construction Industries during this downturn and create jobs what traditionally the FED just loan money to financial institutions or the huge Banks like Wells Fargo or Goldman Sachs this crisis has prompted the bed to expand its customer base getting a new program that lends directly to non-financial corporations like for General Motors bowling for Delta Airlines this program support for the mon financial sector of the American economy -What's it going to do is try to stabilize Big Industry in the United States to discourage them from laying off their workers and prevent bankruptcy -And then last week the same got even more ambitious rolling out a new program to extend loans to small and medium-sized businesses employ up to 10,000 workers receive less than two and a half billion dollars in Revenue per year *Fed monetary policy actions in march and april 2020 (pt 2) At the same time that is announced all of these loan programs for businesses but also announced another program that state and local government in the United States because they're going to be needing loans and revenue as well as new and unprecedented whySocial distancing has triggered a collapse in consumption spending in the United States and with this Clapton consumption spending it also means that sales tax revenue collapsing for state and local government tax revenues and create new job losses and state and local governments have to lay off employees like teachers or police officers of paramedics to sort of Builder Budgetel finally we want to highlight two initiatives that the FED designed to stabilize the Global Financial system that has begun expanding dollars central banks around the world so why is this important because the dollar is the world's Reserve currency when foreign governments borrow from US Bank they have to repay these dead sand dollars have a current economic crisis has made it harder for them to do that by raising the value of the dollar the demand for dollars and US Treasury bonds have an increased because they provide them with the safest investments in the world treasury bond or treated like hash that at least allows an investor not to lose well early March Federal Reserve began to worry that foreign financial institutions were going to sell their treasury bond rate cash and cover their loss is creating chaos in US Treasury Mark is by driving down the price of the farm so the FED stepped in and effectively told central banks around the world that it would lend them dollars to ease the pressure on their currencies and to reduce the urgency for foreign financial institutions spell US Treasury again the Federal Reserve is stabilising Global Financial markets by giving the biggest banks around the world access to dollars so that they can meet their financial we wanted to include today by taking a step back and asking ourselves how can the Federal Reserve do all of it how can the Federal Reserve essentially money to stabilize the American economy and prevent another Great Depression

According to the Urpelainen reading, what are the pros and cons of the Paris climate accord?

*Advantages of Paris deal: -Broad collective agreement: Previous agreement, the Kyoto Protocol, only had emission reductions for developed countries. Paris deal commits both developing and developed countries to emission reductions. Cannot mitigate climate change without developing countries involved in the effort. -New voluntary approach: Uses voluntary national targets rather than binding agreements with imposed targets to achieve lower emissions. More realistic. (helped get the deal done in a cooperative framework) (potential for upward spiral if states feel pressure from other environmental groups to set increasingly ambitious targets for themselves. -Addresses needs of developing countries: Has $100 billion in "climate finance" to help developing countries find ways to break out of poverty through development without contributing to climate change. *Disadvantages of the Paris Agreement -Challenge is executing and deepening the Paris deal. (Broad goal is to increase in global temperature to at least less than 2 degrees Celsius) (Voluntarily nationally Define contributions allow states to reach an agreement it also allowed them to set goals that would not achieve the broader goal of containing climate change) -Current targets will not meet the target of an increase global temperature of less than 2 degrees Celsius. -Watchdog groups have shown that countries are not meeting their voluntary NDCs (targets) (The 25 countries allies only 7 are on track to achieve their contributions)

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?

*Claim that warming of the atmosphere rests on... -Carbon dioxide is a heat trapping gas -Carbon dioxide levels have increased significantly since the *Industrial Revolution began -Avg Temperatures on the Earth are increasing and human activity since the industrial revolution are the principle cause of this change. - Carbon Dioxide is a heat trapping gas. helps to retain heat from the sun once it reaches the Earth's surface. --From 280 ppm in 1800 to 400 ppm in 2015 -Average global temperatures +5.5 degrees F. from 1800 to 2050 at current rate of CO2 emissions (Mann and Toles, The Madhouse Effect) Consequences: -pre-industrial era will increase average global temperatures by 5 1/2 F (Carbon dioxide is the heat-trapping gas and carbon dioxide levels in the atmosphere have increased.) 1-Heat will contribute to more droughts and alter wind patterns. --may add to more variability to weather patterns. = some regions might see longer gaps between rain, then find more intense rainfall. 2- the warming of the atmosphere is helping to melt ice sheets in Antarctica and Greenland increasing ocean levels in simultaneously endangering communities sea levels have risen 10 in -- scientists estimate that sea levels could increase between 6 and 3 ft by the end of this centry. -- the Antarctic ice sheet / or Greenland ice sheet a Tipping Point where its melting cannot be held heard if it disintegrates and falls into the ocean it would push levels up another 10 ft -- East antarctic ice sheet were to melt it would push levels up to 200 ft

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 and National Identity •Immigration as part of a broader demographic change in the United States and other top receiving countries •Accentuating racial lines of conflict •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 •Recent research about 2016 US election: fear of losing social/racial/cultural dominance, not economic anxiety, important for those that switched votes from Obama in 2012 to Trump in 2016 *Immigration and National Security •Immigration also 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 •More pronounced in Europe, especially in countries on the front lines of the migrant crisis caused by the Syrian civil war and instability in the Middle East

What are the main differences between voluntary and forced migration?

*International migration takes two primary forms: -Voluntary migration --Legal vs. illegal or undocumented migration (Moving to another country for personal gain like economic opportunities and high paying jobs) -Forced migration --Refugees (Leaving from war repression or danger) * states must accept refugees and asylum-seekers engaged in for migration* --Human trafficking (3rd Parties who use violence threats and Miss information)

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?

*International orgs that support and regulate market based transactions amoung states in the larger global economy. - began as a series of meetings in 1944, (the final stages of WW2) -The US supports creation of international orgs to ensure economic growth through international Trade *DIagnosis of Global Strategic Problem at Bretton Woods: 1.collaspe of economic cooperation -> 2.great Depression -> 3.Nazi takeover, imperial rivalry, and WW2 (direct line in the logic collapse in the economy lead to imperial competition - WW2) *Plan for institutional Solution at Bretton Woods: 1.Construction of international orgs that support reduction of trade barriers -> 2. Political cooperation to sustain globalization -> 3. Peace and economic growth - policy implications associated with comparative advantage, if States gain from economic specialization any barrier that limits trade discourages such specialization and prevent States from achieving higher levels of economic there for State should try to eliminate barriers to trade in these barriers and keep terrorists but also things like the subsidies or exchange rate interventions that drive down the value of a country's currency. - why don't States eliminate barriers to trade despite comparative advantage? -- for continued barrie s to trade despite comparative advantage some domestic groups see their incomes fall from globalization,the winners and their losers in globalization. -- these economic losses motivate the groups that suffer them to pressure their political leaders to adopt protectionist trade policies. --example aluminum and steel interest Lobbied President Trump to impose new tariffs , imposing new tariffs of 25% on impo steel and 10% on imported aluminum then he said these would would help producers by driving up their prices and their profits --other countries thought that this action was a violation of Prior American promises to eliminate barriers to trade- many countries filed formal disputes with WTO -- President Trump offered a series of exceptions to these tariffs. -incident illustrates another International reason why they struggle to preserve open Global markets: --apart from domestic pressure for insulation in international economic competition, --states can cheat and withdraw from their Cooperative Arrangements and are exposed economically if they unilaterally open their domestic economy to foreign exports without securing access to another country's economy in return. -- they can get punished politically for this --another political reason why States don't fulfill their ricardian promise of Cooperative Advantage = they simply cannot work with each other jointly cut barriers to International Exchange, they cheat or they don't make these details in the first place which leaves the domestic economy at least partially insulated from a larger global Marketplace. US suports creation of international organizations to ensure economic growth through international tradeimpetus - great depression, emerging battle against communism, increasing support for free trade in USorganizations - General Aggreement on Tarrifs and Trade (GATT to WTO), International Monetary Fund, International Bank for Reconstruction and Development (World Bank)

Describe some important steps in the emerging trade war between China and the United States.

*Sources of dispute, US election, WTO, trading practices -China's economic rise and the potential shift in global distribution of power (that works to undermine American hegemony) *Different domestic systems (how the two economies are managed) --China state-managed capitalism create unfair advantages (high levels of government ownership and critical economic resources) --Less government support for US firms (US government has less control in managing the economy) -- these differences in economic involvement trigger US Panic that Chinese practices could unfairly harm us businesses competing in the global economy. *Reorientation of the US economic policy with Trump election -- always arguing that the rest of the world is taking advantage of the US for decades -- *US Trade Policy under Trump *TRADE WAR - Grand strategy of America first --Trump argues that globalization has fuel China's rise and weakened the United States which is why we should alter our trading relationship with China. -Deeper skepticism of free trade --Hurts American manufacturing and jobs (manufacturers take advantage of lower labor costs, Bend goods are exported into America to Consumers because these Goods can enter the American economy without tariffs) --consistent with domestic political strategy of trump ---- his support for protectionism is due to Americans losing jobs so he wants more American firms to relocate most of their operations back to the United States. ----- protection and support for manufacturing jobs Works to strengthen that political support for trump swing States like Michigan Ohio etc. -Trump demands specific to trade with China -- China should boost Imports of US products (to increase their purchase of US exports AKA agricultural exports) --protection of US intellectual property (greater respect for copyright privileges held by US firms, reduce the capacity of Chinese firms too) --no currency manipulation ( a stable exchange that does not depend on Chinese currency) -trade deficit --indicator of unfair trade (Wants to offset this trade deficit by cutting Imports and raising the price of these Goods in the United States and doing so by raising tariffs on Chinese products. (His brother hope is that these punitive tariffs will pressure China to alter their trade policy with the United States because China cannot afford to be left out of the American Consumer Market) more details on trade war; - china has strategically targeted sectors that are most likely to vote for Trump like the Midwest that produces soybeans used to make tofu for China -- China is trying to encouraged the Americans to vote for somebody other than Trump -- are hoping to leverage elections in the United States to pressure Trump to making concessions in the trade War. --Sadly before covid-19 this was improving but Nations with the completion of phase 1 trade pact in January 2020 covid-19 panicats changes the world and raises deeper challenges for the US China relationship and the Trump Administration Back in January of 2020 President Trump had planned on using the trade deal as a critical component of his re-election strategy he was going to provide economic gains in the form of Greater exports to China and a political success by extracting concessions from China that might even work temper China's rise -- covid pandemic has made it harder to rely on his trade agreement and strengthening United States and Laura US public opinion grew significantly negative. by May 2020 China had a lot of ground to cover in fulfilling its pledges to increase its purchases of US exports as part of the phase one trade agreement

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

*The political/distributional challenges of a climate accord -Distributional struggle within countries (societies) --begun with adjustments like Coal versus solar/ Oil versus general public -- cost of the economic adjustment for the US and China might be more tolerable, -Distributional struggle among countries --Developed (US and Europe) versus Developing (BRIC: Brazil, China, India, Russia) -- developing countries like Brazil Russia India and China want to be compensated by the develop world for their altering energy consumption infrastructure. Industrial Revolution in US is the reason for oil and coal consumption which contributed to CO2 this is why they should have to pay more costs. --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 -- countries that are still trying to develop and grow are angry that now they have to invest in going green which will hinder their growth and slow down their Industries -Distributional conflict across generations -- this generation won't face the nasty costs of global warming, fall on our children and our grandchildren. -- kicking the can down the road our grandchildren do not have a vote. politicians preferred to listen to current constituents rather than future

How and why has Democracy Promotion been a more or less important element within U.S. foreign policy over the years? 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 and Democracy Promotion after World War III. - Wilson sought to leverage American participation during World War II expand the number of democracies in the world -- facilitate a democratic transition in Germany after World War 1 -- supported self-determination as a device to empower local groups demanding Democratic Rule and the independence from Colonial powers *Democracy Promotion During the Cold War - democracy took a back seat to the primary mission of containing communism. -- the US did continue to talk in reference to the superiority of democracy in its ideological contest vs communism -- in practice however, the US did align themselves with authoritarian regimes in efforts to crush Communist forces. *Democratization and End of Cold War - the collapse of Communism undermined the idea that the US had to choose between pursuing its ideological goal of democracy promotion and insecurity goal of containing communism -Instead the manner in which Communism collapsed and the cold war ended suggested exact opposite. The spread of democracy went hand-in-hand with greater security for the United States. -One of the main reasons why Communism collapsed is due to internal citizens living under communism wanting more freedom and democracy *Democracy Promotion after the Cold War -Communism collapse not by military force but arguably by the spread of democracy. --Clinton invaded Yugoslavia to stop genocide and spread democracy. -- democracy was also a major part of the neoconservative arguments under-grinding Bush administration's foreign policy aka his decision to invade Saddam Hussein's regime in Iraq. -- regime change in Iraq was a major part of the Bush administration's strategy to counter the threat of 9/11 -But Trump administration's "America first" has counteracted the previous Embrace of democracy promotion as a centerpiece of foreign policy

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 regulate behavior: -they tell states what they can and cannot do. -They provide clues as to how a broader international society has defined what is appropriate and inappropriate behavior. - Rules are designed to minimize conflict in the international system. Sovereignty example: A recognition of sovereign rights are designed to be reciprocal. One state recognizes another states rights, and the 2 agree not to violate each others territorial boarders or interfere in domestic political decisions of the other state. -This tries to eliminate political conflict between the 2 states by allowing each to determine their own set of domestic laws that will regulate how people will live within their borders. -the specification of these rules makes it possible to identify actors that violate the rules in the international system. They help to identify threats to other states in the international system. (When the Syrian gov violates international norms prohibiting the use of chemical weapons by Launching chemical weapons attacks against its own people, it shows the rest of the world what type of government it is.(unwilling to abide by rules that other govs honor and support.) *Provide info about how new states may act. + How to define appropriate and inappropriate behavior. - used to asses the behavior/ interests/ potential threat by actors. *Facilitate interstate cooperation -Mitigate collective action problem: -Reduce transaction costs associated with reaching settlements -Sometimes help enforce agreements

What emergency actions did the Federal Reserve undertake to help prevent a broader global financial crisis during the COVID-19 pandemic? 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? What do the Fed's actions say about the costs and benefits of American hegemony?

-If that 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 -- reserved is trying to prevent that spread to the banking systems will simultaneously reducing the dislocations associated with the huge job losses and bankruptcies. --It is attempting to achieve these goals by extending unprecedented quantities of credit to all types of businesses in the United States including small medium-sized businesses and corporations -Using part of the 2008 Playbook and then going way beyond that FEDERAL RESERVE Largest bank in the United States, all the private institutions like Bank of America hold deposits at the Federal Reserve -The responsible for regulating the banking system in the United States -Responsible for making monetary policy meaning and issues money and regulate the supply of money in domestic economy but influencing interest rates providing credit and ensuring that the US Implement sound lending policy so they don't go out of business and lose their depositors money -Politically independent -- the chair of the Federal Reserve to implement monetary policies they believe are most effective cancel feeling their mandate which is to ensure low inflation and high levels of employment -President Trump is very frustrated with the current chair particularly because he pushed interest rates up before the pandemic crisis -- Trump worried that Powell was slowing economic growth in the United States are necessarily -- Trump wins in November it will be all things to Jerome Powell and his way of maneuvering covid-19 and the economy THE FED CREATES NEW ELECTRONIC MONEY TO BUY THESE ASSETS. (Its printing money ) --These policies work to extend Capital to private financial institutions so they won't go bankrupt and you continue to lend in the crisis. -- the continuation of private lending and financial crisis help to prevent bankruptcies and stimulate economic recovery. *Fed monetary policy actions in March and April 2020 -March 3rd: drop Federal Funds Rate rate target to .0 to 0.25 overnight interest rate charged to largest banks --FEDERAL FUNDS RATE: interest rate that the FED charges to the largest banks in the United States for overnight loans. Short-term interest rate designed to give these Banks access to Capital so I can turn around and lend to customers. -Multiple rounds of quarantine easing assets purchases that increase size of its balance sheet --3/15 announce purchases of $700 billion (treasuries and mortgage-backed Securities) --3/23 announced that purchases open ended -Direct lending to large corporations -Treasury (the US taxpayer) provides a backdrop to take up to $75 billion in losses -April 9th and direct lending to small and medium-sized businesses --Fund 95% of loans originated by other domestic financial institutions In March and April the bed is undertaken multiple rounds with quantitative easing this policy also instituted in the 2008 crisis is designed to reduce long-term interest rates use long-term debt instruments to buy a high-value purchases like homes and cars a standard mortgage to my house is generally paid back over 30 years well in quantitative easing what the FED is doing is it by bonds if I bonds and use mortgage payments as collateralDoes this to encourage financial institutions to keep mortgage rates low for consumers has hopefully low interest rates will help you stimulate or stabilize the Construction Industries during this downturn and create jobs what traditionally the FED just loan money to financial institutions or the huge Banks like Wells Fargo or Goldman Sachs this crisis has prompted the bed to expand its customer base getting a new program that lends directly to non-financial corporations like for General Motors bowling for Delta Airlines this program support for the mon financial sector of the American economy -What's it going to do is try to stabilize Big Industry in the United States to discourage them from laying off their workers and prevent bankruptcy -And then last week the same got even more ambitious rolling out a new program to extend loans to small and medium-sized businesses employ up to 10,000 workers receive less than two and a half billion dollars in Revenue per year *Fed monetary policy actions in march and april 2020 (pt 2) At the same time that is announced all of these loan programs for businesses but also announced another program that state and local government in the United States because they're going to be needing loans and revenue as well as new and unprecedented whySocial distancing has triggered a collapse in consumption spending in the United States and with this Clapton consumption spending it also means that sales tax revenue collapsing for state and local government tax revenues and create new job losses and state and local governments have to lay off employees like teachers or police officers of paramedics to sort of Builder Budgetel finally we want to highlight two initiatives that the FED designed to stabilize the Global Financial system that has begun expanding dollars central banks around the world so why is this important because the dollar is the world's Reserve currency when foreign governments borrow from US Bank they have to repay these dead sand dollars have a current economic crisis has made it harder for them to do that by raising the value of the dollar the demand for dollars and US Treasury bonds have an increased because they provide them with the safest investments in the world treasury bond or treated like hash that at least allows an investor not to lose well early March Federal Reserve began to worry that foreign financial institutions were going to sell their treasury bond rate cash and cover their loss is creating chaos in US Treasury Mark is by driving down the price of the farm so the FED stepped in and effectively told central banks around the world that it would lend them dollars to ease the pressure on their currencies and to reduce the urgency for foreign financial institutions spell US Treasury again the Federal Reserve is stabilising Global Financial markets by giving the biggest banks around the world access to dollars so that they can meet their financial we wanted to include today by taking a step back and asking ourselves how can the Federal Reserve do all of it how can the Federal Reserve essentially money to stabilize the American economy and prevent another Great Depression *STRUCTURAL POWER OF THE $ -Dollar is the reserve currency for the world this means that large segments of international trade is conducted in dollar when a French oil company buys oil from Saudi Arabia. Transaction usually occurs in DOLLARS. -central banks around the world whole dollars in reserve as cash Grace investor confidence that they are capable of defending the values of their home currencies essentially the dollar has value because everyone believes that it does and it believes in the capacity of the American taxpayer find the debt obligations of the US government the dollar is the most important means of exchange and store of value in the global economy *hegmonic stability theory Like the dollar as Reserve currency and access to use consumer markets like emergency lending that the Federal Reserve is doing right now -more broadly this Theory reflects the position of leadership + places the United States at the center of the global economy since 1919 -the US has made long-term investment in a global order global political order and global economic order that benefit United States -- example the United States victory in World War II by lending money to its allies then rebuild Europe with Marshall Plan -All these efforts have caused a broader Global dependence on the US economy and on US Financial capital -- Therefore this dependence on US Capitol create to study demand for US dollars in financial assets denominated in US Dollars like the US Treasury bonds -This therefore means that the u.s. government can running exploding deficit in response to pandemic a deficit that's likely to grow about 4 trillion dollars simply because the rest of the world needs dollars (Aka the rest of the world is going to help the us borrow its way out of this economic crisis without having to pay nearly any interest and the trillions of dollars in loans that the US government is now taking Federal Reserve policy crisis illustrates the core expectations of the hegemonic stability Theory we can see the FED here acting as a Benevolent hegeman trying to prevent deeper Financial contagion that brings the global economy down but notice at this benevolent will also help the American economy and the American financial sector at the same time keypoint United States is extracting huge economic benefits from this financial power these Financial benefits stem from the US leadership and hegemony but they also challenged some of the core principles of President Trump's America First Grand strategy and this particular internet instance the world is not free writing on the United States right now instead of Global Financial actors outside of the US are helping the u.s. pay some of the costs economic stabilization and Recovery here in the US -US essentially getting to borrow trillions of dollars at 0% interest right now because the entire global economy needs dollars -Boost interest payments would increase the u.s. deficit by 200 billion dollar let me say that again 5% interest charged on a 4 trillion dollar deficit with cost the American taxpayer 200 billion dollars instead the real annual interest rate charged for that for trillion dollar deficit that we're borrowing to get out of this current crisis is likely to be around a half of a percentage point and so is instead of being 200 billion -All this hegemonic power does is other countries like Italy China do not have that kind of monetary and fiscal The US has because the dollar is a basis of a global economic System.

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?

-Reflect differences in value of respective currencies; price of one currency in terms of another -As $ appreciates, it can buy MORE units of a foreign currency -As $ depreciates, it buys FEWER units of a foreign currency --EXAMPLE --February 2018, $ buys 0.81 euros --May 2020, $ buys 0.91 euros --Dollar appreciates relative to euro from 2018 to 2020 *Why are exchange rates important? -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 DEappreciates, exports go down because they are priced in $ and more expensive to foreign consumers -Opposite with depreciating currency: helps exports, slows imports ( it makes our exports cheaper to foreign consumers) *Exchange Rates and US-China Relations -Implications for US-China relations: --China has long sought to stimulate exports to US --How? Push dollar up to increase purchasing power of American consumer --How push dollar up? Buy dollar denominated assets like US Treasuries and mortgages

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 -Ikenberry: US entry into international organizations helps to solve fundamental problem of politics at international level --Need coercive power and authority; but once exists, how limit? And preserve US power/hegemony Examples: NATO, Bretton Woods organizations (IMF and WTO), participation in UN -Ikenberry: US entry to IO (intl org.) NATO, etc. helps problem= 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 -Preserves US power/hegemony -Shape expectations of how states behave -Provide info about state interests and incentives to comply -Make predictions about willingness to comply -Allocate/generate power for states.-these organizations are multilateral, states can check other states power if they oppose something they're doing -Turkey constrain US to fight wars against Iraq and ISIS helps to legitimate American power and preserve it

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 overuse of common pool resources like the atmosphere bodies of water because individuals making consumption or decisions of the resources do not bear the full social consequences of their overuse -Emerges with public property or resources for which it is difficult (costly) to limit the consumption. -- EX a factory that uses coal as its main source of high levels of carbon dioxide, industry is degrading air quality in that town. BUT it's a city shop the factory down that's City loses all the jobs that the factory creates. --furthermore cost a lot to change coal to solar panels as a main source so company's risk going out of business and going greener -EX2: Fishermen chatching alot of fish, deplete fish stocks. Conservation and perpetual resource sustainable over time? -some groups win and some lose :( -Divergence between private benefits and social costs: Individually rational for people states to consume, but diffused costs to society insufficient to prevent overuse -Resource gets depleted -Examples: oil fields, common grazing lands, overpopulation, fisheries, atmosphere *Illustrative example -Factory upstream from city dumps pollutants into river, which is key water resource for city -People getting sick but also depend on factory for job -Who pays/adjusts behavior? --Factory adopts alternative energy source to cuts emissions, becomes less profitable, out of business --City pays factory to cut emissions, simultaneously subsidize production •Problem: how define property rights over the river (a publicly owned asset) •Absence of property rights creates (limits overuse) externalities (costs or benefits of some transaction by people not involved in transaction) --Private costs and social costs of using resource diverge --Factory pays nothing for pollution (zero private costs) while people in city pay health costs from unsafe drinking water (social cost) ---Factory is distributing its costs of production to everyone one

A current account deficit

A current account deficit is offset by Capital account Surplus, -Meaning if the United States runs a trade deficit as an entire economy in a given year it is buying more foreigners than it's selling to foreigners. -So this Capital account Surplus shows up as more investment capital coming into the United States -Accordingly a trade deficit also indicates a healthy investment climate. -- foreigners would not Finance American Imports if they didn't think these debts would be repaid. -Capital account surpluses which bring foreign Capital into the United States helped to drive domestic investment levels up and helped to compensate for very little savings rates inside US - so foreign investment in Toyota Honda factories and government bonds helped to increase economic growth in US. -- most importantly this growth is enabled by globalization and can be a symptom of trade deficits

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 The Power of the IMF •Conditionality: demands conditions that change economic conditions in country and enhance long term ability to repay -IMF loans as multiple disbursements: get partial money, then must implement reforms before get more -Often imposes real pain: cut tariff barriers, cut budget deficits i.e. raise taxes and cut spending •Power of IMF stems from its willingness to lend when no one else will -Good housekeeping seal of approval necessary for private capital to come back in The US and the IMF •Voting power not equal in IMF, set by relative contribution to Fund •US biggest shareholder, therefore lots of influence on terms of emergency loans i.e. bailouts •US often relaxes conditions for strategic reasons (e.g. Pakistan)

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

Also called an account deficit,occurs when Imports exceed exports in a given year. - trade deficit as evidence of unfair Trade Practices by other countries that are hurting American firms -- if foreign firms export more of their products to American Consumers than American firms can export to foreign markets, this must mean that the foreign government is either subsidizing domestic firms or imposing unfair tariffs on American Products. -- if American firms have limited export access to foreign countries then American firms can't hire American workers --also implied that trade deficits undermine the competitiveness of domestic firms put them out of business (too much import competition for American businesses and When these American businesses go bankrupt, they have to layoff American workers) --these complaints suggest that the *trade deficit eliminates American jobs or that greater Imports hurt employment in the United States

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?

CO2 CUTS AS A COLLECTIVE ACTION PROBLEM -Public good: nonexcludable and nonrivalrous ---These attributes activate free rider problem --Free riding as failing to limit own carbon dioxide emissions (they do not regulate production or consumption of oila and coal, they do not control CO2 etc. if one doesnt do it, the rest do not either) (they all hope other countries cut their wn carbon omissions) -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 own (US and China make take that responsibility and let others free ride also they account for the most pollination) --International agreement to punish noncompliance (solves the collective action problem by pressuring to make contributions to the public good in the form of cutting their carbon dioxide emissions. Corporation has been sustained by a credible threat to penalize non-compliance through tariffs) -Markets undersupply public goods, necessity of international agreement (In this case public goods are sizable Cuts in carbon dioxide emissions Cortland we may not be able to rely on Market solutions to solve the problem of global warming this implies that a sustainable solution to this challenge will probably require political leadership by the large countries like the United States China and European Union.

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 war -Institutional checks and balances make peace settlements more durable because democracy helps to solve the commitment problem -Shared democratic identity: Democracies externalize norms of conciliation and compromise with each other and there is less public support for using military force against fellow democracy

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?

Deal reached in December 2015 -Important role played by United States in final terms of the agreement -Agreement on process by which states would submit voluntary reduced CO2 emission targets to keep average global temperature increases below 2.0°Celsius, with ultimate goal of less than 1.5° -Main components of agreement: 1) Nationally determined contributions that are voluntary and not legally binding. --Designed to work through the politics of naming and shaming (Rather than pressure compliance. Other group will be able to see if each state meet targets and whether they submit progressively tougher pledges to cut carbon emissions in the future. If they don't they can publicize an act of non-compliance + pressure) 2) Fund to transfer $100 billion dollars from developed to developing countries --Designed to help developing countries pay costs and as compensation for the fact that developed countries are more responsible for this problem due to their earlier industrialization

What is democracy? Describe Robert Dahl's three "procedural minimal" conditions of democracy. (module 16)

Democracy is a political system that is marked by free and fair elections. And those free and fair elections are undergirded by three primary sets of conditions 1. Public conversation 2. Civil rights and liberties 3. Inclusion 4. Democratic sovereignty (elections are four powers elected that have real power) one crucial element has stood out as the aspect of democracy *competitive elections. -country has free and fair election but it is a democracy otherwise it isn't. term-13 Robert Dahl: "Procedural Minimal" Conditions of Democracy: *Public Contestation -Electoral competition + - Individual freedoms (Multiple parties competing in elections but also the right of civilians to freely Express themselves and receive info from the media. --Without all these freedoms even though there are multi-party elections the elections would not be fair and us not democratic *Inclusion -Universal Suffrage -- the system was allow Universal and equal participation from all segments of society -- if a group such as women are systematically excluded from the political process then that polity does not meet Democratic threshold *Democratic Sovereignty -- Democratic results must reflect truly powerful decision-making body such as legislators and chief executives -- if the country holds elections but the main decisions are made by an elected bodies like the military or religious authorities this is not a democracy. --EX: Iran cannot be considered democratic until their non-elected power such as religious authorities relinquish their power.

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

Dilemmas of NATO 1.European shirking - President Eisenhower on European shirking in NATO: "They won't make the sacrifices to provide the soldiers for their own defense." (they were avoiding responsibilities to provide their own military security, by not spending enough. during the Cold war or even after the cold war ended. continuing prob. The US carries too much of NATO's collective security... TRUMP's thoughts exactly ) 2.U.S. as reluctant hegemon - now that NATO provides a lot of benefits to the US but is also a huge burden. Trump questioned the tradeoff arguing that the costs of international institutions like NATO outweigh the benefits. (huge change) -Trumps way of trying to fix the 1st problem is radical from the decades of foreign policy calling nato OBSOLETE. - says that if EU dont try harder the US wont honor the Article V of NATO treaty. (aka attack one attack all)

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

FACTOR ENDOWMENTS: the relative quantity of key factors of production like land labor and capital in the United States -- these relative Factor endowments say that the relative number of college graduates in the u.s. versus China set the relative prices of these factors as inputs into a production process. -So because the US has a lot of skilled labor through college degrees the cost of hiring a college graduate is cheaper than retaining some resource like land with oil reserves on it that is much more expensive - take away Point: International Trade helps to create jobs in sectors that rely disproportionately on resources that the US possesses in abundance. Which drive down the cost of these factors and makes Goods that rely on them as inputs relatively cheaper so then we produce here in the United States and there's more jobs -- alternatively globalization tends to drive down be returns to owners of scarce factors of production in an economy -- skilled labor is an important example because it is much more abundant in India than it is in the United States. There are four people in India will be able to pay their workers a much lower wage than a competing company in the US. -- access to cheap labor in India can drive down wages and make India more cost-effective than the United States. -- bc US has a lot of high skilled labor it tends to export financial services and high-tech products. -- therefore earning a college degree while positions you to gain from globalization From slides: 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 •International trade helps to create jobs in sectors that rely disproportionately on resources (factor endowments) that US possesses in abundance -The abundance drives down the costs of these factors and makes goods that rely on them as inputs relatively cheaper --Example: job creation in financial and high tech services because intensively use high-skilled labor (people with college or advanced degrees) -Think about factor endowments (scarcity and abundance) in the US relative to ratio of factor endowments in other countries --Example: US scarce in labor relative to India; consequently, wages lower in India Negative consequences: Jobs are lost in sectors that rely disproportionately on resources that are scarce in the US -Example: unskilled labor in manufacturing -Problem: when lose job in manufacturing cannot find work in high tech because do not possess requisite skill level •Political implications: -Globalization tends to activate domestic political conflict because some groups win and some groups lose -This powerful reason to explain prevalence of barriers to trade that constrict national income

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?

Fund to transfer $100 billion dollars from developed to developing countries --Designed to help developing countries pay costs and as compensation for the fact that developed countries are more responsible for this problem due to their earlier industrialization

What is the GATT? What is the WTO? How does 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?

GATT -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 War (succeeded in increasing international trade) -Important: no enforcement capabilities, trade disputes handled on a bilateral basis --states could exploit GATT rules. bilateral is highly inefficient had variable. WTO 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 --DISPUTE RESOLUTION MECHANISM : acts as a judicial means to settle trade policy. to uphold existing trade concessions. •Judicial panel can enforce these obligations by authorizing compensation to injured party in form of trade sanctions-Interesting: 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 --punish sectors of a country's economy with the most political clout --ex: EU countries filled a dispute against GWBush on steel tariffs. they threatened to impose tariffs on orange juice. OJ bc GWB won a close election and his victory depended on a narrow margin in Florida. •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)

Globalization

Globalization- is the integration of national economies into a single global economy --Graph says that on average the proportion of trade relative to GDP for all countries steadily grew during the latter 20th + 21st century. -- meaning globalization became more intense in the post-world War II. -- stages are (1. Purchase of raw materials like aluminum) (2. manufacturing steps in different countries) (3. final assembly in other countries too)

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

INSTITUTION: Rules of the game: humanly devised constraints that structure incentives and interaction. Domestic: don't speed, don't steal, win majority of electoral votes to become President International: sovereignty, chemical weapons taboo -EX in Domestic politics: laws that tell us not to steal someone's property or drive over 65 miles per hour on moPac. ALSO help regulate political comeptition and determine which politicians lead the gov of the US (electoral laws that say we will have presidential elections every 4 years. winner of presidential elections is determined through the Electoral college, the winning candidate must secure the majority of votes in enough states to be president. EX in international Relations: rules and norms associated with sovereignty as a prominent international institution. -once states recognize other states as independent members of the international system and give them the status of states at the United Nations, they confer on them a series of sovereign rights. -The rules of Sovereignty say that the United States should not interfere in rules and policy outcomes in other states as well. -A series of laws and norms discouraging the use of nuclear weapons as international institutions. -These rules created by states are designed to set limits on how states fight wars. -A list of prohibited actions in wartime. -PROVIDE STANDARDS OF BEHAVIOR but the broader international community then uses to evaluate the actions of others and decide how they might respond to states that either violate or uphold these institutions ORGANIZATIONS: Political actors in the international system Possess agency and pursue political objectives Examples: United Nations, North Atlantic Treaty Organization (NATO), World Trade Organization (WTO) which was created to promote and defend a series of international institutions designed to eliminate trade barriers among states. -(note: institutions are an important COMPONENT of international organizations.) - International Organizations have RULES and these Rules are international institutions. -THEREFORE. IOs MAY BE CREATED TO DEFEND CERTAIN INSTITUTIONS. - Posses agency and political incentives that drive their behavior in the international system. -Act to pursue some set of objectives - (VS. institutions, the rules cannot act. not lead by a conscious individual or leadership structure.) institutions are rules Org are political actors.

The UN 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)?

Important global political functions: peacekeeping, monitoring of nuclear weapons facilities and weapons programs, children's health, delivery of humanitarian relief in war and natural disasters -EX: When the US seeks to secure international condemnation against the Syrian regime for its chemical weapons attacks on civilians, The US works through the UN. •Two main political bodies: -General Assembly --all member states can sit in the gen assemb = rarely achieve consensus. -- achieves a power political vehicle to secure international legitimacy, or broader political acceptance for some fp actions when they can secure support within the general assembly for a given action. -Security Council -- Five permanent members with veto power (US, UK, China, Russia, France) a result of how WW2 ended, the victors. --Ten rotating members -- Needs Consensus before it can act. The United States and 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) The US and International Organizations •Real tension: might need to gain legitimacy for policy, secure additional support to implement policies, but... •Can require some surrender of sovereignty or authority of elected officials in US set policy of the United States

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

International migration is part of the broader phenomenon of globalization (movement of people across National boundaries the movement of Labor then we can see the immigration policy somewhat akin to trade policy. ) (open immigration policies that allow more immigrants the freedom to live and work in other countries remove barriers to the movement of Labor increased globalization) --Just 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 (can see immigration through the lens of comparative advantage and specialization just grabbed an international trade) (Trees with a surplus of Labor have an incentive to export labor because of this Factor endowment) (Countries with a scarcity of Labor will tend to import labor Which they lack domestically) •However, like international trade, migration creates income distributional effects, creating economic winners and losers (Mexicans coming to work here for cheaper is functionally equivalent than that factory moving to Mexico for cheap labor (as more workers come over the the less laborers get paid so you can think of immigration policies as tariffs that restrict the size of Labor markets reduce competition among laborers and push wages up for Native workers) --Hi tech wants to employ high skilled workers to keep costs down (favor relaxed immigration policies) (Want to increase the pool of Highly skilled Highly Educated labor in the United States to reduce their costs) --Agriculture, construction, service wants to employ low skill foreigners to keep labor costs down --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 workers and taxpayers --By pushing labor supply up in certain sectors, real wages are driven down --Migrants can also present a cost through increased demands for social services like schools, public safety, and health care that are paid through taxes bring up labor across More workers come over the pay is lower so we can think of immigration restrictions as Terrace

Describe the main elements of international economic cooperation. Why is political cooperation between states on international economic affairs difficult to achieve? How might international economic organizations, like the WTO and the IMF, facilitate economic cooperation among states and higher levels of international trade?

Joint reduction in tariff barriers *Monetary cooperation: multiple countries coordinate monetary policies (e.g. synchronize interest rate changes) to preserve stable exchange rates -- Tarif cooperation: two states jointly cutting tariffs that allow foreign producers for each country better access to domestic economy -- This poses greater foreign sales + might push some less Cooperative domestic firms out of business. --domestic firms in both countries can now find more customers to Exports to a foreign economy. - so cooperation to reduce trade barriers can be mutually beneficial to both States as long as both sides makes some sort of concessions --cooperation monetary terms: exchange rate movements can alter trade patterns, a rising dollar to make American exports more expensive to foreign consumers and actually reduce American exports. -- consequently sometimes States will manipulate their exchange rates often implementing expansionary monetary policies so they'll cut interest rates at home = drives down the value of their currency in international markets and simultaneously makes their exports more competitive. -- accordingly this exchange rate intervention can act as a trade barrier. --example : this exchange rate manipulation to help to undermine International economic cooperation in the 1930s and worsen the Great Depression. countries would withdraw from the fixed exchange rate regime that was called a gold standard-- and they devalue their currency to make exports more competitive. --however other governments responded by doing the same and try to reclaim market share--but their net result of these responses was to add significant exchange rate violating the global economy protectionist trade policies and some governments responded to the devaluation of other countries currencies by hiking their own tariffs. -- these Dynamic created the momentum behind Smoot-hawley tariff inside the United States 1929 --In conclusion exchange rate manipulation and tariff barriers both LED to significant of contractions in global trade and undermine global economic growth. *Foreign aid *Emergency lending -- government could extend emergency financial help to a country facing temporary budget crisis ( European financial crisis in 2009 when Greece Spain and Portugal Ireland receive significant loan packages from governments like Germany and international agencies like the European Central Bank so they could prop up their economy pay their short-term debts and try to reduce the downward recessionary pressures at domestic economies. Why is political cooperation hard to achieve? *The problem of contracting over time: states cheat --fail to honor concessions, an untrustworthy trading partner -- States might not exchange there trade barriers if they expect their trading partner to violate the agreement. (expectation of Future cheating deterring States from cooperating in the first place) *Uncertainty about political interests of other states -- if they cheat they might also lie (Hillary Clinton Goldman Sachs example) *Monitoring compliance -- it's challenging to monitor the behavior of other states to make sure that they are complying. Therefore you decide making an agreement is too costly -- one solution by Ronald Reagan was to trust but verify. *Distributional hurdles: which side is getting a better deal? -- even if both States benefit, one side can benefit more than the other, which causes a political problem. -- main issue of Trump's global economic order. Cease unfair Trade Practices and the u.s. being taken advantage of economically. He believes he can create better bargaining Leverage by moving trade negotiations into bilateral agreements away from multilateral forms like WTO. IO help resolve: *Provide enforcement mechanisms --WTO: judicial panel what stage can you file a formal complaint when another state has fail to owner train promises) (The panel can then decide to allow that state to impose retaliatory tariffs) --IMF conditionality (emergency lending to countries that face a balance of payment crisis they cannot pay debts.) (IMF lends money Creates a series of payments- Raise taxes cut spending expand trade cut inflation- to get money back.) *Helping to reveal information about state interests -- willingness to comply and agree to long-term economic concessions provides information about the willingness of the government uphold their obligations within the agreement. -- when States join the WTO they are sending a signal to the rest of the world that they are interested in free trade and globalization. *Monitor compliance --IMF make sure that these countries hold their economic obligations. Starbucks are we capable of anything -- States rely on International organizations to police the compliance of members. *Reducing distributional challenges -- within the IMF the United States has a lot more influence because the influence is set by the amount of money that country has given to the reserve pool of capital -- WTO the distribution of power is equalized by the judicial panel. -- judicial panel has the power to determine the Innocence or guilt of the United States which somehow equalizes plane field. offset power of large states.

What are some critiques of the democratic peace theory?

Notes from lecture: -Theory holds that the likelyhood of military conflict between any 2 states falls when both of them are democracies. -Note: democratic peace theory does not suggest that democracies are more peaceful than non-democracies in general. (democracies tend not to fight wars with other democracies) -How do democracy promote peace when democracies come in contact. *Democratic Peace -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 war --Institutional checks and balances make peace settlements more durable because democracy helps to solve the commitment problem (the settlements constructed by democracies with each other are more robust because they are hard to change domestically. (Groups that benefit from an international status quo that includes peace, can Ben block and change by directly lobbying Congress or other institutions.) (So once a peace settlement has been set between two democracies it tends to stay and remain in force more so than in relationships that are not both democratic) --Shared democratic identity: Democracies externalize norms of conciliation and compromise with each other and there is less public support for using military force against fellow democracy (the broader public and Democratic societies are much less likely to support the use of military force if the adversary is another democracy) *Critique for the democratic peace -States undergoing democratic transitions experience more conflict (countries going from authoritarian to democracy tend to be more likely to experience War. Even more likely than establish dictatorships. •Alternative explanations: -A common enemy in the Soviet Union explains peace in Western Europe after World War II (the peace between Democratic states was not due to their common regime type but rather because they had a common enemy.) -Great power settlements, not democracy, explains peace after World War II (Peace is a product of American hegemony in Western Europe and Soviet hegemony in Eastern Europe.) (It's super power maintains peace among the countries within their own spheres of influence and the nuclear standoff between these two superpowers kept these alliances from fighting one another) (Therefore this is a correlation Of the rise of democracies in Western Europe not a causal relationship instead the United States imposed and help to develop democracy and peaceful relationships in Western Europe through their hegemonic influence over the region.

Trump and the paris accord

President Obama based his pledge for American carbon emission reductions on executive orders. This made them vulnerable because the next president could reverse them unilaterally. •The Trump administration started to undermine American commitments to the Paris agreement even before formally announcing withdrawal by rescinding Obama's executive orders. •President Trump's formally announced in November 2017 that it intended to withdraw the US from the Paris Agreement. •However, the U.S. officially remains a party to the Paris agreement until November 2020, meaning the next election could reverse this decision again. •A Democratic president in 2020 could rejoin the Paris agreement but other states would likely question how stable this commitment would be. •If Trump is reelected it would likely mean the effective end of the Paris agreement •Other countries are unlikely to continue to push for significant emission reductions while allowing the U.S. the world's second largest carbon emitter to free ride.

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

Remittances - money sent from migrants to family and friends back home -- represent one of the largest transfers of capital across international borders, totaling more than $600 million in 2017, and increasing more than five times since 2000. •Remittances represent a much greater redistribution of wealth from wealthy countries to poorer ones than foreign aid, which totals less than $200 million. •They also have certain advantages over other forms of wealth transfer like foreign aid or foreign direct investment: --Because they usually involve transfers between family members, remittances cannot be withdrawn and are unconditional. --They also avoid government structures and thus avoid corruption. Because they are targeted to individuals, they avoid costly overhead. --They provide a valuable form of social insurance, credit, and investment in countries that lack these markets. Trumps campain: -To use remittances as a leverage to pressure Mexico to pay for the border wall. -Threatened to sign executive orders to halt remittance payments unless the Mexican government funded the wall -

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?

Since the year 2000 my graders grew to 258 million- faster than global population growth. -12 large-scale movements both in and out of states effects of migration to 4 across countries. -US is the top migrated country. 4x the # In general, global migration patterns involve a net flow of people from less developed to more developed countries -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 •While the U.S. has the largest cumulative stock of migrants by raw numbers, migrants make up a greater share of total population in other countries like United Arab Emirates, Saudi Arabia, Australia, Canada turkey has the most forced migration. Often the most migration Falls to neighboring countries from those that are in war but are not equipped to provide the facilities and resources to meet the needs of refugees.

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

The Dollar as the Global Reserve Currency -Money as medium of exchange, facilitates economic growth and specialization (many International transactions outside the United States occur in dollars) (flight to safety is when investors sell their stocks in other currencies and purchasing US treasury bonds. aka the safest investment in the world. ) (the biggest banks in the world hold US treasury bonds as cash or source of reserves.) (this reserve currency status for the dollar is a source of economic and political power for the US: Creates a steady demand for financial assets, like treasury US bonds that are turned into dollars. ) (therefore the global economy depends on the US to run a budget deficit.) *The Political and Economic Benefits of the Dollar's Reserve Currency Status -Global liquidity or money supply generated via Treasury Bonds --this reserve currency status for the dollar is a source of economic and political power for the US: Creates a steady demand for financial assets, like treasury US bonds that are turned into dollars. (therefore the global economy depends on the US to run a budget deficit.) -Government issues Treasury bonds when it runs a budget deficit --Budget deficit: expenditures exceed (tax) revenues (Spending more money on things like national defense, the military, social security , medicare, roads than it takes in as tax revenues in a given year.) (Our government then pays for this deficit by taking out loans from investors like IOUs = treasury bonds) *Money Is important because it's a medium of exchange it enables specialization and trade --Ability to rely on foreigners to finance budget deficits helps fund domestic and foreign policies that Americans unwilling to fund through taxes (The US dollar being a top currency is a sense of Leverage it means that the u.s. government can Implement policies and buy things but Americans don't necessarily want to pay for) (all these policy choices created a new exploding budget deficit YET the dollars reserve currency ensured foreign capital holders would help to provide the financial resources to pay for these policies) ( during the Bush Administration China increased Holdings of US Treasury bonds to help push up the value of the dollar, these foreign purchases of Treasury bonds simultaneously help to reduce the immediate economic burdens of war and tax cuts on the American taxpayer) -US really being exploited for its global economic leadership?

What does globalization in financial terms look like?

The integration of national markets into a single global economy has important political and economic consequences: -Generate Economic Development and growth -Fosters peace between states - connects economies and renders them vulnerable to recessions in financial crisis in other economies -- by linking the health National economies together Globalization forces governments to care about economic policies and the level of economic growth in other countries.

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?

There is a gap between public opinion on levels of immigration and immigration policy in democracies. Why? •Collective action problem - powerful interests experience concentrated benefits from immigration while the costs are distributed widely across less organized interests. (if Prefers open migration you will enjoy the benefits of your preferred policy whether you like to help achieve those policies or not. Free rider problem. Cuz the effects of this migration policy are public goods that can't be excluded would use those who help achieve the policy) (Interest such as Agriculture and high-tech sectors experience concentrated benefits from immigration fruit lower labor costs therefore have high incentives to do something about it) (The economic interests that served as a core constituency of the Republican Party - big businesses- favored relatively open immigration. Is reflected in President Bush reform plan) Over by the end of his term President Bush was a very unpopular president because of the war in Iraq and did not have enough support for a grand bipartisan compromise on the immigration issue. Trump's: Republican Party viewed undocumented individuals largely through Law and Order in the National Security prisms. Go immigrants are illegal. -Trump says that they should be deported first before receiving any political an economic benefits associated with citizenship or legal residency status. -Shift within the Republican Party required a catalyst that help less organized interest overcome the collective action problem -Immigration became a central issue only one Donald Trump forced the issue on the agenda *Immigration Policy and Partisanship •In the US, immigration policy is closely tied to partisanship. •How will immigrants vote? (5.5 million more if they get to vote) (immigrants would give Democratic vote margin of 1 million votes in States like Texas and Florida which tend to be more Republican) •Republicans worry that majority will vote for Democrats. •Permanent political status as minority party in key electoral states like Texas and Florida.

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"?

U.S. and NATO: Cold War Origins 1.General Lord Ismay, NATO first secretary general, on goal of NATO: "to keep the Russians out, the Americans in, and the Germans down" (reffered to NATO's main function to provide protection against soviet conventional and nuclear attack of EU). 2.NATO and protection of Europe from the Soviet threat (cornerstone of peace and prosperity for the region.) 3.NATO as a binding mechanism for American military power ( by establishing an American-led alliance system, this gave the US Hegemon status and provided a leader for the collective security agreement. The US now provided public goods like military leadership.) (Alliance forced the US to work multilaterally instead of Unilaterally) 4.NATO and peace between democratic powers in Europe (keeping the Germans down forced them to chill by integrating them into an alliance that was led by an outsider in the US.) (Germany , France and Italy became reliable on the US being under the NATO umbrella) notes from lecture: -Natio has its origins in the Cold War, and the containment of soviet threat. -The alliance's chief function was to provide military security for Western Europe against the possibility of a Soviet attack. -However the coldwar alliance had multiple functions that made NATO a robust part of a general collective security arrangement in EU. -the many benefits explains NATO's staying power after the end of the cold war -Also crucial to understand challenges today with TRUMP ADMIN.

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.

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. -- Attempt to remake countries around the world in the image of the u.s. -- Woodrow Wilson comes the idea that democracy can be shaped and implemented in all other contexts and states -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. •Both of these approaches are seriously flawed: -In the first one, America devotes enormous resources into a project, implanting democracy that is almost always unsuccessful at best and often backfires, especially when using military intervention, as shown in Iraq and Afghanistan. -In the second instance, America ignores problems at its own peril, allowing radical elements to fester and gain strength to threaten the U.S. homeland and vital American interests with attack. -Krasner highlights a common dilemma of democracy promotion. The U.S. faces a no-win situation. Overly ambitious democracy promotion does not work but withdrawal from the world's problems has costs as well. •third option - promoting good enough governance, which emphasizes greater security, economic growth, and better provision of some services •Main elements of promoting good enough governance: -The world's states can be categorized into three groups: consolidated democracies, transitional countries, and despotic regimes. Each category needs a different approach -For consolidated democracies, the U.S. needs to maintain its alliance and trade commitments to help sustain successful democracy -For transitional countries, the U.S. should work with other democracies to gently nudge these countries toward greater democracy by identifying good local leaders to support. -For despotic regimes, democracy is probably not viable in the short-term. In these cases, the U.S. should also identify good local leaders, regardless if they are committed to democracy or not, and provide them assistance to improve security, economic growth, and provision of important services like health care. •Critique: How should the U.S. respond to authoritarian regimes, like China, that arguably provide good enough governance but also severely oppress many of their citizens?

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 home currency or selling gov bonds. -Currency depreciates --drive down the value of the currency and raise the gov's costs. -Government can reassure investors (or bring them back) by: --Raising taxes or cutting government spending (as these borrowing costs increase, govs have to take the politically unpopular steps of raising interest rates, cutting public spending, or raising taxes.) --Offering higher returns i.e. push interest rates up (Major economic factors like hedge funds, can disciple and change the policy of governments through their marker-based transactions.) --But...these measures push domestic economy into recession -Example: Greece in the Euro crisis (Greek government had long run as a stable government budget deficits, like they could repay their exploding debt levels. market base pressures to sell greek government bonds, induced ressetion in greece unemployment by 20%. had to tax higher and less gov spending. -made it harder for greeks to buy cars and houses) * Global Capital markets have the power to punish the irresponsible economic policies of governments* -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.

Why do states trade? (ricardo says the following) •Globalization helps to raise national income through specialization and trade -- if governments want to improve income well if you do everything they can to eliminate barriers to trade like tariffs. --We dont produce what we use on a daily basis aka our cars. --The process of specialization and trade makes an individual wealthier (everyone does what their best at and then trade) *Theoretical logic illustrated by comparative advantage: - suggest that the same logic that hold for individuals in trade should apply to countries as well. -- to maximize economic wealth country should specialize in making some subset of goods that can be produced cheaply in their domestic economy then trade. -why have tariffs? -- biggest challenge is disproportionate gain. -Ricardo misses...tendency of globalization to shift distribution of income within an economy --Important: some groups see income gains (high tech and college graduates in US); --some groups see income losses due to globalization (manufacturing sector in US) •Example: Automobile sector-Lose factory job making $30/hour when GM moves plant from Flint, MI to Mexico; find alternative job at WalMart for $12/hour •Policy implication: states should eliminate trade barriers to max economic growth •Just generalizing to states what we do as individuals

Baker, Schultz, and Halstead Reading

Written by former senior officials from the Reagan and George H.W. Bush administrations, this article presents a conservative argument for U.S. leadership in combatting climate change. •While acknowledging the environmental threat, these authors make the case for pursuing environmental protections on strategic grounds based on economic, political, and national security benefits to the U.S. •They acknowledge the two common (usually conservative) objections to pursuing ambitious steps to combat climate change - economic costs and the free rider problem. •They turn both of these objections on their heads: --Environmental protection and economic growth are complementary not mutually exclusive --The U.S. already has a comparative advantage in low-emission manufacturing and so stronger environmental protections would actually promote a more equal playing field for American companies •Strategic benefits for the U.S. from ambitious environmental protection: •Environmental protection can foster economic growth: --Cleaner energy such as natural gas and renewable energy like wind and solar power is becoming much more cost effective, so the U.S. has substantially cut emissions while maintaining a strong economy *the cleanest fossil fuel is now the cheapest fossil fuel* (renewable energy like wind and power is more cost effective too) --Like the internet revolution, climate-saving technologies could bring revolutionary economic efficiencies (electric vehicles. use tech for our benefit) --Climate change is already causing significant economic costs through worse natural disasters, combatting it will help the country's bottom line (spending on disaste relief costs a ton) Environmental protection can enhance national security: --Climate change poses serious national security threats such as flooding of major cities and international conflicts over water scarcity and thus reducing climate change will lessen these threats --Winner of the clean energy race will determine the international balance of power and set the rules of the new clean energy international economy, which ties to hegemonic stability theory (u.s. benefited greatly after World War II when it took delete an establishing the rules for the international economy through the Brenton Woods institution like WTO and the IMF International Security for the formation of the United Nations and NATO) (similarly the authors argue that states will once again be at the head of the table regarding the new clean energy economy so that it does not have to live under the rules set by other countries) •Policy proposal: Carbon pricing as the most efficient means to reduce emissions (Meaning of those producing carbon emissions will pay the cost of the externalities emissions in terms of damage to the environment or the hurt ppl bc of the environment.) •Four pillars carbon pricing approach: 1) Economy-wide, revenue-neutral carbon fee. This would cost less than subsidies and regulations. 2) Revenue from carbon fee returned to American citizens as dividends. A family of four would receive approximately $2000 per year. 3) Carbon pricing would replace many environmental regulations 4) Carbon tariff would be applied to energy-intensive imports to level playing field

What is an externality?

costs or benefits of some transaction by people not involved in transaction

Watch the Jon Stewart video clip on the United Nations and explain his critique of the United Nations. Why is this critique "funny but wrong" according to lecture?

he argues that the UN is worthless, with respect to securing a ceasefire in Gaza. begs an important question: Why do american leaders and the world care about the UN. Why did pres obama use it to confront ISIS? -Its the capacity of the UN to bestow political legitimacy on some set of foreign policy actions. -In the case of American foreign policy, securing international legitimacy can reduce The political costs associated with implementing some action, either in terms of facing less resistance from potential international opponents, or picking up new international coalition parters that then contribute to the policy's execution. -While the UN can be frustrating in its incapacity to respond to crisis. This stems from its universal membership, it should not come as much of a surprise to you that it can be hard to get countries to agree. - the UN has the capacity to confer legitimacy on a government's controversial policies, this is why presidents often seek its approval. (the UN's) - UN approval can shape public opinion in the US when a president contemplates the use of force. - Real tension: might need to gain legitimacy for policy, secure additional support to implement policies, but... •Can require some surrender of sovereignty or authority of elected officials in US set policy of the United States EX: president trump's criticism of international organizations. his grand strategy focuses on the protection of american sovereignty meant depending less on international orgs like the united nations.

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?

how does the fed buy neww assets? - simply creates new money by increasing the reserves for deposits of the banks that have accounts at the Fed. -- aka THE FED CREATES NEW ELECTRONIC MONEY TO BUY THESE ASSETS. (Its printing money ) --These policies work to extend Capital to private financial institutions so they won't go bankrupt and you continue to lend in the crisis. -- the continuation of private lending and financial crisis help to prevent bankruptcies and stimulate economic recovery. --

What is NATO

notes from lecture: NATO: military alliance and is also a political actor. -However the rules governing NATO's inner workings and external relations are institutions, (aka rules) and have a great effect on international politics. ex: the rule in NATO that an attack on one is an attack on all. = collective security guarantee of the alliance. - Rules requiring that members of NATO not have any territorial claims against other states and maintain a democratic form of gov. help to solidify peace and stability within the alliance between its member states. also helps NATO serve as a crucial instrument of spreading democracy. - NATO membership was a factor that made Eastern European countries to want to pursue democracy. after the collapse of communism.