GOV Midterm 2

Use the following words (or variants of these words) in 1-2 sentences that illustrate how they relate to each other: "collective action," "problem," "free ride/ing," "shirk/ing."

A collective action problem is when all individuals would benefit from cooperating, but don't because of conflicting interests. An example of this is shirking, where a member of the public wants to enjoy the benefits of a public good without paying the cost. This is also called free riding.

What is a "factor of production"? How does looking at a country's "factor endowment" help us understand what its economy will specialize in producing?

A country will specialize a product that makes intensive use of a factor of production it has lots

Preferences of domestic actors often impact the foreign policies states pursue. What determines whose preference drive those decisions?

A limited group of people, often those with financial interests in polluting industries, often have an outsize interest in international decision-making, outweighing the overall domestic sentiment on international interactions. These can be NGOs, firms, and individuals.

Aklin and Mildenberger (2020) think that the problem of climate change has been "misdiagnosed" by previous scholars and by policymakers. What has been the "conventional wisdom" (what previous experts have believed) about why states have failed to address climate change? Why do they think states have failed to address climate change?

Aklin and Mildenberger believe that collective action theory does not sufficiently explain the politics of climate change because there are significant costs to early adopters of policies combating climate change

Review your answer to Comprehension Question #5. Why do Aklin and Mildenberger think there has been so little progress in international climate negotiations?

Aklin and Mildenberger believe that there has been little progress in international climate negotiations because there remain strong incentives to avoid climate action/there aren't strong punishments for not participating. Significant costs to being an early adopter of climate policy

What is an exchange rate? Describe the two main types of exchange rate systems.

An exchange rate is the price of one currency in terms of another. The two main types of exchange rate systems are the Fixed exchange rate: where governments commit to keeping the currency at a specific value relative to a commodity or currency. And the Floating exchange rate: where governments allow their currency to vary in response to supply and demand in the market.

In her article "Do Terrorists Win?" Fortna (2015) outlines five different reasons why terrorism might be a strategic (read: rational!) way for actors to achieve their goals. (Note: She didn't come up with them herself -- she's describing the strategies that have been proposed by other authors.) What are these strategies? Provide a brief description of each.

Attrition - undermine the enemy's will rather than its capacity to fight. impose costs to try to coerce a policy Advertising the cause - propaganda of the cause on the political agenda. gains publicity and can attract followers Provocation - can be used to mobilize support by provoking a stake to overact Outbidding - competing with other rival groups that claim to represent the same aggravated problem. proves commitment to the cause Spoiling - when a more extreme group is threatened by the prospect of peace between the government and a more moderate group

Even if you sign an agreement, members can leave that agreement, as they did with the Kyoto Protocol. Why does Barrett think the Montreal Protocol was more successful than the Kyoto Protocol?

Barrett thinks that the Montreal Protocol was more successful than the Kyoto Protocol because there was a strong incentive not to leave the agreement, whereas the Kyoto Protocol provided no repercussions for leaving the agreement. Montreal also paid smaller states to become parties to the agreement, and enacted substantive bans on controlled polluting substances.

Why do you think countries in the Global South don't wish to specialize in these industries, despite their comparative advantage?

Basically your first part is more applicable. These industries offer very few job opportunities, and they require only unskilled labor.This leads to high unemployment rates and low returns to education, so the human capital of the country stays low.

Why might this strategy backfire, according to Fortna?

Can turn people against the terrorist organization. Gives governments an excuse to enact extremely harsh punishments against the terrorists, because they don't have the support of the state or the people in the state.

What is "othering"? What are some of the consequences of "othering"?

Consequences include: exacerbation of tensions and inequalities between groups (including violence), restrictive policies (e.g. quarantines and border restrictions), complacent public health behaviors

Do consumers win or lose from free trade? Why?

Consumers win because they are buying the cheapest and most efficiently produced version of each good.

What did you learn from writing four climate agreements? What elements made it easier or harder to write an agreement? What lessons would you offer policymakers?

Countries that emit more should pay more—they also likely have more money because they're producing more, so they can afford to pay. See game 4: Player D incurs all the costs and still wins. equal playing field makes it easier, and so does having an agreed upon red line

Rodney is a historian who collects evidence on what Africa was like before 1500. Why is this evidence especially valuable for helping us critique the idea that African countries are underdeveloped for "cultural" reasons?

Evidence from before 1500 is valuable because it is before "modern development" was a concept. Before the 1500's - there was agricultural and family development. This helps us critique the idea that African countries are underdeveloped for "cultural" reasons because it examines them before colonization.

Why do many governments want to be able to export freely but restrict imports?

Exporting freely increases their GDP, restricting imports aids domestic producers of goods.

According to Mampilly, why does India participate so much in African peacekeeping missions?

India has common ground with many embattled countries in Africa in trying to find a third way, historically, between superpowers, and thus is willing to back nations that might join it in being non-aligned.

Are there any policy proposals you would suggest for the international trading system?

Limit the amount of tariffs, promote free trade.

What is a transnational activist network (TAN)?

Relevant actors working internationally on an issue who are bound together by shared values, a common discourse, and dense exchanges of information and services.

African societies were incapable of inventing "states" that would govern them effectively

Rodney states the word stateless was thrown around and used incorrectly. "One can consider the stateless societies as among the older forms of sociopolitical organization in Africa."

Elizabeth Warren has been a vocal opponent of ISDS. Use Google. Why does she oppose ISDS?

She argues that ISDS gives disproportionate power to multinational corporations. Warren is concerned that the legal fees for ISDS are passed onto taxpayers, so ISDS is costly to taxpayers. She is concerned that large corporations with more money than defendant countries will sue those countries in submission through expensive legal fees.

Imagine that you are a policy advisor in France. Given what you've learned in Mitts (2019), what policy proposals would you offer to reduce ISIS's ability to recruit French citizens?

The French have a long history of separation of church and state between citizens and immigrants. Maybe reduce the conflict across borders that decrease conflict within the state Eliminate the doctrine of no public religion to remove the stigma. Add programs to educate how racism has shaped our current white supremacist society.

What is the Kyoto Protocol? Did the authors of the Kyoto Protocol think climate change was a Prisoner's Dilemma problem? Did it succeed?

The Kyoto Protocol is an international agreement asking states to decrease their carbon emissions beyond business as usual. The authors thought that climate change was a prisoner's dilemma problem, and designed the Protocol as such, but it ultimately has not succeeded. did not succeed because there wasn't any reenforcement

Who pays for peacekeeping missions? Which are the countries who provide the most funding? (Hint: Some answers to this question can be found in Mampilly (2018).)

The US, EU countries, China, and Japan contribute the most funding to UN peacekeeping

Why are the "retaliatory" tariffs the U.S. imposed on China in the last few years illegal?

The WTO does not see the U.S.'s claims against China as strong enough, so they have not authorized the tariffs.

The WTO found both countries guilty and authorized each country to impose retaliatory tariffs on the other. Why are these tariffs legal?

The WTO has established that the tariffs are justified based on the actions of the EU and the U.S., so they legally authorized their imposition.

Below is a critique of the Fragile State Index (and similar indices). What policy proposal do you think its author would suggest?

The author writes that the Fragile State Index legitimizes western intervention, so I would guess that the author would suggest the de-legitimization of western intervention and research into alternative methods of help.

Donors have previously attached "conditions" to the foreign assistance they provide. These conditions are typically policy reforms they expect recipient countries to undertake as a condition of receiving assistance. Do you think conditionality should be used in foreign aid? Why or why not?

The problem is if the aid has conditions on it powerful and wealthy states can exert control over smaller states (which have neocolonialism tendencies). Furthermore, these wealthier states might not also know what is best for the smaller states, which may prevent the recipient from using it for its intended purpose. We think that effective conditionality is important because, with proper communication, it prevents corruption and holds principal states accountable.

Provide a historical example of how infectious disease outbreaks have led to discrimination against foreigners.

The public often resorts to scapegoating: Covid was referred to as the "Chinese virus," and people with Asian ethnicity experienced a higher rate of discrimination than before. There are reports of a broad range of people experiencing discrimination and fearing stigmatization including Muslims in India, Africans in China, and Ivorians in Tunesia.

How has historical intervention by the West in Africa shaped their development outcomes today? Provide a specific example and explain why it is possible to still observe these effects.

The slave trade that exported more slaves is doing worse economically in the present market. Those states have fewer structures in place. The slave trade has also caused a lot of mistrust in security, neighbors, cultures, and norms which can explain a lot of civil unrest today.

What explains Turkey's decision to intervene in Syria? What do we learn from the timing of when it did so?

The timing suggests that Turkey would not actively intervene while the U.S. was involved in the conflict, but was willing to as soon as it pulled out

Given your previous answers, would you say that terrorists are rational? Why or why not?

Their acting for their own self-interests which infers terrorists act rationally. (organizations - rational) (individual actors - arguably irrational)

Why would signing a bilateral investment treaty (BIT) with the U.S. make your promises in Part A credible?

This makes the promises credible since it opens Matumbia to international litigation from the U.S. if it violates its agreement with Dobs. Matumbia has to follow the property rights of the U.S. that are agreed to or risk a lawsuit.

Why might states wish to impose travel or trade restrictions after an outbreak has been reported to the WHO?

To prevent the outbreak from spreading to their state.

The IMF supplies money that is primarily funded by advanced economies, such as the U.S. and Germany. Why is the IMF (and therefore these countries) willing to lend to a country whose economy is in crisis?

To promote stability. The IMF wants to make sure an economic crisis in one country doesn't cause other investors to lose confidence and pull out (worsening the economic crisis) or to lose confidence and pull out of similar economies (causing the economic crisis to spread).

Why/how can transnational activist networks address this problem? Explain your answer and include one quotation from Keck and Sikkink (1998) that supports your view.

Transnational activist networks pressure countries into adopting these policies that they may otherwise wouldn't have enforce"They also promote norm implementation, by pressuring target actors to adopt new policies, and by monitoring compliance with international standards" (pg 564)

What explains the SDF's decision to ally with the Syrian government?

Turkey was emboldened by the U.S. decision to withdraw from Syria, which also caused the SDF to look for new, powerful allies in the region, and joined forces with the Syrian government, their former enemy, in fighting Turkey in the region.

Why does the Fund for Peace want to measure fragile states in the first place? You might poke around their FAQ.

Used to assess what can be done to help countries that are considered fragile. The Fragile States Index's framework was developed for conflict analysis.

In what ways are women affected differently by migration than men?

Usually exploited more, it's more dangerous, they are put in more dangerous situations. More sexual exploitations Conflict is more likely to kill men than women, so immigrants tend to be women & children More likely to end up pregnant/with children Gender vulnerability of migrants

When we studied the bargaining model of war, we learned that --- because conflict is costly --- both sides should always prefer a negotiated solution to war. But many states are unwilling to negotiate with terrorists. Which of the following concepts that we've previously learned could explain this? Justify your answer.

Veto power Fundamental attribution error - a product of society - enact rebellion to show their standing Moral hazard - "We don't negotiate with terrorists" Reactions of other terrorist organizations If other groups saw another group getting incentives from a government then other groups would be incentivized to do the same Could establish the norm that terrorists could have to attack the government to get what they want Moral high ground of being a western democracy - negotiating with groups gives them a legitimacy that encourages their sovereignty Security dilemma Poses an additional threat

Do you agree with her? Why or why not? Should corporations be allowed to sue countries in international courts?

Warren presents a valid scenario, but international litigation has its benefits also. We want to know more about ISDS before establishing a strong opinion on the topic.

Do you think these 12 indicators are good measures of a "fragile state"? Why or why not? Are there any you would add?

We don't know what all of the indicators mean- but I think it's worth considering non-western standards of stability. I also think there should be a larger weight given to Group Grievance or an indicator related to colonization. There isn't an indicator related to colonization or the lasting factors this has done to countries. There could also be an indicator related to the geography of ethnic groups that span the borders of certain countries.

Do you think the IMF should impose conditions when it lends to countries in economic distress? Why or why not? Hint: You may wish to review FLS, p. 364-5.

Yes because it is the best way for the IMF to insure that those countries don't fall into the same situation.

Way back in ML #3, we learned about sovereignty, which is the idea that states have the right to control affairs within their borders. Of course, in ML #28, you learned how the borders of states in Africa were created. Do you believe that states in Africa (or in other postcolonial contexts) are fundamentally different from states in places like Europe or North America? If not, why? If yes, in what ways?

Yes, because European countries had autonomy over their own borders - while borders in Africa were drawn with no regard for groups in those regions. In North America, the colonizers wanted to live there, so they killed the majority of the population with the means to replace them as the habitants of that area. Now, the borders in North America are written with more autonomy, but because the area was colonized.

Many people think that geography has determined why some countries are more developed than others. Do you agree or disagree, or would you qualify this claim? Explain.

Yes, not many highly developed countries in the tropics - geography can be seen for that. Having an abundance of natural resources can be helpful for economic development but can also be harmful. Access to trade routes. In Europe and Asia, trade routes traveled horizontally, this meant the travelers would engage in similar weather and environmental conditions as they were used to in their home countries. In America, The climate changes frequently depending on the longitude and latitude, and because the trade routes follow a vertical path, it is far more challenging to trade. Disease. Alternative point - legacies of interventions Places that had a high level of disease that had worse long time economic development - institutions that Europeans set up were temporary that were developed to export natural resources. The institutions thus were bad and gave no long-term benefits to the countries.

Your answers to Parts A and B are called the "labor market hypothesis," which hypothesizes that natives' attitudes toward immigrants are based on their positions in the labor market. According to this hypothesis, are natives right to be concerned about whether immigrants will steal their jobs?

Yes, they are worried but the people that are coming in are going to take the jobs that are complementing. Based on that hypothesis, natives should be concerned. Natives are justified that anyone can take their jobs, another native has the ability to take their job. Natives can't assume that every immigrant coming in is their to take their job,

When people emigrate from countries in the Global South, what effects does this have on the development of their origin country? Identify at least one positive and one negative effect their departure could have on development back home. A lot of these immigrants that leave have the resources to leave bringing their money with them

aka remittances people who gained skills/education abroad may return home and contribute to the economy, or send remittances back

Why do you think that institutions like the UN have been ineffective in handling the Syrian civil war?

also both the US and Russia have veto power, and are on opposite sides of the Syrian conflictthus trapping the UN in a gridlock between them Institutions like the UN have been ineffective because they come in with mistaken views of the conflict and have a limited mandate in what they can accomplish. In general, the UN is not very good at adapting to individual situations

How can destination countries benefit from migration?

also stimulates the economy as immigrants are workers and consumers Solve demographic imbalances Meets demands for workers with specialized skills and to take low skilled jobs

What concerns do destination countries have about migration? What does the evidence say about these concerns?

also that immigrants will bring crime Immigrants steal jobs Lots of fiscal burdens

African societies were less sophisticated in agricultural methods than other countries.

basically, colonists saw "different" as "inferior" - which was not actually the case, because of the different nature of the geography making different methods of agriculture more feasible

Why do both countries benefit from free trade?

because of the logic of comparative advantageit is the most efficient for everyone

What could contribute to increased demand for a currency? Hint: The answer is in the podcast you listened to.

demand for products produced in a country and promising investment opportunitiesdemand:Domestic demand -- when the economy is doing well, locals buy more and need more currencyInternational demand -- when international trade is happening and there is demand for a country's exports, demand for the country's currency will increase.Investment:Investment = spending today to generate profits tomorrowSpending more today requires getting more currency today.

People migrate for many reasons. In Messari (2020), you learned about the history of migration and how vulnerable migrants are, both en route and upon arrival. Their reasons for emigrating must be fairly powerful ones. What are three reasons that people choose to emigrate to another country? Describe them. Jobs-leave for a country with better and higher paying job opportunitie

economic reasons political

Why do you think that so many people in the U.S. and Europe believe that they will lose their jobs to foreign workers?

economic theory agrees with them, so it's intuitive -- it's just not supported by dataPlenty of people who are unemployed may be looking for someone to blame.This idea is one that politicians have messaged to the public - immigrants are a natural "other" and therefore easy scapegoats for systemic problems

Why are these conditions often the object of political protest in borrowing countries?

expanding on this:people in countries with suffering economies usually do not have a lot of money -- therefore they might not be able to afford to pay higher taxes and cutting gov. spending usually means slashing funding for social programs which a lot of people rely on (like food assistance and welfare programs)

Suppose that Eve Dobs decides she is interested in internationalizing her business after all. That means that she will be building a factory or distribution center in another country, which is "foreign direct investment." Consider the effects of her decision on both her home country (the U.S.) and the host country she chooses. What are the potential benefits and drawbacks of foreign direct investment for each country?

host country: benefits: Competition = cheaper goodsSpecialization = more efficient output and higher quality products drawbacks: Crowding out small businesses Lower labor/environmental standards Benefits less from goods Local firms might go under Race to the bottom - hurts consumers home country: benefits: More efficient (cheaper goods) More profit drawbacks: less jobs

What answers could she provide that would lead you to recommend that she internationalize his business?

if she has exhausted the domestic market, there could be advantages to selling widgets in other countries.if another state has abundant factors of production for widgets, and the home state doesn't, it might make sense to set up a production facility in another country.

What international institutions facilitate free trade and how?

important mechanismsMost favored nation - cannot give trading privileges to one state they don't give to everyone in WTOnational treatment - hey don't subject foreign and domestic products to different standardsdispute settlement mechanism - if a country violates WTO rules, another country can file a case, authorizes affected states to impose retaliatory tariffsclear principles + enforcement facilitates free trade

When you borrow money, you pay an "interest rate" to your lender (A.K.A. creditor or investor). E.g. if you borrow $100 at 3% interest, you'll pay back $103 next year. Keeping this in mind, why do you think investors in capital-abundant countries are interested in lending to capital-scarce countries?

in a captial-abundant country there is more capital than there are productive opportunities! They will have to offer lower interest rates to borrowers in order to get the chance to invest.

Do you think that Eve Dobs and Balaland are facing a cooperation problem or a bargaining problem? Explain your answer.

it's both! you are correct in saying that it is a cooperation problem because both sides can gain from an agreement, and a bargaining problem because the two sides then bargain over who gets to benefit most from these gains. In practice, it's mostly a bargaining problem because there are many possible host countries, so each are competing to attract business.

Why do many people think that China is weakening the bargaining power of traditional (Western) donors vis-a-vis recipient countries?

larifyingChina's aid is appealing because it comes with far less conditions than traditional Western donors. This gives recipient states an outside option if they don't like the conditions of Western aid, which could weaken the West's bargaining power

What is the ideal point of donor countries? I.e. What do donor countries most want?

least aid, most conditions

Terrorist organizations, like states, wish to make their threats credible. As a reminder, strategic actors wish to make their threats credible because neither side has perfect information about the capabilities and resolve of the other side. Why do you think these problems of incomplete information might be even bigger when one of the strategic actors is a terrorist organization?'

mPower of terrorist groups relies on incomplete information

What is a tariff? How do countries use tariffs to restrict free trade?

makes those products more expensive when compared to the same products that are produced domestically.This causes people to prefer domestic to foreign products, all else equal.

Do you think globalization has made the problem of pandemics more or less severe? Why?

more international cooperation between countries and pharmaceuticals which results in stronger advances in medical research and better ability to coordinate on policies and funding easier to spread

African societies were subsistence-based and so they did not trade with each other and reap the benefits of trade

more that the colonists didn't see the trade because it relied more on bartering than currency

What is the ideal point of recipient countries? I.e. What do recipient countries most want?

most aid, but also with the least conditions

What are the main differences in the types of foreign aid provided by Western donors (who are members of the Development Assistance Committee, and are sometimes referred to as "DAC donors") and China?

most important differences -China gives "soft loans" that have relatively few conditions attached to them compared to Western aidChina is also less transparent about how much money it spends, where, and howChina privileges "productive sectors rather than social sectors," meaning, it only focuses on economic activity

f China *were* eroding the bargaining power of traditional donors, would this be a good or a bad thing for aid recipient countries? Explain your answer.

on the flip side, China's aid only goes to economic productivity development, and doesn't typically go towards building social programs or infrastructure there is no right answer here- these are just things to weigh how much you think they matter

Eve Dobs has identified a few candidate host countries where she could locate her factory. The countries all have similar comparative advantages that would be of use to the product she is producing and have similar markets of consumers she could sell the final product to. You are the Minister of Trade and Investment for one of the candidate countries, Balaland. What proposal would you put together for Eve Dobs? How would you maximize the benefits and minimize the drawbacks you identified for yourself in #2?

one way you could maximize benefits would be requiring Eve Dobs to employ a certain % of locals. This will maximize the # of people who benefit from being a part of Eve Dobs's company and learn from its managerial experience

Who wins and loses according to the factor model (Heckscher-Ohlin theory)?

owners of the scarce factor of production lose. the winners are the owners of the abundant factor contributing to trade

Cooperation is hard, but it does occur. Why do you think it's more feasible to get states to cooperate conditionally than it is to get them to cooperate unconditionally?

protects against free-riding, making it more likely that the public good you are paying for will actually be achieved

`The YPG had ties to the PKK (the Kurdish party) in Turkey and has long-term goals of an autonomous state. What kind of a group is this? Hint: The answer is discussed in ML #23 on civil wars.

separatists

According to Bermeo (2018), why were wealthy Western countries motivated to provide foreign aid... During the Cold War?

simplifying:cold war: fight influence of communism9/11: fight terrorismsecret strategy of poly sci: get to the point, this makes sure you understand the argument in your own right better than a long quote

What is concessional finance? Why is it useful for countries that are struggling economically? Which international institutions offer concessional finance?

the imf and world bank Countries who struggle economically probably wouldn't be loaned or awarded funds by typical creditors. The World Bank is one of the biggest IO's that provides loans at below market interest rates. -Concessional finance: to offer a loan at a below market rate (charging less interest).

Suppose you are a low-skilled worker in a popular destination country. Would you rather take immigrants that come from countries that tend to send low-skilled workers or from countries that tend to send high-skilled workers? Why?

they aren't competing with you for jobs High skilled because they are complements to low skilled workers

African societies had underdeveloped manufacturing industries.

they just prioritized quality > quantity

What's an example of a condition the IMF would demand of a borrower?

usually cut spending and raise taxes

Why do you think that states were willing or unwilling to codify this right into hard international law?

but everyone defines torture differently States would be willing because it protects their own citizens States can hide torture to the public If you are being charged with a crime and going to jail, do you think that the jury takes into account the effects of going into this solitary confinement.

Who are UN peacekeepers? Which are the countries who provide the most peacekeepers? (Hint: Some answers to this question can be found in Mampilly (2018).)

but most of the peacekeepers come from India, Bangladesh, Pakistan, and some African countries

Many countries in the Global South have a comparative advantage in agricultural goods or raw materials. Do you think this is determined primarily by geography or by politics? Hint: Think back to ML #28 on the Legacies of the Slave Trade and Colonialism.

colonialism and similar systems exaggerated the Global South's concentration in these industries because they designed systems focused on extracting resources from the Global South and had reason to not want them to ever compete with Global north industries

Which countries do you think are most likely to receive aid? Which countries require aid but are likely to be overlooked by donor countries? Explain your answer. Hint: Draw on your knowledge of Bermeo (2018) and ML #29 (resource curse).

countries that will have positive (or prevent negative) spillovers, and are considered to have strong institutions or can be trusted to use the money how the donor intends

Xenophobia against Asians and Asian-Americans increased during the COVID-19 pandemic, as political elites racialized the pandemic by referring to the "Chinese virus" or the "Wuhan virus." These trends may or may not be related to the racially targeted shooting that took place in Atlanta in spring 2021, or countless other instances of anti-Asian violence. Identify one or two quotes from Messari (2020) that you believe connect with these issues, and explain why.

"As for migrants themselves, in addition to not considering themselves a threat to others, they also do not feel protected by the state, neither the one they formally belong to, nor the ones they cross through or aim to reach" "It mixes fear of difference, of the Other, with increasingly exclusionary practices of the state that result in an excessive securitization of the issue (migration) and of individuals and communities, which, in some cases, includes the criminalization of illegal immigrants."

What does Messari mean when he says that migration has become "securitized"?

"securitization" refers to when an issue is upgraded to a select group of problems that constitute an existential threat. onsidering migration as a threat. Seeing migrants as law-violating individuals

In ML #29, I explained another reason why foreign aid may be ineffective: politicians in recipient countries use aid to line their own pockets or buy votes for the next election, and not to promote development. What are two ways donor countries could address this problem?

-Conditionality: Attaching certain conditions to money given to individuals, people, and NGOs. -Giving money directly to people/NGOs (bypassing government)

Do you think that creditors will charge Balaland a low or a high rate of interest? Why?

-High rate of interest because of their history. The high rate of interest offsets the risk taken by investing in Balaland.

Many of you have probably learned in personal finance that, most of the time, you shouldn't spend more than you earn. But a lot of governments spend more than they earn. Why is this (often) a good thing?

-The more governments spend the more they get back. -Governments can hold debt, sometimes large amounts, which they can sell off.

Capital-scarce countries often borrow from investors in capital-abundant countries. How do borrowers (A.K.A. debtors) benefit from this arrangement?

-They now have money to be able to build upon infrastructure. -Stimulate their economy by spending today to make money tomorrow. -You can't spend money if you don't have it!

Why might FDI result in... a "race to the bottom"? a "race to the top"?

1. Potential host countries will reduce their regulatory (labor, environment, etc.) and tax structures in order to attract FDI. 2. FDI brings more advanced regulatory standards (technologies, values, etc.) from home countries to host countries this is bc if MNCs must meet strict standards to sell their goods in one prominent market, it's often more efficient for all their goods to be produced in the same way.

If climate change is a collective action problem, then the players should only want to cooperate if the other side is cooperating (conditional cooperation - see start of activity for an explanation). The authors use survey data to answer this question. What do they show?

A lot of people from the US still want to support climate change policies, even if other countries aren't reciprocating with their own policies. The survey data shows that many states continue to cooperate in an agreement, despite other parties leaving. National publics don't hold preferences consistent with collective action theory - they want to cooperate or not cooperate unconditionally Dolan: national publics are unconditional cooperators: the public doesn't care whether other countries cooperate. Summarized by figure 2 on page 15

The existence of the IMF creates a moral hazard problem. Remind us: what is a moral hazard problem? Why is this a moral hazard problem?

A moral hazard problem is when one takes excess risk because they do not bear the consequences. In this case a country can take excess risk because they know that the IMF will bail them out.

Who wins and loses according to the sector model (Ricardo-Viner theory)?

According to the sector model, anyone working in an industry benefiting from trade wins, and people not in those sectors, lose.

Are there other approaches you would consider to rectify the historical legacy of the slave trade? Explain why you feel they are warranted and how they would address this.

Acknowledgment of how ethnic groups span borders and efforts to repair the damage this has done to them. The borders in Africa were written by Europeans who had "claimed" sections of territory for themselves. An approach to rectify the historical legacy of the people in these countries would be to rewrite the borders to be aligned with ethnic groups just more education about the harmful legacies of colonialism, especially the slave trade

Think back to the YouTube video you watched on why ISIS attacked Brussels. Which strategy from Comprehension Question #2 Does this sound like to you? Why?

Advertising the cause - people were losing the incentive to fight (example of Isis). Isis was also losing a lot of land and wanted to re-establish propaganda to increase recognition for the organization

Below are a list of arguments that are commonly made about why African countries are "underdeveloped." I'd like you to use what you learned from Rodney (1971) to assess these arguments. African societies lacked the civilization or culture that European countries do.

African societies arguably had very advanced civilizations and cultures, they were just smaller and more personal per region. Culture is a "total way of life" and each village ranges from its music, language, religion, dance, and more. It was a very diverse space for African civilization and culture to evolve.

African societies didn't have guilds or other societies of artisans to improve their trades.

Africans had elements of the guild system. In Timbuktu, for example, there were tailoring guilds. Other parts had glass and bead industries. There was an increasing specialization and division of labor that resulted from this.

What types of civil wars are there

Center - seeking conflicts - one group wants more representation in the gov or wants to overthrow the gov Seperatist conflicts - one region of a state wants to break away and be independent or wants to join another state

Pick ONE of the examples discussed in the readings (Chile and Israel in Simmons, or Argentina in Keck and Sikkink). Briefly explain the example and what argument of the author's it illustrates.

Chile shows transitioning democracy while israel is a well-established democracy Chile: Showed human rights activists strategically deployed international legal norms to gain adherence to strengthening their opposition. Illustrating that rights activists did want international legal commitments to bind their governments. Evidence is suggestive that the ratification of CAT had an effect on torture practices within the country. International law became available to Chilean activists to hold their gov accountable for torture in the present and the past Good example of how the ability of a treaty to influence a government positively - in both moderate democratic govs and traditional democratic govs Israel: The ratification of CAT was to embarrass the gov by pointing to the treaty as an authoritative statement regarding the def and the unconditional prohibition on torture Good example of how countries legal systems are at least moderately eqquiped to enforce international treaty agreements

What is conditionality? Why does the International Monetary Fund (IMF) use conditionality?

Conditionality is when a lender offers a loan but requires that the borrower adopt certain conditions in order to receive it, IMF wants to make sure the borrower won't have another economic crisis

The IMF addresses this moral hazard problem by attaching conditions to its loans. How does conditionality solve the moral hazard problem?

Conditionality requires countries to use loans regulated by the IMF. Meaning the money can only be used for what the IMF deems appropriate. This makes the IMF help more geared towards sustainable development of the country's failing economic functions.

We've spent a lot of time in this course talking about anarchy. There is no international police that makes sure states are following the rules, and when international courts reach verdicts, they often rely on states to enforce those decisions. But Simmons (2009) reminds us that domestic courts play a role too in the enforcement of international law. Explain how she thinks domestic courts can play a role.

Countries with highly developed rules of laws and courts are less likely to be among the worst torturers Treaties help domestic courts enforce international agreements If courts are mostly independent of gov control - chances are that they will have more success with ratifications improving practices

Do you think that the kind of discrimination that Dionne and Turkmen (2020) describe could contribute to the trade and travel restrictions that states impose on outbreak states? Explain step-by-step the logic that would need to occur for discrimination to actually cause a trade or travel restriction.

Covid exists in China Racist terms such as 'Chinese virus' are propagated in the media, people assume that all Chinese people have covid. Trade and travel restrictions imposed on China and on Chinese people, despite it being pointless.

Something I hope you can see by now is that collective action and distributive politics are two different ways of explaining why international climate action has failed so far. What policies would you suggest if climate change inaction is being driven primarily by collective action problems?

Create strong incentives for participation and strong punishments for not participating.

Review your answer to Comprehension Question #2. Which of these do you think is more likely? Might it depend on the industry? Explain your answer and be specific.

Dependent on industry. In general, a race to the bottom is more likely in that there is no incentive for a multinational corporation to bring higher taxes/regulations that it is trying to avoid in its home country. However, certain industries (like technology) may be more likely to bring new technologies/regulations to host countries than other industries, which would be indicative of a race to the top.

Consider the following possible responses to terrorism. Which do you think are most likely to succeed and why?

Deter terrorists with the threat of retaliation Preemptively disrupt terrorist networks Solid Destroy them from the inside; terrorists are extremely reactive and provocative, and by eliminating their opportunities to provoke they have less influence. Adopt defensive measures against terrorism by improving domestic security Criminalize and prosecute terrorists Negotiate or compromise with terrorists

Eve Dobs is a business mogul who has long dreamed that her widget business would become a global sensation. She is eager to internationalize her (currently) domestic business and has hired you as a consultant. What questions would you ask Eve Dobs before you advise her on whether or not she should make her company a multinational corporation?

Do you think that you have exhausted the domestic market? Does the production of widget involve input products or factors of production that are hard to find in your own country?

When Eve Dobs is choosing where to locate her next factory, what factors might she now consider?

Dobs should seek a state with strong property rights and rule of law, so that she can sue the government, and their courts will uphold her property rights if the government seeks to nationalize her industry. Government is constrained.

Fortna (2015) seeks to test the effectiveness of using terrorism. What does "effective" mean?

Does this accomplish the goals of the terrorists

What is Eve Dobs's ideal point? What is Balaland's ideal point?

Eve Dob's ideal point: no taxes, no regulations. Balalands's ideal point: high taxes, strong regulations, and lots of high-wage jobs also royalties of knowledge/sharing tech

African societies were too communal; there were no ruling classes or families to impose order

Every individual has a series of duties and obligations throughout their life. Age was a determiner of these obligations - elders were highly respected and had the most authority. Seniority was the main way of imposing order

4. There is a lot of variation in the effectiveness of foreign aid. But, in general, foreign aid has produced more disappointing results than we would like to see. Why is this the case? Outline at least two possible explanations.

Foreign aid could mirror the 'political' explanation of the resource curse. If countries are subsidized without taxpayer money, the taxpayers and voters have less of a say, and the government becomes increasingly less reliant on their constituents. It doesn't matter if the subsidy is natural resource profit or foreign aid income. Another problem with foreign aid is that there is a lack of process accountability. There exists a broken feedback loop in which the taxpayers in the industrialized country never see the benefits materialize in the developing one. This means politicians have less pressure to submit quality policies which leads to almost no desire to hold the policies accountable overseas.

Do you believe that foreign aid is sufficient as a substitute for reparations? Why or why not?

Foreign aid is contested in politics as to whether or not it is actually helpful. Foreign aid can be performative without actually creating meaningful change in the receiving country. Also, the money given to governments that are corrupt won't always give the intended amount of aid to the individuals in that country. also foreign aid allows states to act as benefactor without having to admit culpability for historical wrongdoing

What is foreign direct investment (FDI)? How can FDI, like trade, benefit both sides?

Foreign direct investment occurs when a firm in one country sets up a plant/site of production in another country. The receiving country gets to take advantage of investment opportunities because it has access to capital that it otherwise wouldn't. The lending country gets to benefit from higher returns in other countries, whereas it would face lower returns at home.

What is a civil war?

Fought between two sides trying to take control of government institutions (not just criminal activity)Fought between organized armed groups (not just a riot)

Do you still believe that "free trade benefits both sides," as economic theory tells us is true? Why or why not?

From a macro perspective, free trade benefits both sides because both states' economies grow and generate wealth. However, from a micro lens it depends as the benefits and costs of free trade distribute unevenly across the population, so workers in certain industries that get outsourced due to free trade may lose their jobs.

Who determines the supply of a currency? Hint: The answer is in ML #36.

Governments (usually through their central banks) determine the supply of a currency.In a floating exchange rate system, supply automatically matches demand.

What policies would you suggest if climate change inaction is being driven primarily by distributive politics?

Governments could pay companies that suffer from climate change policy. They could hire all the employees of an oil company (that would go under as a result of climate change policy) and train them to work in green civil service projects essentially create more pro-climate interests

What do you think? What should be done about the Fragile State Index? Should it stay the same, be revised, or be abandoned? Explain your answer.

I think it should be revised to address the lasting effect of colonial rule in places like South America and Africa. They should also include a non-Western point of view.

Why do you think Asian leaders felt this to be a more appropriate conceptualization of human rights?

I think they felt this reflected their cultural values better than Western conceptualization of human rights. Since it only encompasses Southeast Asia countries, it can be more specific/tailored to economic and cultural needs of those states

Which of these costs are greater, and for what kinds of states?

If a small state goes through a pandemic it can be very costly because a higher proportion of people will be infected, and it doesn't have the same economic standing to be able to afford tariffs, or medicine research. Smaller states may have more incentive to conceal an outbreak because they're more vulnerable to rebel groups. States with a strong commitment to domestic rule of law will face larger social costs if they don't comply with international law. Dolan: the costs of reporting an outbreak tend to be greater than the costs of not reporting an outbreak.

Cooperation

If everyone wears a mask less spread making things go back to normal faster

hy do you think the WHO prohibits states from doing this?

If states do this outbreak states will be less likely to report their own outbreaks because of the cost, which is very dangerous.

What is globalization? What are some of the consequences of globalization?

Increasing economic ties between states: specifically, states in a globalized world are trade partners. This is highly efficient, because states can produce what they're comparatively best at, and they can set up factories in other states. Increasing ties between people and groups between states: people in different organizations, or ethnic groups for example, can communicate easier in a globalized world. Four consequences: economic growth means more people have access to different goods, and as a result quality of life has improved and poverty has decreased; inequality from uneven distribution of wealth both in and between countries; the environment is negatively affected by carbon emissions and an increase of factories; people are more vulnerable because state economies are more connected, and can fall together, and disease can spread much easier.

Perhaps survey data isn't the best way to test this, since international climate agreements are made by elites, not ordinary people. If climate change is a collective action problem, then they would expect to see elites acting like "conditional cooperators." What do they show?

International climate agreements reflect that elites are not motivated as conditional cooperators. In some cases, withdrawals from agreements were entirely motivated by domestic political interests, such as the US withdrawing from the Kyoto Protocol. Dolan: National political actors also behave in an unconditional fashion. They look at the 1997 Byrd-Hagel resolution and the Bush administration's excuse for leaving the Kyoto Protocol.

Signaling-

Isolating yourself then numbers will go down, showing other countries that your numbers are down.

Why is it efficient for countries to specialize in their area of comparative advantage and import the rest from other countries (A.K.A. free trade!)?

It is efficient because each country can take advantage of what they do best, and use another country for goods they cannot make themselves or don't make well.

Based on this evidence, do you think that the U.S. public supports aid for self-interested or for altruistic reasons?

It looks evenly split, most Americans recognize an altruistic reason, but, balance it out with self-interested reasons. Republicans tend to lean towards a self-interested reason which perhaps draws on a more nationalist perspective, and democrats tend to lean towards altruistic reasons maybe drawing on an idealist perspective.

How do you think Messari would have discussed this topic in his chapter, had he written it a few years later?

It's still a prevalent issue The idea of securitization is going to be a prevalent issue for a long time, so he would connect them to issues today

There's no centralized state/authority (or one that is of comparable size to the target state), so secrecy is necessary to avoid being wiped out at once. If you were a terrorist organization, how would you make your threat credible?

Iterated interactions: "If this happens, these people will be killed. Our threat is credible because we killed these people, and are willing to kill more."

What are two possible explanations for why states sometimes fail to do so?

Lack of surveillance capability: governments can't report outbreaks they're not aware of. Economic incentive: when states report outbreaks, other states tend to restrict travel or trade restrictions on the state despite them being largely ineffective.

As we learned in ML #25, collective action is more challenging the bigger the group you are trying to mobilize. With this in mind, which of the following groups do you think is going to be best able to mobilize and lobby for their preferred trade policy? Winning producers, losing producers, or consumers? Why?

Losing producers because they are a smaller group, and they feel the costs more than winning producers. Consumers are less likely to mobilize because the costs are diffused, so they are smaller per person, whereas the benefits are concentrated among the producers, so they are more interested in the trade policy.

Suppose you are a high-skilled worker in a popular destination country. Would you rather take immigrants that come from countries that tend to send low-skilled workers or from countries that tend to send high-skilled workers? Why?

Low skilled because they are complemented to high skilled workers

How were these pandemic norms enforced? What happened when someone broke a pandemic norm? Note: The strength of the norm or its enforcement may have varied from context to context.

Mandates. At first it was a social norm people were worried about getting the virus but over time people began to stop wearing masks social shaming

You are the Minister of Trade and Investment for Matumbia, another country Eve Dobs is considering as a location for her investment. You know that Eve Dobs had a bad experience in Balaland and is reluctant to invest. How would you persuade Eve Dobs that her experience in Matumbia would be different?

Matumbia needs to prove to Dobs that it has strong property rights protections and independent courts that will uphold her rights.

Do you think the ICCPR has had or will have any effect on the U.S.'s behavior? Why or why not?

Maybe, but the US has its own version of rights that It will generate political costs if violated and reinforce

Norms entrepreneurs-

Medical professionals and organizations saying that masking is beneficial for stopping the spread`

In her article "From Isolation to Radicalization," Mitts (2019) studies how terrorist groups are able to attract followers. She has a very high-tech research method, so I only assigned you the first few pages of her article, and I shared with you a video in which she describes in very general ways what she is doing. Use what you've read to complete the following Mad Lib:

Mitts looks at the Twitter activity of about 1.6 million users who are either ISIS activists or followers of ISIS activists. She (well, her algorithm) evaluates each and every Tweet they make and grades it according to how ____radicalized_____ it is. She finds that users are ___more______ likely to post ______raicalized________ content when they live in constituencies that voted for ______far right _______ parties. She thinks this is because Muslims in these areas experience _______discrimination_______ and are therefore more likely to radicalize.

Countries will sometimes manipulate the supply of a currency in order to keep their currency artificially strong or weak. Use the internet to investigate: Has China been manipulating its currency? Has it been trying to strengthen or weaken its currency? Why? Is it still doing this?

Most experts agree it is no longer doing this, although some U.S. politicians still accuse China of being a currency manipulator.

The World Trade Organization is built on the principle of "most-favored nation." What is this principle? Why does it promote cooperation among states?

Most-favored nation establishes that states have to treat all trade partners equally. This makes it so that a state cannot restrict its exports to certain partners or give preferential status to other partners. This promotes cooperation because states must work with all other trade partners to the same degree.

List three examples of non-state actors. What level of analysis are non-state actors at?

NGOs - transnational Terrorists - Rebel groups - Domestic

Now that you've completed #4, how might you critique this "broken feedback loop" explanation for why foreign aid is ineffective?

News organizations can show taxpayers how foreign aid is being used. -Most taxpayers/voters typically are thinking more about their life and quality of life domestically rather than the use of foreign aid. -There exist conflicting interests in the Feedback. Not only is the feedback loop broken, but each agent possesses a different motive/interest which can lead to the misallocation of funds.

Do you think China is eroding the bargaining power of traditional donors? Discuss at least two pieces of evidence from Swedlund (2017)

No, Swedlund doesn't think so1) the people who work in Western aid agencies don't think are losing bargaining leverage2)she does case studies of a few countries (Uganda, Ghana, Tanzania), and shows that traditional aid has remained dominant despite rising Chinese aid.

Do you believe that viral sovereignty should exist (i.e. should Indonesia be able to "own" genetic data from within its borders)? Why or why not?

No. Because of globalization, infectious diseases are inevitably global, so they should be subject to global input.

According to her research, is terrorism effective? What evidence does she show?

No. She finds that the use of terrorism decreases the likelihood of rebels reaching a negotiated agreement by 80%. There are 0 cases of rebel victories by terrorist rebels.

Besides South-North migration, what other kinds of migration are taking place in the world?

North-North Migration South- South Migration - persian gulf migration (high gas economy) North- South Migration

Do you think that wealthy countries primarily give aid for self-interested or for altruistic reasons? Explain your answer.

Often we see them provide aid when it benefits them. It also looks good on the international and domestic stages. Moreover, wealthier countries may also try to gain influence in a particular region.

In the games above, you were asked to consider inequalities that exist at the international level — some countries are wealthier than others, some contribute more to climate change than others, and on top of this, some are impacted more by climate change than others. On top of all of these inequalities, there are also inequalities within countries, at the domestic level. Consider the following actors. Are they "winners" or "losers" when their country signs and upholds an international climate agreement? What do they "win"/"lose"? Are they likely to support or oppose climate change agreements? Individuals Oil & gas companies High-tech electric car manufacturers

Owners of companies that don't produce clean energy would lose hugely. Oil and gas companies would lose out on their business, whereas electric car companies, for example, stand to gain a great deal by backing climate agreements. Opposite of interest groups: instead of concentrated benefits and diffuse costs, everyone benefits from climate change reform but the costs are incurred by (relatively) small industries, firms, NGOs.

How can peacekeeping help bring a civil war to an end?

Peacekeeping can help bring a civil war to an end by "protecting civilians, training police forces, disarming militias, monitoring human rights abuses, organizing elections, providing emergency relief, rebuilding court systems, inspecting prisons, and promoting gender equality" (Autesserre 101) they solve a commitment problem both sides need to believe the other side will lay down arms -- peacekeepers make sure that happens

Select ONE of the other strategies from Comprehension Question #2. Explain why it might backfire or might not work.

Provocation: Government can justify extreme punishment. Populations may blame the terror groups, rather than the government, for the conflict. also the reaction might eliminate the group entirely

Explain why states' failure to enforce international law is an example of a free rider problem.

Punishing other states for violating human rights is costlyStates would prefer that other states do the punishing. When all states behave this way, no one punishes.

Eve Dobs has decided to locate her factory in Balaland. She has spent a few years now building her factory and buying lots of large, expensive, high-tech machinery to make her widgets. But the government of Balaland has decided that the widget industry is of utmost importance to national security. It has chosen to nationalize the widget industry, meaning that all widget operations will become part of the state-run enterprise. The government of Balaland will purchase Eve Dobs's factory at a price of its choosing. What can Eve Dobs do in this situation?

She has to try and negotiate the highest possible prices for its factory, but the government ultimately has the final say and can ignore her proposals. She really has no power in this situation.

How does she test whether terrorist tactics are effective? Hint: You'll need to explain why she is looking at rebel groups. Remember that not all rebel groups use terrorism. Terrorism can also exist outside the context of a civil war.

She looks at war outcomes of wars involving rebel groups. She looks at rebel groups because some rebel groups employ terrorism. She wants to see if terrorism is an effective method for rebel groups to achieve what they want.

What does her argument suggest about where international human rights law can make a difference?

She thinks human rights law can matter most for states with partial accountabilityGovernments that ratify for expressive purposes don't need a commitment to change their behavior (e.g. Sweden)Governments that ratify for cheap reputational benefits won't follow the treatyIt's governments in between that matter mostThere has to be some judicial independence in order for it to work

Which of the explanations in Part B does Worsnop (2019) conclude is right?

She thinks states more often lack the motivation/willingness to detect and report on an outbreak.

Many people have offered explanations for why peacekeeping operations fail. What's an explanation that Autesserre (2019) thinks is overrated? Why does she think peacekeeping fails?

She thinks that peacekeeping fails because the concept of sustained peace is different for each conflict, and the UN misunderstands the requirements of each situation.

Some scholars (ahem, Mearsheimer) argue that treaties don't do anything. They're just scraps of paper, and if they exist, it's just because they reflect what states were always going to do. For example, environmentally-conscious states will sign environmental treaties, and polluters will not. After reading Simmons (2009), do you agree with this view? Why or why not? Be specific in your response.

Simmons argues that human rights treaties have positive effects even in countries where political institutions are unstable. Simmons would disagree with Mearsheimer. Transitional governments (such as Chile) that ratify the CAT, improve their practices, and hold citizens accountable. In both moderate and democratic governments. If states agree with the norm they can get the advantages of the norm. The way she is using the two examples is treaties are screen, screening out is only going to attract people that affects them simmons argues that treaties are effective because they have the potential to:Affect elite-initiated agendas -- insert issues into domestic politics that may not already be there as states go through the ratification processSupport litigation -- depending on the strength of domestic courts and whether treaties have the status of lawSpark political mobilization -- provide resources to groups who hold governments accountable to their

Do you believe that former slave trading countries owe reparations to African countries? Why or why not?

Slave trading countries are wealthy because they traded slaves. They should pay reparations because those countries have that wealth because they stole from another country.

How ambitious do you think international climate policy should be? Do you favor a bold, grand bargain, or do you favor small, incremental steps? Why?

Small, incremental steps. If actors need to comply, they're more willing to undergo small costs over a long period of time than huge costs at once.

Why does the WHO require states to report outbreaks within 24 hours?

So they can effectively respond to and prepare for an epidemic before it spreads to an unmanageable size.

What costs does a state incur by choosing to report an outbreak?

Social cost: people may discriminate against certain ethnic groups associated with that state. Governments may worry about domestic criticism for allowing an outbreak to affect the population—it's the government's responsibility to keep the people safe, so allowing an outbreak would not look good. Economic cost: states may limit travel to that state or impose tariffs.

What costs does a state incur by choosing NOT to report an outbreak?

Social cost: violation of international law. loss of trust, lack of support from the international community. Domestic groups may prosecute the government for not complying with international law. Human cost: more people may die because nobody is working on a cure.

What are some strategies for solving a collective action problem?

Some strategies for solving a collective action problem include making the group that the collective encompasses as small as possible, and incorporating criminal or financial penalties for shirking responsibilities. Compulsion - compel people to cooperate instead of shirking Selective incentives - reward associated with cooperation Entrepreneurship - one party bears all the cost of cooperation Group size - everyone has to participate - easier to get people to participate when there are less people

Fortunately, we've read a lot about the racialized nature of inequalities in this class. Let's do a brief review. What other lessons have we learned so far about how race has structured the global order in this class?

Sovereignty & international organizations: white countries are entitled to intervene in non-white countriesPeacekeeping: non-white countries provide the bodies while white countries provide the funding and make the decisions about where to deploy peacekeepers

Dionne and Turkmen (2020) present several examples of how disease outbreaks have led to discrimination against foreigners. Do you think this discrimination has gotten better or worse over time, or has it stayed the same? Draw on your understanding of trends in globalization from ML #27.

Stayed the same. There are more opportunities for people to discriminate because they live in more ethnically diverse communities. On the flip side, these diverse communities mean that people are exposed to more diverse backgrounds, and will learn more cultural competency. Dionne and Turkmen labeled several examples of different infectious disease responses, and in the most recent pandemic (Covid-19) there weren't governments ethnically cleansing people on the basis of 'covid prevention.'

What explains President Trump's decision to withdraw from Syria?

Syria had become a very unpopular war, and so Trump may have seen withdrawing as politically advantageous, which is part of the democracies don't like losing wars theory

Creditors and debtors are facing both cooperation problems and bargaining problems. They are trying to cooperate (creditor will lend to borrower) because there is mutual gain to be had on both sides. (This is what you established in #1, Parts A and C.) But creditors and debtors are also bargaining over fixed resources (zero-sum gains), both when they negotiate a loan, as well as when the debtor is about to default (be unable to repay) on a loan. What is the creditor's ideal point? What is the debtor's ideal point? What can the creditor threaten? What can the debtor threaten? Why would both sides prefer a negotiated solution to the possibilities you described in Parts C and D?

The highest interest rate while still being paid back. The lowest interest rate while still being able to pay. Seizing assets, increasing interest rate, violence. Defaulting, The debtor wants to continue to be able to benefit from the capital the creditor can provide, now or in the future. It doesn't want to be heavily penalized by this creditor or by any other.The creditor wants its money back. If it pushes too hard, it risks losing the entire investment.

Suppose a government violates a human rights norm. Does the norm disappear?

The norm would not disappear even though it's violated. It will take everyone to violate it to disappear.

A few classes ago, we worked with Eve Dobs, whose factory was seized by the government of Balaland when it decided to nationalize the widget industry. Balaland is famously corrupt and experiences political coups every few years. Why do you think creditors might be nervous about lending to Balaland?

The people they lend to might not be in power when it comes time to get repaid. -Govt. is unstable and therefore less trustworthy.

There are a few reasons scholars have offered for why job competition isn't actually as fierce as a simple economic theory would expect: (1) The immigrants that come are filling gaps in the labor market, meaning that they are taking unfilled jobs, not jobs that are held by natives. (2) Because immigrants are consumers too, they stimulate the local economy, which generates more jobs overall.Do you find either/both of these explanations persuasive? Why or why not? If not, how would you explain the gap between theory and evidence?

There are many things that have to be taken into account Immigrants usually send money back to their original country, so this is taking out of the local economy and dispersing it elsewhere.

In ML #33, I presented evidence from the U.S. about the effects of immigrants on the wages and jobs of natives. What does the evidence say?

There is no effect

What would happen if all governments adopted this trade policy?

There would be no one to export to. Countries would no longer import goods either, and the benefits of trade go stagnant.

In 2002, many European countries adopted a common currency, the Euro. Many economists at the time thought this was a bad move: Europe includes many different kinds of economies, so a single currency will inevitably be undervalued for some and overvalued for others. Their fears were born out in the Eurozone crisis, in which countries like Germany had to bail out countries like Greece. But despite these challenges, there was a good reason that European countries chose to adopt a common currency in the first place. What was this reason? Hint: The answer is in ML #36.

They did this because there is a very high level of trade and investment that occurs across European borders, and therefore it is easier to have less uncertaintyabout what the exchange rate will be in the future and try to hedge against this uncertainty.With a common currency, there are no transaction costs of exchanging money.

Unlike Barrett, Aklin and Mildenberger do not think that climate change is fundamentally a collective action problem. Let's consider the evidence that leads them to this conclusion. If climate change is a collective action problem, then it should be harder to make progress when a major player (like the U.S.) pulls out. Is this what they find? Describe the evidence they show.

They found the opposite: when the US dropped out, many more countries adopted unilateral climate policies. Thus it cannot be a collective action problem.

Why do you think Indonesia was unwilling to share samples of the virus with the WHO?

They may have wanted to profit from developing a vaccine, by not sharing samples they wouldn't have any competition.

Label the winners and losers below, and explain why. Firms that make extensive use of global supply chains Firms that make little use of global supply chains

extensive use: These firms win from free trade because they can create efficient production processes across multiple countries and they don't have to pay a tariff every time an input to that production process crosses international borders little use: Relatively speaking, these firms don't stand nearly as much to gain from free trade because their production processes are confined to a single country.It's not so much that they "lose" from free trade as it is that other firms benefit more.

What are some of the positive effects of multinational corporations (MNCs) on the world, and what concerns do you have about them?

some more pros and cons:Positive effects:Cheaper prices are good for consumers (especially consumers in poor countries who otherwise wouldn't have access to these products)Negative effects (Clausing):MNCs often capture outsized market concentration and have undue influence on their given industry, weakening competition and the vitality of smaller businessesNegative effect on workers' rights because the sheer size of the company increases corporate bargaining power relative to laborMNCs are increasingly hoarding cash rather than spending it in ways that will stimulate the overall economy