Moser Gov 312L Exam 3

According to the Krasner reading, what are the two main tendencies within US foreign policy regarding democracy promotion and dealing with authoritarian regimes? What third option does Krasner propose in how the U.S. should deal with long-standing dictatorships?

- On the one hand, presidents like George W. Bush have tried to transform dictatorships into liberal democracies - On the other hand, presidents like Donald Trump and Barack Obama have taken a more hands off approach, choosing to demonstrate the virtues of democracy by example through a well-functioning American political system, but doing little to promote democratic regime change. Third Option: - Promote good enough governance, which emphasizes greater security, economic growth, and better provision of some services

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

1. European shirking - European countries aren't fulfilling their responsibilities economically or militarily 2. US as a reluctant hegemona. - First the US is demanding that European countries spend 2% of their GDP on their own military security instead of relying on the US to provide them all with security for free - Part of Trump's policy to bring the US out of unfair agreements that are more expensive for us

What is an externality?

(Cost/benefit of a transaction) that affect a 3rd party who wasn't involved in the transaction.EX: a factory produces polluted water, and a person who lives in the city who does not buy anything from that factory or work at the factory will still have to deal with the polluted water.

According to lecture and the reading (Section 30.2), 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?

- 44 nations met to discuss ways to manage economic cooperation in the post-war world order. - The main forces that serves as an impetus for the Bretton Woods order were the collapse of the First Era of Globalization in 1914 with the onset of WWI, as well as the unraveling of economic cooperation in the interwar period that contributed to economic downturn, volatility, and helped lead to the onset of WWII. - The main organizations that emerged from the Bretton Woods order were the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development, also known as the World Bank.

According to lecture and the reading, (Section 19.3), 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 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 becuase 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

Which group of countries will be the recipients of foreign aid under the Paris Climate Accord? How did this aid help facilitate the construction of this international agreement? And how might this aid help countries fulfill their emission targets?

- Developing countries receive foreign aid - Eases cost of alternative energies and compensate for costs of climate change

What are the Cold War origins of the North Atlantic Treaty Organization (NATO)? What did Lord Ismay mean when he said the goal of NATO was "to keep the Russians out, the Americans in, and the Germans down"?

- General Lord Ismay, NATO first secretary general, on goal of NATO: "to keep the Russians out, the Americans in, and the Germans down" - NATO: protecting Western Europe from the Soviet threat - NATO as a binding mechanism on the US - Constraining German foreign policy to preserve peace among (democratic) members

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

- Grand strategy of America First - Deeper skepticism of free trade a. Hurts American manufacturing and jobs b. Consistent with domestic political strategy of Trump - Trump's demands specific to trade with China a. China should boost imports of US products b. Protection of US intellectual property c. No currency manipulation - Trade deficit a. Indicator of unfair trade policies

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

- Provides enforcement mechanisms - WTO: judicial panel (judges hear the sides and then decide whether the injured state may impose tariffs or not) - IMF: conditionality (insists on conditions that must be followed by states for IMF assistance) - Helps to reveal information about state interests through its own investigations - Monitors compliance of all members - Reducing distribution challenges

According to the reading (Section 26.3), what is comparative advantage and how does it contribute to aggregate economic gains for states from trade? How does trade contribute to the economic sources of order in the international system?

- Specializing in goods that a country has the greatest efficiency relative to other countries; lowest opportunity cost - Increases economic gains because governments encourage specialization in their sectors with greatest efficiency over any other good they can produce - Gains from international trade stem from differences in relative efficiency of individuals, firms, or whole economies in the production of some mix of goods a. Specialization and international trade increases a state's national income b. The desire to get economic gains from trade leads to cooperative international agreements; c. Heightened economic competition activates economic and political backlash that tries to limit market pressures and reassert control over economic outcomes

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

- The desire to harness these economic gains from trade can spur cooperative International agreements like the European Union (EU) and the World Trade Organization (WTO) that facilitate the coordination of economic policy among states and sustain globalization. - Alternatively, the heightened economic competition associated with globalization can also activate a deeper economic and political backlash that tries to limit these market pressures and reassert national political control over economic outcomes.

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

- US placed new tariffs on steel and aluminum, China not exempt, they responded with tariffs on 3 billion US imports (fruits, nuts, wine) - Both threatened 25% tariffs (on China's consumer products and US ag and transport equipment) a. Most recently China impose new fees on sorghum exports - China targeting sectors that are important to Trump's political base a. Blue collar manufacturing b. Agriculture in red states (Nebraska, Dakotas, Kansas, Iowa) - Imposing economic pain on them so they pressure Trump to change his policies

According to the reading (Section 32.1), what are the main differences between voluntary and forced migration?

- Voluntary migration • Legal vs. illegal or undocumented migration - Forced migration • Refugees • Human trafficking

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

-Democratic peace theory has long justified American efforts to expand democracy...means more partners for cooperation, more trade, and more peace -Post-cold war brought new idea that the spread of democracy aligned with greater security for the US - "Golden age" of democracy (1991-2014) ended when Russia invaded Ukraine - Even established democracies in U.S. and Europe are threatened with decay and even collapse - Democracy under threat by domestic frustrations with unresponsive governments have led to rise of populism but also by hostile foreign powers deliberately using social media to undermine democratic elections - Use of propaganda is not new. Was a major instrument of influence for both the US and USSR during the Cold War. What is new is the power and reach of the available technologies like the internet and social media to disseminate propaganda

According to the reading (Section 19.2), how does democracy affect foreign policy? Explain how mass participation through elections expands the range of societal interests that can affect foreign policy. Explain how competitive elections create a punishment mechanism that influences foreign policy.

1) Democracy expands the range of societal interests within a state that can be represented in its foreign policy. - Democracies are less likely to implement foreign policies that disproportionately benefit small sections of society because their more open political systems allow more groups a say in policymaking. 2) Elections create a punishment mechanism that pressures governments to implement policies favored by a majority of voters. 3) A range of institutional checks and balances within democracies empower societal groups and politicians to block foreign policy changes that they oppose. 4) Open participation, elections, and seperation of powers help to foster a larger cooperative collective identity among democracies.

What is a Nationally Determined Contribution?

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

According to the reading (Section 28 - Introduction, Section 28.2), 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?

Exchange rates reflect differences in value of respective currencies; price of one currency in terms of another Shape the price of conducting international trade - When the dollar appreciates, imports go up because they foreign products (bought by more valuable $) are cheaper - When the dollar appreciates, exports go down because they are priced in $ and more expensive to foreign consumers Opposite with depreciating currency: helps exports, slows imports

Describe the tradeoffs associated with participation in international organizations and national sovereignty.

Delegation of authority to IOs can limit domestic sovereignty Ex: WTO and steel Tension/tradeoff: sovereignty v. gains from cooperation

According to lecture and the reading (Section 19.1), what is democracy? Describe Robert Dahl's three "procedural minimal" conditions of democracy.

Democracy is best defined as competitive or "free and fair" elections Robert Dahl's three "procedural minimal" conditions of democracy: 1) Public contestation: - Electoral competition - Individual freedoms 2) Inclusion: - Universal suffrage 3) Democratic Sovereignty

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

Even though international trade increases the national wealth of the economy in the aggregate, some groups see income gains AND some groups see income losses - Globalization tends to drive down returns to owners of scarce factors of production in an economy

According to lecture and the reading (Section 30.3), what is the GATT and what is the WTO? How do these organizations differ? What are some of the norms, principles, and rules associated with the GATT and WTO? How does the dispute settlement mechanism in the WTO support international trade?

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 1) Important: no enforcement capabilities, trade disputes handled on a bilateral basis 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 - Judicial panel can enforce these obligations by authorizing compensation to injured party in form of trade sanctions a) 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 - While successful at preserving existing trade concessions, WTO relatively ineffective over last decade in securing further trade liberalization because limited support in developed world (US, Europe, Japan)

What does globalization in financial terms look like?

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

According to the reading (Section 32.3), 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?

Groups with particular preferences face challenges to collection action (voting as bloc, mobilzing to prearrue state to adopt preferred policy) because of the free rider problemCertain groups that are smaller and more concentrated are better able to mobile their members to affect policy than others

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?

I. Wilson and Democracy Promotion after World War II. Democracy Promotion During the Cold War III. Democratization and End of Cold War IV. Democracy Promotion after the Cold War - A lot of third world countries especially in Asia that haven't had a good history with the US are wary when they want to introduce democracy because they believe that it will be bad and they don't want to adopt democracy for that reason - post Bush administration (negative effects of Iraq war and its unpopularity in US) results in greater skepticism of democracy promotion by US military forces - Obama continues American commitment to liberal values like democracy but withdrew US military from Iraq and sought to keep US out of long term engagements like Syria - Trump's America First with reducing the economic burden of American hegemony has diminished democracy promotion of US FP Expands American commitments, more soldiers at risk. Gets rid of dictatorships that can be hurting people.

What are the two main political bodies of the UN? How can they confer legitimacy? Which states have the most power within these political bodies?

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 Two main political bodies: - General Assembly - Security Council: Five permanent members with veto powers (US, UK, China, Russia, France) with ten rotating members

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

Institutions are rules of the game: humanly devised constraints that structure incentives and interaction - Tell us what is and isn't permitted - Domestic: don't speed, don't steal, win a majority of electoral votes to become president - International: sovereignty, chemical weapons taboo Organizations are intergovernmental political organizations that are important actors in the international system - Possess agency and pursue political objectives - Examples: United Nations, North Atlantic Treaty Organization (NATO), World Trade Organization (WTO)

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 are rules that structure behavior - Example: Sovereignty - Recognize authority of government to rule over people within its territory - Respect territorial boundaries - Noninterference in other state's domestic affairs - Reciprocal recognition Provide information about how states might act; and how to define appropriate and inappropriate behavior Facilitate interstate cooperation - Mitigate collective action problem - Reduce transaction costs associated with reaching settlements - Sometimes help enforce agreements

According to lecture and reading (Section 27.3), what are the domestic distributional consequences of globalization? Which groups win and lose from globalization inside the United States?

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 a. 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 a. Example: US scarce in labor relative to India; consequently, wages lower in India Winners -- agriculture (disproportionately represented in the Senate) and industries in need of high-skilled labor; Losers -- consumers due to the collective action problem

According to the reading (Section 21.2), what is interstate cooperation? What are some of the primary impediments state face when trying to reach cooperative settlements with each other?

Interstate cooperation: occurs when a collection of states subordinate their sovereignty in order to establish a supranational set of rules that governs conduct between them to achieve a desirable outcome for all states involved Impediments states face trying to reach cooperative settlements: - Collective action problem: when everyone agrees about the benefits of a common goal, but no one will pay to realize that goal - Free rider problem: occurs when those who benefit from resources, public goods, or services of a communal nature do not pay for them - Many actors would much rather avoid costs that come with reaching a cooperative settlement - Sometimes there is a lack of rules or a lack of enforcement of the rules placed to avoid the free rider problem - The problem of distributing the burden of collective goods provision can activate intense struggles among interested parties, - There are some winners and some losers; in a perfect world, nobody would lose but that isn't the case so those on the losing side would want to push back

How does U.S. membership in international organizations like the UN, NATO, and WTO demonstrate the ability of international institutions to solve a fundamental problem of international politics - to create and preserve coercive power and, at the same time, constrain that same power?

It creates expectations to how states will conduct relations with each other Provides info about national interest which is used to make predictions about the futurescan help to lock in old distributions Allows the United States to have the most influence, but they are not able to force other countries to do things Constrained by their role as a leader

What emergency actions did the Federal Reserve undertake to help prevent a broader global financial crisis during the COVID-19 pandemic?

The Fed has undertaken EXTRAORDINARY, UNPRECEDENTED actions during the past five weeks to prevent the economic shutdown associated with COVID-19 from triggering a global financial crisis Using part of the 2008 playbook and then going way beyond that. - Extended unprecedented amounts of credit to businesses, banks, and governments. - Dropped the federal funds rate target to 0 to 0.25 (overnight interest rate charged to largest banks). - Multiple rounds of quantitative easing- asset purchases that increase the size of the balance sheet. - Direct lending to large corporations. Indirect lending to small and medium size businesses.

According to the reading (Section 32.2), what are the main types of immigration policy? What are the main differences between merit-based migration policies and family-based migration policies?

Merit-based policies: designed to encourage economic growth and developmentEmployment based: employers in America hire foreign workers with specialized skills Point system: awards points for desirable characteristics such as high education/skillsAdmit migrants on a temporary basis (months to years) Family-based migration policies: allows citizens and legal resident to sponsor family members for visasAdmission based on family reunification tends to offer permanent residence

Describe how President Obama's use of executive orders to commit to the Paris climate accord made the U.S. commitment to the agreement vulnerable. Describe how President Trump undermined the Paris climate accord when he came into office and then withdrew the U.S. from the agreement.

Obama based his pledge for American carbon emission reductions on executive orders- vulnerable because the next president could reverse them unilaterally Trump administration undermined the American commitments to the Paris agreement before formally withdrawing by rescinding Obama's executive orders

According to the reading (Section 27.3), what is the Heckscher-Ohlin model of trade? What does the H-O model of trade demonstrate about the relationship between access to the international market and redistribution of income within countries?

The Heckscher-Ohlin model of trade shows how greater exposure to international trade redistributes income within an economy. Policy implication: income losses can motivate domestic demands for protection from some groups. The H-O model demonstrates that when countries move to free trade, they will experience an increase in aggregate efficiency

According to lecture and the reading (Section 28.4), what is a trade deficit? How are trade deficits related to foreign capital inflows and investment in the United States? Which economic actors are

Occurs when imported goods and services exceed exported goods and services Trade (current account) deficit always financed by a capital account surplus - This means that foreigners are lending capital to US consumers to finance that trade deficit a. Often by buying US Treasury bonds or mortgage-backed securities - More capital flowing in the US than capital flowing out - Trade deficits helps to increase investment levels in US beyond what could be achieved solely through domestic savings - Trade deficits often symptom of growth

According to the reading (Section 19.4), what are some critiques of the democratic peace theory?

Puzzle for democratic peace: - States undergoing democratic transitions experience more conflict Alternative explanations: - A common enemy in the Soviet Union explains peace in Western Europe after WWII - Great power settlements, not democracy, explains peace after WWII

Discuss how restrictions on voting rights affected American democracy. What are the major historical expansions of voting rights during American history and how have expanded voting rights affected the descriptive representation of women and ethnic minorities? How has universal suffrage affected election outcomes?

Restrictions on voting rights limited true democracy in America by leaving elections up to only 6% (rich, white, males) of the population. Major historical expansions of voting rights: - Expansion of white male suffrage in the 19th century - 15th amendment (1870) prohibits voting restrictions based on race or color - Voter suppression prevented African Americans from voting, especially in the South, for decades - 19th amendment (1920) prohibits voting restrictions based on sex - Voting Right Act of 1965 enforces racial equality at the polls- 26th amendment (1971) sets the minimum voting age at 18 Expanded voting rights have allowed and encouraged women and minorities to vote for people that "look like them. Universal suffrage has affected election outcomes by deciding who the majority of the vote goes to.

According to lecture and the reading (Section 26.3), what is the Ricardian model of trade? Describe the processes by which it suggests that trade and specialization can increase aggregate national income.

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

How have domestic political considerations (and the distributional consequences of trade) in the United States contributed to this trade war?

Sources of underlying conflict: - China's economic rise and the potential shift in global distribution of power - Different domestic systems - **China's state-managed capitalism create unfair advantages - **Less government support for US firms - Reorientation of US economic policy with Trump election

According the reading (Section 28.3), what is the Mundell-Fleming Trilemma? How does this trilemma highlight the tradeoffs for states as they strive to achieve three goals: monetary policy autonomy, exchange rate flexibility, and capital mobility?

The Mundell-Fleming model portrays the short-run relationship between an economy's nominal exchange rate, interest rate, and output - Monetary policy autonomy (internal facing, like when Fed adjusts interest rates to fight inflation but then later it will impact foreign exchange rate) - Exchange rate stability (how strong your economy is in the global market) - Capital mobility (rate at which u can increase your assets value)

According to the Baker reading, what are the economic and national security benefits of ambitious U.S. leadership in combatting climate change?

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 - Like the internet revolution, climate-saving technologies could bring revolutionary economic efficiencies - Climate change is already causing significant economic costs through worse natural disasters, combatting it will help the country's bottom line • 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 • Policy proposal: Carbon pricing as the most efficient means to reduce emissions

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?

The demand for the $ increased since it is so stable which allows the US to take out loans to resolve financial issues related to COVID. Hegemonic stability theory: indicates that the international system is more likely to remain stable when a single nation-state is the dominanat word power, or hegemon (they take on all the costs of public goods) - US at center of global economy since 1919 Long term investments in political and economic order that benefits US: Funds allies in WWI, WWII, rebuilds Europe with Marshall Plan aid, protects flow of oil out of Middle East, provides military and financial aid to countries opposing Soviet Union, opens domestic markets to international trade - All of this creates dependence on US economy, US capital...and, most importantly now, steady demand for the dollar (or financial assets denominated in dollars)

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

The dollar as a reserve currency means that many international transactions outside of the United States occur in dollars. It means that foreign countries have faith in the dollar and US banks. It also means that the U.S can do financial shenanigans without too many consequences because if the value/stability of the U.S dollar were to fluctuate too much, it would harm the global economy, so the international community basically has to accept what the Fed gov does.

Why does the United States participate in the United Nations and often abide by its decisions when it could just ignore it instead (because it possesses much greater military capacity than the UN)?

UN bestows political legitimacy abroad and at home. Might need to gain legitimacy for policy, secure additional support to implement policies, but can require some surrender of sovereignty or authority of elected officials in US to set policy of the United States

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

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

How can global capital markets discipline or influence the economic policy of governments?

When foreign capital holders lose confidence in a government's monetary policy, they tend to sell assets denominated in that currency - Currency depreciates - Government can reassure investors (or bring them back) by: a. Raising taxes or cutting government spending b. Offering higher returns i.e. push interest rates up c. But...these measures push domestic economy into recession Example: Greece in the Euro crisis Real policy implications: international capital markets can sharply constrain country's monetary policy; limiting discretion of elected officials and forcing them to push their economy into recession to reassure creditors

Using the module's reading (Section 19.5), describe historical waves of democracy and the possible causes of these waves such as demonstration effects, neighborhood effects, the conditionality of international organizations, and the influence of hegemons.

Wilson and democracy promotion after WWI: - sought to leverage American participation in WWI to expand the number of democracies in the world. Supported self-determination and empowered local groups demanding democratic rule and independence. Democracy promotion during the cold war: - Took back seat to containing communism. US allied itself w/ authoritarian regimes and even undermined democratically leaning but left-sided gov because feared it would be influenced by the Soviets. Democracy and end of the cold war: - Undermined idea that the US had to choose between pursuing democracy promotion and containing communism; democracy promotion actually helped security. - big reason why communism collapsed was b/c of internal pressure from citizens for more freedom and democracy. Now: - Negative effects of Iraq war and unpopularity in the US caused less democracy promotion. Demonstration effects:-Significant mass events that successfully challenge the autocratic regimes create demonstration effects among opposition leaders and mass publics in other countries who then try to emulate the same actions and outcomes Neighborhood effects:-States tend to emulate the level of democracy of their neighboring states. This creates regional environments that are more or less conducive to the emergence of democracy. Influence of hegemons:-The actions of the US and the Soviet Union were instrumental in the spread of democracy or lack thereof during the cold war

According to the textbook reading (Section 26.2), what are the chief indicators of the increase of globalization since World War II?

a. The most recent round of globalization has been supported by technological developments associated with the internet that have made it possible to trade services. b. Growth of imports and exports c. The growing movement of people through immigration also indicates the integration of labor markets d. Barriers to international commerce erode e. Volume of economic transactions increase; f. International trade has led to an increase in economic activity g. The existence of more supranational organizations such as the UN and NATO (which have a large influence of world order in the international system)

According to the reading (Sections 21.2, 21.3, 21.4), what are the incentives for global governance through international institutions? How are efforts at global governance confronted by the collective action problem? Once international agreements are established, what types of problems of compliance and enforcement do international organizations face?

externalities and transaction costs - States have incentives for global governance because of negative externalities, high transaction costs, and collective action problems. - Overcoming collective action problems in global governance often prove quite difficult for several reasons. First, the problem of distributing the burden of collective goods provision can activate intense struggles among interested parties, both within and between states. The second problem for states or groups of states is one of enforcement, or the punishment for noncompliance. - In the absence of a single enforcer, a group of states can provide enforcement. However, each country would like to enjoy the benefits of enforcement without having to pay the cost. Yet if all countries try to shirk the responsibility of providing enforcement, enforcement is under-provided, and would- be aggressors may pursue their goals without fear of reprisal. Given these incentives, establishing credible enforcement is a challenge. In other issue areas, enforcement involves large-scale costs that can make states reluctant to trigger penalties for non-compliant states. For example, if international organizations want to put economic sanctions to punish a country that broke an international agreement o law, sanctions could be costly. Moreover, sanctions sometimes fail to produce the desired behavioral change.

According to lecture and the reading (Section 30.4), what is the International Monetary Fund? What are its main functions? What is the main source of its influence in the international economy?

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

What 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. - 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 Paris deal: - Challenge is executing and deepening the Paris deal. - 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

What is conditionality and how does the IMF use it to promote economic reforms within countries?

• 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

According to lecture and the reading (Section 33.6), 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°

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

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

According to lecture and the reading (Section 33.3), 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.

• Emerges with public property or resources for which it is difficult (costly) to restrict their use (consumption) • 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

What are the four pillars of the Baker-Schultz plan to reduce carbon emissions?

• Four pillars of the Baker-Schultz 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

According to lecture and the reading (Section 32.6), how does international migration intersect with national security? How does international migration present challenges for national security but also resources that can enhance a country's 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

According to the reading (Section 32.5), how does international migration affect the demographic composition of countries? How do these demographic changes create conflict within countries over issues of 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

Discuss the global patterns of international migration (see Section 32.1). What are the countries with the largest inflows of international migration and which countries have the largest inflows of refugees?

• 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

According to lecture and the reading (Section 30.1), what are the main elements of international economic cooperation? Why is political cooperation between states on international economic affairs difficult to achieve?

• Joint reduction in tariff barriers • Monetary cooperation: multiple countries coordinate monetary policies (e.g. synchronize interest rate changes) to preserve stable exchange rates • Foreign aid • Emergency lending Issues: • The problem of contracting over time: states cheat • Uncertainty about political interests of other states • Monitoring compliance • Distributional hurdles: which side is getting a better deal?

According to lecture and the reading (Section 32.4), 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?

• 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 • However, like international trade, migration creates income distributional effects, creating economic winners and losers - Hi tech wants to employ high skilled workers to keep costs down - 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 - By pushing labor supply up in certain sectors, real wages are driven down

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

• 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 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

How did President Biden reverse President Trump's decisions on the Paris climate accord? Why would other countries potentially question the stability of the U.S. commitment to the agreement of a Democratic president reenters the Paris accord?

• President Biden rejoins the Paris Agreement on Day 1 of his presidency • Changes to FP bureaucracy: climate envoy (Kerry) on NSC • State Dept speech: integrate climate change into every diplomatic relationship This makes the US look unstable and unreliable because its membership within the PCA has the potential to change with every new presidential election.

What is the 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?

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

What are remittances? How do remittances help to redistribute wealth from wealthy countries to poorer ones (see Section 32.4)?

• 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.

According to the reading (Section 33.1), 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? What countries and regions will be most affected by climate change (see Section 33.2)?

• The scientific claim: Great quantities of greenhouse gas (carbon dioxide) levels in the atmosphere trap heat and contribute to global warming • Attributed to man made changes associated with Industrial Revolution, principally burningfossil fuels like oil and coal - From 280 ppm in 1800 to 400 ppm in 2015 • Some environmental consequences - Global temperatures up about 1.4 degrees F since 1880, much of it since 1970s • Drought? More extreme weather patterns? - Ice sheets melting, ocean levels rising • What do with low lying population centers? - Ocean temperatures rising

Why does the U.S. have so much influence within 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)