Posc exam

Questions Covering the Last Two Sections of the Course (Parts A and B)

https://quizlet.com/31698304/inr-final-flash-cards/

https://quizlet.com/462857620/world-politics-international-political-economy-flash-cards/

1. How does the theory of comparative advantage help us understand the politics of international trade?

The theory of comparative advantage shows with common reasoning how and why trade is beneficial to both sides. The idea is that by becoming specialized and trading, states and individuals can increase consumption and efficiency. (Pg 275: Ex. “Imagine a world with two countries, China and the United States; and two goods, wheat and textiles.”)

2. Explain fiscal and monetary policy. Pg 275

Monetary policy addresses interest rates and the supply of money in circulation, and it is generally managed by a central bank. Fiscal policy addresses taxation and government spending, and it is generally determined by government legislation.

3. How are fiscal and monetary policies limited in a globalized economy?

Fiscal policy- a government uses a budget deficit or surplus to stimulate or slow economic growth.

In monetary policy - a central bank raises or lowers interest rates to stimulate or slow economic growth.

4. How do exchange rates interact with the balance of trade?

Currency exchange rates as supply and demand can lead to an appreciation or depreciation of currencies. A country with a high demand for its goods tends to export more than it imports, increasing demand for its currency.

5. What were the sources of the Bretton Woods system?

The confluence of two key conditions: the shared experiences of two World Wars, with the sense that failure to deal with economic problems after the first war had led to the second; and the concentration of power in a small number of states.

6. Explain the similarities and differences between liberalism and neo mercantilism in international political economy. [Which best explains current trade politics?]

Liberalism:

Neomercantillism: tried to extract wealth from one place and concentrate it somewhere else using the power of colonialism.

7. Applying the theories we have studied in this class, should we expect free trade to increase, decrease, or stay level in the coming decade?

Increase, probably due to the pandemic being over? ( I think this is more opinion based)

8. How does the principle of nondiscrimination differ from that of reciprocity in international trade? (pg. 305)

· Reciprocity:An arrangement whereby two states agree to have the same tariffs on each other’s goods.

· Any country might have many different tariffs for the same good, depending on where that good came from. This was economically inefficient because it meant that firms seeking to sell a particular good in a particular country were not all competing on the same terms. This undermined competition, removing an important impetus to increased efficiency.

· Nondiscrimination: A principle guiding tariff policy that requires a country to apply equal tariffs on all of its trading partners; also referred to as the most favored nation principle

· Giving one state a better deal than others in return for some reciprocal concession was no longer permitted. If a state lowered a tariff for one GATT member, it was obliged to lower the tariff for all members. This principle was also known as the most favored nation principle, meaning that every GATT member would be treated as well as the most favored nation.

9. How do domestic and international factors interact in producing trade policies?

10. What tradeoffs do states face in choosing an approach to international monetary policy? (pg 314)

· 3 goals in international finance:

· Predictable exchange rates: Fixed exchange rates facilitate free trade and investment by eliminating the risk that fluctuations in exchange rates will destroy anticipated profits. Stability and predictability are accomplished by fixing exchange rates.

· Free movement of capital: Free capital movement allows investors to invest where returns are greatest and provides poor economies access to much-needed foreign investment.

· Autonomous monetary policy: Governments use monetary policy to respond to changes in their domestic economies (raising and lowering interest rates to regulate growth and inflation), without regard for policy choices in other countries or international markets.

· This inability to attain all three goals is sometimes referred to as a trilemma, because states, and groups of states, must decide which one of the goals to forsake when they devise different exchange rate mechanisms and international financial practices.

11. What are the roots of the European financial crisis?

The structural problem of the eurozone and a combination of complex factors, including the globalisation of finance; easy credit conditions during the 2002–2008 period that encouraged high-risk lending and borrowing practices

12. How has the common use of the Euro complicated efforts to combat the economic crisis in Europe?

There is a single currency yet everyone has different fiscal policies and no real monetary policies for its usage (exchange rates, ect.)

13. What are the main ingredients of international currency crises? [What might be done to prevent them?]

Exchange rates, the amount of dollars held in foreign reserves, and the value of Treasury notes.

14. What challenges should we expect in solving the next international financial crisis?

There is no major international bailout system in place to help all countries if the next international financial crisis occurs. IMF only helps out in the short run.

15. How do different ways of measuring poverty influence how we see the problem?

(Page. 336-339)

Poverty is often defined in absolute terms, as a condition characterized by comparatively low income. However, poverty should be defined as a human condition characterized by the sustained or chronic deprivation of the resources, capabilities, choices, security and power necessary for the enjoyment of an adequate standard of living and other civil, cultural, economic, political and social rights.

Therefore, different ways of measuring poverty will lead us to the problem in a new way, which we don’t define poverty easily. Yet, by carefully understanding the situation of one's average income, income adjusted for cost of living, poverty level, basic human needs approaches, inequality, gender equality.

16. What challenges do late developing countries face?

Corruption, poverty, war, hunger, healthcare, education, safety.

17. What are the strengths and weaknesses of international aid in reducing global poverty? (pg 353-354)

Weaknesses - If governments cannot or will not spend aid effectively, the aid may be wasted, which is especially harmful when money is lent rather than donated. Another problem is the speed in which money flows out of the country, which is harmful because the aid’s multiplier effect goes with it. This is especially true with tied aid, where the country is required to spend aid on goods from the donor country.

18. What are the main sources of international law?

Treaty law, international customary law and general principles of law recognised by civilised nations

19. In what ways is international law self-enforcing?

Most international law depends on “unilateral enforcement,” where it is up to individual states to enforce it. “The means open to them include diplomatic pressure, economic sanctions, and even force.” International law is self enforcing because they have incentives to obey, despite not having explicit sanctions for violating the agreement. (p.376)

20. What dilemma do weak nations face in deciding whether to support more or less international law?

The dilemma weak nations face while deciding whether to support more or less international law is the subject of human rights. For example, migration is a major problem as it brings about documented and undocumented individuals. The status and presence of these individuals is most controversial because it makes them a threat to others not only economically, but culturally. Therefore, being able to have an equal understanding between nations and how much enforcement they have helps weaker nations choose whether they will support or deny international law.

21. What are the major approaches to international ethics? [What are the main problems with applying each approach in practice?]

22. What is the “tragedy of the commons” [and what are its implications for the international environment]?

“A version of the collective action problem in which a shared resource is overconsumed.” When there are many actors going after one resource, they want to take as much as possible before the others do, this depletes the world’s resources. There must be an international agreement to solve this pertinent problem.

23. Which of the five paradigms we have studied provides the most compelling analysis of international environmental politics?

24. How do debates about avoiding climate change intersect with those about economic development?

25. Will environmental problems lead to greater cooperation or increased conflict in the international system; or will they have little effect?

26. What are the links between international environmental problems and economic development? Wealthy countries continue to use up more resources and pollute far more than developing countries. Structuralists argue that since developing countries use up less natural resources and also have financial problems, the share of the cost that comes with solving environmental issues should be lessened for them. (pg. 407)

Comprehensive Questions (Part C)

1. How does the concept of the collective action problem help us understand international politics? Provide examples from two distinct areas of international politics.

· A collective action problem is a situation in which two or more actors have a common interest but cannot automatically collaborate to achieve it.

· Examples of phenomena that can be explained using social dilemmas include resource depletion, low voter turnout, and overpopulation

1. Environmental Cooperation (pg 402)

a. Tragedy of the commons (pg 404)

2. Prisoner’s Dilemma

2. Is international politics best explained by factors at the state and substate levels or at the level of the international system?

3. Will economic or military power be more useful to nation-states in the coming decades? What limits will remain on this power?

4. Which approach will be more useful in promoting peace in the future: maintaining a balance of power or strengthening international law and cooperation?

5. What element of power is likely to be most significant in the coming decades?

6. Is the world of the 21st century more or less orderly than that of previous generations? In what ways?

7. In what ways might the rise of China have positive effects for international politics? What are the biggest dangers?

Rise of China spread of free market trade, government control over everything

8. What is the most significant way in which international politics works differently today than it did 20 years ago?

9. Look ahead 50 years. Which important factors in international politics today are likely to erode? Which are likely to remain most important?

10. Does the rise of transnational terrorism fundamentally change international politics, or is better characterized as an evolution of the existing system?

11. Using theories we have discussed in class, evaluate the likelihood of significant cooperation to prevent global climate change.

· Five Approaches to International Environmental Issues (pg. 404-410)

· Liberalism, Realism, Economic Structuralism, Constructivism, Feminism

· Solutions (pg 410-414)

· Barriers (pg 414-416)

12. To what extent can we say that the Westphalian system that has characterized the last four centuries is on its way out? If it is, how can we characterize the system that is replacing it?