POLI/INTL 105: Review Sheet Exam 3: Fall 2007
Bill Newmann
This exam is non-cumulative. Questions will refer only to items on this review sheet, to the lectures given since the second exam, and to the readings scheduled for the third exam as indicated on the syllabus.
The exam format will be the same as the previous exam – There will be 75 questions, but you will have two hours and 50 minutes to take the exam.
List of Terms:
Theories of International Political Economy:
Questions:
what makes a nation wealthy?
what is the proper role of government in economic activity?
*Economic Liberalism (called "internationalism" in Rourke):
*Adam Smith
*imports
*exports
*tariff
*quota
*non-tariff barriers
*Smith's criticism of tariffs and quotas
*Market forces
Invisible Hand
Division of Labor
Free Trade
*MNCs?
*Economic Nationalism (sometimes called Neo-Mercantilism)
Nationalist's views of free trade
Alexander Hamilton
*Industrial Power and National Power
National Power and
Friedrich List
Mature industries vs. infant industries
*Protectionism
Free trade among equals
MNCs?
*Economic Structuralism
International economic division of labor
1. *Marxism
*Karl Marx and Fredrich Engels
*Exploitation
Workers Revolution
*Communism
*Lenin
*Imperialism
Command Economy
Soviet/Chinese Communism in practice
*MNC and international division of labor
2. *Dependency
*Colonialism/neo-colonialism
*EDC vs. LDC
ending dependency
capitalism, but with changes
*import substitution
*nationalization
debt
MNCs?
Northern/Industrial Economics
Importance of economic leadership
Driver of the world economy
Aspects of American Hegemony:
1.*Exchange Rates -- Bretton Woods
2.*General Agreement on Tariffs and Trade
*World Trade Organization
*goals
*functions and structures
3. *International Monetary Fund and Balance of Payments
who contributes
who receives
conditionality
5. *World Bank -- IBRD
The Developing World:
Realities of Developing World
Colonialism
Wars for independence
Infrastructure
Political Stability
* LDCs vs. EDCs
Attempts at creating wealth in the developing world
Failure of other approaches
*Failure of Group efforts
*NIEO (New International Economic Order)
*UNCTAD
*G-77
*OPEC
Success: East Asian Strategy
*Newly Industrializing Countries (Newly Industrialized Economies)
Four Tigers (Mini-Dragons)
Their strategy
Government-business partnership
Open up the economy to the world trading system
*Foreign Direct Investment (FDI)
*Export Power
Export processing zones
*Education/managerial skills
*acceptance of globalization
*
*Deng Xiaoping
*Manmohan Singh
How far
The Future:
*Some assumptions about the changes in the world economy
Importance changes in the world economy: (all of these are touched upon in Friedman)
1. *Collapse of
*Global consensus on capitalism
2. *Success of East Asian model
3. *Information/Technology Revolution
*Brainpower/transnationalism/globalization
4. US not in decline
5. *Regionalism:
*Each Bloc in terms of level of integration and political or economic character
A. *North American Free Trade Agreement (NAFTA)
*Western Hemispheric Free Trade Zone:
*FTAA (Free Trade Area of
the
B. *APEC
C. *European Union
*
*Institutional structure
Globalization
Pros and Cons of globalization (see the PPT slides)
Key controversies: (all of these are touched upon in Friedman)
*Rich get richer, poor stay poor?
*Cultural imperialism
*Loss of governmental power to control their economies
*Labor standards
*the environment
Terms
from Friedman, The World Is Flat
*technology and globalization leveling the playing field (meaning of the world is flat)
*outsourcing
to
*how technology changes the nature of work
*a revolution in economics
*the aspect of speed – quickening the pace of change
*Flatteners:
1. *Tipping the scales away from authoritarian governments toward liberal-democracy (collapse of communism)
2. *The internet
3. *How products can be made anywhere now – location is less important
4. *”Self-organizing collaborative communities” – spontaneous cooperation through which people create things
5. *Outsourcing
6. *Offshoring
*
7. *supply chaining
*Wal-Mart (pros and cons)
8. *Insourcing
9.* Informing – the explosion of available information
10*The “steroids” digital, mobile, wireless
*Triple convergence
*multiple identity disorder
*Intellectual property
*Who does not benefit?
1. *Those who are too sick
2. *Those who are disempowered
3.*Those who are too frustrated
4. *Those who can’t get sources of energy
Human Rights:
*Land-Mine Treaty
Debate on Definitions of Human Rights
*1. Universal Morality
*Universal Declaration of Human Rights
2. Cultural Relativism
Singapore-style “democracy”
Religious-based human rights
Disagreements on:
Political freedoms
Religious freedom
Women’s rights
Agreement on economic freedoms
Four types of nation-states
1. Liberal-democracies
– the
2. Theocracies
–
3. Hard
Authoritarian –
4. Soft
Authoritarian –
Environment
*The acceptance of environmental issues as important ones on the global agenda
*Sustainable development
Recognition that this is a global issue
Recognition that this is an economic issue as well
Necessity of LDC and EDC cooperation to resolve them
LDC demands: If EDCs want us to develop in an environmentally sound manner, EDCs must pay for it
global consensus on environmental problems
lack of consensus on the solutions
Divisions in the world (see PPT slide)
Present: EDCs cuase most of the pollution
Future: LDCs will
Irrelevance of sovereignty
Climate Change (global warming)
The problem
Who produces greenhouse gasses
Intergovernmental Panel on Climate Change (IPCC)
Kyoto Treaty and controversy
Issues for December 2007
Global Environmental Facility
Health
How globalization eases the spread of disease (travel)
Global pandemics
The current problem
Developing world
EDC money, but LDC infections
Spread of disease
Extent of AIDS in developing world
UN Global Fund for AIDS, TB, malaria
Health as an economic issue
Avian Flu