POLI/INTL 105: Review Sheet Exam 3: Summer 2014

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 70-75 questions. You will have the entire class period to take the exam.


I’m not sure how much of the Environment and health we will get to (these terms are at the end of the review sheet).  If we do not cover that material, I will eliminate it from the review sheet.


List of Terms: 



Theories of International Political Economy:


what makes a nation wealthy?

            what is the proper role of government in economic activity?

*Economic Liberalism

*Adam Smith





*non-tariff barriers

Smith's criticism of tariffs and quotas

Market forces

Invisible Hand

*comparative advantage

Free Trade (laissez-faire economics)



*Economic Nationalism (sometimes called Mercantilism)

*Nationalist's views of free trade

Alexander Hamilton

Industrial Power and National Power

National Power and Independence

Friedrich List

Mature industries vs. infant industries


Free trade among equals



Economic Structuralism

International economic division of labor


Karl Marx and Fredrich Engels


Workers Revolution




Command Economy

Soviet/Chinese Communism in practice




Northern/Industrial Economics

Hegemonic Stability Theory

hegemonic stability theory and realism

Interwar period and lack of leadership

The Great Depression

Importance of economic leadership

Driver of the world economy

Aspects of American Hegemony

Pax Americana

1.*Exchange Rates -- Bretton Woods

2.*General Agreement on Tariffs and Trade

            *World Trade Organization

*Kennedy Round

*Uruguay Round

3. *International Monetary Fund and Balance of Payments

            who contributes


4. *World Bank -- IBRD


The Developing World:

Realities of Developing World


            Wars for independence


Political Stability

Military rule

Attempts at creating wealth in the developing world

Failure of other approaches

1.      Modernization

2.      Nationalization

3.      Marxism

4.      *Group efforts


5.      *East Asian Strategy/East Asian Miracle

Four Tigers (Mini-Dragons)

Their strategy

            Japan as Model

            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

*China and India using this model

*Deng Xiaoping

*Manmohan Singh

How far China and India have to go: the huge poverty levels there

*outward vs. inward approach to economics


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 USSR and Communism

            *Global consensus on capitalism

2. *Success of East Asian model

3. *Information/Technology Revolution


4. US not in decline; US system not in decline

5. Bottom Billion thesis

6. Next Convergence Idea

7. *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 Americas)

B. *APEC      

C. *European Union

            *Maastricht Treaty

            *Institutional structure


*Group of 8

*Group of 20



*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




Global Commons

Economic activity and environmental damage

rejection of slower economic growth or zero economic growth

sustainable development

The three debates: who vs. who

Climate Change

Greenhouse gases

Kyoto Protocol

Which nations contributed to greenhouse gases in the past?

Which nations will produce them in the future?

Intergovernmental Panel on Climate Change


Human Rights

*Universal Declaration of Human Rights

*Responsibility to Protect

*International Criminal Court

Universal Morality vs. Cultural Relativism

Where there is consensus

Where there is not consensus.



Terms from Friedman, The World Is Flat

*technology and globalization leveling the playing field (meaning of the world is flat)

*outsourcing to India

*how technology changes the nature of work

*a revolution in economics

*the aspect of speed – quickening the pace of change


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

            *China’s role

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