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24 Cards in this Set
- Front
- Back
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What are the four types of goods; |
- Rival goods create distribution problems requiringorganizational agreements for solutions -Non-excludable goods - Result from the negative externality of some actor's - Public Goods, non excludable (Private goods, club goods, public goods) |
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Concepts of free riding; |
Free-riders can enjoy the desired good without making anycontribution. |
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IMF - |
-85% majority rule -Executive Board (24 Members) determine the voter shares -5 vote holders and the 19 remaining seats - The big 5 is US Japan, Germany, France, and the UK China is coming soon. |
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Who are the Big five in the IMF; |
Us, China, Russia, Uk, France |
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Why do some countries have greater voter shares than others, |
- Shares are dictated according to the size of theircontribution to IMF. |
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IMF punishment is not credible; |
- whether conditionality is enforced - Must punish non compliance - Punishment for non compliance - IMF loans do not follow pure economic crisis (Need More transparency) |
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IMF conditionality; |
- Loan not given without conditions for compliance -Quid pro quo (Something for something -A loan in return for policy change - Examples; making fiscal austerity measures, implementingstructural adjustment programs, reducing corruption |
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UN decision making rules of the UN security council; |
- Each member has one vote, Procedural matters are decided by an affirmative` vote for nine members, dictated by 9 members and concurring votes of nine members. |
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Top permanent Un council members; |
Gabon, Zimbabwe, Ecuador, Yemen, Tanzania |
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Comparative Advantage; |
- the idea that countries shouldspecialize in producing what they are comparatively bettereven if other countries are absolutely better in that area |
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Consequences of Tariffs; |
- Domestic consumers end up paying more than without the tariff - Investors and workers in the widget are isolated from competition. - Other business suffer at the margain because fewer dollars are available to buy their goods and services |
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Predictions of the Hecksher-Ohlin Theorem, and ; |
1 A country will export goods that are intensive in its relativelyabundant factor.2 A country will import goods that are intensive in its relativelyscarce factor |
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Stolper Samuelson |
An increase in the relative price of a good will increase thereal return to the factor used intensively in that good, andreduce the real return to the other factor. |
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Dutch Disease; |
-Aid is free income, and this exogenous wealth compresses the recipientcountry’s production of tradable goods - Received 600+ billion dollars in aid but are poorer now than they were then -Corrupt officials |
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Why is foreign aid ineffective in some nondemocratic states. |
- plagued by accusations of corruption andlack of transparency. Poor rule of law. - Corruption is at an unpredictable scope. - Aid rarely reaches the poor and is rarelycost-effective. - huge aid flows to Africa have only rewarded incompetent despots andkleptocratic elites, - Western Military invention. |
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The Marshall Plan; |
- Success in the containment goal through foreign aid 13 billion in economic support, making strategic allies with the new nation-states in Africa and South Asia -The goals of the United States were to rebuild war-devastated regions, remove trade barriers, modernize industry, make Europe prosperous again |
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Two level games; |
-Domestic level - Puts pressure on the government to reach an agreement, build coalitions International- Should strike a bargain, barganing strategies should be applied. Satisfy your own needs |
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Domestic Agreement; |
Level 1; list of tentative agreement Level 2; groups discuss whether to ratify this agreement. |
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Two bargaining process; |
- Agreement should be ratified at level 2, "Win Set" Constituents show all possible level 1 agreements that would, |
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Decreasing my own win sets; |
tying hands, making the international issue sensitive to domestic constituents, making public promise. |
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Crisis bargaining; |
Consequences1 If the hawkish actors’ interests are aligned, the expectedprofits of war increases.2 War is possible under complete information.3 Leaders who expect high political or economic gains canstrike a better bargain than others. |
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What are the Criticisms against the NPT principles; |
1 Bias toward nuclear-weapon states2 No viable enforcement mechanisms3 Difficulties in detecting secret nuclear programs. |
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Collective Action Problem; |
Public goods are nonexcludable.Nonexcludability creates incentives to free-ride.Free-riders can enjoy the desired good without making anycontribution.When people free-ride, the desired good isunder-produced or not produced at all. |
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Goal of the IMF; |
1 Economic pillars of global stability 2 Preventing another global depression 3 Maintaining global economic stability (IMF) anddevelopment (World Bank) |
