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85 Cards in this Set
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IPE
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aka International political economy
study the politics of international economic activities. Have two approaches: merchantilsm and economic liberalism. |
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Merchantalism
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one approach of IPE
-generally shares with realism the belief that each state must protect its own interests at the expense of others, not relying on international organizations to create a framework for mutual gains. -believes that the importance of economic transactions lies in their implications for the military. Even though military power is generally not useful in economic negotiations, they believe that the outcome of economic negotiations matters for military power. -these ppl emphasize relative power. |
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Economic Liberalism
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-this is an alternative approach, it generally shares with liberal internationalism; a belief in the possibility of cooperation to realize common gains.
-it believes that by building international organizations, institutions, and norms states can mutually benefit from economic exchange. It matters little to liberals whether one state gains more or less than another, just whether the state's wealth is increasing in absolute terms. |
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Merchantalism and Economic liberalism
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both theories of economics and ideologies that shape state policies.
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Free trade
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-b/c of its benefits among countries, liberals disdain realists' obsession with international borders, b/c borders contstrain the maximum efficiency of exchange.
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Interdependence
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a political and not just an economic phenomenon.
-when two or more states are simultaneously dependent on each other. -refers less often to a bilateral mutual... than to a multilateral... in which each state depends on the political cooperation of most or all fo teh others to keep world markets operating efficiently. |
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Balance of Trade
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the value of a state's imports relative to its exports.
a state that imports more than it's exports have a postive... -a state that imports more than its exports has a negative... |
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Comparative Advantage
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In order to maximize the overall creation of wealth, each state should specialize in producing the goods for which it has this term and then trade for goods that another state produces best.
-japan: specialize in cars |
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Sanctions
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political interference in free markets is most explicit when governements apply this against economic interactions of certain kinds or between certain actors.
-enforcing this is always a difficult task, because participants have a financial incentive to break the sanctions through black markets or other means. is a form of the collective good problems |
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Autarky
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a obvious way to avoid becoming dependent on other states, especially for a weak state whose trading partners would tend to be more powerful., is to avoid trading and instead try to produce everything it needs to by itself.
aka self reliance this type of state pays a very high cost to produce goods for which it does not have a comparative advantage. (ex. China) |
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Protectionism
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protection of domestic industries from international competition.
May do this by some industries may lobby or give campaign contributions in order to win special tax breaks or subsidies. or some governments may protect industries considered vital to national security. may be motivated by a defensive effort to ward off predatory practices by foreighn states or companies. |
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Predatory and 'dumping'
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efforts to unfairly capture a large share of world markets.
'dumping' products in foreign markets at prices below the minimum neccessary to make a profit. |
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Tarriff
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aka duty
a tax imposed on certain types of imported goods, usually as a percentage of their value as they enter the country. they not only restrict imports but also can be an important source of state revenues. |
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non tarriff barriers
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discourgage imports
Imports can be limited by quotas. quotas are limits of how many goods of a certain kind can be imported; restricts the growth of imports. For ex. U.S puts quotas to restrict the number of Japanese made cars that could enter U.S in the 1980s) more complex barriers is to give subsidies to a domestic industry, which allow it to lower its prices without losing money. |
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World Trade Organization
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a global multilateral IGO that promotes, monitors, and adjudicates international trade.
shapes the overall expectations and practices of states regarding international trade. Successor to the GATT. |
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General Agreement on Tarriffs and Trade (GATT)
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created in 1947 to facilitate freer trade on a multilateral basis. More of a negotiating framework than an administrative institution. Did not actually regulate trade. Helped arbitrate trade disputes, clarifying the rules and helping states observe them. became the WTO in 1995.
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Most-favored nation (MFN)
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concept which says that trade restrictions imposed by a WTO member on its most-favored trading partner must be applied equally to all WTO members.
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Generalized System of Preferences (GSP)
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by which rich states give trade concessions to poor ones to help their economic development.
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Doha Round
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trade negotiations after recovering from Seattle in 2001, where trade ministers had a meeting in Doha, Qatar.
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North American Free Trade Agreement (NAFTA)
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U.S, canada, and mexico signed this in 1994
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Cartel
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an association of producers or consumers or both of a certain product
was formed to manipulate its price on the world market. very interesting form of trade regime. -coordinate limits on production by each member so as to lower the supply, relative to demand, of the good. |
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Organization of Petroleum Exporting Countries (OPEC)
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the most prominent cartel in the international economy.
-it's member states control hundreds of billions of dollars in oil exports annually -it illustrates the potential that a cartel creates for a collective goods problems. |
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Intellectual property rights
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a third contentious area of trade negotiations.
-are the rights of creators of books, films, computer software, and similar products to recieve royalties when their products are sold. |
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Service Sector
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trade issue because of the openess of the countries to trade in the service sector of the economy.
-includes many services, especially those concerning information, but the key focus in international negotiations is on banking, insurance, and related financial services. |
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Industrialization
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the use of energy to drive machinery and the accumulation of such machinery along with the products created by it.
Industrial Revolution started in great Britain in the 18th century |
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centrally planned economy
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aka command economy
-where political authorities set prices and decide on quotas for production and consumption of each commodity according to a long-term plan. was the standard for decades the standard in the communist states of the former Soviet Union, Eastern Europe, China, and several smaller countries. |
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transitional economies
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former Soviet republics and Eastern Europe is this...
-trying to make the change to a market-based economy connected to the world capitalist economy. |
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State-owned industries
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vital for the national economy
-such as oil production companies or national airlines. |
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Mixed economies
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contain both some government control and some private ownership, the economies of the industrialized West are often called this.
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gold standard
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world have not seen much of it but has developed an international monetary system divorced from any tangible medium such as precieous metals.
things such as gold and silver has become like other commodities with unpredictable fluctuations in price. |
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Hyperinflation
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extremely high, uncontrolled inflation more than 50% per month or 13,000 per year
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Hard currency
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is money that can be readily converted to leading world currencies (which now have relatively low inflation)
(ex. Chinese computer producer can export its products and receive payments in dollars, euros or other hard currency) |
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Reserves
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some states maintains reserves of hard currency.
national currencies are now backed by hard currency reserves instead of gold. have them proportionately to the size of their economies. |
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Fixed exchange rates
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a form of currency exchange.
here governments decide individually or jointly to establish official rates of exchange for their currencies |
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Floating Exchange rates
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now more common and are used for the world's major currencies.
-rates are determined by global currency markets in which private investors and governments alike buy adn sell currencies. |
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managed float system
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governement intervention to manage the otherwise free floating currency rates.
national governments periodically intervene in financial markets, buying and selling currencies in order to manipulate their value. |
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Devaluation
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a unilateral move to reduce the value of one's own currency by changing a fixed or official exchange rate.
-is a quick fix for financial problems in the short term but it can create new problems. causes losses to foreigners who hold one's currency , which reduces the trust ppl have in the currency. |
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Central bank
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use this to enforce self-discipline and enhance public trust in the value of money, these decisions are turned over to the central bank.
politicians appoint people to run the bank. In the U.S the federal reserve is the central bank |
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Discount rate
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FED (federal reserve) exercise its power by setting the discount rates
-it is the interest rate the government charges when it loans money to private banks, -this rate controls how fast money is injected into the economy. |
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Bretton Woods system
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main international economic instituitions
was adopted at a conference of the winning states in 1944 at Bretton Woods, New Hampshire. it established the international Bank for Reconstruction and Development aka the world bank. |
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World Bank
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International Bank for Reconstruction and Development.
-a source of loans to reconstruct the European economies after the war and to help states through future financial difficulties. IMF closely linked with the World Bank. |
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International Monetary fund (IMF)
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coordinates international currency exchange, the balance of international payments and national accounts... closely linked with the world bank. Both pillars of teh international financial system.
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Special Drawing Right (SDR)
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IMF created a new world currency known as the SDR after 1971.
-been called 'paper gold' because it is created in limited amounts by the IMF. -is held as a hard currency reserve by the states' central banks and can be exchanged for various international currencies. Today is the closes thing to a world currency that exists, but it cannot buy goods only currencies. |
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balance of payments
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like the state's financial statement of a company: summarizes all the flows of money into and out of the country.
3 types of international transactions go into balance of payments. Current account, (the balance of trade) changes in foreign exchange reserves (make the national accounts balance) and capital flows (foreign investments in and by a country). |
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Keynesian Economics
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a ways to resolve international debt relative to government spending that is relative to taxation.
under this governments sometimes spend more on programs thatn they accrue in tax revenue. A strategy that has been adopted by man G8 countries in the 2009 financial crisis. |
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fiscal policy
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government decisions about spending and taxations.
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monetary policy
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decisions about printing and circulating money.
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fiscal and monetary policy
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two main tools available for government to manage an economy.
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Multinational corporations (MNCs)
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are companies based in one state with affiliated branches or subsidaries operating in other states..
-are increasingly powerful. -no actual definition but is a large corporation that operates on a worldwide basis in many countries simultaneously wit fixed facilities and employees in each. |
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International norms
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the expectations actors hold about normal international relations.
-the power of it may vary when different states or world regions hold different expectations of what is normal. |
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International organizations (IO's)
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include IGO such as UN and NGOs such as the international committee of the Red Cross.
-have grown fivefold over time to about 400 independent IGOs and ten thousands of NGOs. |
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UN Charter
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based on principles that states are equal under international law; that states have full sovereignty over their own affairs; that states should have full independence and territorial integrity.
lays out the structure of the UN and the methods by which it operates. |
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UN Genreal Assembly
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where representatives of all states sit together in a huge room, listen to speeches and pass resolutions.
-coordinates a variety of development programs and other autonomous agencies through the Economic and Social Council. |
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UN Security Council
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five great powers and ten rotating member states make decisions about international peace and security.
-has responsibility for the dispatch of peace keeping forces to trouble spots. |
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UN Secretariat (executive branch)
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led by the secretary-general of the UN. Where the adminstration of the UN takes place through it.
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Peacebuilding
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expanded operations, especially when they entail the use of force rather than relying on the consent of all parties...
Peace building commission was created in 2005 by the UN to coordinate reconstruction, institution building, and economic recovery efforts in postwar societies after peacekeeping missions end. |
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Peacekeepers
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actually perform two different functions: observing and peacekeeping
-Observers: are unarmed military officers sent to a conflict area in small numbers simply to watch what happens and report back to the UN. Can monitor various aspects of a country's situation. Peacekeeping: carried out by lightly armed soldiers. often try to negotiate with the military officers of both sides. |
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The UN Conference on Trade and Development
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negotiates international trade agreements to stablize commodity prices and promote development.
has little leverage to promote their own interests in trade. |
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World Health Organizations (WHO)
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provides assistance to improve conditions and conduct major immunization campaigns in poor countries.
led one of the great public health victories of all times, the worldwide smallpox. today is the leading player in the worldwide fight to control AIDs |
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European Union (EU)
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was created after WWII and has developed since.
Has gone through several waves of expansion in its scope, membership and mission over the past 50 years. |
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International integration
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refers to the process by which supranational institutions replace national ones.
most successful example is the EU. |
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Neofuntionalism
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a modification of functional theory by IR scholars to explain these developments.
Neofunctionalists argue that economic intergration generates a political dynamic that derives integration further. |
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Security community
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Amongst the states of Western Europe created this in low expectation of violence in which feelings could grow.
Prime example of the identity principle in IR. |
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Treaty of Rome
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In 1957, six states created two new organizations.Euratom and EEC. One extended the coal and steel idea into a new realm, atomic energy.
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Eratom
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European Atomic Energy Community, was formed to coordinate nuclear power development by pooling research, investment, and management.
today it has a expanded membership and continues to work. |
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free trade area
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lifting tarriffs and restrictions on the movement of goods across EEC borders. EFTA is the extended free trade area today associated with EU.
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custom unions
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participating states adopt a unified set of tariffs on goods coming in from outside the free trade area.
-w/o these each type of good could be imported into the state with the lowest tariff and ten reexported to the other states in the free trade area. |
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Common market
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means that in addition to customs unions, member states allow labor and capital to flow freely across borders.
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Common Agricultural Policy )CAP
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led to recurrent conflicts among member states and tensions between nationalism and regionalism.
-was based on the principle that a subsidy extended to farmers in any member state should be extended to farmers in all EU countries. |
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European Commission
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at EU headquarters in Brussels, Belgium.
has 27 individual members one from each state who are chosen for 4 year renewable terms role is to identify problems and propose solutions to the Council of the EU. |
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Council of the European Union
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commissions reports to and implements polices of this union.
-a meeting of the relevant ministers of each member state. the formal structure reflects states' resistance to yeilding soverignty. has weighted voting system based on each state's population. |
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European Parliament
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falls somewhat short ofa true legislature passing laws for all of Europe.
-parliament shares power with council under a 'co-decision procedure' |
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European Court of Justice
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in Luxemburg adjudicates disputes on matters covered by the Treaty of Rome which covers many issues.
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Maastricht Treaty
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signed in Dutch city of Maastricht in 1992 renamed the EC as the EU and committed it to further progress in three main areas.
1. was monetary union, 2. second set of changes regarding justice and home affairs created a European polic agency. 3. Maastricht political and military integration is even more controversial. commits Europeans states to work toward a common foriegn policy with a goal of eventually establishing a joint military force. |
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World Court
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formally called 'international court of Justice'
justice is limited and its caseload is light. branch of the UN Only states not individuals or businesses can sue or be sued here. Has 15 judges elected for 9 year terms by a majority. great weakness is that states have not agreed in comprehensive way to subject themselves to its jurisdiction or obey its decisions. |
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Diplomatic Recognition
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the status of embassies and of an ambassador as an official state representative is explicitly defined
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Diplomatic immunity
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diplomats enjoy this even when they leave the embassy ground.
this right to travel varies one country to another; -b/c of it activities are commonly conducted through the diplomatic corps, out of an embassy. |
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Just Wars
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they are legal
To begin with the laws of war, international laws distinguishes just wars from wars of aggression. |
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Human Rights
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the rights of human beings against certain abuses of their own governments.
One of newest areas of international law |
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Universal Declaration of Human Rights
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does not have the force of international law, but it sets forth international norms regarding behavior by governments toward their own citizens and foreigners alike.
UN General Assembly adopted what is considered the core international document concerning human rights. |
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Responsibility to protect
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which is a concept that holds governments worldwide must act to save civilians from genocide or crimes against humanity perpetrated or allowed by their own governments.
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War crimes
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large scale abuses of human rights often occur during war, serious violations of this kind are considered war crimes.
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Crimes against humanity
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conceived as inhumane acts and persecutions against civilians on a vast scale in the pursuit of unjust ends.
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International Criminal Court
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hears cases of genocide, war crimes, and crimes against humanity from anywhere in the world.
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International Committee of the Red Cross
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provides practical support such as medical care, food, and letters from home to civilians caught in wars and to POWs
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