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28 Cards in this Set
- Front
- Back
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1) What are the similarities and differences between Marxism, dependency theory, and world-systems theory?
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Marxists believe bourgeoisie promote globilzation because it increases their profits and gives them dominance over the proletariat… believe that they result from “historically specific impulses”
Dependency = rejects the optimism of liberal modernization theory and argues that advanced capitalist states either nderdevelop LDCs or prevent them from achieving autonomous development… based on Marxism and Latin American Structuralism… see central problem as foreign control focus more on “relations of exchange” than on relations of production between classes World Systems Theory- focuses on the entire world system including relationships among core states and the rise and decline of hegemons… world empires which have common political system and world economies |
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2) What are the main features of Gramscian and neoGramscian analysis and how does it differ from classical Marxism?
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Gramscians view hegemony in terms of class… commited to political action and called for building a counterhegemony an alternative view of society to challenge capitalism.. like classical Marxists, Gramsci committed to political action
Neo Gramscian= preooccuppied with capitalist hegemony do not expolore the problems of dominance and subordination in other systems such as socialism… |
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3) How does consturcitvist approach differ from the rationalist approach to IPE?
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Questions the rationalism and materialism of the traditional IPE perspectives… interested in udnerstadning how our sense of identity and our interests become established as social facts… do not reject material reality; hosever, they note that the meaning and construction of material reality depends on ideas and interpretation.. umans generate knowledge and meaning from an interaction between their experiences and their ideas.
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4) In what ways do the mainstream IPE perspective not adequately address gender issues, and how do you think gender issues should be dealt with in IPE?
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Feminist schoalrs argue that GDP reflects downgrading of the role of women…. View gender mainly as a construvitivs concept, which can be defined as a “structural feature of social life” that “shapes how public sphere as a wage earners, womden are associated with the private sphere as housewives, mothers and caregivers
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5) What are the differences between realist, liberal, and critical environmental theoriists What are the differences between liberal and critical constructivists? How significant are the differences among feminist theorists?
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Realists have viewed environmental issues as peripheral to the main concerns with nat’l power and security… energy security is important
Liberals optimistic about peopls’ ability to improve environment conditions through progress in science and technology… orthodox and inverventionists Critical environmental theorists economic growth causes global environmental problems |
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6) What is the difference between public goods, private goods, club goods, and common property goods? In what way do common property goods present a collective action problem?
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Public = nonexcludable and nonrival
Private = excludable and rival Club= excludable not not rival.. cable tv Common property goods= rival but nonexcludable.. air water, fish… present a collective action problem because we see little benefit as individuals from conserving the resource; but we all lose when its depleted |
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difference in historical materialists, intrumental marxism, and structural marxism
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historical materialists view economic relations as basically conflictual, with one part of society exploiting another... favor redistribution of power and wealthy but unlike realists they do not believe that such a redistribution can occur with unfettered capitalism
intrumental marxism- sees gov't as responding in a rather passive manner to economic pressures structural marxism = sees state as relatively autonomous from direct political pressure on the capitalist class |
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1) How was liberal trade theory evolved over time?
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Idea of Smith and Ricardo still central to defense of free trade ( absolute advantage, comparative advantage)… Hecskscher-Ohlin theory states that a state has a comparative advantage in producing goods that involve intensive use of its most abundant facot of production… Stolper –Samuelson theory, trade liberalization benefits abundantly endowed factors of production and hurts porrly endowed factors…
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2) How do realist concepts of competitive advantage and strategic trade theory differ from the liberal concept of comparative advantage? How do historical materialists view the liberal free trade ideas and why?
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Strategic trade theory focuses on astate’s creation of comparative advantage through industrial targeting… liberals see the risks of strategic trade policy as outweighting the benefits, when individual rationality causes a state to increase its competitive advantage as a reslut
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3) Is the GATT/WTO most-favored-nation principle compatible with specific reciprocity, diffuse reciprocity, and the development principle? Explain.
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Reciprocity principle stipulates tat a state benefiting from another state’s trade concessions should provide roughly equal benefit in return. .. limits free riding under the unconditiaonal MFN principle.... ensures tariff negotiations reflect the interests of the major trading powers. WTO members with largest domestic markets and highest trade volumes have the most leverage because thtye have the greatest reciprocal concessions to offer… specific reciprocity refers to simulataneous exchange of strictly equivalent benefits or obligations… deffiuse reciprocity does not require an immediate response to an action; instead it imposes a more general obligation on the recipient for repayment in the future… diffuse reciprocity can coexist with uncondiational MFN treatment
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4) Why are safeguards an essential part of most trade agreements/ What are countervailing and antidumping duties and what must a country demonstrate to impose them?
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Safeguards permit members to temporarily raise a duty above the maximum tariff binding to limit imports that may harm domestic producersalso permit a state to temporarily increase protectionism without withdrawing entirely from a trade agreement
Antidumping duties… permits a state to impose if foreighn goods are dumped and the dumping causes or threatens material injurty to its domestic porducuers Countervailing duties- response to a subsidies provided by foreign gov’t. wto permits a state to impose CVDs if another state provides trade distoriting subsisides that produce or threaten material injurty to domestic producers… state may impose ADDs and CVDs as a legitmate response to unfair foreign trade practices but it may also use them to justify protectionist trade policies |
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5) How was the South’s role in the GATT/WTO changed over time? Do you think that it is meaningful to group emerging economies such as China, India, and Brazil together with LLDCs- all as part of the South-today?
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1940s to 1960s LDCs had limited inovlement in GTT to 1970s increased their GATT membership and sought special treatment to 1980s north south confrontation increased and LDCs demanded a new international economic order to 1995 LDCs were more willing to accept GATT’s liberal economic principles to present LDCs were disillusioned with Uruguay Round and demand changes in the Doha Round
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6) What were the terms of China’s admission to the WTO and has its admission been good for China and the WTO?W Why is Russia still not a WTO member? What are some of China’s and Russia’s trade conflicts with the West today?
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China had to liberalize its economy, china’s status as an LDC (wanted special treatment), and chian’s past record in agreed to improve protection of intellectual property
Russia initially delayed because of its declining economic conditions… second Russia’s domestic policies and capacities to conclude an agreement… third policies of the major trading nations.. key energy supplier |
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7) How much priority have GATT and the WTO given to the environment? Is free trade compatible with protection of the environment?
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GATT/WTO gives priority to trade over entironemental goals, but there has been some change over time… orthodox liberals believe free trade based on comp advantage will have positive effects on environment… green see freer trade as a cause of global environmental problems..
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8) What are the similarities and differences between GATT and the WTO? What are the competing explanations for the Doha Round problems, and which explanation do you think are more plausible?
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GATT designed to deal mainly with trade in tangible goods, but this coverage proved to be too narrow.. TWO addressing additional areas such as services, intellectual property, foreign investment, and the environment, which are closely intertwined with trade issues … realists attribute Doha Round problems to the growing North-South struggle, in which the south seeks more wealth and power in global trade regime
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What is an optimum currency area
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maximizes the benefits of using a common currency, has certain characteristics: it is subject to common economic shocks, has a high degree of labor mobility and has a tax system that transfers resources from strong to weak economic areas
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What determines whether the dollar will continue its dominance?
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position of US financial markets, the level of confidence in the US dollar, and the importance of US transactional networks
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What are sovereign wealth funds (SWF)
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gov't investment funds, funded by foreign currency reserves but managed separately from official currency reserves... emerging economies have used SWFs to buy stakes in Western companies and invest in areas that will reduce the effect of volatile com oddity prices on their revenues and balance of payments
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What two fundamental tensions did Bretton Woods deal with?
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First lay between the imperatives of domestic macro stability and growth, and adherence to a circumscribed but liberal international trading order, that is, between the domestic and international lessons of the Great Depression(countries had to balance their international pledge to maintain a fixed exchange rate against a simultaneous promise to local firms and workers that gov'ts would print as much money as was needed to maintain full employment) 2nd. de jury cooperate structure and a de facto fundamental asymmetry between the US and the rest of the world.
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How did the Bretton Woods System break down
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Two US decisions... US never imposed comprehensive capital control like those in most of the Euro Japenese economies because US investors could gain higher returns overseas capital tended to be leaked out of the US.. US consciously decided to let exchange rates float in the belief that dollar depreciation would advantageously position US manufacturers in world market... yo yo of dep/app eroded BWOOds
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What happened in Phase one of BWOODs 1947-1960
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US unilaterally ran world's monetary system... other countries set currency's exchange rate by reference to dollar... US dollar had confidence and liquidity
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Part Two Bretton woods 1960 to 1971 (de facto) or 1975 (de jure)
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european economies abandon currency control... Japanese too thus tension between liquidity and confidence merged Triffin Paradox.... dollar started speculate attacks... De facto two tier gold market and German promise amounted to a US default on its promised to back up dollars with gold...
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Phase 3 dollar yo yos u 1971 to 1975 (de jure?)
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inflation rates reached the average level in Europe and US ran its first trade deficit in merchandise goods... BWOODs murdered by Nixon in 1971 buried second amendment to IMF's charter in 11975... legalized floating exchange rate... but rates had been floating de facto since 1971... opened door to US efforts to manipulate the dollar's exchange rate in pursuit of more manufactured goods exports... Ford/Carter deflated currency to export but Carter reflated economy after 1973 oil shock first global yo yo which widened US trade defici and flooded world with US dollar... yo yo #2 Reagan (look up or ask)
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how did the GATT form and what three principles does the gATT settle trade disputes and in regulating trade practices
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Congress i 1934 passed Smoot Hawly hoping to expand exports, Congress passed RTAA but Congress did not intend to delegate authority to anonymous international bureaucrats at the ITO rather than a president subject to political pressures and horse trading... Congress refused to ratify the ITO in 1948... instead one component of the original ITO proposal, GATT, merged as an ad hoc regulatory institution for international trade in manufactured goods...
1. transparency and trade barrier reduction 2. nondiscrimination: 3. reciprocity : multilateral talks arranged mutual tariff reductions ... limits free riding permitted more free trade in manufactures, but generated powerful protectionist pressures as producers threatened by comp imports used political, rather than economic talent to protect their market share... GTT blocking use of tariffs, states responded by using quantitative limits, like VERs, to slow flow imports |
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What was the Farm Bill of 2002?
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Critics of U.S. agricultural policy claim that it may be in violation of World Trade Organization agreements, asserting that domestic subsidies may be considered to be a non-tariff trade barrier. Others, including the Cato Institute's Center for Trade Policy Studies, the Union of Concerned Scientists, the Iowa Corn Growers Association, and Oxfam America, argue that subsidizing domestic grains leads to overproduction that is harmful both for farmers and for the general public. They claim that subsidies depress market prices while increasing land values. Many farmers do not own their land, and as a result, the subsidies they receive are capitalized into the value of the land they farm, and therefore provide little benefit to the farmers themselves.
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What is the difference between absolute and competitive advantage?
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absolute = in which all states specialize in the goods they produce best and trade with each other...
comparative = raicardo theory trade is beneficial even in the absence of absolute advantage... the cost of producing less of one produce in order to produce more of another product (opport. cost) |
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How was the WTO formed?
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1995 WTO replaced GATT as the main global trade organization... WTO is a formal, legal constituted organization like the IMF and World Bank... GATT reverted to just agreement ifor trade in goods, WTO oversees along with several new treaties negotiated during the Uruguay Round... highest authority is Ministerial Conference which includes all members and can make decisions on all matters under the multilateral trade agreement...
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What is the LDC Group of 20s
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led by Brazil, China and India has called for an end to EU and US agricultural export subsidies and for lower agricultural import barriers in Japan, Canada and other countries
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