pls160 test 3
Terms
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- _________ are intellectual descendents of _________
- realists, mercantilists
- Realists and mercantilists are the same i.r.t. the market in that...
- State wants to and can intervene in the market in pursuit of national interests
- Realists and mercantilists are the same i.r.t. states in that...
- Emphasis on strength and security to reduce vulnerability
- Realists and mercantilists are the same i.r.t. non-state actors in that...
- They don't matter
- Realists and mercantilists are the same i.r.t. production in that...
- Everything should be produced within the state
- Mercantilism
- Domestically produce as much as possible to reduce vulnerability and maximize wealth
- Mercantilists argue that states pursue...
- Relative gains
- Liberals argue that states pursue...
- Absolute gains
- What do mercantilists think about trade?
- Export, try not to import
- What do liberals think about the state in IPE?
- It may be important, but it shares the stage with some significant others
- What do liberals think about state power in IPE?
- Traditional forms are not always effective, because they are limited by interdependence
- What do liberals see the potential for in IPE?
- Harmony
- What do liberals think states pursue in IPE?
- Absolute gains
- What forms the basis of liberal theory in IPE?
- Private property and individual contracts
- What motivates individuals, according to liberals in IPE?
- Self-interest
- What do liberals think is good for states in IPE?
- International market and trade
- Autarky
- Economic self-sufficiency
- What does an autarky not do?
- Trade with the outside world
- The more self-sufficient a state is...
- ...the less vulnerable it is to economic coercion
- What is autarky the opposite of?
- Free trade
- What is free trade the opposite of?
- Autarky
- Liberals believe in what kind of trade setup?
- Free trade
- Unlike liberals, what do Marxists believe?
- Social harmony (absolute gains) can't be achieved across classes
- Unlike mercantilists, what do Marxists believe?
- States are not unitary actors
- Like realists, what do Marxists believe?
- You should be suspicious of "cooperative" economic arrangements between states, especially those at different stages of development
- In economic arrangements between states, who do realists believe benefits most?
- The most powerful states
- In economic arrangements between states, who do Marxists believe benefits most?
- International capitalist class
- What are the key alliances in IPE to Marxists?
- Rich owners of MNCs in various countries
- Actions or threats to disrupt economic exchange unless target state modifies behavior as demanded
- Economic coercion
- 2 types of economic coercion
- Economic warfare, sanctions
- 2 types of economic warfare
- Political isolation, use of military force
- Sanctions are usually...
- ...a ban on trade
- What are 2 examples of countries that the UN has sanctioned?
- South Africa, Iraq
- The costs imposed on an actor by external events
- Vulnerability
- What is vulnerability contingent on?
- A state's position in the system
- Who is the least vulnerable?
- The most powerful
- How quickly changes by one actor in one setting bring about changes in another, and how great the effects are
- Sensitivity
-
Asian financial crisis:
The currency contagion quickly spreads as many other countries see the effects - Sensitivity
-
Asian financial crisis:
Stock markets collapse in Asian countries, deep recession hits - Vulnerability
- What is the middle ground between realists and liberals?
- Geo-economics
- What do geo-economists think is important for state's military strength?
- Industrial and technological development
- What do geo-economists think are key elements of national interest?
- Domestic economic priorities
- How is geo-economics like realism/mercantilism?
- States are in perpetual competition
- How is geo-economics like liberalism?
- Warfare costs more, economics more important
- Sectors of society that benefit from spending on national defense
- Military industrial complex
- Follow-on imperative
- As one company stops producing a weapons, it gets a new weapons contract
- 2 market alternatives
- Command/control economy, free market
- An economic system in which decisions about goods and services are planned ahead of time
- Command economy
- Critics of command economy argue that...
- ...planners cannot detect demand with sufficient accuracy
- Controversial model of an idealized economy, wherein exchanges are "free" of all coercive measures
- Free market
- A situation in which markets do not efficiently organize production or allocate goods and services to consumers
- Market failure
- 2 main reasons that markets fail
- inadequate expression of costs or benefits in prices, sub-optimal market structure
- The set of arrangements whereby the gov’t assists certain industries (sometimes called “national championsâ€) that are deemed to be crucial to the nation’s economic strength
- Industrial policy
- What do liberals say about guns vs. butter?
- you need to provide for an economic infrastructure and a healthy, educated population
- What do realists say about guns vs. butter?
- you need guns to protect and create your butter
- What do Marxists say elites do with defense spending?
- Use it to stimulate the economy
- Liberals believe that a large defense budget...
- ...saps the nation's economic health
- Principles of economic interaction and organization that emphasize the importance of private ownership, free markets, and the unhampered flow of goods, capital, and labor both within and between national economies
- Economic liberalism
- Economic interactions that emphasize free markets, private property, and free flows of goods, labor, and capital across borders
- Economic liberalism
- Trade balance
- imports - exports
- If exports less than imports...
- ...no native industry developed
- A policy of restricting, but not eliminating, imports in an effort to protect the economic viability of domestic industries
- Protectionism
- Middle of spectrum of trade practices
- Protectionism
- Taxes or duties levied on an imported good in order to raise revenue or to regulate the flow of foreign goods into a country
- Tariffs
- 3 types of non-tariff barriers
- Quotas, boycott, embargo
- Control imports not through prices, but through the amount of goods permitted to enter a country from a specific source for a specific time period
- Quotas
- Stop sales of economic items to another state
- Embargo
- Cut the target state off from its markets
- Boycott
- -Principles of economic interaction and organization that emphasize the importance of private ownership, free markets, and the unhampered flow of goods, capital, and labor both within and between national economies
- Economic liberalism
- Taxes or duties levied on an imported food in order to raise revenue or to regulate the flow of foreign goods into a country
- Tariffs
- Cut off state’s supply of resources from outside
- Embargo
- If a good is supplied to any member of a group, it is supplied to all members of a group (indivisible)
- Jointness of supply
- If new members are added, the old members won’t receive a diminished amount
- Jointness of supply
- Can’t be withheld from members of the group
- Nonexclusiveness
- The complete set of rules that govern behavior in some specified area of international relations
- Regime
- What is something that could help overcome the free rider problem?
- Regime
- What is a positive aspect of a regime?
- Regularization of behavior, so creation of patterns
- Designed to help states manage their exchange rates, maintain their reserve currencies used as a common medium of exchange, and regulate the movement of international capital
- International monetary regime
- What did Bretton Woods create?
- A system of fixed exchange rates
- What did Bretton Woods create to maintain its other creation?
- IMF
- What was GATT based on?
- Free trade and nondiscrimination
- What did GATT create?
- WTO
- What was the central feature of the world trade regime?
- GATT
- Examples of regional economic integration
- EU, NAFTA
- What is the goal of regional economic integration
- Create larger domestic markets
- The goal of regional economic integration is to...
- ...create a single market out of many markets
- Are realists pro or anti regional economic integration?
- Pro
- Are liberals pro or anti regional economic integration?
- Anti
- Maastricht treath
- Created the Euro
- Currently how many members in EU?
- 25
- The snake
- Each European currency valued relative to another, all floated against dollar
- Pro of Euro
- Increase economic efficiency
- Con of Euro
- Surrender policy autonomy to common authority
- A grouping of national economies that impose a common set of tariffs on imports from countries outside the group
- customs union
- Government economic policy converges to what market dictates
- Harmonization
- Transnational relations
- interactions that bypass the governments of states and impact directly on their domestic environments
- What do socialists say about globalization?
- It is exploitation of poor by rich
- What do environmentalists say about globalization?
- Globalization is way of circumventing environmental laws
- What do labor unions say about globalization?
- Fear losing jobs to cheaper overseas labor
- Components of human development
- economic, social/political, human
- OECD
- the wealthy
- A perspective that attributes underdevelopment in the Global South to the features of traditional society, which will become transformed over time
- Modernization theory
- What is the disparity caused by in modernization theory?
- "traditional elements"
- What is the disparity caused by in dependency theory?
- "international structure"
- Periphery
- Has resources but no way to process them
- Core
- extracts resources from poorer states
- Dependence
- Only stronger power gains
- Interdependence
- Mutual gains
- Import Substitution Industrialization
- substituting domestically manufactured goods for imported ones
- G-77
- Underdeveloped countries trying to negotiate better trade with industrialized
- Economic arrangements more favorable to the South, including commodity price stabilization, development assistance, and debt relief
- NIEO
- A strategy of specializing in the production and export of select manufactured goods in the hopes that other industrial sectors will also benefit
- export-led industrialization
- The extension of very small loans to unemployed, poor entrepreneurs and others living in poverty who are not bankable
- micro-lending