IPE Exam Flashcards
(117 cards)
1
Q
What Liberalism emphasizes?
A
Interdependence, individual, democracy and institutions
2
Q
What are two feature of liberalism?
A
Invisible hand and laissez faire.
laissez faire: let do
3
Q
What is the purpose of Mutual gains of trade of liberalism?
A
Leading to peace
4
Q
What liberalism enhance?
A
Aggregate social welfare
aggregate: form or group into a class or cluster.
5
Q
Who are the famous people of liberalism?
A
Smith, Ricardo, JS Mill, Kant, Friden
6
Q
What Marxism emphasizes?
Marxism: the political and economic theories of Karl Marx and Friedrich Engels, later developed by their followers to form the basis of communism.
A
On class esp. capitalist class, and class struggle, exploitative interdependence.
exploitative: making use of a situation or treating others unfairly in order to gain an advantage or benefit.
7
Q
What the means of production sharp of Marxism?
A
Society, labour theory of value
8
Q
What capitalism reads to?
A
under consumption, declining rate of profit, class conflict, repeated collapses and eventual revolution.
9
Q
What Marxism promote?
A
equitable distribution of wealth and income
10
Q
Who is a famous person of Marxism?
A
Keynes
11
Q
What economic policy change affected by?
A
Interests, Institutions, Ideas
12
Q
Explain the affect of Interests.
A
where do economic policy preferences of groups in society come from. Goals and policy objectives
13
Q
Explain the affect of institutions.
A
How political institutions aggregate, reconcile, and ultimately transform competing demands into economic policies in a particular international system. Rules of the game
14
Q
what is power of Mercantilism/Economic nationalism?
Mercantilism: the economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, which a government should encourage by means of protectionism.
A
Primacy of state, national interest, wealth
15
Q
What is trade?
A
Economic and political causes of and effect on (interest rate?)
16
Q
What is Dilemma?
A
Where is the economic choice being made and why? (Optional decision is rarely taken)
17
Q
Why actors are not rational?
A
They have conflicting values
18
Q
Explain about ideas
A
Identities, legacies, mental models that provide a coherent set of beliefs, values
Legacy: a gift of personal property by will
coherent: sticking together;
belief: any cognitive content held as true
19
Q
Why Power and Process are nitty gritty?
Nitty gritty: Basic component
A
Power influences policy outcome but process matters
20
Q
What is scarcity?
A
A situation in which the amount of something actually available would not be sufficient to satisfy the desire for it, if it were provided free of charge
Example: Clean air - energy policy
EU-discuss
21
Q
What is the difference between a shortage and scarcity?
A
A shortage can be temporary or long-term, but scarcity always exist.
22
Q
What are factors?
A
Land, Labour, Capital (human capital and physical capital)
23
Q
What are factors of production? (Land and Labour)
A
Land- natural resources
Labour- paid affords
24
Q
What are factors of production? (Capital)
A
Capital- human made resources used to create other goods.
Physical Capital- capital goods used to produce other goods
Human Capital- knowledge, skills
25
What was three failures which economists contributed to the financial crisis?
Failure of financial globalization
Failure of ideology of liberalization (Washington consensus)
Failure of institutions
26
What causes financial crisis?
* Recession- at least 2 consecutive quarters of falling GDP
* Sub-prime mortgage
* Housing boom and default
* Banks in trouble- Lehman Brothers
* spread globally
* Bail outs- too big to fail
27
Explain domestic imbalances
* Consumer boom
* Saving and spending
* Cheap credit
* Subprime mortgage market collapse
* Lack of regulation
28
Explain international imbalances
* Finance without borders
* International capital flows- 1970’s onwards
* No regulator
* International Financial Management
29
What increased internationalisation creates?
Bigger political conflict and welfare distributional questions
30
What more conflict at international level means?
Need for better and more regulation at International level
31
What scarves allocation of resources?
Dilemmas over values in distributing
32
Who are multiple actors?
Global civil society and business
| Nom- state actors
33
What are globalization backlash?
* Social tensions
* Nationalism
* Escape clauses
* Financial instability
* Crisis of institutions
* Failure of financial globalization
* Disappointment of Washington consensus
34
What is social embedded ideas?
embedded: put into a surrounded whole
Institutions must be embedded in a normative system;
Or how ideas become embedded in institutions
35
What is socialization?
Pro-norm behavior
36
What does this term “gains from trade” mean?
Liberalism
37
What are impediments to trade?
Distance, barriers, borders
38
When a perfect competitive economy is allocative efficiency?
Since it (a competitive economy) operates where price equals marginal cost
marginal: at or constituting a border or edge;
39
What is basic function of government?
To protect society from violence, injustice
Framework of law and border
Well defined and enforced property rights
40
What government should not do?
Open borders to trade and capital (openness) have failed to always deliver promised goods
41
What governments will use and why?
Subsidies
To address distortions and correct them
42
What governments should do?
* influence the rate of economic growth
* achieve some standard of equality
* stabilize the economy against income and price level fluctuations
* Protect individuals from others and from themselves.
43
Why do governments choose policy coordination at a level above the nation state?
Discuss with regards to trade
Governments will seek to tie their hands with international regulation
44
Why liberalize?
Gains from trade, resisting protectionism
protectionism: the policy of imposing duties or quotas on imports in order to protect home industries from overseas competition
45
Why do nations willingly seek international cooperation?
Form of external leverage on domestic change
Expecting gain vis a vis other states- reciprocity
vis: power in Latin
reciprocity: a relation of mutual dependence or action or influence
46
What is the reward of “domestic and international coordination “?
Neoliberal institutionalism theory
47
What are anchors and commitments?
commitment: an engagement by contract involving financial obligation;
Costs and benefits of delegation
Efficiency vs. accountability
Trust of people towards elites
Trust of states towards other states/organizations
delegation: a group of representatives
48
What is social influence?
Punishment and rewards (shame and status Iran/Korea); pro-norm behavior
49
What should be ratified by domestic forces?
International agreements
50
What the ratification dimension brings?
In the relationship between the market and democracy
51
What is the key ingredient of accountability and how to work?
Legitimization is the key ingredient in long term social support and thus is embedding the norms into political culture
52
Line up domestic decision-making sequence
```
1 Identifying the Lead Department
2 Consultation, both External and Internal
3 Political decision
4 Democratic Legitimization
5 The Negotiation itself
6 Ratification
```
53
What is identifying Lead Department?
Lead Department- Conducts institutional negotiation; answers in legislature; Bears cost on budget
Usually not the foreign minister
54
What is external and internal consultation?
Consultation with outside bodies
Business firms and organizations; NGOs; Academics and experts: other public bodies, e.g. regulators
Inter-departmental consultation:
Agreed view sought, usually in meetings;
other departments have own instincts and pressures;
All departments should defend common position
55
What is political decision?
Ministers endorse officials’ agreement
Where no agreement, ministers settle disputes
Head of government acts as arbiter;
Growing practice of ministral initiative
endorse: give support or one's approval to;
dispute: coming into conflict with
arbiter: someone chosen to judge and decide a disputed issue;
56
What is democratic legitimization?
legitimization: Make legitimate.
Ministers report political decision to legislature, seek endorsement
Greater transparency and scope for media
Outside forces try to influence legislature and media too
transparency; the quality of being clear and transparent
57
What is negotiation itself?
Negotiators in touch with domestic process
Iteration of earlier stages
58
What is ratification of the agreement?
Lead department confirms official consensus and political authority
Report to parliament, with legislation if needed
Negotiators take precautions against rejections
precaution: the trait of practicing caution in advance
59
What are levels of two-level games?
Negotiation phrase
Ratification phrase
60
What is negotiation phrase?
Negotiators reach a tentative agreement (level 1)
61
What is Ratification phrase?
domestic constituents decide whether to approve or veto that agreement (level2)
constituent: people who have right of election
veto: a vote that blocks a decision
62
As for domestic “win-set”, what is “ratifiers”?
Whoever can veto international agreement
ex) cabinet, parliament, voter
cabinet: persons appointed by a head of state to head executive departments of government and act as official advisers
63
As for domestic “win-set”, what is “rain-set”?
The set of all possible agreements reached at level Ⅰ(international) that could obtain ratification at level Ⅱ(domestic)
64
What are déterminants of win-sets?
Preferences of domestic groups
Domestic institutions- access to political decision-making; Ratification procedures
Negotiators’ strategies
procedure: a particular course of action intended to achieve a result;
65
As for Stolper-Samuelson model, what do countries differ?
As to the relative abundance and scarcity of factors of production (land, labour, Capital)
66
As for Stolper-Samuelson model, what trade increases?
The incomes of the owners of relatively abundant factors
67
As for Stolper-Samuelson model, what trade reduces?
The incomes of the owners of relatively scarce factors
68
As for Stolper-Samuelson model, what owners should support?
Owners of relatively abundant factors should support free trade
Owners of scarce factors should support protectionism
69
As for Stolper-Samuelson model, what capitalists and workers in capital-rich country should be?
Capitalists should be pro-trade
Workers should be anti-trade
70
As for Stolper-Samuelson model, what capitalists and workers in labour-rich country should be?
Capitalists should be anti-trade
workers should be pro-trade
71
According to specific factors model, who are pro-trade?
Owners and employees of export industry
72
According to specific factors model, who should support protectionism?
Owners and employees of industries competing with imports
73
Line up institutions: preferences into policies
Franchise
Electoral systems
Non-formal access mechanisms and resources (ex. campaign finance)
Political parties
Legislative-executive relations
Role of civil servants
74
In the case negotiators’ strategies with no change in actual win-sets, what happen internationally?
Negotiators will tend to misrepresent their respective win sets as more constraining than they are.
constrain: force; take under control
75
In the case negotiators’ strategies with no change in actual win-sets, what happen domestically?
as long as she remains within the domestic win-set, the negotiator has much influence on the precise terms of agreements.
precise: sharply exact or accurate or delimited;
76
What regulations directs?
Patterns and volumes of trade
77
What legal agreements also subject to?
Issues of enforcement
78
What is the feature of (so) called market access?
It is harder to achieve than signing international agreement
79
In international trade, what the state has to do?
Has to fill the void where the market cannot take care of itself
80
In international trade, what the state do?
Referee and regulate market
referee: to judge
81
In international trade, what create a need for institutions?
Externalities and transaction costs of the market
externality: a consequence of an industrial or commercial activity which affects other parties without this being reflected in market prices, such as the pollination of surrounding crops by bees kept for honey.
transaction: the act of transacting within or between groups;
82
In international trade, what are features of institutions?
National and international
Create commitment
commitment: an engagement by contract involving financial obligation;
83
In international trade, what interests create?
Institutions but are also bound by them
84
In international trade, what ideology affects?
Filling the void where the market cannot take care of itself
Referee and regulate market
Externalities and transaction costs of the market create a need for institutions
Institutions are national and international
Institutions create commitment
Interests create but are also bound by them
85
Line up 4 things how a state to globalization is determined by
Structural position of state
Nature of its political system (state-centered and institutional approaches)
Institutions of special interests
Ideas and public opinion
86
What is the state?
Unified set of institutions
Control over a given territory
Makes and enforces collectively bonding decisions
Monopoly over the use of force
Seeks sovereignty
Decides citizenship
87
What do create interests?
Position in international global economy-structure
Domestic politics
88
As for openness and interests, what causes external shock?
Changes in international economic conditions
89
What openness changes?
Aggregate national interest (macro)
Individual perfection of domestic actors (micro)
90
What matters new coalitions form, new interests?
State’s position in international economy
91
What new coalitions form, new interests affected by?
Institutions on national and international level
92
What is openness and interests consequence of macroeconomic performance?
Welfare gains and losses
93
What is openness and interests consequence of microeconomic performance?
Distribution of winners and losers, conflict
94
What government responds though?
policy reform and international change
95
As for openness and interests, what government sometimes uses and what is the purpose?
International leverage to pursue domestic objectives, the pursuing international cooperation
leverage: strategic advantage; power to act effectively;
96
What are matter of openness and interests?
Creditable commitment
97
How do we pursue economic policy reform?
Domestically and through international cooperation
98
Most importantly, what openness and globalization create?
Interests by creating winners and losers
99
Most importantly, what the winners and losers created by interests do?
Get into conflict with each other over how to distribute the pie
100
What government/the state has to do?
Address both winners and losers in trying to distribute the scarce resources
101
What does often outweigh the rational economic assumptions?
The politics
102
In interest: society centered approaches, What is the feature of world markets?
A transmission belt to domestic coalition
transmission: the fraction of radiant energy that passes through a substance
103
In interest: society centered approaches, what agency captures?
Pressure groups politics
104
In interest: society centered approaches, what globalization changes?
Balance of powers between interests groups.
105
In interest: society centered approaches, what free trade and capital mobility (openness) create?
Welfare gains and losses some groups
106
What economic says?
People/actors are rational
People have well formed performance
People are maximizers
People maximize benefit, optimize
People are egoistic and international
107
To sum up what economics says, what should be easy?
To model people’s economic and political preferences; as well as predict future economic policies
108
the addition of political analysis, what we have?
To economic preferences, we have political institutions
Also have multiple values, cultures, ideologies
109
What is institutions?
Represents interests
Political system
Model of change
110
As for institutions’ definitions, what many institutions likely to have?
The character of public good
111
What is “supply of institutions”?
It is generated by the market mechanism
112
What the “supply of institutions” left to itself?
It is unlikely to correspond to the society efficient level
correspond: take the place of or be parallel or equivalent to;
113
As for institutions’ definitions, what there is evidently?
A role of the state both in creating institutions which the market does not provide and regulating in the public interest those which it is
114
What is typical institutions? (1)
Private property light rights and contracts
contract: a binding agreement between two or more persons that is enforceable by law
115
What is typical institutions? (2)
Banks and other financial markets: existence, functioning and regulation
Reliable access to credit on reasonable terms
Bankruptcy/liquidation policy in place to facilitate orderly exit
116
What is typical institutions? (3)
Labour market institutions: social policy and the social safety net
117
What is liberal states?
How states behave depends on how they are internally constituted
Core features of representative democracy as their impact on economic policy
Free elected government
Representative
Flourishing civil society
Human rights
Free market
Private property and protection of rights
Formal/procedural vs. participatory democracy
Respect for international law
