Review Session Notes

Question 1

Rule of reason vs. Per Se

Answer 1

Nature of intervention
1. Per se: so obvious that the only defense is to claim you didnt do it

2. rule of reason
   - act is evaluated on merits

Question 2

Trade and monopoly

Answer 2

increasing trade provides alternative to customers,
**less worried about domestic monopoly

depends what view of monopoly you take.
ie. chicago, monopoly is fine

Question 3

Diamond model components

Answer 3

1. Firm strategy, structure and rivalry
2. demand conditions
3. factor conditions
4. related and support

Side parts:

1. chance
2. government

Question 4

Diamond model

Answer 4

network of suppliers, customers put pressure on firms to be successful

Question 5

endogenous protection theory

Answer 5

• less legitimate
• consider those that:

1. pay lots of taxes
2. geographic concentration
3. political dispersion

Question 6

conditions of strategic trade policy

Answer 6

1. spill over:
   - concentration of resources leads to benefits that accrue to society

needs to be domestic and absorbable

2. linkage
   - supply chain relationships

Question 7

Flak Examples

Answer 7

• constrains what people can say in the first place
• companies can threaten to sue, retractions, some large companies may have less?
• overplaying: media is serving function that supports vested interests

Question 8

Noam chomsky belief

Answer 8

*media operates under constraints that support the elites of today

Question 9

Coase

Answer 9

provide market (if you have the right to pollute as a tradable amount), the market will find the right amount

Question 10

*Internalities

Answer 10

what you measure is what you get,

does it actually fix the problem

Question 11

can the government solve problems? (3 types of failures)

Answer 11

1. demand
2. supply
3. provision

Question 12

WTO and the environment

Answer 12

At the highest level, there should be an apporapraite amount of regulaiton.

problems
1. Differences in wealth, culture, leads to moral imperailsm vs. trade and misery

2. not what the counteies signed up for
3. illegitimate abuse,

Question 13

Negotiating in the shadow of the law

Answer 13

• (no rules, only consequences options: court, settle )
  
  • relational
  • reputitional
  • legal

Question 14

What is the right quality of environmental regulation

Answer 14

1. Sustainability (hard to measure
2. harm
3. cost benifit analysis, use of danger premium

Question 15

EKC caveat

Answer 15

only polution that is local in spillover and perceibale. eg. dump in river

Question 16

Tech on the EKC

Answer 16

pushes entire curve down