Week 1

Question 1

Quelles sont les 5 différentes théories des relations internationales depuis 1950 ?

Answer 1

1950 > realism
1960 > neorealism
1970 > neoliberal institutionalism
1985 > domestic politics
1995 > rationalism vs constructivism

Question 2

What are the major themes of the (neo-)realism theory ?

Answer 2

interstate conflict, war, security, deterrence, nuclear threat, Cold war, arms races, system structure, power distribution

Question 3

What are the major themes of IPE ?

Answer 3

cooperation, international institutions, globalisation, international financial crises, interest groups, domestic institutions

Question 4

How do we differenciate trade to globalization ?

Answer 4

For globalization the effect on ordinary people is crucial.

Question 5

What are the key obstacles of globalization ?

Answer 5

1. freight costs = coût de transport = technology

2. taxes and tariffs = policy

Question 6

How can we measure globalization with a graph composed by the development of the prices ? Quote the authors

Answer 6

Globalization is present when there is a convergence of prices at origin and destination country.
The authors of the graph are O’Rourke and Williamson.

Question 7

When did the globalisation emerge ? assumptions and why we can tell that one is true or false

Answer 7

1492 = columbus and the american continent > heavy trade and division of labour
1820 = new silk road btw Europe and east Asia > drop of prices
however trade =/= globalisation
globalisation = affects the ordinary people and the societies
==> globalisation is shown through O’Rourke and Williamson’s graph = convergence of the prices (commodity prices in origin - destination countries) from 1820

Question 8

How did we consider the tariff ?

Answer 8

Tariff first political element = state’s income = symbol of sovereignty
then decrease of freight costs thanks to innovation
tariff became more important > protectionist measures

Question 9

Explain the emergence of trade policies

Answer 9

during napoleonic war (1803-1815) > GB’s agriculture became important
after war = 1815 = Corn Law because British agriculture not competitive
industrial revolution 1770-1830 > manufacturing industries more competitive > want free trade
division of the British society : land owner, capital and labour force
alliance btw capital and labour > 1846 : repeal of corn law
1860 : Cobden Chevalier treaty with “most favoured nation clause”
!! 1913 exports peaked !!
WW1 > protectionnism measure
US : Smooth - Hawley tariff in 1930
UK: imperial preferences
restoration of the liberal system = RTAA in US
» reciprocity

Question 10

Explain the evolution of the GATT

Answer 10

1947: establishment
1995: formal organization
23 > 164 state members

Question 11

what are the rules and the norms of the GATT ?

Answer 11

• most favoured nations rule = MFN
• national treatment rule = NT
• market liberalism
• non-discrimination

Question 12

what are the roles of the WTO ?

Answer 12

• forum for negotiations
• administration of trade agreements
• dispute settlement procedure

Question 13

what are the characteristics of the regionalism ?

Answer 13

• different degrees of depth
• regional/intercontinental
• bilateral/multiple countries
• North/north
• South/south
• North/South

Question 14

when did we see a clear increase in PTA (preferential trading agreement) ?

Answer 14

from 1992

Question 15

what are the rules and norms of the gold standard ?

Answer 15

• external stability
• internal adjustment
• fixed exchange rate
• free convertibility

Question 16

what are the 3 phases of the gold ?

Answer 16

1. hyperinflation = 1920s (Gold was abandoned temporarily by GB)
2. return to gold = 1924-31
3. Great Depression = 1928-1936 –> the end of the Gold standard

Question 17

what were the problems with gold standard after the WW1 ?

Answer 17

• persistent current account imbalances
• inadequate adjustment
• reversal of US. capital flows

Question 18

What is the difference btw the gold standard system and the BW system ?

Answer 18

Gold standard established it self by accident: gold overevaluated by Newton

Question 19

Why did not the gold standard work after WW2 ?

Answer 19

Political dimension = democratisation

Question 20

what are the rules and norms of the BW system ?

Answer 20

• embedded liberalism
• fixed, but adjustable rates
• dollar-gold convertibility
• capital controls

Question 21

What are the roles of the IMF ? international monetary fund

Answer 21

• management of BoP (balance of payments) imbalances
• lender of last resort
• oversight and information

Question 22

what activate the end of BW system ?

Answer 22

• closure of gold window
• DM float
• legalization of flexible rates

Question 23

Caracterize the decentralization of a monetary system

Answer 23

• mixed of exchange rate system

- various degrees of capital account openness

Question 24

what are the 3 phases of the european monetary integration ?

Answer 24

1972: snake
1979: EMS
1999: EMU

Question 25

what are the 3 waves of crises ?

Answer 25

Latin american debt crisis = 1980s
asian emerging markets crisis = 1990s : banking and currency crises
global financial + eurozone crisis = 2000s banking and debt crises

Question 26

Who are the 2 persons that recommended to put in place the Gold standard ?

Answer 26

John Locke and David Hume in the 19th century in GB.

Question 27

How can we explain the emergence of the gold standard ?

Answer 27

The evolution from silver to gold can be explained by the gold rush: everyone wanted gold, and gold was available, making the demand for silver (and therefore its value) shrink. We often talk about that period as a bimetallic one.
After the overevaluation of the gold by Newton Great Britain decided to switch to gold standard, others followed its decision in order to trade effectively with GB.

Question 28

Who are the 2 persons who shape the BW system ? what were their ideas ?

Answer 28

Keynes and White were the main figures shaping the BW regime. Keynes was for free trade but was against the gold standard, as to him it seemed incompatible with democracy, as external stability plays a more important role than the internal one.