POLI/INTL 105: Review Sheet Exam 3: Spring 2024

Bill Newmann

This exam is non-cumulative. Questions will refer only to items on this review sheet, to the lectures given since the second exam, and to the readings scheduled for the third exam as indicated on the syllabus.

The exam format will be the same as the previous exam. There will be 65 questions. You will have the entire exam period to take the exam – 2 hours and 50 minutes, about enough time to take the exam twice!

List of Terms:

Introduction to IPE

Civilization Timeline
Computer/Digital Revolution

Impact of Globalization and Technological Change: Late 20^th-early 21^st Century

1. Marxism vs. Capitalism: Capitalism Won

· *Collapse of USSR and communist allies

2. *East Asian strategy success: Accept Globalization

3. *Rapid Growth in Developing World

· *Biggest increase in wealth in world history

· *Massive decrease in extreme poverty

4. *Rise of China and India

5. *Slower Growth in Industrial World

· Decline of manufacturing?

· Competition or Technology?

6. Great Recession 2008 sharpens the new argument:

· Liberal Capitalism vs. State Capitalism

Theories of International Political Economy: This first section is also the subject of the Newmann reading, Newmann as in me. That article is a summary of this lecture.

Questions:

*What makes a nation wealthy?

*What is the proper role of government in economic activity?

*Economic Liberalism

*Adam Smith

*tariff

*quota

*non-tariff barriers

*Smith's criticism of tariffs and quotas

Why do we want competition?

Produces innovation and excellence and a decrease in prices

*What tariffs do to competition

*Market forces

*Invisible Hand

*comparative advantage

*Free Trade (laissez-faire economics)

*View of MNCs in liberalism?

*Economic Nationalism (sometimes called Mercantilism)

*Nationalist's views of free trade

*Alexander Hamilton

*Industrial Power and National Power

*National Power and Independence

*Friedrich List

*Mature industries vs. infant industries

*Protectionism

*View of MNCs in nationalism?

*Marxism

*Karl Marx and Friedrich Engels

*Rich/Owners vs. Poor/Workers

*Exploitation

*Workers Revolution

*Communism

*Command Economy

*Soviet/Chinese Communism in practice

*View of MNCs in Marxism

Northern/Industrial Economics

Leadership Matters: Importance of economic leadership

Liberal Economic Era after WW II

Interwar period and lack of leadership

The Great Depression

US Liberal Hegemony

Rule-Based International Order

1.Currency -- Bretton Woods: The Dollar

2.*General Agreement on Tariffs and Trade

*World Trade Organization

3. *International Monetary Fund and Balance of Payments

4. *World Bank – IBRD

Results

The Developing World:

Realities of Developing World

*Colonialism

Attempts at creating wealth in the developing world

Failure of other approaches

1. Liberalism

a. Accept free trade

b. The flow of money?

2. Nationalization

a. Failures in Latin America

b. Debt

3. Marxism

a. Use USSR as a model

b. The results

4. *East Asian Strategy/East Asian Miracle

a. Mix Liberalism and Nationalism

b. Japan as Model

c. Government-business partnership

d. Open up the economy to the world trading system and foreign investment

e. *Foreign Direct Investment (FDI)

f. *Export Power

g. Protect key industries

h. Four Tigers (Mini-Dragons)

i. Integrating into the world economy

5. State Capitalism

a. Chinese model

b. State Owned Enterprises and problems with them

Asian economic growth

*BRICs

Growth in Developing World, but…

Who is left out?

1. Nations in civil war

2. Land locked

3. Low technology (rich or poor nations)

4. Climate problems

5. Health crises