Podcast
Questions and Answers
What central theory influenced the development of Marxism in the 19th century?
What central theory influenced the development of Marxism in the 19th century?
Which of the following best describes the critical perspective on society?
Which of the following best describes the critical perspective on society?
What is the relationship between different theories in global political economy?
What is the relationship between different theories in global political economy?
Which of the following ideas is NOT a part of the critical approach today?
Which of the following ideas is NOT a part of the critical approach today?
Signup and view all the answers
What major global events influenced the development of International Political Economy (IPE) in the 1970s?
What major global events influenced the development of International Political Economy (IPE) in the 1970s?
Signup and view all the answers
In which field is the focus on the allocation of scarce resources primarily found?
In which field is the focus on the allocation of scarce resources primarily found?
Signup and view all the answers
Which statement best describes the nature of the international order as viewed by the critical perspective?
Which statement best describes the nature of the international order as viewed by the critical perspective?
Signup and view all the answers
What central theme does Political Science emphasize in the context of IPE?
What central theme does Political Science emphasize in the context of IPE?
Signup and view all the answers
What was a primary overarching goal of the European Economic Community established in 1958?
What was a primary overarching goal of the European Economic Community established in 1958?
Signup and view all the answers
Which agreement was signed in 1994 to facilitate trade between the USA, Canada, and Mexico?
Which agreement was signed in 1994 to facilitate trade between the USA, Canada, and Mexico?
Signup and view all the answers
What optimistic scenario regarding Regional Trade Agreements (RTAs) suggests a beneficial outcome?
What optimistic scenario regarding Regional Trade Agreements (RTAs) suggests a beneficial outcome?
Signup and view all the answers
Which significant event in 2001 marked China's integration into the global trade system?
Which significant event in 2001 marked China's integration into the global trade system?
Signup and view all the answers
What factor has contributed to the current challenges faced by globalization?
What factor has contributed to the current challenges faced by globalization?
Signup and view all the answers
What potential explanation for the trend in Regional Trade Agreements relates to market access?
What potential explanation for the trend in Regional Trade Agreements relates to market access?
Signup and view all the answers
According to the content, what is a major concern regarding the future of trade organized along geopolitical lines?
According to the content, what is a major concern regarding the future of trade organized along geopolitical lines?
Signup and view all the answers
What has been a critical factor in shaping the globalization process over the past 30 years?
What has been a critical factor in shaping the globalization process over the past 30 years?
Signup and view all the answers
What was one of the lessons learned by the Allies from WWI regarding trade?
What was one of the lessons learned by the Allies from WWI regarding trade?
Signup and view all the answers
Which organization was created to provide a stable international financial system?
Which organization was created to provide a stable international financial system?
Signup and view all the answers
How did the Cold War affect developing countries?
How did the Cold War affect developing countries?
Signup and view all the answers
What significant economic strategy did the US implement after 1945 to assist in European reconstruction?
What significant economic strategy did the US implement after 1945 to assist in European reconstruction?
Signup and view all the answers
Which ideology forms the basis of the Communist political economy?
Which ideology forms the basis of the Communist political economy?
Signup and view all the answers
What was a major consequence of the Soviet Union's model imposed after 1945?
What was a major consequence of the Soviet Union's model imposed after 1945?
Signup and view all the answers
Which of the following statements best describes the nature of US involvement in East Asia during the Cold War?
Which of the following statements best describes the nature of US involvement in East Asia during the Cold War?
Signup and view all the answers
What role did the US nuclear weapons play in the post-1945 economic system?
What role did the US nuclear weapons play in the post-1945 economic system?
Signup and view all the answers
What was a significant outcome of decolonization in Asia and Africa between the 1950s and 1970s?
What was a significant outcome of decolonization in Asia and Africa between the 1950s and 1970s?
Signup and view all the answers
Which trend has become increasingly visible in the post Cold War era?
Which trend has become increasingly visible in the post Cold War era?
Signup and view all the answers
What is a characteristic of the Chinese Model as described?
What is a characteristic of the Chinese Model as described?
Signup and view all the answers
How did the information revolution impact economic structures?
How did the information revolution impact economic structures?
Signup and view all the answers
What role do offshore regions play in the global economy?
What role do offshore regions play in the global economy?
Signup and view all the answers
Which statement best describes the evolution of international organizations post-Cold War?
Which statement best describes the evolution of international organizations post-Cold War?
Signup and view all the answers
What is a distinguishing feature of the East Asian model of capitalism?
What is a distinguishing feature of the East Asian model of capitalism?
Signup and view all the answers
What potential risk does the information revolution pose regarding military power?
What potential risk does the information revolution pose regarding military power?
Signup and view all the answers
What was a primary economic interest of the Spanish elite in the Americas?
What was a primary economic interest of the Spanish elite in the Americas?
Signup and view all the answers
Which factor limited early European expansion into Africa?
Which factor limited early European expansion into Africa?
Signup and view all the answers
What significant trade practice emerged with the invention of the joint stock company by the Dutch?
What significant trade practice emerged with the invention of the joint stock company by the Dutch?
Signup and view all the answers
What was a major consequence of the triangular trade for Africa?
What was a major consequence of the triangular trade for Africa?
Signup and view all the answers
How did the Industrial Revolution shift the global power balance?
How did the Industrial Revolution shift the global power balance?
Signup and view all the answers
What role did British and Dutch East India Companies play in the 17th century?
What role did British and Dutch East India Companies play in the 17th century?
Signup and view all the answers
Why were opium wars significant in relation to trade?
Why were opium wars significant in relation to trade?
Signup and view all the answers
What was a key feature of the mercantilist and imperialist economy established in the Americas?
What was a key feature of the mercantilist and imperialist economy established in the Americas?
Signup and view all the answers
What is the primary concern of the GPE/IPE regarding development?
What is the primary concern of the GPE/IPE regarding development?
Signup and view all the answers
Which organization primarily provides 0% interest loans to the poorest countries?
Which organization primarily provides 0% interest loans to the poorest countries?
Signup and view all the answers
What was a significant shift in the World Bank's lending strategy during the 1980s?
What was a significant shift in the World Bank's lending strategy during the 1980s?
Signup and view all the answers
How is the governance of the World Bank primarily controlled?
How is the governance of the World Bank primarily controlled?
Signup and view all the answers
Which initiative was launched in 1996 to provide partial debt relief to developing countries?
Which initiative was launched in 1996 to provide partial debt relief to developing countries?
Signup and view all the answers
What is a primary focus of ecologism compared to environmentalism?
What is a primary focus of ecologism compared to environmentalism?
Signup and view all the answers
What does the Asian Infrastructure Investment Bank primarily challenge?
What does the Asian Infrastructure Investment Bank primarily challenge?
Signup and view all the answers
Which group was NOT involved in the creation of the Multilateral Debt Relief Initiative (MDRI)?
Which group was NOT involved in the creation of the Multilateral Debt Relief Initiative (MDRI)?
Signup and view all the answers
Study Notes
Economics - Demand and Supply
- Economics: Study of how society manages scarce resources.
- Scarcity: Limited resources, finite goods, and finite number of goods.
- Efficient Allocation: Administering scarce resources in the most effective manner.
- No Free Lunch: All choices have costs; everything has a price.
- Opportunity Cost: Value of the next best alternative forgone.
- Incentives: Changes in cost and benefits will most likely change behavior.
- Public Policy: Modifies incentives to influence actions directly and indirectly.
- Invisible Hand: Competitive markets to harness self-interest as a force for efficiency.
- Market Equilibrium: Where demand equals supply. (prices adjust until no surplus/shortage). Markets clear.
- Excess Supply: When supply exceeds demand—price decreases.
- Excess Demand: When demand exceeds supply—price increases.
- Market Failure: Markets fail to achieve efficiency.
- Externalities: Side effects (unpriced) of production/consumption: Ex: pollution, overfishing.
- Public Goods: Non-rivalrous (consumption by one does not diminish consumption by another) and non-excludable (difficult to prevent people from consuming the good).
- Impure Public Goods: Excludable and/or rivalrous (ex: congested highway, streaming platform).
- Private Goods: Excludable and rivalrous (ex: Ice cream, computer).
- Positive Externalities: Market outcome produces less than socially desirable. Ex: Education.
- Negative Externalities: Market outcome produces more than socially desirable. Ex: Pollution.
- Coase Theorem: (Ideal theory) When property rights are well-defined and transaction costs are low, private bargaining can lead to efficient solutions to externalities.
- Pigouvian Tax: Tax on an activity generating negative externalities to cause an internalization of the externality and adjust prices.
Market Failure, Public Goods, and Externalities
- Market Failure: Markets can't efficiently allocate resources.
- Different Reasons for Market Failures: Externalities, public goods, asymmetric information, and abuse of market power.
- Externalities: Unpriced side effects (positive or negative) influencing outside parties, not reflected in market price.
- Public Goods: Goods that are non-rivalrous (one person's consumption doesn't diminish another's) and non-excludable (difficult to prevent non-payers from consuming). Examples are national defense and public radio.
- Asymmetric Information: One party has more information than another.
- Abuse of Market Power: Control of a market, monopolies, limiting choice and output, or inflated prices.
- Externalities: Impacted by market failures with no price effect and often resulting in excessive consumption (neg) or under-consumption (pos).
Global Political Economy (GPE)
- One Event, Three Interpretations: Event and different theories to interpret GPE.
- Economic Nationalism Perspective: Focuses on politics, national power, and the nation-state as the relevant actor within the economic sphere.
- Liberal Perspective: Emphasizes individual actors, free markets, and international cooperation, suggesting there is a positive-sum game.
- Critical Perspective: Highlights class struggle, exploitation, and the fundamentally unstable nature of the global political and economic systems.
- Economic Nationalists: focus on power relations, nation-state interests; economic relations subordinate to political power and competition.
- Liberals: Focus on individuals, markets, cooperation, and potential for positive-sum game.
- Critical theorists: Focus on exploitation, inequalities, and instability within the global capitalist system.
- Global Financial System: International Monetary System (IMS) governs currency exchange and global monetary stability. Issues include fixed/floating exchange rates, the role of global reserve currency, etc.
- Trade: Key elements for global expansion and competition. Trade relations with other countries.
- Technological Change: Globalization challenges due to skill biased technological change, automation and reduced demand for low skilled labor.
- Economic Growth: Sustained upward trend in a nation's output. Factors influencing growth include labor productivity, capital, and technology.
- Economic Development: Process of societal transformation towards self-sustained growth. Measured with metrics like income, inequality, life expectancy, education, and conditions.
International Trade
- International Trade: Exchange of goods/services across borders.
- Protectionism: Restrictions on trade, such as tariffs, quotas, and subsidies.
- Comparative Advantage: Specialization in goods/services where a country has a lower opportunity cost.
- Free Trade/Globalization: Benefits & drawbacks on countries impacted for trade. International cooperation & trade policy.
Theories of Global Political Economy and International Trade
- International trade Focuses on cross-border exchange of goods/services.
- Globalization: Integration of goods, services, labor, capital, technology, and ideas across borders.
- GATT (General Agreement on Tariffs and Trade) Predecessor of the WTO.
- WTO (World Trade Organization) Regulates international trade.
Economic Development
- Development: Societal transformation toward self-sustaining growth.
- Kuznets Curve: Hypothetical relationship between income inequality and per capita income. (Early stages of economic growth can increase income disparity).
- Liberal Perspective on Development: Importance of market forces; state should maintain a neutral stand.
Global Environmental Change
- Environmentalism: Emphasis on human impact on environment; promotes international cooperation to address environmental problems.
- Ecologism: Focus on interdependence of nature and humans; emphasizes rejection of continued and unrestricted economic growth and global capitalism.
- Theoretical Perspectives: Traditional (economic growth & market mechanisms), Liberalization (interdependence & cooperation), and critical (ecocentric, exploitation, inequality) perspectives.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your understanding of fundamental concepts in economics, focusing on demand and supply. This quiz covers essential topics such as scarcity, opportunity cost, market equilibrium, and the invisible hand. Dive deep into how these principles influence economic behavior and public policy.
