POSI EXAM 3 STUDY GUIDE PDF

**[End of Tax Policy and the Federal Reserve]** \- What is the difference between classical economic theory, Keynesian economic theory, supply-side economics, and monetary economics? Classical is self-adjusting, Keynesian is creating demand through spending, supply-side is tax incentives and cuts...

**[End of Tax Policy and the Federal Reserve]** \- What is the difference between classical economic theory, Keynesian economic theory, supply-side economics, and monetary economics? Classical is self-adjusting, Keynesian is creating demand through spending, supply-side is tax incentives and cuts and decrease in government spending, monetary is regulating the money supply \- What are some of the main functions of the Federal Reserve? Controlling monetary policy, supervising and regulating banks, maintain financial stability, managing currency \- Who is Adam Smith? Considered the father of modern economics \- Who is the current chairman of the Fed? Jerome Powell **[Trade Policy]** \- What is protectionism? Shielding domestic industries by taxing imports When did the United States follow protectionist policies? 19^th^ century \- What was the Smoot-Hawley Act? Increased import duties including agricultural imports \- Who is the United States' largest trading partner? Mexico \- What does "comparative advantage" mean? In the United States, who benefits from the growth in international trade? Devote more resources, produce more efficiently. Better for exporters and consumers Who is disadvantaged? workers \- Be able to characterize U.S. trade policy. What did we mean when we said that the U.S. had a three-pronged trade strategy? Global reduction on tariffs, regional integration, bilateral trade agreements \- What are some the benefits to greater international trade for the United States? Trade imbalances come back in the form of investment, national income rises Some of the disadvantages? Jobs lost, race to the bottom \- What is the WTO? World Trade Organization, deals with rules of trade between nations \- What is NAFTA? North American Free Trade Agreement, between US Canada Mexico that eliminated trade barriers and tariffs \- Is the United States a part of the Trans-Pacific Parternship (TPP)? no \- What does the race-to-the-bottom mean? Going from rich countries working to poor countries \- Defending sweatshops? How might someone defend sweatshops? Overall: it\'s cheaper and nothing will ever really change \- Between which two nations does the largest trade imbalance in the world exist? US and China \- What are the top three nations in the world in dollar amounts in imports and exports? US and China \- What is Thomas Friedman's 'golden straitjacket' theory? Economy grows, politics shrink \- What are some arguments to be made that China's dramatic growth will not continue unabated? Political/environmental issues, pandemics, resources, economic issues \- What US trade policies help aid Chinese growth? Phase One Trade Deal **[Foreign Policy]** \- What is the difference between IR and ir? IR is study of international relations, ir is relaionships among states \- What is meant anarchy in terms of IR theory? The absence of central authority \- For the realist, what is a nation's foremost goal? Balance of power \- Why do realists argue that conflict is inevitable in the international system? Because of its structure -What is power? What does power consist of? Actual power+ latent power \- What is a bipolar system? Two players An unbalanced multipolar system? Which is most stable? Which is most prone to conflict? Multiple players with possible hegemonic power Bipolar is stable Multipolar is prone to conflict \- What was the Cold War? Who were the major states involved in the Cold War? Geopolitical war, between US and Soviet Russia \- What is meant by MAD? Mutual assured destruction, you shoot i shoot -What is hegemony? Why would it be difficult to achieve global hegemony? High power, yes What is regional hegemony? Passing others until balance is necessary What is the only modern example of regional hegemony? US \- Who is Immanuel Kant? Enlightenment philosopher \- What are Kant's three definitive articles for *Perpetual Peace?* A republican form of government, a federation of free states. Universal hospitality \- In helping create the League of Nations, which US President borrowed heavily from Kantian ideas in doing so? Wilson \- What is an international institution? Be able to identify examples of international institutions. Encourage peace, UN or WHO From a foreign policy perspective, have we taken a realist approach? A liberal approach? realist **[Nuclear Proliferation -- North Korea and Iran, plus Russia-Ukraine]** \- What is contained in Article II of NPT? Not manufacture or get nucler weapons Article IV? Allowed to produce weapons for peaceful purposes Article X? Right to withdrawal from treaty \- Which international agency monitors NPT? IAEA \- Be able to list the nations that had nuclear weapons prior to NPT. US, Russia, UK, France, China \- Be able to list the nations that have nuclear weapons that never signed on to the NPT agreement. India, Israel, Pakistan \- In development of its nuclear weapons program, what specific agreements has North Korea cheated on over the years? How strong its program is -Who is the leader of North Korea? Kim Jong Un \- To some, why might it seem that Iran might be developing nuclear weapons? Secret research \- Who is the current President of Iran? Mahmoud A \- Which entity, which many, including the US, consider a terrorist group, recently attacked Israel? Hamas \- What is AIPAC? American-srael Public Affairs Committee \- Be able to describe our diplomatic relationship with Israel. Strong relationship \- Why might a conflict between Israel and Iran be dangerous for the United States? war **[Election Questions]** \- There will also be a few simple questions about the recent election. For instance, which were the battleground states in the presidential election? Arizona, michigan, north carolina, wisconsin, georgia, nevada, pennsylvania Which party will control the Senate? dems The House? reps Who won the Senate race in Texas? cruz