International Relations Part III

taxes on imports

deals with crises

International Bank for Reconstruction and Development - long-term development projects

formerly General Agreement on Tariffs and Trade goods, handles money across borders

the openness and closure of an economy is based on the presence of a hegemon

enormously high tariffs on imports of foreign grain in Britain, written to protect agricultural industry

100% increase in tariffs to protect companies that would be hurt by the depression

comparative advantage - if you specialize you will be better off

certain countries will have certain abundant resources; one's advantage will be to produce in whatever strength they have

if you specialize, it helps some industries and hurts others

separation between politics and economics (wealth vs. power); laissez-faire, free market, low trade restrictions, and sum gain

economics determine politics and state control of trade

politics determine economics, not sum gain

quantity restriction on products that come in from abroad

protection to companies in their beginning stages (East Asian Tigers)

getting rid of an overproduced good by lowering prices considerably

coercion to get countries to "voluntarily" restrict their exports

the price of one currency in terms of another

debit and credit transactions for individuals, firms, and the government of a country

exports minus imports

flow of money in and out of a country (hot goods)

physically purchased assets in another country

to purchase stocks or bonds in a foreign country

government spending more money than it is making in terms of tax revenue

difference between expenditures and revenue

conditions that countries have to implement if they want to use IMF funds; 3 components: privatization, liberalization, fiscal austerity

mortgages offered below the federal prime rate; adjusts month to month based on prime published rate for mortgages

when housing is valued more than it is actually worth

the process of the broadening (geographic) and deepening (connections now more frequent and intense than at any time in the past) of interconnectedness between people, firms, and states

through the repeated behavior of states overtime, rules are enforced

an express agreement under international law entered into by actors in international law, namely sovereign states and international organizations

states are only required to obey those laws which they voluntarily agreed to either through custom or treaty

laws that exist independently of state choice

human rights abuses that are so extreme that they are considered a crime against all people of the world (ex: systematic murder, genocide, torture on a large-scale basis, systematic rape, forced resettlement, enslavement)

permanent standing body in The Hague which exists to investigate and prosecute crimes against humanity

non-excludable and rival (ex: fish stocks in international waters)

non-excludable and non-rival (ex: clean air)

direct effect of the actions of one actor on the welfare of another in way not transmitted by market prices

once ownership rights to a resource are assigned, individuals will bargain their way to an efficient use of the resource

44 countries meet in hotel and decide to reconstruct economy. Create International Monetary Fund (IMF) to help countries face financial crises, General Agreement on Trade (WTO), and the World Bank