Chap 5 : Domestic trade politics

Question 1

Rappel : what are the 2 models of trade?

Which one is weaker/stronger theory/practice?

Answer 1

• Liberal model (strong theoretically and weak empirically)

- Mercantilist model (weaker theoretically and stronger empirically).

Question 2

Analytical framework: IPE looks at the interaction of what element?

Which one is more important?

Answer 2

• IPE look at the interaction btw: interests, institutions and ideas (domestic and int).

Materialists (school of thought) says interests are the most important.

Question 3

In regards to domestic politics: who are the winners and losers?

Answer 3

To answer, you have to look at the distributional consequences (in terms of wealth/income..).

Question 4

What are the 2 societal models?

Answer 4

• Factor model
  (follow the HO and also linked to Stopper Samuelson ideas).
• Sector model

Question 5

What are the political implications of the Factor model?

Answer 5

• Political parties: strong cleaveage (ex labor party..)

- Interest groups: weak interest group activity.

Question 6

What are the political implications of the Sector model?

Answer 6

• Political parties: weak cleavages or political realignment (like Front national).
• Interest group: strong and very active interest groups activities.

Question 7

Who are the winners/looser in the factor model?

Answer 7

• Winners: abundant factors in the country (ex capital intensive sector in the US).
• Losers: scare factors in the country (ex labour-intensive sector in China).

Question 8

Who are the winners/looser in the sector model? (in the US)

Answer 8

• Winners: both capital and labor in high-tech industry in the US (aerospace).
• Losers: both capital and labor in low tech in the US (ex cheap shoe maker).

Question 9

Who tries de reconcile the factor and sector model?

And on the basic of which variable?

Answer 9

• Hiscox try to reconcile both model

- The variable used to bring the 2 models together is: inter-industry factor mobility.

Question 10

Which model (factor or sector) should explain empirical record according to Hiscox?

Answer 10

• The determination of the model depends on the variation in the factor mobility.
• if it’s high = factor model is prevalent
• if it’s low= sector model is prevalent.

Hiscox says that to understand todays’ trade, the sector model will be more prevalent.

Question 11

What study Slaughter did?

Answer 11

Slaughter attempt to empirically test both factor and sector model. The study is based on a survey who asked individuals if they are in favour or opposed to protectionism.

Question 12

What is the role of knowledge of individual on trade?

Answer 12

The more the individual is aware of the potential consequence of trade, the more his preference aligns on the basis of comparative advantages theories,

Question 13

What are the other political affects of trade?

Answer 13

• Political realignement

- Political polarisation