Final Exam Flashcards
What is GDP?
Gross Domestic Product. The Sum of all goods and services a country produces within its borders on an annual basis
How do we conceptualize GDP?
C (consumer expenditures) + I (Investment Expenditures) + G (Government Spending) + NX (Net Exports)
How much of the US GDP is in the āCā term?
About 70%
Which term in GDP is negative?
NX
Marshall Plan
American attempt to assist the European economies recovery in the wake of WW2.
Goals of the Marshall Plan?
Help European stave off the looming threat of communism, establish free trade zone in Europe, raise production in European factories that had been decimated by WW2, & provide a boost to European currency that were suffering from inflation after the war.
European Coal and Steel community
Established by Treaty of Paris in 1951. Settles the question of what to do with the Ruhr, the coal rich region disputed by France and Germany.
Who signed the Treaty of Paris?
France, Germany, Italy, Belgium, Luxembourg, and the Netherlands.
Goal of the Treaty of Paris?
Make war materially impossible.
Treaty of Paris introduces supranational principles to the EU, whichā¦
Creates a high authority to settle disputes between member states
Article 5
An attack adjacent one shall be considered an attack against all.
Famous Lord Ismay quote
NATO exists to āKeep the Russians out, the Americans in, and the Germans down.ā
European Coal and Steel Community calls mount for aā¦
Single European army and military strategy
The Council
Composed of the heads of state or government of every member state. Idea is very limited number of leaders, who meet in closed rooms, very few assist present
Council is an intergovernmentalist institution, with
informal power.
The council has very limited powers, butā¦
Essentially has been able to do what it wants, focusing on matters important to it, and dealing with them how it wants to.
Types of situations the council meets?
Extraordinary circumstances, informal meetings, and symbolic meetings
The Commission (Executive Branch)
Each member state appoints one representative to the College of Commissions, the rest of the commission is composed of bureaucrats, who each held specific agencies in the body.
Who are the agenda setters for the European Union?
College of Commissioners
Commission is the only institution of the EU with the power to?
Propose legislation
Whoās the President of the Commission?
Rotating President with a 5-yr term
The European Parliament (Legislative)
Only democratically-elected in the member states branch of the EU.
Debate over democracy deficit
Trend of the 1990ās and beyond is to strengthen the European Parliament to ameliorate concerns over the perceived democratic deficit of the EU.
The European Parliament is a co-decision procedure, which means itā¦
Requires EP and Council of Ministers to agree to the exact text before any bill can become law
Can the Council overrule Parliamentās objection in case of disagreement?
Yes
European Court of Justice
Composed of one judge from each member state. Created in 1954 to regulate behavior of the European Coal and Steel Community.
ECJ and Court of First Instance only hear cases directly related to
EU Law
Direct Effect (1963)
Ruling stated that European law is supreme in individual rights case in which state law and EU law where in disagreement with one another
Does the ECJ decide whether or not member states are in compliance with EU Laws?
Yeah dude
Council of Ministers
Heads of govt in each member state, respective ministers in each category.
Great Recession
Sharp decline in economic activity in late 2000ās. 07-09
Council of Ministers meets to discussā¦
Policy in a particular domain, commit each member stateās response to.
Stability and Growth Pact (1997)
Countries in the Eurozone must keep budget deficits below 3% of their GDP, and the national debt levels below 60% of their GDP.
Obama Stimulus
831 billion spending spree to keep money flowing though the economy. 40% was tax cut, 30% was aid to states, 30% was stimulus was infrastructure projects
European Monetary Union/ Euro
Single common currency. Greatly reduces transaction costs between countries, eases ability to conduct business across state borders.
Grexit
Europeans believe they have protected the rest of their economies from a Greek collapse, which may lead to Greek exit from the eurozone.
Schengen Debate
People can travel all across Europe freely.
Globalization
Historical process involving a fundamental shift or transformation in the spatial scale of human social organizations that links distant communities and expands the reach of power relations across regions and continents.
IN ENGLISH: The world is getting smaller
4 Aspects of globalization process
Internationalization, Technological revolution, de territorialization, & Liberalization
Internationalization
Increase in transactions among states reflected in flows of trade, investment, and capital.
Technological Revolution
Modern communication have made distant and location less important
De territorialization
has contributed to the declining influences of territorial places, distances, and boundaries over how people identify themselves. āIām a UGA fan but chant S.E.Cā
Liberalization
Government policies that reduce the role of the state in the economy such as the dismantling of trade tariffs and barriers.
Bretton Woods (1944)
Goals was to prevent another Great Depression, ensure a stable global monetary system, and an open world trading system, and rebuild the war-torn European economies.
Institutions of Bretton Woods
International Monetary Fund (IMF)
IMFā¦.
Created to ensure a stable exchange rate in order to facilitate trade and provides emergency assistance to countries facing a temporary crisis in balance of payments
World Bank
Originally created to facilitate private investment and reconstruction in Europe. Subsequently assists other countries around the world with development.
General Agreement on Tariffs and Trade (GATT) (Replaced by the WTO in 1995)
Trade liberalization & removal or reduction of barriers to free trade
G7 (or G8 in the study sheet)
Combat protectionism, promote cooperation between worldās leading industrialized democracies
Stagflation
High inflation and low growth
Protectionism
Barriers to free trade
Whoās in the G8?
USA, Canada, Japan, Germany, U.K., France, Italy, and Russia
Add China, Brazil, India, and others to make G20.
Deregulation
Removal of all regulations so that market forces, not government policy, control economic developments.
Repeal of Glass-Steagall Act
Separated commercial and investment banking in 1999.
NAFTA
North American Free Trade Agreement (1994)
CAFTA
Central American Free Trade Agreement (2004)
Privatization
Transition away from government toward private sector
Proās of globalization for USA.
World is increasingly economically connected, there is much greater communications between states and much more culture intermingling between different people, trade allows people around the world to consume more goods at lower prices, & multinational corporations have thrived in this globalized system
Cons of globalization for USA
Trade deficits continue to hurt US economy, free trade deals have really hurt some sectors of American economy (manufacturing), bad trade deals are not better than no trade deals, middle class workers in industrialized societies have a lot of leverage in globalization, MNCās thriving in the globalized world, and it is tough for stateās to regulate their behavior
Panama Papers
Reveals that perhaps 7.6 trillion dollars (8% of worlds wealth) resides in tax havens
Colonial Theory of Poverty
20% of the population controls 80% of global income.
Human Development Index
Combines traditional GNP measure with life expectancy and literacy levels.
Third World radicals
Exploitation of colonies has perpetuated capitalism beyond the point that Marx predicted
Mercantilism
They tried to produce everything within their empire
Debt Crisis
Many countries borrowed money to facilitate economic development strategies.
Legacy of Colonialism/ Neo-Colonialism
Dependency theory, Multi-National Corporations
Dependency Theory
Group of theories really, rich states exploit resources, labor of poor states which makes them richer and poor states poorer
Multi-National Corporations
Move to take cheap labor and profits go back to motherland.
Import Substitution
Strategy of developing domestic industry. Tariffs and quotes on foreign goods.
Structural Adjustment
Allow economies to developing world to compete on global market
Diplomatic Immunity
There can be no arrest or trial of an accredited diplomat.
Hugo Grotius
Regarded as father of international law. Believed in an international system that was not governed by warfare, but by actual laws and mutual agreements to enforce those laws.
Treaty
Negotiated by diplomats to get commitments from other states to bah a certain way.
Bilateral
Two states
Multilateral
Between more than two states
Executive Agreement
Weaker than treaties. Popular with US presidents. Do not require Senate ratification.
International Court of Justice (ICJ)/ World Court
States can take other states here.
ICJ hears two types of cases:
Contentious Issues; Advisory Opinions
Contentious Issues
If 2 states have disagreement, they can seek a resolution in World Court. Decision of the court is binding.
Advisory Opinions
In many court cases, the ICJ will issue an advisory opinion that is not binding, but well-respected
Geneva Convention
1st Convention (1864) - Protects wounded soliders and medical staff from attack
Shipwrecked soliders also protected from attack
Prisoner of War treatment
Occupiers must treat civilians
United Nations Convention on the Law of the Sea
- Coastal States exercise sovereignty over their territorial seas.
- Coastal states have sovereign economic rights with respect to natural resources, other economic activities, and marine research.
Collective Security
Stated that all members should act together to punish aggressors. The League of Nations started this.
General Assembly
Made up of a delegation from every recognized state in the world. Currently we are at 193.
What does the General Assembly do?
Issues of defense, new membership, budget requires 2/3 vote in GA. Most other issues require majority vote. Two permanent nonmember states
Security Council
Exists to prevent conflict on a large scale
Who are the 5 permanent members of UN Security Council?
US, UK, France, Russia, and China
Do permanent members have a veto power in security council?
Yes, they can veto any Security Council action
Secretary General
Leader and spokesperson for the United Nations. Security generals are elected by GA and all 5 permanent members have the right to veto any choice
Unternational Court of Justice (ICJ)
Judicial branch of the UN.
Mission Creep
Several countries in the UN forces fell into this and became targets of warlords.
Universal Declaration of Human Rights
Adopted by the United Nations General Assembly on 10 December 1948 at the Palais de Chaillot, Paris.
