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FINAL EXAM STUDY GUIDE GOV 207 Multiple Choice 75 questions derived as follows: 10 8 13 9 14 10 15 6 17 1 44 questions Old material 2 5 3 7 4 7 5 8 5 2 8 2 31 questions total 75 No questions on Chapters 1, 7, 11, and 12
World Finance and Trade Finance and Trade are separate but interrelated aspects of the global economy. Money makes the world go round. After World War II, the world’s financial and trading system needed to be redesigned. A new international economic structure was created at
Bretton Woods, NH, in 1944. Globalization has been a result of this approach. Bretton Woods General Agreement on Tariffs and Trade (GATT) became the World Trade Organization (WTO). Each country has its own currency. Governments print money. Borrow money. Give credit and make loans. For effective international trade, there must be a medium of exchange (money). Currencies must be convertible. Exchange rate between currencies. It can be fixed as it was from 1944 – 1971 or floating as it has been since 1971. Ultimately, exchange rates depend on the underlying trade
patterns. Despite the dominance of the Liberal International Economic
Order, there is a strong undercurrent of mercantilism and neo-mercantilism in
the public policies of many countries. Autarchy is the effort by a state to be entirely self-sufficient. No international trade. Hegemony is the overwhelming dominance by one state and national economy. Collective goods like air, water but also fish in the
ocean. Goods that anyone can have for free. War Carl von Clausewitz stated that war is the continuation of diplomacy by other means. Someone said: “War is too an important an issue to be left to generals.” The incidence of war increased from 1945 to 1992, thereafter it has declined slightly. Theories of War A system of sovereign states is inherently anarchic and order depends on the self-help of each state. Balance of Power Hegemonic Leadership Causes of War Realism Quest for Security Types of War Interstate War World Wars Nuclear War Firebreak—psychological
barrier to using nukes Power Tangible Power Intangible Power Nye—soft power. Influence through attraction rather than coercion. Acronyms Other terms Strategy and Tactics Defense, Offense Aggression, Retaliation, Preemption, Coercion Unilateral, bilateral, and multilateral Arms Races Security Dilemma Mirror Images Arms Races Alliances Arms Control—limiting arms and regulating their numbers or types. Disarmament—eliminating arms entirely by lowering their numbers and preventing additional states from acquiring them. Nuclear Non-Proliferation Treaty. National Security National security is the goal of all sovereign states. Its achievement depends on the circumstances of each particular state. Hegemon Non-aligned The State and the International Community State Definition: Territory, Population, Central Government, Sovereignty, Recognition Sovereignty: Supreme legal authority within a state. Idea that dates back to the days of absolute monarchy. The king was the sovereign. With the development of constitutions and democratic forms of government, the concept becomes increasingly complex. The rule of law defines the sovereign and is above the sovereign. The people or the constitution is sovereign. pacta sunt servanda: Obligations must be fulfilled. Treaty agreements once made are binding. jus cogens: Refers to a fundamental principle of international law which is accepted by the international community of states as a norm from which no derogation is ever permitted. A peremptory norm or an intrinsically "compelling law." de jure: by law International Law formerly known as the Law of Nations Great Powers International Organizations (IGOs) Collective security Complex interdependence International regime Paradigm High politics Global System State Actors Immanuel Kant, “Perpetual Peace,” first presented idea of democratic peace. World public opinion and domestic public opinion in democracies would restrain rulers from going to war. Democratic peace. Democracies tend not to go to war with other democracies. Decision Making Democratic Model Rational decision making model process Political efficacy Kellog Briand Pact of 1928 outlawed war. Appeasement Détente Third World Modernization Theory Foreign Direct Investment Dual Economy Import substitution industrialization 4th World Genocide |