Clutch. So clutch. Thank you sooo much Shantel!!! Thanks so much for your help! Needed it bad lol
QUESTION: What is the principle of comparative advantage, and how is it different from the principle of absolute advantage? Under what conditions would each principle lead to recommendations that two countries trade with each other? Use an example in your explanation.
What is the principle of comparative advantage?
-It is the ability of a country to produce goods and/or services at a lower opportunity cost ( the cost of a missed opportunity and the loss of other benefits) than other firms or individuals.
This happens when a country is relatively better at producing a certain good relative to other goods- so they simply specialize on that one good.
This gives them more time to focus on one good.
∙ It is different from absolute advantage because a country can have a comparative advantage in something they do not have an absolute advantage o Absolute advantage refers to differences in productivity of nations, while comparative advantage refers to differences in opportunity costs.
∙ Comparative advantage uses opportunity costs and finds advantage with relative commodity prices. Nations can still trade if one country has a comparative advantage in both goods as long as that don’t have equal opportunity costs whereas absolute advantage says says that a country should not trade if it is good at everything.
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When would each principle lead to recommendations that two countries trade with each other? Use an example in your explanation.Don't forget about the age old question of chem gen
∙ For example, if the United States can produce five wheat bushels per hour and two cloth yards per hour, while England can produce three wheat bushels per hour and six cloth yards per hour, the U.S. has both an absolute and comparative advantage in the production of wheat and England has both an absolute and comparative advantage in the production of cloth. However, suppose the United States had an absolute advantage in both wheat and cloth by producing not two, but eight cloth yards per hour. England would have no absolute advantage (since its three wheat bushels and six cloth yards are not greater than the five wheat and eight cloth yards the U.S. can produce per hour), but it would still have a competitive advantage in cloth because that is its specialization. In other words, England can make more cloth yards than wheat bushels per hour with the same labor force, which means England specializes in cloth. Thus, the most beneficial trade agreement would be for England to trade its specialization of cloth and for the United States to trade wheat, since it will get cloth from England and can utilize the labor force to make more wheat instead of cloth.
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. Who wins and who loses from globalization? Pick two types of actors or groups who tend to “win” and two who tend to “lose,” and explain why for each.
- the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets ANSWER
1. Winners: developed countries
∙ They get access to cheap raw materials
∙ They get access to cheap labor
∙ They get access to markets because their products are way better than the ones produced locally
∙ Gain competitive advantage
Losers- developing countries/
B. global poor losers
Eg Lee Kyung- Hae a South Korean farmer killed himself in 2003 outside WTO meeting to show the gravity of globalization to poor farmers when South Korea opened its - however gvt suffers ie the economy
Businesses owners suffer
market to cheaper cows from Australia after being pressurised by WTO.
--sometimes citizens benefit by accessing better quality and cheaper products eg Zimbabwe and China relations
QUESTION :What is the International Criminal Court, why was it created, and why is it so controversial? Explain two distinct types of criticism that have been directed at the ICC.
had set out a number of international crimes such as genocide and crimes against humanity. The Hague-based court was designed to step in, investigate and prosecute when states were "unable" or "unwilling" to do so themselves.
. What is the International Criminal Court, why was it created, and why is it so controversial? Explain two distinct types of criticism that have been directed at the ICC. 1. Some say that violence is not just criminal, it is also social and political. Hence it is not enough to just try the perpetrators and punish them. The problem is rooted deep within the structures. Hence, we have to first solve/find solutions to the root issues. Don't forget about the age old question of chem 2030 mizzou
2. Some people resent it because they think it is targeting African countries only, thus they feel that it is a weapon of neocolonization.
-AAll situations and cases under investigation or prosecution by the IC Care in Africa. Since its establishment in 2002, the Office of the Prosecutor (OTP) of the International Criminal Court (ICC) has investigated eight situations involving alleged violations of international criminal law. Each of these investigations related to situations in Africa, namely, the Democratic Republic of the Congo (DRC), Uganda, the Central African Republic (CAR), Darfur/Sudan, Kenya, Libya, Ivory Coast, and Mali.ll situations and cases under investigation or prosecution by the ICC are in Africa. Since its establishment in 2002, the Office of the Prosecutor (OTP) of the International Criminal Court.
-Bashir, who has refused several requests to visit the court to face the charges against him, has declared the ICC "a tool to terrorize countries that the West thinks are
disobedient." Other African leaders have expressed support. "The court has transformed itself into a political instrument targeting Africa and Africans," Tedros Adhanom Ghebreyesus, the Ethiopian foreign minister, said at an A.U. summit in 2013.
Question: What are “hard” and “soft” international law, and what three dimensions distinguish between them? Give a specific example of each of hard and soft law. Why would the international community ever try to make “soft” law rather than “hard” law? ANSWER We also discuss several other topics like in shaykhs clothing
-Hard law refers to actual binding legal instruments and laws. In contrast with soft law, hard law gives States and international actors actual binding responsibilities as well as rights. Often, there is interference of third party to make sure states abide by the rules -The term "soft law" refers to quasi-legal instruments which do not have any legally binding force, or whose binding force is somewhat "weaker" than the binding force of traditional law,
Usually aspirational and ambiguous- therefore ends up as mere window dressing
Three dimensions that distinguish them
1. hard law is binding whereas soft law “lacks teeth”
2. Hard law involves interference of third party to implement it and resolve disputes whereas soft law doesnt involve a third party If you want to learn more check out fau ua
3. Hard law is clear and precise whereas soft law is ambiguous and aspirational ∙ Hard law example--
-Soft law --Most Resolutions and Declarations of the UN General Assembly
often used to describe various kinds of quasi-legal instruments of the European Union: "codes of conduct", "guidelines", "communications" etc.
When would they prefer soft law
-When states form looser, less intensively committed arrangements, softer law will be preferred.
For example, states may enter agreements like the Asia Pacific Economic Cooperation forum where cooperation is beneficial, but where very high levels of commitment are not required
∙ Reducing threats to sovereignty
Softer law provides a way to enter into a relationship while still protecting a state's sovereignty. For instance, soft law may include escape clauses, vague wording or may avoid delegating disputes to independent third parties. These strategies provide the benefit of allowing for a relationship without overly threatening state sovereignty. ∙ Less time consuming
QUESTION: Why are rich countries rich and poor countries poor? Answers to this question tend to fall into four categories: Geography, international factors, domestic policies, and domestic institutions. Choose three different possible answers, each from a different one of those four categories, and explain each in detail. ANSWER
This view believes that disparities between rich and poor countries is caused by the location of these countries.
-The first example can be seen by examining land locked countries versus coastal countries.
-This view argues that coastal countries tend to be much richer than landlocked countries. This is because they have more access to the sea (transport system and trade routes) Thus, it becomes easier for them to export their products to other countries unlike landlocked countries that have to incur more costs to export their products.
-In 1776, Adam Smith observed that the inland parts of Africa and Asia were the least economically developed areas of the world.
- Landlocked countries also face challenges that result from dependence to a sovereign transit country which they can use to ship their products through in order to access international markets
- For example, Uganda has to ship their products though Kenya in order to access the international market. A lot of paperwork has to be done and in the case of a conflict between the two countries, Uganda suffers
- A second view can focus on the resource curse. This view says that it is actually a curse to have natural resources such as coal, copper, oil etc in your country because that will make the country solely depend on that one resource- and impedes diversification.
For example, Zambia’s economy relies solely on copper,
This not only prevents diversification, but also results in the lack of a social contract between the people and the government that occurs when people pay taxes. The government does not provide much products and services to the people because it does not get money from them.
∙ International factors
Poor countries are poor because of the influence has had on them at some point- be it in the past or currently
∙ One example of this is colonialism
∙ It created borders that cut across ethnic, linguistic and religious groups. This resulted in the formation of countries that had people of different religions, ethnicities, languages etc.
∙ An example of one such act was the Berlin conference 1884-1885 that divided African countries between Western countries- one specific illustration is of Nigeria. The country is divided into different ethnic groups such as Igbo, Yoruba, Hausa, Fulani etc.
∙ The only development that took place during colonization that emphasized the interests of the colonizers, and all the profits went back to the colonizer’s home countries
∙ This has left a lot of legacies in most African and Asian countries that were once colonized, as it is now to get back up and recover from the effects of colonization. ∙ Eg Congo is one of the poorest countries in the world.
∙ During the colonization era, King Leopold of Belgium emphasized on Belgian interests in Congo. He was only interested in rubber production and violently ill
treated the workers just to get more production, ie by cutting off the fingers of some.
∙ Domestic policies
This focuses on what the government can do to encourage economic growth -This view believes that rich countries are rich because they followed the right development strategy ,a and poor countries are poor because they pursued the wrong development strategies.
-These development strategies include
ISI ( import substituting industrialization) -focuses on replacing foreign imports with domestic production through subsidized loans, trade policies etc. It was pursued by a lot of Latin countries
EOI (export oriented industrialization)
Focused on production of goods to export in other countries. Eg textiles, garments for export etc.
Eg Asian growth model accompanied by high government intervention.
Hence, different policies work for different countries. For example it worked for Japan because it received a lot of financial support from the US during Cold war crisis, hence this method can fail for some countries now- because they are not receiving as much foreign aid as Japan received during the Cold war.
The overall argument made by this claim is that poor countries pursued ISI instead of EOI or they pursued EOI instead of ISI.
Question:What do the factoral and sectoral models each predict will be the preferences over trade policy of the following groups, and why? (TWO of the possible combinations of the following would appear on the exam) [Workers]/[Capital] in an [export oriented]/[import competing] industry in a relatively [labor abundant, capital scarce]/[labor scarce, capital abundant] country.
Free trade benefits the abundant factor of production in a country, while protectionism benefits the scarce factor.
For example, if a country is labor abundant and capital scarce- then labor would want free trade because it would mean the availability of jobs for them from external companies. However, capital would want protectionism, because the international companies coming in mean an increase in competition
The converse is true for capital abundant and labor scarce countries.
Does not predict class conflict in society.
It says that labor and capital in whole industries tend to share the same industries depending on whether they are export oriented or import oriented,
∙ Export oriented eg software, banking. This group is pro- free trade, because they gain a lot from it.
∙ Import competing eg cars in the US. They are anti- free trade because it brings about competition from more competitive international businesses, and this may probably get them out of business.
∙ Non-tradable. This group can be indifferent, since the goods they produce are not affected by free trade in any way. However, they tend to support it because they are consumers, hence free trade gives them more choices, and access to better quality goods.
urt (ICC) has investigated eight situations involving alleged violations of international criminal law. Each of these investigations related to situations in Africa, namely, the Democratic Republic of the Congo (DRC), Uganda, the Central African Republic (CAR), Darfur/Sudan, Kenya, Libya, Ivory Coast, and Mali.