Review Review for Exam (main topics to focus on)
Section 4 International Institutions (Chap 2.) IMF, World Bank; need to know their original job, how they became about and what they do now as organizations GATT, WTO; not set up as a Bretton Wood systems again what they do now as organizations Need to know the advantages/disadvantages of all institutions why do we have them in the first place and why did it take so long for us to issue them
Section 5 Labour and the Environment (Chap 8.) Labour and the environment (transboundary and non-transboundary) Can we have universal standards and do we really want them? Main conflict is dealing with min. wage
Section 6 Balance of Payments (Chap.9&10) Current, capital and financial accounts within the economy Exchange rate models; supply and demand of our exchange rate What causes it to rise or fall Fixed vs. Flexible(floating) exchange rates
Section 7 International Crisis' (Chap. 12) Two types of financial crisis; macro imbalances or contagion effect Ie. Asian Crisis, Mexican Peso Crisis "Moral Hazard"- debt crisis of the 1980's; problems were heavily associated with the IMF not just the countries in debt Role of the IMF
Section 8 NAFTA (Chap.13) Differences all between countries (USA, Canada and Mexico) How the US dominates NAFTA Motivations of the Canada US agreement Auto Pact Why did Mexico want to be a part of NAFTA? encourage foreign investment; Maquiladora border industries US concerns; mostly relate to Mexico rather than to Canada
Section 9 Integration of the EU (Chap.14) Institutions Deepening(developing central institutions) vs. Widening(increasing more members) Single European Act - contains 297 amendments
Review Maastricht Treaty - contains only 21 amendments Monetary Union - steps towards of establishing the monetary union; advantages and disadvantages specifically dealing with a common currency
Section 10 Economic issues in Latin America (Chap.15) Income inequality Import Substitution Industrialization (Rual Predish) Debt crisis of the 1980's Washington consensus
Section 11 Economic Growth in China and India (Chap. 17) Economic reforms "Gradualism" China's way of an increase in growth; opposed to the Soviet Union dealing with everything at once China is running a current capital deficit India's reforms and what motivated them to recover since 1991 Implications for the rest of the world Environmental issues Lou Dobbs outsourcing in India