315 ISS Fall 2007 Quiz 3 Key Term List
Apprenticeships o By education, working/business level Bretton Woods o 1994, Bretton Woods agreement pegged the $US to gold o $35/ounce and all other major currencies to dollar Colonialism vs. neo-colonialism o Colonialism: based on military and political domination of one nation over another. o Neo-colonialism: based on economic and political option domination. Ex) Argentina borrowing money for railroad development. Competition: niche vs. head-to-head o Niche: Win-win competition that a country has a specialty product they sell o Head to head: win-lose competition that country has everything that they sell, its about facing who's better. If there is a winner, there is a loser. Debt vs. deficit o Debt: how much you owe to one another o Deficit: how much you need for certain thing. The shortage of the resource/money. Demming o American quality control guru, who didn't have an audience in the U.S, who Japanese enshrined his policy like a bible. Dumping o Earning a profit of less than 8% o One country exporting and selling the product for less than at home. General Agreement on Trade and Tariffs (GATT) o Basic aims and objective on reciprocity and non discrimination Reduction tariffs from 40% to 5%. Porhibiting quantitative restriction and other non-tariff barriers to trade. Elimination of trade discrimination Generalize System of Preferences o Granted preferential acess to manufactured and semi manufactured goods exported from developing to developing countries o Permitted non-reciprocal trading agreement "Good as Gold" o From Bretton Woods o After deficit mounting up piling up dollars, creditors began to doubt if the dollar was GOOD AS GOLD Green Revolution o Gulf War I (funding, allies)
o Ejidos o government promotes the use of communal land shared by the people of the community o was introduced by Carranza. o And initiated by Cardenas but was never developed Friederich List o German economist that challenged the view of Adam Smith's AngloAmerican perspective. He believed that deliberate development was more preferred in economics; people put money where they will get the best in return. And consumers decision shape the market. He was concerned with market failure that might cause undesirable result such as pollution. Industrial growth is not a sheer of luck, rather derives from a nation's laws and institution. Also, he points out that if the products are well-made, it doesn't matter how expensive it is, people will buy it, and actually this gives them a better deal after all. List belives in "result" and that people might not choose what's best for themselves or society. It is better for consumer to pay 10% more for the product if it raises a national standards(nation perspective) He says that in business, there is ZEROSUM, that losers and winners are in pyramids, smallest group on top of it. There is no morality trade, no code of honor to protect the weak, which in Anglo-American is viewed as "cheating" o Later, Japanese in Meiji Era studied List's perspective and was more persuaded by him then Anglo-American perspective. Hamilton vs. Jefferson o Hamilton proposed to use tariff to protect industry and was rejected politically(industrial nation) o Jefferson proposed mercantilism (nation of yeomen farmers) Import substitution o Producing the products that you would be importing other from country Industrialization strategy o Jihad vs. McWorld o Jihad Identity, community and solidarity Solidarity achieved through respecting the leader, and intolerating others Retribalization resulted in anarchy, repression and persecution NO DEMOCRAT o McWorld Peace, Prosperity and relative unity Laissez-faire market principel, efficiency and productivity Multinational do business without invading neighbors NO DEOCRAT Laissez-faire
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Free market economics opposing economic intervention and taxation Support the idea that government shouldn't create monopoly Conflict with mercantilism. Discourage of use of tariffs and subsidies. Maquiladoras Small, separated industrializing area. Market failures Condition where market allocation of goods and services are not efficient. Marshall Plan European Recovery program after WWII, having a deal that US will assist them into recover their normal economic life, but with control of stability of political reform and peace. Soviet Union rejected Benefited US due to them buying US goods to rebuild Maximillian von Hapsburg A period of civil wars between conservatives and liberal reformers, a short lived empire Merchantilism Protectionist view Nation's prosperity depends on capital, and the global volume of trade. Government should intervene the market Encouraging exports and discouraging imports especially through using tariffs Most Favored Nation Concession negotiated btwn 2 countries or others. China renewal of the MFN, later became a member of the WTO, negotiation of eliminating the MFN status The reduction of tariff-> favors developed nations and NIC= Generatlized system of preference Permit goods exported from NIC=> NIC Accept exports from developing country without requiring equal acess to the developing country market o Give me resources; I'll trade you with TV. Multilateral vs. Bilateral Trade Agreements Multilateral such as GATT, where mutilations have to agree with Bilateral trade : treaties between 2 countries, exchange, state visits Opposed after Great Depression, saying that rising tariffs resulted downturn of the economy. After WWII, turned to multilateral. Still exists: WTO, UN Non discrimination Newly Industrializing Countries (NIC) In 3rd world which are developing industrial base Oligopolistic cooperation A few of the manufacturers of the industry control major segment=> disportionate Ex) Sears, Bank, insurance
Power: Military vs. Economic o The trend of power changed after WWII that economic power is more efficient, and harmless. Doesn't involve morality. Protectionism o o o Reciprocity If I give you something, you should give something back in return. Stakeholder vs. Shareholder Shareholder: individual business that owns the share of the stock that seek to achieve maximum satisfactory profit(individual's). Stakeholder: a party is affected by corporate's action. Government seek to maximize material welfare of the society. Tariff vs. non-tariff barriers Technologies: new produce vs. new process Views of trade competition: Japanese, German and American American: Zapatistas From Emiliana Zapata Peasants in Morelos bitter abot losing their land to commercial sugar and export crops, and the revolution was oppressed. Started when Francisco Madero challenged Diaz relection Rebellion to restore justice and regain their lands
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