IS 101 #9 - InternationalStudies101#9 16:01...

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16:01 Review Session: Next Friday 4 – 5:30  1. Introduction Layout of lectures in section Global challenge and focus: Development and Global Poverty Much of the world lives on less than $2/day, there is also a huge portion lives on middle  income ($1000/day or less).  The living standards that we take for granted are luxuries  or impossible for most of the world. Poverty line is $14,000 for a couple/year Other major issues in international economics: trade, finance, monetary policy Movement of capital across borders (ex: FDI) International monetary policy: how states regulate their policy based on other countries  currency  Global Supply Chains: it is possible to produce goods and services around the world.  You can also have one part be made in X country and another part in Y country and  then assembled in Z country and so on.  Production of goods and services is globalized. 2. Stakes of the Development Challenge Power and Social Welfare To gain power and support domestically and internationally, the more capacity you have  to gain wealth, build infrastructure, etc. Humanitarian concern: we want people to have better lives Extreme poverty can breed desperation which can breed violence Civil wars are directly correlated with poverty Very poor states (ex: Somalia and Afghanistan) lead to state breakdown Immigration, people migrate because they want better lives Inequality Strategic concerns Growth begets growth A rising tide lifts all boats.  The richer you become, the market becomes bigger.  As  people become richer they will demand more goods and services.  There is more  opportunity to generate profits. Democracy and human rights
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This note was uploaded on 11/21/2011 for the course POLI SCI 101 taught by Professor Mayer during the Fall '08 term at Wisconsin.

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IS 101 #9 - InternationalStudies101#9 16:01...

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