Kaarten: Chapter 11 | Quizlet

What is global economic governance?

It consists of rules, processes, and regulations, both political and private, that support global economic activity by protecting property rights, enforcing contracts, and ensuring stability and predictability in international transactions.

What are the main challenges in establishing global economic governance?

Challenges include sovereignty tensions, opposing state interests, and power dynamics, which often result in imbalanced systems favoring dominant economic players.

What recent issues highlight challenges in WTO's effectiveness?

Issues include U.S.-EU trade tensions, the Inflation Reduction Act (2023), and China's disputes over U.S. microchip export controls, reflecting difficulties in resolving major trade disputes.

What are the main forms of international economic cooperation?

1) Intergovernmental organizations (e.g., WTO, IMF), 2) Non-governmental organizations (e.g., ICC), and 3) International agreements (e.g., NAFTA, bilateral investment treaties).

What are three theories explaining the creation of international organizations?

Realism (power distribution), Functionalism (effectiveness and trust-building), and Constructivism (norms and standards creation).

What does Giovanni Arrighi's theory of hegemon entail?

It identifies periods of global dominance by a leading economic power (e.g., Netherlands, Britain, U.S.), which sets rules for the world economy, often shifting after geopolitical challenges.

How did Britain shape the world economy in the 19th century?

Britain established dominance through free trade policies, the Gold Standard, and unequal treaties, using its empire to enforce economic rules.

What was the significance of the Paris Convention (1883)?

It was a landmark agreement for protecting intellectual property rights internationally, addressing issues like patents, trademarks, and industrial designs.

How did the League of Nations address economic instability?

Through its Economic and Financial Organization (EFO), it provided loans, technical advice, and attempted to counter protectionism (e.g., tariff truce proposals).

What role did international cartels play in the interwar period?

They regulated competition and controlled markets (e.g., International Tin Council, Petroleum Cartel) but were later replaced by stricter competition laws post-1945.

What were key multilateral initiatives post-WWII?

The United Nations (UN), GATT, Bretton Woods institutions (IMF, World Bank), which focused on trade liberalization, financial stability, and development.

What was the primary aim of the Bretton Woods system?

To create a stable monetary environment with the dollar-gold standard and institutions like the IMF for financial stability and World Bank for development projects.

Why was the WTO established in 1995?

To address GATT's limitations, such as complexities in global trade, intellectual property issues, and faster dispute resolution mechanisms.

What is the TRIPS Agreement, and why is it significant?

It established high standards for intellectual property protection, including patents (20 years), but raised concerns about affordability of medicines in developing countries.

What were the main concerns addressed in the Doha Round?

Developing countries' access to affordable medicines and compulsory licensing provisions for public health emergencies.

What are examples of regional economic integration?

The European Union (EU), NAFTA, ASEAN Free Trade Area, and Mercosur, each fostering deeper trade connections within specific regions.

What was the purpose of the Treaty of Rome (1957)?

To establish the EEC, removing trade barriers among member states and paving the way for a single European market.

What marked the EU's progression after 1957?

Removal of non-tariff barriers (1986), formation of the EU (1993), and adoption of the Euro currency for deeper economic integration.

What was the main objective of NAFTA?

To reduce trade barriers among the U.S., Canada, and Mexico, evolving into duty-free access for a broad range of goods and services.

How has ASEAN promoted economic integration?

By creating a free trade area (1992) to lower tariffs among member states, though without a common external tariff like the EU.

What areas did multilateralism fail to address adequately post-1945?

Multinational investment, due to unresolved disputes over expropriation standards and reliance on bilateral investment treaties.

What factors boosted multilateralism after 1990?

The collapse of communism, U.S. hegemony, and new trade agreements like the Uruguay Round leading to the WTO.

What challenges face the future of global governance?

The rise of multipolar blocs, state-centric policies (e.g., Brexit, protectionism), and geopolitical tensions, potentially undermining multilateralism.

How has global economic cooperation evolved?

From imperial dominance and ad hoc agreements pre-1945 to structured multilateralism and regional integration post-1945, with ongoing tensions between states and institutions.

How does Functionalism explain the creation of international organizations?

Functionalism suggests that international organizations are created to effectively address technical and non-political issues. Successful cooperation in these areas can lead to "spill-over" into broader political collaboration.

What is the Constructivist perspective on international organizations?

Constructivists view international organizations as forums for creating, monitoring, and diffusing norms and standards. They argue these organizations have independent influence and should be studied in their own right, beyond power dynamics.

What does the Realist theory argue about international organizations?

Realists believe international organizations reflect the distribution of power in the international system and are dominated by the most powerful states. They view these organizations as secondary to state power.