Globalization, Trade, Development, and Environment Study Guide

These flashcards cover key concepts from the study guide on globalization, trade, development, and environmental issues.

Autarky

Economic independence or self-sufficiency.

Protectionism

Barriers to trade such as tariffs, quotas, subsidies, and regulations.

Tariffs

Taxes imposed on imported goods to protect domestic industries.

Winners of Tariffs

Domestic producers, domestic workers, and the government benefiting from tariff revenue.

Losers of Tariffs

Domestic consumers and other domestic producers facing higher input costs.

Comparative Advantage

A theory by David Ricardo that suggests countries should specialize in producing goods they can make relatively better.

Absolute Advantage

A concept by Adam Smith indicating a country's ability to produce goods more efficiently than others.

Heckscher-Ohlin Theory

Theory that suggests countries export goods that match their economic resources.

Germany (capital-rich): exports steel.

Bangladesh (labor-rich): exports textiles.

Intra-industry Trade

Trade that occurs between companies in the same industry.

Globalization

The process of reduced barriers and increased global interdependence.

HyperGlobalization

A phase of globalization post-1990 that led to widened inequality and limited government policy space.

Demographic Transition

A model describing the transition of a country from high birth and death rates to low birth and death rates.

Permanent Migrants

Individuals who migrate and represent approximately 3.5% of the global population.

Millennium Development Goals (MDGs)

Eight international development goals established following the Millennium Declaration between 2000 and 2015.

Sustainable Development Goals (SDGs)

Seventeen goals and 169 targets established to promote global sustainable development from 2015 to 2030.

Tragedy of the Commons

The overuse of common resources leading to depletion, viewed as a Collective Action Problem.

Sustainable Development

Development that meets present needs without compromising future generations' needs.

Montreal Protocol

An international treaty aimed at phasing out substances that deplete the ozone layer.

Kyoto Protocol

A 1997 agreement that set binding emission reduction targets for developed countries.

Paris Agreement

An agreement to limit global warming to below 2°C, with voluntary contribution plans.

Climate Responsibility Debate

A discussion highlighting differing views on climate accountability between the Global North and South.

Major CO₂ Emitters

Countries that contribute most to carbon dioxide emissions, with China being current and the United States historical lead.

U.S. Climate Policy

Policy decisions related to climate change, such as rejoining the Paris Agreement under Biden.

Inter-industry:

trade between different industries

Intra-firm

trade within the same multinational company.

when and what was the first wave of globalization?

First Wave (pre-WWI): Steam engine, telegraph.

when and what was the second wave of globalization?

Second Wave (post-WWII): Planes, telecommunications, internet.

Who was the dominant political/economic power during the second wave of globalization?

USA

What are ways governments can control globalization?

Tariffs

Capital controls

Monetary and immigration policies

How can we help smaller countries grow?

Investment needed: private (FDI, bank loans) and public (grants, multilateral loans).

Empowering women

what are some key characteristics of good institutions:

Property rights enforcement

Constraints on elites

Equal opportunity

What are the Three Key Variables that determine population growth:

Mortality

Fertility

Migration

what are the Demographic Transition (4 Phases)

High birth rate; high death rate

High birth rate; falling death rate

Declining birth rate; relatively low death rate

Low birth rate; low death rate

Non-Permanent Migrants:

(Labor migrants, Internationally displaced persons, and Irregular migrants) 7% of the global population.

Benefits of Migration:

Knowledge transfer.

Remittances (money sent home).

how to make Migration Development-Friendly

Allow more legal migration.

Protect migrant rights.

Facilitate remittances.

what does the Millennium Declaration say?

Every individual has dignity and the right to freedom, equality, a basic standard of living that includes freedom from hunger and violence and encourages tolerance and solidarity.

What are MDGs and what time period are they in?

Millennium Development Goals (2000-2015): 8 goals

What are SDGs and what time period are they in?

Sustainable Development Goals (2015-2030): 17 goals, 169 targets.

what are the triple Bottom Line of SDGs?

Economic development

Environmental sustainability

Social inclusion

What is the problem of the Tragedy of the Commons?

Overuse of common resources.

What are the solutions to the Tragedy of the Commons?

Privatization (Enclosure)

Institutions and rule enforcement

what is a Collective Action Problem (CAP):

CAPs arise because of externalities: a divergence between individual costs/benefits and societal costs/benefits.

What are Free-Riders?

Actors who benefit from PGs (public goods) or CPRs (common-pool resources), but either do not pay for them or Underpay.

What is Sustainable Development?

Development that meets today’s needs without harming future generations.

What is the event that is given credit for coining the term, sustainable development?

1983: UN World Commission on Environment and Development commonly known as the Brundtland Commission

what are the three pillars of sustainable development?

Economic viability

Environmental protection

Social equity

What event had a relitive success in ozone depletion and what was the plan?

Montreal Protocol (22 states agree to cut CFCs by 50% by 1998., ozone depletion)

What were the challenges of the montreal protocol?

There was no way to ensure nations were being compliant

What is a positive outcome of the montreal protocol?

Atmospheric concentrations of CFCs have fallen.

COP3-Kyoto Protocol (1997):

Binding targets for the North; voluntary for the South.

Who is the only major developed country that has not ratified the Kyoto Protocol?

USA

COP 21-(Paris Climate Conference in 2016)

Each country will determine its contribution to mitigate global warming.

No legally binding commitments.

NDCs: Nationally Determined Contributions

NDCs would be ratcheted up every 5 years.

All are expected to participate in reductions of GHGs, unlike Kyoto.

What was the orriginal temperature goal of the Paris agreement in 2016, compared to the current goal?

Goal: keep global warming well below 2° C.

Since 2016, the goal has shifted to remaining under 1.5° C.

what was the slogan of COP 26 (Glasgow in 2021)

“Keep 1.5 alive”

What does Adaptation mean in terms of climate change?

responding to climate change already occurring;

What does Mitigation mean in terms of climate change?

reducing/stabilizing emissions of GHGs

what happened at COP 27?

there was an agreement on: loss & damage: payments for direct damage

What happened at COP 28 and where was it located(2023)

The COPs captured by the global oil industry!

For the first time, the conference agreement states that the world must shift away from fossil fuels.

Dubai

What are the 2 perceptions on who should bear the costs of climate change?

The South sees the North as the primary culprit for current problem. The North produced the greenhouse gasses that are causing the problem.

The North sees the South as the primary source of rising emissions. Any reductions the North makes will be swamped by rising Southern emissions.

Could China be the green champion?

A state-directed approach with the government investing heavily in green tech.

Could USA be the green champion?

Biden’s Inflation Reduction Act: the largest climate-related investment in American history.

But now Trump…

What was the preliminary round to climate change?

Covid-19