POLI 441 Lecture Notes - Lecture 14: Resource Curse, Sony Music Entertainment, World Trade Organization

• School: McGill University
• Department: Political Science
• Course: POLI 441
• Professor: Krzysztof Pelc

Document Summary

Introductory article: left behind: how to help places hurt by globalization. Implications of overhang: binding overhang functions as insurance, but it"s not costless, risks abuse; "unties" leaders" hands. States seek an optimal level: exchange rate flexibility and trade remedy availability are examples of substitutes that reduce the relative value of overhang: another reminder of the existence of variation in commitments across members of the same institution. And we know that uncertainty acts like a tax on trade: kills the benefit of reciprocity. Gsp and reciprocity: reciprocity: other key wto principle. "the non-reciprocity doctrine tends to remove the major incentive that [developing country] e(cid:454)port i(cid:374)dustries have for opposi(cid:374)g protectio(cid:374)ist trade policies at ho(cid:373)e i(cid:374)stead of tr(cid:455)i(cid:374)g to enlist the support of the export sector for liberal trade policy" (hudec 1987) The value of institutions: gsp and binding overhang point to a common view: the value of institutional constraints rests precisely in their being constraining.