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POLI 244 (300)
Lecture

POLI 244 Lecture Notes - Hegemonic Stability Theory, Exchange-Rate Regime, International Monetary Fund


Department
Political Science
Course Code
POLI 244
Professor
Stephen Saideman

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Issues
Trade
Goods and services, exports and imports
Tariffs
Taxes on imports
Intended to improve competitiveness of domestic industry
Funded most governmental projects/institutions
Non-tariff barriers
Regulations that limit imports through other means
Exchange rates
The rate at which one currency is exchanged for another
Cheaper your currency is, the more people buy your stuff
Foreign direct investment
When a company buys land, builds offices and factories, invests in another country's
businesses
Governments must manage to have markets opened enough for other countries to
trade with it, but also closed enough to not be exploited
Bretton Woods
Exchange rate regime
Instability
Competitive devaluation
Fixed rates then managed
The US dollar was tied to gold and everyone else's currency was tied to the
US's
Put too much responsibilities on the US
International monetary fund - IMF
Manage situations in which countries ran out of foreign exchange
Provided short-term loans to countries so that country could keep
trading
Free trade regime
International trade organization
GATT
General agreements on Tariffs and Trade
Created a set of rules to facilitate trades
Made it easier for countries to foster employment and make things happen
GATT to WTO
World Trade Organization
Grand deal to expand GATT
To monitor compliance
Punishments is still by States, but sanctioned by WTO
But how do you punish the bigger players (China, USA...)
GATT was to be temporary
Developing countries wanted 2 things
Free trade with agriculture
Free trade with textiles
WTO gave more power to intl institutions
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