POLI 381 Lecture Notes - Lecture 9: Organizational Commitment, Inside Out Music, Opportunity Cost

• School: University of Calgary
• Department: Political Science
• Course: POLI 381
• Professor: Ryan Dean

Document Summary

Lecture objectives: what does inside-out mean, mitigating anarchy: economic interdependence, mitigating anarchy: international institutions. Liberalism wants to extend the legitimacy of domestic political arrangements found within democratic states to the international relations between all states: the international behavior of states can be explained by their internal characteristics. Free trade: trade is based on comparative advantage: the ability of one firm to provide a good or service at a lower opportunity cost than another firm, classical liberal economic theory wants free-trade. Government intervention distorts markets, leading to less wealth. Distortion to trade: tariffs: taxes imposed on imports to raise their relative costs, nontariff barriers: policies other than tariffs to limit or prevent imports from entering the domestic market. Subsidies: government payments that underwrite domestic industries so that they can lower their prices and sell more competitively internationally. States and foreign investment: most states are unable to generate enough wealth to finance their own economic development.