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Cards in this deck (17)
- 1Keynes:Multiplication of networks and
activities
Expansion and stretching of social
relations
Intensification and acceleration of
social exchanges and activities
All of this occurring at the material
level but also at the level of human
consciousness - 2Steger:“Globalization refers to the expansion
and intensification of social relations
and consciousness across world-time
and world-space” - 3TPPAd $2.7 billion a year to NZ econ by 2030
- 4Comparative Advantage:Somebody has a comparative advantage at
producing something if they can produce it at a
lower cost than anyone else. - 5Opportunity CostWhat it costs someone to produce something is the
opportunity cost—the value of what is given up. - 6Challenges:“This creates a challenge for free-trade advocates: when within a group a change in economic circumstances creates winners and losers, it is problematic to find a non-controversial criterion that allows us to say that the aggregate effect, i.e. the effect on the group as a whole, is good or bad.” (Driskill)
- 7Answer One:The losers are compensated
- 8Kaldor-Hicks“this criterion is satisfied for some change in economic circumstances when the gains to the winners are sufficiently large that there exists a compensation scheme from winners to losers that if carried out without use of any resources would make no one worse off and at least some people better off.”
- 9Appeal of Kaldor Hicks:It address a problem: the veto power of the losers
- 10Limitations of Kaldor Hicks:Is it feasible? How can it be implemented? Would a compensation scheme undermine people's incentives to compete, trade, innovate?
- 11Answer Two:The markets will take care of it… (in the long run…)
i.e. resources will be re-allocated to more efficient use - 12Accountability:In a liberal democracy, accountability rests on the notion
that, in the public realm, rulers respond to the citizenry
for their actions - 13Government Constraint:“Greater exposure to the world
economy reduces electoral
accountability in the world's
democracies” - 14Authoritarians:“Authoritarians prioritize social order and
hierarchies, which bring a sense of control to a
chaotic world. Challenges to that order — diversity,
influx of outsiders, breakdown of the old order —
are experienced as personally threatening because
they risk upending the status quo order they equate
with basic security.” - 15Voice in Democracy:“In developing countries, (…)
democratization enfranchises
particularly low-skilled and unskilled
labor in the rural and urban informal
sectors" - 16Benefits of Democracy:Free trade benefits the abundant
factor of production and harms the
scarce factor of production - 17Samuelson:The intuition, from the point of view
of a developed economy that exports
capital intensive goods
a) Tariffs go down; b) domestic firms face
competition from cheaper imports; c) imports
are cheaper because they are produced by
cheap foreign labor; d) importing-competing
firms go bust; e) export-competing firms do
well; f) export-competing firms are capitalintensive;
g) thus, there will be shortage of
capital and abundance of labor
The intuition, from the point of view
of a developing economy that exports
labor intensive goods
Low skilled/unskilled workers stand to benefit
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- 300 Politics Flashcards on Test, created by clare mckone on 14/08/2016.
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- clare mckone
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