1. What are the 4 factors of production?
Land, labor, capital, entrepreneurship
2. Describe the parallels established by Thomas K. McCraw between nineteenth-century immigration and contemporary immigrant
3. Describe the Financial Reforms of the 1930s.
During the 1930s a sound method of deposit insurance was put into place, and the Federal Reserve System was strengthened. But even then the principle of
decentralization remained powerful, as investment banking was separated from commercial banking by the Glass-Steagall.
4. What is the American way of life?
American way of life is the way of life rested on a fusion of democracy with capitalism-a marriage of “liberty” with the “free market”. It was all symbolized by the “American Dream” of individual prosperity, home ownership, suburban living, and the freedom if the open road.
5. What is the key difference between the realist/liberal and societal explanations? Describe the main societal theory.
Interest in the societal determinants of foreign policy and international relations. Whereas realist and liberal theorists each proceed from the assumption that foreign policy is the product of some version of the national interest, societal explanations depict the foreign policymaking process as dominated by the struggle among private interests.-
Societal theory: its research agenda revolves around the role of business actors, the conflicts among them, and the consequence of business invention in the making of foreign policy.
6. What is import substitution?
Import substitution is an instrument of capital accumulation. One way to accumulate capital is import substitution.
7. What are the 4 causes of shift from Import Substitution Industrialization to Export-Led Industrialization?
The profound economic problem rising
Bilateral assistance from the advanced industrial state was also based on a new concern with domestic policy
The debt and balance of payment crisis of the 1980s changes the bargaining power of the developing countries in comparison with their creditors and international financial institutions.
The shift in us trade policy toward and emphasis on opening foreign markets and created conditions for ELI.
8. Describe the role of the United States in the Congo Crisis.
The U.S. government backed UN intervention, which initially favored the Katangan separatists.
The CIA also assisted Congolese military officers in overthrowing Lumumba's government. Gibbs attributes the Eisenhower administration's -attitude to ties between a number of key U .S. officials and Belgian business interests:
After some vacillation, the United States weighed in on the side of the central government and encouraged the UN to turn against the Katanganseparatists . UMHK retaliatedby blocking the overseas sale of Congolese copper and
sponsoring a series ofmercenary rebellions against the Mobutu government. The United States, sympatheticto Mobutu's challenge to UMHK, provided military aid to help him put downthe rebellions
9. How do firms influence government policy?
Business firms exercise influence along diverse routes. Some of these include personal ties with top officials, traditional lobbying and campaign, contributions, favored relationships with “captured” regulatory agencies, and the structural power that capital derives from its control over investment.
10. What is Political Science? Describe the evolution of the field.
Political science is an academic discipline the studies political institution, political processes& political processes & political behavior
11. How does Charles Lindblom describe the relationship between business and politics?
(There is contradiction in the ways in which business is theorized.
In vernacular English, the term can mean anything from a particular legal entity to the sum.)
Although gov is regarded as responsibility for overall economy management, such responsibility is often treated as leading to so much dependence on the private sector that the MKT, rather than gov, becomes the actual “managers” of the so-called “mixed economy”.
One important body of literature models business as capital and examines the constraining effects of uncoordinated private-investment decisions on government
decision making. Lindblom (1984) presents the closed-economy version of this approach in its simplest form. Because the level of investment determines economic growth, government decision making in a mixed economy is always constrained by anticipated private reactions. In effect, capital votes twice: one through the organized pressure it can bring to bear on the political process, again through its investment decision.
12. What are the benefits of corporate giving?
a. Increase company’s name recognition
b. Boost employee productivity.
c. Reduce R&D cost
d. Overcome regulatory obstacles
e. Foster synergy among business units.
f. Encourage companies to play a leadership role.
13. What is state building? How would you characterize “a State-Building Approach”?
State building is a progress basic to any nation’s political development. Government officials seeking to maintain power and legitimacy try to mold institutional capacities in response to an ever-changing environment.
Environmental stimuli, official responses, and new forms of government are the basic elements of the state-building process, and these can be compared cross-nationally to identify developmental patterns and contextual variations.
An approach can be said to be state-building if it focuses on the efforts of rulers to widen and secure their power base, amidst significant internal and external threats, thereby leading to an open-ended process of state-development in which a
selective set of successful military, fiscal and administrative arrangements played a major role.
14. What are the commonalities and differences the United States and China?
1)Both are large countries with enormous local variation and autonomy.
2) Both are heavily influenced by neoliberal economic policies
3) Both initiated large-scale, pro-market reform almost simultaneously under Xiaoping Deng and Ronald Reagan.
4) Since the 1990s, China's public management reforms have adopted best practices, such as "reinventing government," from the United States. Despite these
1) The level of socioeconomic development, the political-administrative culture and structure
2) The demands on the service system, the availability of boundary-spanning public managers, market/nonprofit partners
3) The history of multispectral cooperation.
4) CSD has a long history of development and has attracted much research. In contrast, CSD in China emerged only after the initiation of the reform of its planned economy in the late 1970s.
5) CSD in the United States concentrates on efficiency whereas CSD in China fills a large cap-the expansion in gov size has been dwarfed by that in gov expenditure. Thus CSD seeks to fill the service-delivery gap.
6) China has a state-affiliated strategy of CSD while the US has a competition-oriented strategy.
15. What are the capacities that must be improved to manage CSD efficiently?
1) Contract management
2) Market/civil society empowerment: empower the market and civil society; create an enlarged and improved base for CSD.
3) Social balancing: reconcile the interests of stakeholders and avoid creating insurmountable social and political resistance.
4) Legitimization: maintain the legitimacy of the government
16. What are 5 mechanisms through which managers in the extractive industry can avoid conflict?
1. Policies need to be developed with local people, be appropriate to the local context and evaluated by everyone involved.
2. Manage community relationship building and identify conflict and community concerns, before open conflict arises.
3. Respect the rights of stakeholders to protest and establish accessible grievance mechanisms. Complaints procedures must be well designed.
4. Build trust to help companies detect local concerns at an early stage.
5. Disclosure information on how corporate operations will affect people in their field of operation.
17. What are the 2 causes and the consequences of the imbalance of power in the food systems?
There are 2 main causes. First, there is an imbalance of power in the food systems as price signals by buyers are driving the food market.
The main cause is the market structure which gives buyers considerable
bargaining strength over their suppliers. Buyers pay relatively low prices for crops even when the prices increase on regional or international markets, and they can
continue to charge high prices to consumers even though prices fall on these markets.
Second, there is evidence that the shift from supply-driven to buyer-driven chains linked to the expansion of large retail networks (“Super-marketization”) leads to an increased exclusion of smallholders. Such exclusion is due, in part, to the imposition of standards in the supply chain that smallholders find it difficult to comply with.
The development of private standards has worked against smallholders.” Compliance has often required higher levels of capitalization than many
smallholders could afford, and the high costs of monitoring compliance over a large number of units have been an incentive for export companies to switch from smallholders to larger commercial farms.
1) One of the consequences is that food prices in developing countries have remained high despite the bursting of the bubble in the commodities markets in July 2008. In many countries, prices were higher in July 2009 than they were a year earlier because of the dominant position of commodity buyers and certain traders in these countries.
2) The globalization of the food economy increases the competitive pressure exercised on suppliers, pushing them to lower wages and downgrade other working conditions, and weakening the ability of unions to resist this
18. Compare the legislative environment in the steel industry in the 1980s and 2012?
1) In the 1980s, the industry filed anti-dumping complaints and ended up with import quotas that lasted for nearly eight years. Today, the industry is
competitive. It is a lean and modern producer whose efficiency rivals any competitor’s. Since 1980, the industry says, it has invested more than $50 billion in new technologies and has shed three-quarters of its workers. Yet that vastly smaller number of workers produces nearly as much steel as the 1980 work force did.
2) In the 1980’s, the US negotiated” voluntary restraint agreements” or Quotas with foreign steel producers, which effectively created a formal international steel cartel parceling out the US market. That cartel reduced competition, limited supply and kept prices higher than they would have been, which hurt domestic consumers of steel. In the 1980s, a comprehensive system of VERs against steel imports imposed a net loss on the US economy of as much as $6.8 billion a year.
This is not the case in 2011
1) Voluntary restraint agreements are prohibited and import quotas are allowed only in a few situations.
2) Employment in the steel sector has declined by more than 60 percent since 1980 largely because of rising productivity according to Lindsey Griswold and Lukas.
3) The domestic steel industry has shed more than 60% of its workforce since 1980 according to Lindsey, Griswold and Lukas.
4) Productivity is high in 2011. In 1980, a ton of domestically produced steel required 10 man-hour to produce. Today, the industry average is less than 4 man-hours according to Lindsey, Griswold and Lukas.
19. What is the solution to the true trade problems that plague U.S. steel?
Steel is among the first products to feel the impact of a world economic slowdown. There are 2 proposed solutions:
1) No subsidies and no cartels.
To tackle the true trade problems that plague US steel producers: benign
subsidies and cartels, rather than resorting to protections in times of peril.
2) Multiple countries come together to promote free competition.
A multilateral approach aimed at removing the kind of structural features of trade: cartels and hidden subsidies that distort competition not only in
downturns but in good times. Some experts think just such an opportunity was lost in the early 1990s.
20. What is the relationship between steel and other sectors of the U.S. economy?
21. What are some of the consequences of higher tariffs?
1) One of the largest direct consumers of steel is the construction industry, which accounts for about 35 percent of domestic steel consumption. Duties and
tariffs against imported steel will result in higher prices for homes and
commercial office space. The jobs of thousands of construction workers could be put in jeopardy.
2) Japan, Russia, South Korea and Brazil also carry out protectionism, a virtual green light for copycat protectionism around the world.
3) Metal-forming industry turns sheet metal into intermediate and final products such as precision parts. Manufactures have to have to pay more for steel than our foreign competition, and will lose orders and be forced to cut back or
cease production. "Those jobs will be lost to producers of wire rod products in foreign countries that have access to world market steel
4) It will send a very dangerous signal to foreign governments contending with their own protectionist pressures.
5) It will hurt American buyer. It will not only stop foreign producers from selling in the US market but also stop American citizens from buying the types and amounts of steel they need at prices that benefit them most as shareholders, workers, and consumers.
6) It will damage US foreign image. The United States professes to be an
honorable nation that keeps its word and upholds the rule of law. Unilaterally closing the US steel market through quotas would undermine respect for the rules-based international trading system that America has worked so hard to establish. If we expect other nations to honor their obligations, we must do the same.
7) An Outright trade ban-even a brief one-would seriously damage private
business relationships and undermine the global competitiveness of dynamic US companies.
22. What are quotas?
Quotas are unwise. Indeed, they are one of the most damaging forms of trade
restriction. They redistribute wealth from consumers to domestic producers and to those foreign producers lucky enough to get quota rights, while the U.S. government does not receive tariff revenues.