International Economics and International Organiza (2200FSWIEO)
Summary
Samenvatting International Economics and International Economic Organizations
70 views 6 purchases
Course
International Economics and International Organiza (2200FSWIEO)
Institution
Universiteit Antwerpen (UA)
Comprehensive summary + notes + examples + sample questions from the course International Economics and International Economic Organizations (by Professor Cassimon and Mavrotas) for the year 2023—2024.
International Economics and International Organiza (2200FSWIEO)
All documents for this subject (1)
Seller
Follow
ericasedda97
Content preview
Table of Contents
INTERNATIONAL FINANCE AND THE ECONOMICS OF THE IMF..........................................................2
GLOBAL PUBLIC GOODS/THE BALANCE OF PAYMENTS.................................................................................2
INTERNATIONAL ECONOMICS: A GLOBAL PUBLIC GOODS APPROACH......................................................................2
THE CONCEPT OF THE BALANCE OF PAYMENTS.................................................................................................4
IF1 - TRADITIONAL CASE FOR FREE CAPITAL MOBILITY..................................................................................8
DEFINING AND MEASURING CAPITAL ACCOUNT OPENNESS..................................................................................9
GLOBAL CAPITAL FLOWS.............................................................................................................................10
EXPLANATORY FRAMEWORK.......................................................................................................................15
POLICY IMPLICATIONS................................................................................................................................17
IF 2 - EXCHANGE RATE ECONOMICS.......................................................................................................18
EXCHANGE RATES.....................................................................................................................................18
EXCHANGE RATE REGIMES/POLICIES: FLEXIBLE................................................................................................18
OTHER EXCHANGE RATE REGIMES................................................................................................................19
EFFECTIVE EXCHANGE RATE........................................................................................................................20
SPOT VERSUS FORWARD EXCHANGE RATES....................................................................................................20
FORWARD GIVE RISE TO INTEREST RATE PARITIES............................................................................................21
IF3 - FINANCIAL CRISIS.......................................................................................................................24
TYPES OF FINANCIAL CRISIS.........................................................................................................................24
THE IMF FROM AN INTERNATIONAL CRISIS PREVENTION AND MANAGEMENT PERSPECTIVE......................................30
IF4 - INTERNATIONAL MONETARY SYSTEM..............................................................................................32
INTERNATIONAL FINANCIAL CRISES IN PRACTICE..............................................................................................32
LESSONS FOR THE INTERNATIONAL MONETARY SYSTEM..................................................................................37
INTERNATIONAL TRADE THEORY, PRACTICE, POLICY, AND INSTITUTIONS ......................................44
IT 1 – WTO....................................................................................................................................44
WHAT IS THE WTO?................................................................................................................................44
TWO COLLECTIVE ACTION PROBLEMS............................................................................................................47
PREFERENTIAL TRADE AGREEMENTS (PTAS)..................................................................................................48
POLITICAL ECONOMY OF TRADE AGREEMENTS................................................................................................49
IT 2 - TRADE, TRADE POLICY & THE GLOBALIZATION PROCESS......................................................................52
PART 1: GLOBALIZATION AND THE EVOLUTION OF TRADE..................................................................................53
PART 2: WHY DO COUNTRIES TRADE?...........................................................................................................60
IT 3 - THE POLITICAL ECONOMY OF TRADE POLICY....................................................................................66
1 - TRADE POLICIES FROM A HISTORICAL PERSPECTIVE.....................................................................................66
2 - THE TAKE-OFF OF ASIA & THE EAST ASIAN MIRACLE..................................................................................67
3 - INTERNATIONAL TRADE POLICY AND POLITICAL ECONOMY CONSIDERATIONS....................................................69
THE GLOBALIZATION TRILEMMA AND POLITICAL ECONOMY................................................................................75
IT 4 - THE TRADE-GROWTH NEXUS: RECENT IMPLICATIONS & COVID-19 EFFECTS............................................78
1- THE TRADE-GROWTH NEXUS...................................................................................................................78
2-SOME STYLIZED FACTS ABOUT POVERTY INCIDENCE (TRENDS).........................................................................79
3-TRADE, GROWTH AND POVERTY: THE LINKAGES...........................................................................................81
4-TRADE AND POVERTY EMPIRICAL EVIDENCE AND EMERGING POLICY ISSUES.......................................................83
,5-TRADE AND THE COVID19 PANDEMIC: STYLIZED FACTS, TRENDS AND POLICY CHALLENGES: THE IMPACT OF THE
UKRAINE WAR.........................................................................................................................................85
INTERNATIONAL FINANCE....................................................................................................................91
INTERNATIONAL TRADE.......................................................................................................................92
SAMENVATTING IEO 2023 – 2024
, INTERNATIONAL FINANCE AND THE ECONOMICS OF THE
IMF
GLOBAL PUBLIC GOODS/THE BALANCE OF PAYMENTS
INTERNATIONAL ECONOMICS: A GLOBAL PUBLIC GOODS APPROACH
BASIC CHARACTERISTICS OF A (PURE) PUBLIC GOOD
o Non-exclusion even if people don’t want to pay for it ( exclusive =
you have to pay)
o Non-rivalry in consumption consumption of one person doesn’t exclude
the consumption of the other
o Examples: infrastructure, made by public sector, clean air, streetlight,
lighthouse, transportation, security (opposite = private good produced by
the market)
Pure public goods are non-exclusive and non-rivalry but there is a problem:
Market agents can’t force people to pay for it once produced.
In practice, pure public goods don’t exist.
- Quasi-public goods: goods that have one characteristic, but not the other
one. (ex. security in the NATO, easy to exclude states).
- Joint products: things that are both public and private (infrastructure,
education, transport)
Free riding because of under-provision
- There is no relying on the market system to produce the supply of these
desirable products because it would result in under provision due to the
characteristics of a public good.
Solution: intervention by a public actor (government intervention through
taxes, rules, institutions, agreements to be able to provide these public goods
and solve the market failure (under provision).
- Stepping in instead of the private sector and supplying the good instead
(direct)
- Through less costly ways by trying to influence and regulate private sector
behavior and subsidize actions so that the private sector is incentivized to
produce these particular goods/services (indirect)
GLOBAL CONTEXT global public goods
Some problems are global by nature (ex. pollution) because it exceeds
international borders = transnational.
- Free riding also exists on the international level.
- Ex. Why should I pay for clean air if someone else does it?
, Global/supranational institutions, solutions, interventions, institutions,
agreements to solve this problem on the global level.
National institutions are taken to an international level because free-riding and
under-provision by states will happen, and that’s why rules are also needed on
international level.
Global public good (environmental stability) bad = problematized GPG
(climate change)
DIFFERENT TECHNOLOGIES OF PROVISION
1) Summation = total aggregate supply = sum individual contributions
For example – pollution: every action matters and will have effect, when
every state reduces waste. We have to motivate that each state
contributes because each state has a stake in this Policy message
(together)
2) Weakest link = the individual with the lowest contribution affects the
aggregate of the total result
For example – island: surrounded by sea and evenly divided. We need
protection for rising sea levels & flooding, so we need to build dikes. If
each part takes different measures, the level of protection equals the level
of the lowest wall.
Global financial crisis starts in a particular country, but spills over in other
countries because of transnational relationships. Each country can have
their own mechanisms, but the total level of protection = level of
protection of the weakest link (USA during the 2008 crisis).
policy message: target the weakest link, to not waste resources.
3) Best shot = aggregate result is decided by the one with the highest
contributions.
For example – vaccines/drugs: focus the money on those who have the
highest chance of solving the problem policy message.
each technology has a different impact on the result or policy of the
production of GPGS.
APPLICATION TO INTERNATIONAL ECONOMICS
because of global transnational transactions, risks occur global mechanism
is needed to cure problems
o Rules on trade
o International financial stability (=GPG GPB = global financial crisis)
IMF = institution for the provision of global financial stability which is a global
public good (did they realize thir mission statement?)
o Optimal capital provision
= some states have more/less resources than others for development.
There’s a desire for a mechanism for poorer states to have access to
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ericasedda97. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.19. You're not tied to anything after your purchase.
