Question 1

What is the "political trilemma" and what are the arguments behind it?

Accepted Answer

The "political trilemma" refers to the idea that it is difficult to achieve all three of the following political goals simultaneously: national sovereignty, democratic governance, and global economic integration. This concept was popularized by economist Dani Rodrik in his 2007 paper "The Political Trilemma of the World Economy."

The arguments behind the political trilemma are based on the idea that these three goals are inherently in tension with each other. National sovereignty refers to a country's ability to make its own political and economic decisions without external interference. Democratic governance involves giving citizens a voice in the decision-making process. Global economic integration involves participating in the global economy through trade, investment, and other forms of economic cooperation.

The trilemma suggests that it is difficult to achieve all three of these goals simultaneously because they can conflict with each other. For example, global economic integration may require countries to cede some degree of sovereignty to international organizations or agreements, which can be seen as undermining democratic governance. On the other hand, prioritizing national sovereignty may limit a country's ability to fully participate in the global economy.

Overall, the political trilemma highlights the challenges that policymakers face in trying to balance these competing objectives, and it suggests that it may be difficult to achieve all three goals to their fullest extent at the same time.

Question 2

Can the recent rise of populism be linked to "globalisation"?

Accepted Answer

The recent rise of populism can indeed be linked to various aspects of globalization, which encompasses the increased interconnectedness of the world's economies, cultures, and populations brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

Here are several ways in which globalization has contributed to the rise of populism:

1. Economic Displacement: Globalization has led to the movement of manufacturing jobs from developed countries to countries with cheaper labor costs. This has resulted in job losses and economic displacement for many workers in the developed world, particularly those in industries that are vulnerable to international competition. The sense of economic insecurity and the perception that the benefits of globalization are not evenly distributed have fueled populist sentiment.

2. Cultural Concerns: Increased migration and the perceived erosion of national identities have led to cultural anxieties in some populations. Populist leaders often capitalize on these fears by promoting a nationalist agenda that opposes the globalist view of open borders and multiculturalism.

3. Political Elites and Institutions: There is a perception among some voters that political elites and international institutions are out of touch with the needs of the ordinary people and that they prioritize global interests over national interests. Populists often position themselves as the voice of the "common people" against the "corrupt elites," promising to restore power to the national level.

4. Inequality: While globalization has contributed to significant economic growth, it has also been associated with rising inequality within countries. The perception that a small global elite is reaping the majority of the benefits has led to a populist backlash, with calls for policies that prioritize the redistribution of wealth and resources.

5. Information and Social Media: The global spread of information technology and social media has enabled populist movements to disseminate their messages more widely and effectively. It has also allowed for the rapid spread of disinformation, which can exacerbate divisions and fuel populist narratives.

6. Sovereignty: Some people feel that globalization undermines national sovereignty, as international agreements and regulations can limit the ability of individual countries to set their own policies. Populists often argue for the reassertion of national sovereignty and the rejection of international agreements that they see as detrimental to their country's interests.

It is important to note that while globalization has contributed to the conditions that enable populism to flourish, it is not the sole cause. Populism can also be driven by domestic political, social, and economic factors. Additionally, the relationship between globalization and populism is complex and can vary significantly across different countries and regions.

Question 3

Which cases clearly call for "global governance"?

Accepted Answer

Global governance refers to the cooperative leadership, management, and administration of global affairs and resources through collective decision-making involving various states and non-state actors. It is a way to address issues that transcend national boundaries and require the collaboration of multiple countries and international organizations. Several cases clearly call for global governance, including:

1. **Climate Change**: Climate change is a global environmental crisis that affects all countries, regardless of their contribution to greenhouse gas emissions. Global governance is necessary to coordinate international efforts to mitigate and adapt to climate change, such as through agreements like the Paris Climate Accord.

2. **Pandemics and Public Health**: The COVID-19 pandemic has demonstrated the need for global governance in managing public health emergencies. Coordinated efforts are required for disease surveillance, sharing of information, distribution of vaccines, and managing the global health infrastructure.

3. **International Security**: Issues such as nuclear proliferation, terrorism, and cyber threats require a global governance approach. International treaties and organizations like the United Nations Security Council play a crucial role in maintaining peace and security.

4. **Trade and Global Economy**: The global economy is interconnected, with supply chains and financial systems that cross borders. Global governance structures like the World Trade Organization (WTO) help to regulate trade relations and ensure fair economic practices.

5. **Environmental Protection**: Beyond climate change, other environmental issues such as biodiversity loss, ocean pollution, and deforestation are global concerns. International agreements and organizations work towards sustainable management of the Earth's resources.

6. **Human Rights**: The protection and promotion of human rights are a global concern. International bodies like the United Nations Human Rights Council work to uphold human rights standards and address violations worldwide.

7. **Migration and Refugees**: Large-scale migration and refugee crises, often caused by conflict, climate change, or economic hardship, cannot be managed by individual countries alone. Global governance is needed to ensure the protection and fair treatment of migrants and refugees.

8. **Internet and Cyber Governance**: The internet is a global network that requires international cooperation to manage issues like cybersecurity, data protection, and the digital divide.

9. **Space Exploration and Use**: As activities in space increase, global governance is needed to manage space traffic, prevent conflicts, and ensure the sustainable use of outer space resources.

10. **Financial Stability**: The global financial system is interconnected, and crises can have worldwide impacts. International financial institutions like the International Monetary Fund (IMF) play a role in maintaining global financial stability.

In summary, global governance is essential in areas where challenges are inherently transnational, requiring collective action and shared responsibility. It involves not only governments but also international organizations, civil society, the private sector, and other stakeholders working together to address complex global issues.

Question 4

What is the key difference between multilateral and regional trade agreements?

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Question 5

What are the key principles of the multilateral trading system?

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Question 6

What are the major forms of regional trade agreements and how do they differ?

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Question 7

What are deep trade agreements (DTAs), and how do they differ from a standard free trade agreement (FTA)?

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Question 8

What are major cases for international coordination in the International Monetary and Financial System (IMFS)?

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Question 9

What does the "financial stability trilemma" suggest?

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Question 10

Identify the 5 correct statements 
1. The political trilemma posits that limiting hyper-globalisation is necessary for democratically legitimated global governance.
2. A rise in populism could in history often be observed after (global) financial crises.
3. When a policy of one country has a (spillover) effect on all other countries this clearly calls for global governance.
4. Regional trade agreement are by definition discriminatory.
5. According to the most-favoured nation principle of the multilateral trading system some countries are more favoured than others.
6. A custom union does require rules of origin.
7. A free trade area is welfare reducing when trade diversion exceed trade creation effects.
8. Deep trade agreements (DTAs) cover areas that are not covered also by WTO rules.
9. When an interest rate increase in one country leads to higher interest rates elsewhere, this is a clear case for international coordination.
10. The financial trilemma posits that a highly integrated financial system cannot guarantee financial stability when relying on national supervision.

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1. The...

Quiz 7: Governance in the New Global Economy