Final Exam review sheetBe able to identify the Ultra-Globalist position on Nation-StatesUltra Globalists feel the nation state is dying out with the growth of transnational corporations (TNC’s) Know the five state functions in managing national economies.-Know of 6…. • Defining the national vision and strategic direction • Establishing medium-term strategies to translate the national vision into concrete action • Strengthening and aligning the institutional framework for implementation of the medium-term strategies • Maintaining macro-economic stability • Ensuring good governance • Addressing blockages to economic growth. Know the five types of states according to the book.1.The Welfare State - A combination of state benefits (strong social safety nets and subsidies) and the market depends on central banks to help steer the economy (through partial ownership interests in companies) with close relationships between capital sources, labor (read unions) and the state.2. Developmental State - Tends to have an autocratic or single party dominant rule (Soft authoritarian, some hard). Government takes little input from people and businesses (Exceptions here are numerous).- Heavy involvement of government in directing industries and investments. -Usually former communist states. 3. Transitional States - Strong Authoritarian dominated by one party-Transitioning from communist to market capitalist-State-Owned-Enterprises (SOE), Hybrid SOE's and emerging private companies.4. Weak and Dependent States - Government dominated by oligarchs, foreign corporations or international agencies-Politically unstable or frequently under dictators-Usually dependent on a single industry or resource5. Undeveloped or under developed - Way too much of a catch all. Venezuela is no different than India or Egypt or South Africa!-You have a mix of government types, economic conditions and industries.-For the sake of exams, these will be used but I would rather see you not use "weak and dependent" as acategorical argument. I'd rather use "other" since it is difficult to create a homogenous category6. Failed States - No or weak government.Final Exam review sheet-State of war with no central control. -No main industry or economic output-Haven for terrorism/piratesKnow the Macro-regional economic blocs as discussed in the book and in class.Free Trade Areas - Free trade between the agreeing states but no effect on other agreementsCustoms Unions - Generally free or negotiated trade rules between members and common rules for trade with members outside the union.Common Market - Trade and labor can move freely within and between the member nations. Trade with outside parties regulated by common rules.Economic Union - The most immersive. EU is only current one. Major convergence of economic policies and features among members with members submitting to a supranational body for some governmentalfunctionsKnow the various international bodies involved in economic issues.World Trade Organization (WTO) - 1995 - Helps enforce trade agreements as part of the GATT agreement. A key cog in the free trade idea. Push back against these ideas are present in the lack of progress in the Doha round of trade negotiations of GATT.International Monetary Fund (IMF) - 1944 - Main focus was stabilizing currency. Has morphed into being a main stabilizer for financially troubled nations. Structural Adjustment Policies (SAP) have been key in pushing Neo-Liberal ideas on troubled economies in exchange for money. Recently, there has been a backlash against these policies. Especially in South America.World Bank - 1944 - Created to help redevelop Europe and Asia after WWII. Expanded its mission in later years. Strong focus on getting capital to economic development projects. In recent years, has expanded into trying to do more green and sustainable projects. United Nations - More political and less economic. Can be used to get economic sanctions but the powers of enforcement and almost non-existent. Little real power.Know the key points of differences between the pro neo-liberal views and those who are against it.Neo-Liberalism - An approach to economics and social studies in which control of economic factors is shifted from the public sector to the private sector. Drawing upon principles of neoclassical economics, neoliberalism suggests that governments reduce deficit spending, limit subsidies, reform tax law to broaden the tax base, remove fixed exchange rates, open up markets to trade by limiting protectionism, privatize state-run businesses, allow private property and back deregulation.-Those against Neo-Liberalism believe the free market may not serve everyone equally, there is a debateabout “trickle down” economics. May against Neo-Liberalism believe the gov’t needs to take a more hands on role in the economy. Understand how governments work to promote economic development on less than national scales andbe able to identify and explain some of these ideas from the lectures.Final Exam review sheet-Internal special zones - At all levels of government, specific areas can be set up as various special types of economic zones. These zones may offer subsidies, tax credits, loans, reduced taxes or special rules among others.-Financial incentives through the state are offered to encourage private investment as well as employment opportunities for the area’s residents. For businesses to be eligible for these financial incentives they must be located inside the designated zone area and must hire a percentage of full-time employees who are residents of the zoned area.State Incentives Available to Qualified Businesses:-Jobs Tax Credit (Sales Tax)-Jobs Tax Credit (Corporate Income Tax)-Business Equipment Sales Tax Refund-Building Materials Sales Tax Refund-Property Tax Credit (Corporate Income Tax)-Sales Tax Exemption for Electrical EnergyBe able to explain some positive and negative economic issues involved with TNC's recall our discussion from class.Positive - TNC's bring jobs and economic opportunities where there may have not been any. It may bringin a new facility that begins to bring in more people. As more people come in, other industries, stores and services spring up to take advantage of this growth.Negative - Do the profits stay in the locale or go elsewhere?-Is the activity sustainable for the environment?-Is there a displacement effect?Identify some of the advantages that TNC's have according to the