POLYS 103 Septemer 22 Lecture 13Outline of Last Lecture I. Syria/Iraq/ISISII. How the US will respond to the ISIS problem, according to the EconomistIII. Iraqi governmentIV. Russian influenceOutline of Current Lecture II. Globalization IssuesIII. Comparitive AdvantageIV. SpecializationV. Economies of ScaleVI. Free tradeCurrent LectureCentral Point: small states are not catching up to the “big” developed states anymore. In the past the data showed that they were catching up, but slowly. Now, they are not catching up, butrather falling behind. a good thing that small states were catching up because -moral reasons, it is seen as charity to the poor states -security reasons: uneven wealth drives people to violence -economic reasons: more trading partners if all states are wealthy Why are the poor states slowing down? Manufacturing isn't a high growing area of wealth anymore they have reached the limit of what their infrastructure can produce benefits of globalization might be going awayGlobalization is in a sense Capitalism at the global scale.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Supply and demandKey internationally is Comparative Advantage-States have advantages over other states-every state will be able to make something better than other states, therefore other states will buy the thing that this state can make the best. -every state should make only what they are good at- this provides a net economic benefit - meaning every state benefits -Using comparative advantage allows for more units to be made overall and reduces the price- when everyone participates in comparative advantage everyone benefits-This is the underlying logic of globalizationSpecialization-states give up on things they aren't good at and produce only things that they are good atEconomies of scale-producing a large quantity is cheaper -Invisible hand of the market- forces certain specialized groups to specialize in somethingelse that is demanded more in the international market-political repercussions because people don't necessarily want to change professionsHow does a state know what its comparative advantage is?-global market-states who sell a lot of products on the market find out what type of their products is in big demand-markets tell states what their comparative advantage is (consumers of the world make decisions, not governments)-complicated part in the global market is that everyone is using different currency-changing currency rates causes trade to changeFree Trade-goods and services bought and sold around the world are determined by the market-global supply and demand dictate global priceThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-States impose tariffs in the past, now called “non-tariff barriers” such as Quotas, Subsidies, and Regulations.-these change the prices of good that are imported to different countries-free trade only works if it is free. -all states have non-tariff barriers-regulations have real political benefits- need all of this for globalization to work, and it is a very complicated system These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ISIS has been around for many yearsFor a time they were part of Al Qaeda in IraqThen they became a rebel group that attacked Assad, the leader of SyriaTheir goal along with other rebel groups was to continue the theme of the Arab Spring and havea revolution in Syria to overthrow the government like what happened in Egypt. Now they are a much larger group, acting in both Syria and IraqCurrently ISIS does not have a global outreach but they are recruiting westerners and the attention they are getting in the media could make them globalUS is doing a lot more towards ISIS because of public relations-air strikes-arming rebel groups (this could be a problem because weapons could fall into ISIS hands)-what US is not doing: putting troops on the groundDefeating ISIS is not a military option- no amount of guns will make ISIS like their government  ISIS is getting so much support lately because the public in the key countries of Syria and Iraq are not happy with the government and are turning to ISIS as “saviorsUS is in a dilemma because A. If they help rebel groups get rid of Assad in Syria, it will be inadvertently be helping ISIS as well.B. If they get rid of ISIS, they will be helping Assad gain more power in Syria.C. If they do nothing, ISIS growAnything the US does helps one of its enemies. Also because the US is against ISIS then this puts US and Iran on the same side because Iran is also against ISIS. Iraq is a problem because their government is made up of all Shiites which are a 60% majority inIraq but the government is incredibly weak.The US is well allied with Iraq's government but building up the Iraqi government will take time which allows ISIS to growThe problem with the Iraqi government is the other 20% Sunnis and 20% Kurds don't like and 4don't trust the government. This is partially why they are putting their support in ISIS and not the government. A key strategy to combat ISIS is to restore peoples faith in their government so they won't look towards radical Islamic groups for saving. ISIS is just one place that Islamic Fundamentalists challenge the status quotheir ideology/ belief structure is a problem. They don't need to go away, their power just needs to be reduced so they can be managed. Russia is key because they are on Syria's sideRussia has a military base in SyriaThey came to Assad's aid when he was being attacked by rebel groups during Syrian RevolutionPolicy over Ukraine could affect how ISIS is