1. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 1 Welcome to Planning for Economic Growth & Development Unit Eight: International Agencies & Policies Unit 8 Assignments (Unit 9) Welcome

2. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 2 Contact Office Hours: Primary – Phone 770-375- 6774 and occasionally I will be on AIM: seabrooks09 – Tuesday’s 4pm to 6pm eastern E-mail : TSeabrooks@kaplan.eduTSeabrooks@kaplan.edu

3. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 3 Course Logistics Seminar’s - Monday’s 10pm to 11pm Eastern Time. 10 Points for each seminar March 2012 3/26 – 1 Seminars April 2012 4/2 – 1 Seminar

4. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 4 Course Logistics  Discussion Board – Each week there is one or two discussion questions, worth 20 points Across at least 3 days a week  Response to the Topic question(s)  Responses to at least 2 classmates Responses are original, thoughtful, relevant, include original evaluation, and advance the discussion Please ensure contributions are made in a timely manner to allow for student feedback  ( Week’s 8 has 2 Topics and 9 & 10 has 1 )

5. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 5 Course Logistics  Discussion Board – Each week there is one or two discussion questions, worth 20 points  Communications must be professional and civil at all times. All posts must be done in an environment which is collaborative.  Please make sure your message is substantive – more than “I agree” or less than a paragraph response.  When you use information from our textbook or other sources you MUST cite references.  Wait to response to a message that upsets you and be careful of what you say and how you say it. (Contact Professor)  ( Week’s 8 has 2 Topics and 9 & 10 has 1 )

6. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 6 Course Unit Unit 8 – International Agencies & Policies 1. Read : Chapter 19 (eTextbook: Taylor and Weerapana); Chapter 12 (eTextbook: Todaro and Smith); and Lecture Notes 2. Review : Internet Resources 3.Take part in Discussion - Respond to the Discussion Board - 20 Points (2 Questions) 4. Attend Seminar - 10 Points ( 03/26/2012 ) 5. Submit Unit 8 Assignment (Short Paper) – 200 Points – Due March 27 th 6. Continue working on the Final Project – Due April 3 rd (225 Points)

7. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 7 Unit 8 International Agencies and Policies

8. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 8 The Big Picture  The goal of this unit is to present the “big picture” of International Trade and its impact on U.S. Economic Growth and Development.  As such, learning its institutional framework before proceeding to more specific policies and their effects is paramount.

9. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 9 The Big Picture http://www.youtube.com/watch? v=cEyA_3KqIvo

10. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 10 The Big Picture  Given its intricacy and ubiquity, International Trade demands credible government institutions and policies.  Promoting coordination and cooperation among over 160 trading nations could not happen without The World Trade Organization (WTO), the International Monetary Fund (IMF), the World Bank, Customs Unions, and Free Trade Areas.

11. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 11 The Big Picture http://www.youtube.com/watch? v=vFGI7MKn3Sw

12. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 12 Agencies  World Trade Organization (WTO): The official international organization charged with mediating trade disputes among nations  International Monetary Fund (IMF): International agency designed to help fix trade- and currency-related problems across nations, thereby encouraging Economic Growth and Development

13. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 13 Agencies  World Bank: The international lender of last resort, using funds from the Advanced nations to promote Economic Growth and Development in Developing countries  Customs Union: The adoption of tariffs at the same rate across participating nations  Free Trade Area: The practice of Free Trade within a specific collection of nations

14. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 14 The Big Picture  The important point to appreciate here is why so many nations, including the U.S., submit to these institutions on questions of trade and the promotion of Economic Growth and Development.  They risk losing national sovereignty by doing so, but do it anyway.

15. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 15 The Big Picture  What is their logic for doing so? It comes down to efficiency and self- interest. Better trade flows mean more wealth overall; it is an investment in their long-term economic well-being.  In the case of the U.S., there are national policies and institutions at work as well.

16. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 16 The Big Picture  For example, the “Commerce Clause” of the Constitution clearly delegates all power to regulate U.S.-related commerce, both interstate and international, to Congress.  It is a broadly defined power, giving Congress much leeway to define “regulation,” but its jurisdiction is unquestioned.

17. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 17 The Big Picture  The U.S. Congress takes this power and, here too, delegates it to, not international organizations, but the executive branch (i.e., the President) to negotiate treaties which are then taken directly to the Congress for an up-or- down vote, no amendments.

18. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 18 The Big Picture  This is called “Fast Track Authority.” It represents Congress forgoing its right to amend treaties for the sake of quick passage of trade bills. These can be with both “Advanced” and “Developing” countries.

19. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 19 The Big Picture  In addition to goods and services is the financial side of international trade. This includes nations’ Capital Accounts and both Portfolio and Foreign Direct Investment.  Capital flows are considered good indicators of other nations’ assessments of a country’s economic conditions, both present and future.

20. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 20 The Big Picture  In short, before proceeding to analyses of particular trade policies, you must appreciate the governing institutional organizations and general trade policies.  This unit provides such a working background.

21. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 21 Discussion Questions  Topic 1: International Trade and America’s Role Why do presidents and Congresses enter America into Free Trade Area agreements? That is, why do these actors assume the net benefits of freer

22. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 22 Discussion Questions  Topic # 2 Sovereignty to International Organizations Why nations delegate away some of their sovereignty to international organizations in order to promote trade on the assumption that doing so helps their Economic Growth and Development. What does America gain by submitting to the World Trade Organization and contributing to the World Bank and International Monetary Fund? What does Congress get by granting the President “Fast-track Authority”?

23. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 23 Unit 9

24. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 24 Course Unit Unit 9 – International Initiatives & their impacts on Economic Growth and Development 1. Read : Chapters 17-18 (eTextbook: Taylor and Weerapana); Chapters 13-14 (eTextbook: Todaro and Smith); and Lecture Notes 2. Review : Internet Resources 3.Take part in Discussion - Respond to the Discussion Board - 20 Points (2 Questions) 4. Attend Seminar - 10 Points ( 04/02/2012 ) 5. Submit Unit 9 Assignment (6-8 page paper) Due – April 3rd, 2012 – 225 Points

25. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 25 Discussion Questions  What does America gain by pursuing freer trade versus erecting higher tariffs or other import restrictions, both politically and economically? Can America do these things without anticipating reactions from other nations? How do policy makers balance the demands of constituents, parties, and foreign governments?

26. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 26 References  Taylor, J. B. & Weerapana, A., (2010). Principles of macroeconomics (6 th ed.). Mason, OH: South-Western Cengage Learning.  Todaro, M. P. & Smith, S.C., (2009). Economic development (10 th ed.). Boston, MA: Pearson Education.

27. Kaplan University - Adjunct Professor Tomicka Seabrooks: Tseabrooks@kaplan.eduTseabrooks@kaplan.eduSunday, March 20, 2016 27 Adjourn Have a great week… “See” you on the Discussion Boards Goodnight!