Econ 204 - Introduction to

INTERNATIONAL ECONOMICS 

Phil Martinez - Fall 2006



Exam 2 – Free Trade
(90 Points)
DUE: WED.  Dec. 6, 2006

Instructions:  This is a take home exam, therefore, please take your time to provide clear, thoughtful answers.  Remember, the goal of this assignment is for you to illustrate to me that you’ve covered the required material, that you understand it, and that you’ve thought about it enough to provide concise, thoughtful answers.

 PLAGIARISM: All answers must be your own words reflecting your own understanding and knowledge of the material. All reprinted statements must be fully cited to the original author. Students may not copy statements, data, or any other information from any source, including internet websites.

Globalization and Its Discontents (30 Points - no more than 3 pages)
1) According to Stiglitz in Chapter 1, The Promise of Globalization of Globailization and Its Discontents what policy errors did the major international institutions (IMF, IBRD, and the WTO) impose on developing countries? How do these polices compare to the policy recommendations of the Washington Consensus as presented at the beginning of the course?

Making Trade Fair (30 Points - no more than 3 pages)
2) According to Stiglitz in Chapter 3, Making Trade Fair, from Making Globalization Work what reforms should be implemented to make trade fair (both pro-poor and pro-development)? (Hint: briefly summarizing 6 of the 7 discussed is good enough for full points, the seventh is extra credit.)

Democratizing Globalization (30 Points - no more than 3 pages)
3) What is the "democratic deficit" according to Stiglitz in Chapter 10, Making Trade Fair, from Making Globalization Work. What reforms does Stiglitz propose in order to promote democratic decisionmaking within the international institutions? (Hint: there are 6 total, 3 are structural reforms, 3 are institutional reforms).

Extra Credit (10 Points - no more than 1 page)
4) According to Stiglitz in Chapter 1, The Promise of Globalization of Globailization and Its Discontents why did the major international institutions (IMF, IBRD, and the WTO) promote policies that hinder the interests of developing nations?