Eradication of poverty Essay

The International Day for the Eradication of Poverty is celebrated every year on October 17 throughout the world. It was officially recognised by the United Nations . It is to honour the victims of poverty, hunger, violence and fear. One of the main aims of the day is to make the voice of the poor heard and Raising awareness of the need to eradicate poverty. Poverty is the state of one who lacks a certain amount of material possessions or money. That is, they have little or no material means of surviving—little or no food, shelter, clothes, healthcare, education, and other physical means of living and improving one’s life Poverty reduction is a major goal and issue for many international organizations such as the United Nations and the World Bank. The World Bank estimated 1.29 billion people were living in absolute poverty in 2008. Of these, about 400 million people in absolute poverty lived in India and 173 million people in China. Poverty has been a serious problem over centuries. Every year, there are millions of people at the risk of hunger. we have to fight corruption. This is one of the great sources of poverty. A country with a lot of corruption will grow slower than others, and eventually, the economic activities will decline. The principal cause of why poverty exists is because of this simple fact. The Earth, on an environmental and economic standpoint, cannot satisfy every single human being’s wish, desire and demand when it comes to the consumption of goods and services because of scarce natural resources. This harsh reality will always be present within an economically driven society given the exploitation of natural resources and the constant pursuit of economic growth. the problem lies in the distribution of this consumption where extremely few people consume almost 70% to 80% of these resources while large numbers of people consume just under 20% of the same resources. poverty results in the lack of resources. poor students do not have the opportunity to study in good schools, get good coaching, study good books. poverty also leads to crime. when one is unable to earn money from fair mean, they turn to become thieves, robbers, pockpocketers, even terrorist.. poverty also leads to overpopulation which is itself one of the big challenges faced by us. people think that by having more children, they will have more earning hands. thus, leading to increased population of the country. to set all things in order, it is necessary to remove poverty.(ERADICATION OF POVERTY) In order to prevent poverty, the causes that create poverty itself have to be recognized and fixed. 1.overpopulation 2.distribution of resources 3.lack of education : 4.economic trends : rich becoming richer and poor becoming poorer.ment 5.corruption 6.unemployment However, the essence in the prevention of poverty lies in the fixing of causes and not in the fixing of factors that create poverty. Poverty cannot be removed overnight. it is a long job. it can be wiped step by step. Educational facilities should be provided to all the poor families so that their outlook/ way of seeing things is broadened. the exploitation of poor should be stopped. the programs/money issued by the government should be provided to the poor in full. Then and then only can poverty be removed.

Questions: International Trade Theory

Chapter 05 International Trade Theory True / False Questions 1. (p. 161) Propagated in the 16th and 17th centuries, mercantilism advocated that countries should discourage both imports and exports. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 2. (p. 161) Free trade refers to a situation where a government attempts to influence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 3. (p. 61) Proposed in 1776, David Ricardo's theory was the first to explain why unrestricted free trade is beneficial to a country. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 4. (p. 161) According to Adam Smith, the invisible hand of the market mechanism, rather than government policy, should determine what a country imports and what it exports. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 5. (p. 161) Nineteenth century English economist David Ricardo popularized a laissez-fair stance of government towards trade.FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 6. (p. 162) The great strength of the theories of Smith, Ricardo, and Heckscher-Ohlin is that they identify the specific benefits of international trade. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 7. (p. 162) A country's economy would gain only if its citizens buy products that are made in that country. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 8. p. 163) During the 1980s, economist such as Paul Krugman developed what has come to be known as the new tr ade theory. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 9. (p. 164) The first theory of international trade emerged in England in the mid-16th century. Referred to as the theory of comparative advantage, its principle assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 0. (p. 164) The main tenet of mercantilism was that it was in a country's best interests to maintain a trade surplus. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 11. (p. 165) Zero-sum game refers to a situation in which an economic gain by one country results in an economic loss by another. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 12. (p. 165) A positive-sum game refers to a situation in which ma jor industrial nations can benefit even if some of them are able to benefit more than others.FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 13. (p. 165) If a country is more efficient than any other country in the production of a product, it has what is known as definitive advantage in the production of that product. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Absolute Advantage 14. (p. 165) In his 1776 landmark book, â€Å"The Wealth of Nations,† Adam Smith supported the mercantilist assumption that trade is a zero-sum game. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2Topic: Absolute Advantage 15. (p. 165) According to Adam Smith, countries should specialize in the production of goods for which they have an absolute advantage and then trade these for goods produced by other countries. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Absolute Advantage 16. (p. 167-168) Ricardo's theory of competitive advantage says that it is logical for a country to specialize in the production of goods that it produces most efficiently and to export goods that it produces less efficiently. FALSE AACSB: Analytic BT: KnowledgeDifficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 17. (p. 170) The basic message of the theory of comparative advantage is that potential world production is greater with unrestricted free trade than it is with restricted trade. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 18. (p. 170) Smith's theory suggests that consumers in all nations can consume more if there are no restrictions on trade. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 19. (p. 70) Ricardo's theory is so powerful that it remains a major intellectual weapon for advocates of free trade. TRUE AACSB: A nalytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 20. (p. 170-171) Nobel Prize-winning economist Paul Samuelson argued that contrary to the standard interpretation, in certain circumstances the theory of comparative advantage predicts that a rich country might actually be worse off by switching to a free trade regime with a poor country. TRUE AACSB: Reflective thinking BT: Knowledge Difficulty: Easy Learning Objective: 5-3Topic: Comparative Advantage 21. (p. 171) Embracing a free trade regime for an advanced economy often implies that the country will produce less of some labor-intensive goods and more of some knowledge-intensive goods, TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 22. (p. 172) The comparative advantage model assumed that trade does not change a country's stock of resources or the efficiency with which it utilizes those resources. TRUE AACSB: Analytic BT: Knowledge D ifficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 23. (p. 74) A study over the 1950-1998 period revealed that countries that liberalized their trade regimes experienced, on average, increases in their annual growth rates of 15 percent compared to preliberalization times. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 24. (p. 175) Despite the short-term adjustment costs associated with adopting a free trade regime, trade would seem to produce a greater economic growth and higher living standards in the long run, just as Ricardo's theory leads us to expect. TRUE AACSB: Analytic BT: Knowledge Difficulty: EasyLearning Objective: 5-3 Topic: Comparative Advantage 25. (p. 176) Factor endowments refer to the extent to which a country is endowed with such factors as land, labor, and capital. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 26. (p. 176) The He ckscher-Ohlin theory would predict that the United States should be a primary importer of capital goods. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 27. (p. 176) The Heckscher-Ohlin theory has been one of the least influential in international economics.FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 28. (p. 176) Most economists prefer the Heckscher-Ohlin theory to Ricardo's theory because it makes fewer simplifying assumptions and it has been subjected to many empirical tests. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 29. (p. 177) Wassily Leontief's theory of the product life-cycle was based on the observation that for most of the 20th century, a very large proportion of the world's new products were developed by foreign nations and sold in he U. S. market. FALSE AACSB: Analytic BT: Knowledge Diffic ulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 30. (p. 177) Vernon argued that early in the life cycle of a typical new product, while demand is starting to grow rapidly in the United States, demand in other advanced countries is available to all income groups. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 31. (p. 178) Historically, the product life-cycle theory seems not to be an accurate explanation of international trade patterns. FALSE AACSB: Analytic BT: KnowledgeDifficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 32. (p. 178) Viewed from an Asian or European perspective, Vernon's argument that most new products are developed and introduced in the United States is ethnocentric. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 33. (p. 180) The new trade theory began to emerge in the 1970s when a num ber of economists pointed out that the ability of firms to attain economies of scale might have important implications for international trade. TRUE AACSB: Analytic BT: Knowledge Difficulty: EasyLearning Objective: 5-2 Topic: New Trade Theory 34. (p. 180) In industries where economies of scale are important, both the variety of goods that a country can produce and the scale of production are limited by the size of the market. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: New Trade Theory 35. (p. 184) In sum, Porter's argument is that the degree to which a nation is likely to achieve international success in a certain industry is a function of the combined impact of factor endowments, domestic demand conditions, related and supporting industries, and lack of domestic rivalry.FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-4 Topic: National Competitive Advantage: Porter's Diamond 36. (p. 185) According to Porter, advanced factors are the most significant for competitive advantage. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 37. (p. 188) According to Michael Porter, factor endowments can be affected by subsidies, policies toward capital markets, and policies toward education. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-4Topic: National Competitive Advantage: Porter's Diamond 38. (p. 189) The individual firm should invest substantial financial resources in trying to build a first-mover, even if that means several years of losses before a new venture becomes profitable. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-5 Topic: Focus on Managerial Implications 39. (p. 189) Because of their pivotal role in international trade, businesses are at the mercy of government trade policy. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-5 Topic: Focus on Managerial Implications 40. (p. 90) According to Porter's theory of national competitive advantage, a firm should invest in upgrading advanced factors of production because it is in the best interest of business for a firm to do so. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-5 Topic: Focus on Managerial Implications Multiple Choice Questions 41. (p. 161) Which of the following is best identified by saying it is the absence of government-imposed barriers to the free flow of goods and services between countries? A. Free trade B. Mercantilism C. Socialism D. Market system AACSB: Analytic BT: Knowledge Difficulty: EasyLearning Objective: 5-1 Topic: An Overview of Trade Theory 42. (p. 161) _____ refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country. A. Mercantile trade B. Free trade C. Clear commerce D. Unen cumbered commerce AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 43. (p. 161) David Ricardo advanced the: A. new trade theory. B. product life-cycle theory. C. comparative advantage theory. D. factor endowment theory. AACSB: AnalyticBT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 44. (p. 161) The theory of comparative advantage, advanced by _____, is the intellectual basis of the modern argument for unrestricted free trade. A. Michael Porter B. David Ricardo C. Bertil Ohlin D. Adam Smith AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 45. (p. 162) How do countries' economies gain from international trade? A. Country can specialize in the manufacturing of products that are produced most efficiently in other countries. B. Citizens should buy only those roducts that are produced domestically. C. Since it is of interest to domesti c producers, countries benefit from international trade. D. Countries can import products that can be produced more efficiently in other countries. AACSB: Analytic BT: Knowledge Difficulty: Medium Learning Objective: 5-1 Topic: An Overview of Trade Theory 46. (p. 162) With their future threatened by imports, _____ textile companies and their employees have tried hard to persuade the government to limit the importation of textiles by demanding quotas and tariffs. A. Chinese B. Indian C. Japanese D. U. S. AACSB: Analytic BT: KnowledgeDifficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 47. (p. 162-163) Climate and natural resource endowments explain why all of the following happen EXCEPT: A. Brazil exports coffee. B. Iceland exports oranges. C. China exports crawfish. D. Saudi Arabia exports oil. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 48. (p. 164) Propagated in the 16th and 17th centuries, _____ advocated that countries should simultaneously encourage exports and discourage imports. A. ethnocentrism B. capitalism C. collectivism D. mercantilismAACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 49. (p. 164) Which of the following statements most accurately captures the main tenet of mercantilism? A. It is in a country's best interests to not export products to less developed countries. B. It is in a country's best interests to import products that are most efficiently produced at home. C. It is in a country's best interests to import less specialized goods than to attempt to make them at home. D. It is in a country's best interests to maintain a trade surplus, to export more than it imports. AACSB: Reflective thinkingBT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: Mercantilism 50. (p. 164) Considered to be the first theory of international trade, _____ principal assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce. A. collectivism's B. mercantilism's C. capitalism's D. economic conservatism's AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 51. (p. 164) Which of the following is NOT consistent with the central beliefs of mercantilism? A. Government should intervene to achieve a surplus in the balance of trade.B. Policies should be put in place to minimize exports and maximize imports. C. Imports should be limited by tariffs and quotas. D. Exports should be subsidized. AACSB: Analytic BT: Knowledge Difficulty: Medium Learning Objective: 5-2 Topic: Mercantilism 52. (p. 165) The flaw with mercantilism was that it viewed trade as a: A. zero-sum game. B. mutually beneficial activity. C. nonessential economic activity. D. threat to a government's independence. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 53. (p. 165) A situation in which a gain by one party r esults in a loss by nother is called: A. economic independence. B. an unrestricted trade. C. a zero-sum game. D. trade surplus. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Mercantilism 54. (p. 165) The theory of _____ was advanced by Adam Smith. A. absolute advantage B. comparative advantage C. new trade D. mercantilism AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Absolute Advantage 55. (p. 165) A country is noted as having a(n) _____ in the production of a product when it is more efficient than any other country in producing that product. A. comparative advantage B. onsumer advantage C. competitive advantage D. absolute advantage AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Absolute Advantage 56. (p. 165) According to Smith, countries should specialize in the production of goods for which they have an absolute advantage and then: A. retain these goods for strictly domestic sales. B. trade these goods for the goods produced by other countries. C. sell these goods to the highest domestic or international bidder. D. prohibit the import of these goods from other countries. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2Topic: Absolute Advantage 57. (p. 167) In his 1817 book entitled â€Å"The Principles of Political Economy,† _____ introduced the theory of comparative advantage. A. Adam Smith B. David Ricardo C. Raymond Vernon D. Max Weber AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Comparative Advantage 58. (p. 167-168) A situation in which a country specializes in producing the goods it produces most efficiently and buys the products it produces less efficiently from other countries, even if it could produce the good more efficiently itself is referred to as: A. comprehensive advantage. B. pertinent advantage.C. comparative advantage. D. absolute advantage. AACSB: Analytic BT: Knowle dge Difficulty: Easy Learning Objective: 5-2 Topic: Comparative Advantage 59. (p. 170) To an even greater degree than the theory of absolute advantage, the theory of _____ suggests that trade is a positive-sum game in which all gain. A. total advantage B. mercantilism C. comparative advantage D. paradoxical advantage AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 60. (p. 170) _____ theory suggests that consumers in all nations can consume more if there are no restrictions on trade.A. Porter's B. Vernon's C. Samuelson's D. Ricardo's AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 61. (p. 170) Comparative advantage is based on assuming away: A. the effects of trade on income distribution within a country. B. constant returns to scale. C. that the resources can move freely from the production of one good to another. D. that free trade does not change the efficiency with which the co untries use their resources. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: Comparative Advantage 2. (p. 170-171) _____ argued that contrary to the standard interpretation, in certain circumstances the theory of comparative advantage predicts that a rich country might actually be worse off by switching to a free trade regime with a poor nation. A. Raymond Vernon B. Andrew Warner C. Paul Samuelson D. Jeffery Sachs AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: Comparative Advantage 63. (p. 171) Which of the following is an issue with the ‘constant returns to specialization' assumption? A. Constant returns to specialization imply a concave PPF. B.Constant returns to specialization suggest that the gains from specialization are likely to be exhausted before specialization is complete. C. It is feasible for a country to specialize to a point where the resulting gains from trade are outweighed by diminis hing returns. D. Resources are of different quality and hence more units are required to produce each additional unit. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: Comparative Advantage 64. (p. 171) In comparative advantage, the assumption is that resources can move freely from production of one good to another.Why is this assumption unrealistic? A. The process of shifting resources from one good to another eliminates human suffering. B. The benefit of free trade is much lesser compared to the cost of shifting resources. C. The process of moving resources causes friction and human suffering. D. Resources move easily from one economic activity to the other. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: Comparative Advantage 65. (p. 171) The gains from trade once the transition toward free trade has been made: A. eliminates human suffering. B. auses resources to easily shift between econ omic activities. C. is lesser than the cost of shifting resources. D. are both significant and enduring. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: Comparative Advantage 66. (p. 173) What would be the consequences of dynamic gains in both the stock of a country's resources and the efficiency with which resources are utilized? A. It will cause the country's PPF to be in a bell-shaped curve. B. The country can produce more goods than it did before free trade. C. Dynamic gains would lead to an outcome that is beneficial under all circumstances.D. The country will achieve constant returns to specialization. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: Comparative Advantage 67. (p. 173) What was Samuelson's criticism of free trade? A. He argued that in some circumstances, dynamic gains can lead to an outcome that is beneficial for the country. B. He argued that offshoring service jobs th at were traditionally mobile will increase the market clearing wage rate. C. He favored introducing protectionist measures to guard against the theoretical harmful effects of free trade. D.He argued that being able to purchase groceries 20 percent cheaper at Wal-Mart does not necessarily make up for the wage losses. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: Comparative Advantage 68. (p. 174) _____ and _____ created a measure of how open to international trade an economy was and then looked at the relationship between openness and economic growth for a sample of more than 100 countries from 1970 to 1990. A. Ricardo; Smith B. Warner; Sachs C. Porter; Vernon D. Samuelson; Ohlin AACSB: Analytic BT: Knowledge Difficulty: EasyLearning Objective: 5-3 Topic: Comparative Advantage 69. (p. 176) According to the Heckscher-Ohlin theory, the pattern of international trade is determined by differences in: A. productivity. B. political interests . C. factor endowments. D. national priorities. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 70. (p. 176) The Heckscher-Ohlin theory: A. argued that comparative advantage arises from differences in national factor endowments. B. argues that differences in labor productivity between nations underlie the notion of comparative advantage. C. redicts that countries will import goods that make intensive use of factors that are locally abundant. D. is less favored than Ricardo's theory because it makes many simplifying assumptions. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 71. (p. 176) Which theory predicts that countries will export those goods that make intensive use of those factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce? A. Smith-Ricardo B. Vernon-Samuelson C. Heckscher-Ohlin D. Carrier-R oller AACSB: AnalyticBT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 72. (p. 176) Which of the following statements is a fair comparison of the Heckscher-Ohlin theory and the Ricardo theory of free trade? A. Both theories argue that the pattern of international trade is determined by currency exchange rates. B. Unlike Ricardo's theory, the Heckscher-Ohlin theory argues that the pattern of international trade is determined by differences in factor endowments, rather than differences in productivity. C. Both theories argue that the pattern of international trade is determined by constant returns to specialization.D. Unlike the Heckscher-Ohlin theory, Ricardo's theory makes fewer simplifying assumptions. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 73. (p. 176) According to the text, most economists prefer the Heckscher-Ohlin theory to Ricardo's theory because: A. it makes fewe r simplifying assumptions. B. it predicts trade patterns with greater accuracy. C. Ricardo's theory is less accurate due to the Leontief paradox. D. many of the empirical tests have raised questions about the validity of Ricardo's theory. AACSB: Reflective thinking BT: ComprehensionDifficulty: Medium Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 74. (p. 176) The Heckscher-Ohlin theory has a(n) _____ appeal. A. political B. commonsense C. economic D. cost efficiency AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 75. (p. 176) Contrary to what the Heckscher-Ohlin theory would predict, the United States has been a primary importer rather than an exporter of capital goods. This phenomenon is referred to as the _____ paradox. A. Theler B. Leontief C. Cormier D. Ricardo AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2Topic: Heckscher-Ohlin Theory 76. (p. 176) What is a possible explanation for observing the Leontief paradox? A. The U. S. imports goods that heavily use skilled labor and innovative entrepreneurship. B. The U. S. has a special advantage in producing new products made with innovative technologies. C. The U. S. exports heavy manufacturing products that use large amounts of capital. D. The U. S. has a strong absolute advantage over all other foreign nations because of its resource capabilities. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 77. (p. 76) Of the following, whose theory predicted that countries would export goods that make intensive use of factors that are locally abundant while importing goods that make intensive use of factors that are locally scarce? A. Ricardo B. Porter C. Leontief D. Heckscher-Ohlin AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 78. (p. 176) The _____ occurred due to the findings that U. S. exports were less capital- intensive than U. S. imports. A. theory of rising costs B. Leontief paradox C. theory of comparative advantage D. diminishing returns to specialization AACSB: AnalyticBT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 79. (p. 177) David Ricardo's theory of comparative advantage attempts to rationalize why some countries export automobiles, consumer electronics, and machine tools, while other countries export chemicals, watches, and jewelry. This rationalization is best explained in terms of: A. absolute advantage in terms of resources. B. international differences in labor productivity. C. the proportions in which the factors of production are available. D. the cultural histories of the exporting nations. AACSB: Reflective thinking BT: ComprehensionDifficulty: Medium Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 80. (p. 177) Raymond Vernon proposed the product life cycle in the mid-1960s. Vernon argued that two factors gave the U. S. firms a strong incentive to develop new consumer products. These two factors were _____ and: A. low cost; number of industries. B. market size; types of competitors. C. wealth; size of the U. S. market. D. low income groups; low cost of U. S. labor. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 81. (p. 177) Vernon's product life-cycle theory was based on the observation hat for most of the 20th century, a very large proportion of the world's new products had been developed by U. S. firms and sold first in the _____ market. A. Japanese B. Western European C. U. S. D. Canadian AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 82. (p. 177) Vernon argues that early in the life cycle of a typical new product, while demand is starting to grow rapidly in the United States, demand in other advanced countries: A. remains limited to high income groups. B. necessitates imports to th e U. S. C. attracts manufacturing possibilities.D. limits exports from U. S. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 83. (p. 178) As the market in the U. S. and other advanced nations matures, the product becomes more standardized and price becomes: A. governmentally regulated. B. greater. C. unimportant. D. the main competitive weapon. AACSB: Analytic BT: Knowledge Difficulty: Medium Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 84. (p. 178) Which of the following has historically been noted as being an accurate explanation for international trade patterns?A. Product life-cycle theory B. Absolute advantage theory C. Competitive advantage theory D. Heckscher-Ohlin theory AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 85. (p. 178) According to the text, historically the product-life-cycle theory is a(n): A. relevant theory in the modern world . B. accurate explanation of international trade patterns. C. example of culturally relative theories. D. without any weakness. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 86. (p. 78) Which of the following theories might better explain why certain components are produced in certain locations and why the final product is assembled elsewhere? A. New trade B. Comparative advantage C. Heckscher-Ohlin D. Product life-cycle AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 87. (p. 180) The _____ theory began to emerge in the 1970s when some economists pointed out the ability of firms to attain economies of scale might have important implications for international trade. A. balanced trade B. Heckscher-Ohlin C. new trade D. product life-cycleAACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: New Trade Theory 88. (p. 180) _____ are unit cost re ductions associated with a large scale of output. A. Comparative advantages B. Factor endowments C. Economies of scale D. Diminishing returns AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: New Trade Theory 89. (p. 180) Because of substantial economies of scale, the _____ theory argues that trade can increase the variety of goods available to consumers. A. comparative advantage B. product life-cycle C. new trade D. Heckscher-Ohlin AACSB: Analytic BT: KnowledgeDifficulty: Easy Learning Objective: 5-2 Topic: New Trade Theory 90. (p. 180) Which of the following theories argues that due to the presence of substantial scale economies, world demand will support only a few firms in many industries? A. Heckscher-Ohlin B. Leontief's paradox C. Product life-cycle D. New trade AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: New Trade Theory 91. (p. 180) The new trade theory points out that through its impact on economies of scale, tra de can increase the variety of goods available to consumers and: A. reduce the volume of the goods produced. B. eliminate competition.C. lower the costs of the goods. D. reduce the quality of the goods produced. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: New Trade Theory 92. (p. 180) If a national market is small, there may not be enough demand to enable producers to realize _____ for certain products. A. high volumes B. economies of scale C. low unit costs D. competitive pricing AACSB: Analytic BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: New Trade Theory 93. (p. 181) Which of the following is NOT an indicator of why trade is considered to be mutually beneficial to those involved in it?A. It allows for specialization. B. It allows for production of products at higher prices. C. It affords realization of scale economies. D. It affords production of a larger variety of products. AACSB: Reflective thinking BT: Comprehension Dif ficulty: Medium Learning Objective: 5-3 Topic: New Trade Theory 94. (p. 181) The economic and strategic advantages that accrue to early entrants in an industry are called: A. first-mover advantages. B. comparative advantages. C. factor endowment advantages. D. first-stage benefits. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3Topic: New Trade Theory 95. (p. 181) What of the following is an advantage that first-movers enjoy? A. Benefit from a high cost structure. B. A zero-sum game due to lack of competition. C. Capture scale economies ahead of later entrants. D. Increase trade barriers. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: New Trade Theory 96. (p. 181) According to the new trade theory, firms that establish a(n) _____ advantage with regard to the production of a particular new product may subsequently dominate global trade in that product. A. omparative B. late entrant C. first-mover D. constant retur n AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: New Trade Theory 97. (p. 182) The new trade theory is at variance with the _____ theory, which suggests that a country will predominate in the export of a product when it is particularly well endowed with those factors used intensively in its manufacture. A. Heckscher-Ohlin B. product life-cycle C. comparative advantage D. Ricardo-Smith AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-3 Topic: New Trade Theory 98. (p. 83) In terms of first-mover advantages and international trade, who conducted a study suggestive of the existence of first-mover advantages as an important factor in explaining the dominance of firms from certain nations in specific industries? A. Alfred Chandler B. Michael Porter C. Adam Smith D. Hawker Siddley AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-4 Topic: New Trade Theory 99. (p. 183) Considered by some to be the most contentious implica tion of the new trade theory is that it generates an argument for _____ and ______. A. high cost production; high import tariffs. B. igh volume production; low variety of goods. C. weak export; entrepreneurship. D. government intervention; strategic trade policy. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-4 Topic: New Trade Theory 100. (p. 183) The theory of _____, developed by Michael Porter, focuses on determining why some nations succeed and others fail in international competition. A. new trade B. absolute advantage C. comparative advantage D. national competitive advantage AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 01. (p. 183) What was the essential task of Michael Porter's national competitive advantage? A. How do nations use their resources efficiently? B. Why does a nation achieve international success in a particular industry? C. How do countries gain first-mover a dvantages? D. Why has a large proportion of the world's new products been developed by U. S. firms and sold first in the U. S. market? AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 102. (p. 184) Porter's suggested four attributes making up the diamond† consist of factor endowments, relating and supporting industries, firm strategy and structure, and: A. competitive advantage. B. mercantilism. C. constant returns to specialization. D. demand conditions. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 103. (p. 184) Which of the following indicate the presence or absence of supplier industries and related industries that are internationally competitive? A. Factor endowments B. Firm's structure and rivalry C. Relating and supporting industriesD. Demand conditions AACSB: Analytic BT: Knowledge Difficulty: Ea sy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 104. (p. 184) According to Porter's diamond, a nation's position in factors of production such as skilled labor or the infrastructure necessary to compete in a given industry is best referred to as: A. capitalization. B. diminishing returns. C. factor endowments. D. relating industries. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 105. (p. 84) Porter's thesis was that four broad attributes of a nation shape the environment in which local firms compete, and that these attributes promote or impede the creation of competitive advantage. All of the following are attributes EXCEPT: A. factor endowments. B. first-mover advantages. C. firm strategy, structure, and rivalry. D. relating and supporting industries. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 106. (p. 184) Porter maintains that two additional variables can influence the national diamond in important ways.These two variables are _____ and ______. A. entrepreneurship, strategic trade policies. B. trade shortage, high import tariffs. C. absolute advantage; PPF. D. chance; government. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 107. (p. 185) In the context of factor endowments, which of the following are considered to be classed as advanced factors? A. Demographics B. Climate and location C. Natural resources D. Skilled labor AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 08. (p. 185) Porter argued that in terms of factor endowments, _____ factors are the most significant for competitive advantage in his study dealing with the competitive advantage of nations. A. constant B. basic C. advanced D. complement ary AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 109. (p. 185) Porter argues that a nation's firms gain competitive advantage if their domestic consumers are _____ and _______. A. sophisticated; demanding. B. ethnocentric; rich. C. accommodating; uneducated. D. low skilled; nationalist. AACSB: AnalyticBT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 110. (p. 185) Michael Porter emphasizes the role home demand plays in upgrading: A. competitive advantage. B. factor endowment. C. constant returns to specialization. D. production possibility frontier. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 111. (p. 185) Unlike the naturally endowed basic factors, advanced factors are a product of investment by all of the following EXCEPT: A. companies. B. governments. C. dem ographics.D. individuals. AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 112. (p. 187) In Porter's model of competitive advantage, the fourth broad attribute is the strategy, structure, and rivalry of firms within a nation. Porter suggested that there is a strong association between _____ and the creation and persistence of competitive advantage in an industry. A. inflation B. vigorous domestic rivalry C. new government regulations and higher taxes D. new product development AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2Topic: National Competitive Advantage: Porter's Diamond 113. (p. 187) Who argued that successful industries within a country tend to be grouped into â€Å"clusters† of related industries? A. Porter B. Vernon C. Ricardo D. Heckscher AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 1 14. (p. 187-188) Porter argues that the presence of all components is usually required for the â€Å"diamond† to boost: A. international recognition. B. competitive performance. C. corporate social responsibility. D. employee morale. AACSB: Analytic BT: KnowledgeDifficulty: Easy Learning Objective: 5-4 Topic: National Competitive Advantage: Porter's Diamond 115. (p. 188) We would expect Porter's model to predict _____, if he is correct. A. currency exchange rates B. membership in the WTO C. the pattern of international trade D. factor endowments AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-4 Topic: National Competitive Advantage: Porter's Diamond 116. (p. 189) According to the new trade theory, firms that establish a(n) _____ advantage in terms of the production of a particular new product may subsequently dominate global trade in that product.A. competitive B. comparative C. absolute D. first-mover AACSB: Analytic BT: Knowledge Difficulty: Easy Learni ng Objective: 5-5 Topic: Focus on Managerial Implications 117. (p. 189) The manufacture of standard electronic components is a _____ process requiring semi-skilled labor. A. low cost B. capital-intensive C. labor-intensive D. first-mover advantage AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-5 Topic: Focus on Managerial Implications 118. (p. 189) Because of their pivotal role in international trade, _____ can exert a strong influence on government trade policies.A. individual citizens B. voluntary organizations C. unions D. businesses AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 5-5 Topic: Focus on Managerial Implications 119. (p. 190) Porter's theory of national competitive advantage suggests that it is in the best interest of business for a firm to invest in upgrading advanced factors of production. The means for accomplishing this include all of the following EXCEPT: A. increase research and development activities. B. provide better t raining for employees. C. adopt policies that eliminate competition.D. develop methods to improve the skill levels of workers. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-5 Topic: Focus on Managerial Implications 120. (p. 190) According to Porter's theory, governments should be urged to _____ that will have a favorable impact on each component of the national diamond. A. increase trade barriers B. favor unionization C. adopt policies D. restrict import AACSB: Analytic BT: Comprehension Difficulty: Medium Learning Objective: 5-5 Topic: Focus on Managerial Implications Essay Questions 121. p. 161, 164) What is meant by the term â€Å"free trade†? Was Adam Smith an advocate or critic of free trade? Is free trade compatible with the concept of mercantilism? Free trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and s ell to another country. This concept was supported by Adam Smith, who argued that the â€Å"invisible hand† of the market mechanism, rather than government policy, should determine what a country imports and what it exports.The concept of mercantilism is not compatible with the concept of free trade. The main tenet of mercantilism is that it is in a country's best interests to maintain a trade surplus by exporting more than it imports. Consistent with this belief, the mercantilist doctrine advocated government intervention to achieve a surplus in the balance of trade. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-1 Learning Objective: 5-2 Topic: An Overview of Trade Theory, Mercantilism 122. (p. 161) When does free trade occur?Free trade occurs when a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country. AACSB: Reflective thi nking BT: Comprehension Difficulty: Easy Learning Objective: 5-1 Topic: An Overview of Trade Theory 123. (p. 165) Describe Adam Smith's concept of absolute advantage. According to Smith, countries should specialize in the production of goods for which they have an absolute advantage and then trade those goods for the goods produced by other countries.For instance, during Smith's time, England had an absolute advantage in the production of textiles, and France had an absolute advantage in the production of wine. According to the concept of absolute advantage, it then only makes sense for England to produce textiles (and export them to France), and France to produce wine (and export it to England). Smith's basic argument, therefore, was that a country should never produce goods at home that it can buy at a lower cost from other countries.Moreover, Smith argued that by specializing in the production of goods in which each has an absolute advantage, both countries benefit by engaging in trade. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: Absolute Advantage 124. (p. 176) Describe the Heckscher-Ohlin theory of international trade. The Heckscher-Ohlin theory predicts that countries will export those goods that make intensive use of those factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce.Thus, the Heckscher-Ohlin theory attempts to explain the pattern of international trade that we see in the world economy. The Heckscher-Ohlin theory is consistent with the notion of free trade. It also has commonsense appeal, and there are many examples of international commerce that are supportive of the theory. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: Heckscher-Ohlin Theory 125. (p. 177) Describe the central tenant of the product life-cycle theory. Raymond Vernon initially proposed the product life-cycle theory in t he mid-1960s.Vernon's theory was based on the observation that for most of the 20th century a very large proportion of the world's new products had been developed by U. S. firms and sold first in the U. S. market. It could be produced abroad at some low-cost location and then exported back into the United States. Vernon went on to argue that early in the life cycle of a typical new product, while demand is starting to grow rapidly in the United States, demand in other advanced countries is limited to high-income groups.The limited initial demand in other advanced countries does not make it worthwhile for firms in those countries to start producing the new product, but it does necessitate some exports from the United States to those countries. Over time, demand for the new product grows in other advanced countries (e. g. , Great Britain, France, Germany, and Japan). As it does, it becomes worthwhile for foreign producers to begin producing for their home markets. AACSB: Reflective th inking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: The Product Life-Cycle Theory 126. (p. 80, 182) Describe the new trade theory. How does the new trade theory help us understand why the United States is dominant in the world market for commercial aircraft exports? New trade theory makes two important points: First, through its impact on economies of scale, trade can increase the variety of goods available to consumers and decrease the average costs of those goods. Second, in those industries when the output required to attain economies of scale represents a significant proportion of total world demand, the global market may be able to support only a small number of enterprises.Thus, world trade in certain products may be dominated by countries whose firms were first movers in their production. In such industries, firms that enter the market first build a competitive advantage that is difficult to challenge. Thus, the observed pattern of trade between nations may in part be due to the ability of firms to capture first-mover advantages. New trade theorists argue that the United States is a major exporter of commercial jet aircraft not because it is better endowed with the factors of production required to manufacture aircraft, but because one of the first movers in the industry, Boeing, was a U. S. firm.This dominance is further reinforced because global demand may not be sufficient to profitably support another producer of midsized and large jet aircraft in the industry. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Learning Objective: 5-3 Topic: New Trade Theory 127. (p. 181) Describe what is meant by first-mover advantages. First-mover advantages are the economic and strategic advantages that accrue to early entrants into an industry. The ability to capture scale economies ahead of later entrants, and thus benefit from a lower cost structure, is an important first-mover advantage.New trade the ory argues that for those products where economies of scale are significant and represent a substantial proportion of world demand, the first movers in an industry can gain a scale-based cost advantage that later entrants find almost impossible to match. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-3 Topic: New Trade Theory 128. (p. 184) Identify and describe the four attributes advanced by Porter. What did Porter conclude from his analysis? The four attributes identified by Porter are as follows:Factor Endowments: A nation's position in factors of production such as skilled labor or the infrastructure necessary to compete in a given industry. Demand Conditions: The nature of home demand for the industry's product or service. Relating and Supporting Industries: The presence or absence in a nation of supplier industries and related industries that are internationally competitive. Firm Strategy, Structure, and Rivalry: The conditions in the nat ion governing how companies are created, organized, and managed and the nature of domestic rivalry.Porter speaks of these four attributes as constituting the diamond. He argues that firms are most likely to succeed in industries or industry segments where the diamond is most favorable. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-2 Topic: National Competitive Advantage: Porter's Diamond 129. (p. 188) How does Porter's theory predict patterns in international trade? If Porter is correct, we would expect his model to predict the pattern of international trade that we observe in the real world.Countries should be exporting products from those industries where all four components of the diamond are favorable, while importing in those areas where the components are not favorable. Is he correct? We simply do not know. Porter's theory has not been subjected to detailed empirical testing. Much about the theory rings true, but the same can be said for the new trade theory, the theory of comparative advantage, and the Heckscher-Ohlin theory. It may be that each of these theories, which complement each other, explains something about the pattern of international trade.AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-4 Topic: National Competitive Advantage: Porter's Diamond 130. (p. 190) What does Porter's theory mention about policy implications? Porter's theory of national competitive advantage also contains policy implications. Porter's theory suggests that it is in the best interest of business for a firm to invest in upgrading advanced factors of production; for example, to invest in better training for its employees and to increase its commitment to research and development.It is also in the best interests of business to lobby the government to adopt policies that have a favorable impact on each component of the national diamond. Thus, according to Porter, businesses should urge government to increase investment in education, infrastructure, and basic research and to adopt policies that promote strong competition within domestic markets. AACSB: Reflective thinking BT: Comprehension Difficulty: Medium Learning Objective: 5-5 Topic: Focus on Managerial Implications

Origins and Evolution of Ipe Essay

Origins and evolution of IPE and its relationship with International Relations, Comparative Politics and Economics International Political Economy can be defined as the study of how economics and politics influence each other in the global system; the interaction of those two aspects of the global society. IPE focuses how governmental policies affect the way economic resources are used and what are the consequences of those policies, especially economic consequences (welfare consequences). Although the terms â€Å"globalization† and IPE are relatively new, global political economy, as the study of interaction between politics and economics, has existed for more than a century. The first global economy took place during the nineteenth century when the British Empire was the center and hegemony of the global economy and trade. In a time when mercantilism was the dominant economic system, Britain made its economy more flexible and opened to the exterior; this first global economy was based on bilateral agreements that reduced tariffs and on a stable international monetary system (starting with the British abolition of Corn Laws and the British-French Cobden-Chevalier Treaty). The gold standard was also adopted by many nations as the fixed rate exchange. By these years, the first perspectives of international political economy were used to explain the situation and the future of the global economy: †¢ Liberalism: that encourages international economic interactions in order to enrich each of the involved countries. Individuals are the main actors ruling the economy and cooperation benefits all of them. †¢ Mercantilism: which argues that economic power is necessary to gain national power; it supports that the State is the most important actor in economics. †¢ Marxism: that divides the global economy in two groups: advanced countries that explode the poorest countries. However, the beginning of the twentieth century was characterized by multiple changes in the system. The First World War meant the collapsed of the British hegemony and the raise of the American power. Despite the collapsed of the global economy in 1929, the Great Depression, USA regained its economic power during and after the Second World War (period known as the Pax Americana). Since WWII was caused in part by the failure to reconstruct a stable global economy after WWI, United States, as the hegemonic power, worked in order to create international institutions to provide a more stable structure and integrated international economy. Therefore, developments after 1945 have increased the interactions between economies. In this post-war period, new international organizations were created: World Trade Organization, International Monetary Fund, and the World Bank have strongly shaped the international political economy and its study. Today, the understanding of their function is essential to the study of IPE; they are key focuses of the IPE. However, some argue that the IPE was not developed until the 60’s and 70’s, when the Pax Americana was declining. This was a period characterized political and social instability; economy was not as prosper as it used to be in the past and the Cold War was increasing the international tension between capital and communist blocs. Moreover, events such as the Oil Embargo in 1973 and the breakdown of the Bretton Woods monetary system are key factors that influenced the development of IPE. For these reason, the old theories were not able anymore to analyze and understand the global political and economic situation. Theories like the hegemonic stability, which argues the necessary existence of a hegemonic country which controls the global political economy, failed in their attempts to predict the future of the international system based on state-power explanations. USA hegemony has been collapsing since the 60’s; however, cooperation, interdependence and global trade since then have increased successfully. Today, the global economy is dominated not only by United States, but by Japan, Germany and France. Moreover, IPE today is facing the challenges of a more globalized political economy, where new actors have key roles in the function of the system, such as China and India. By examining the historic events of the international environment during the last centuries, we can notice how important the interaction is between economic and political factors in the global system. Economic tools, such as tariffs, clearly determine openness and global trade: the lowest the tariffs of states, the greater the openness of economies (periods from 1820 to 1879 and from 1946 to 1970). Those periods of open economies correspond to the raising of the British and American hegemony. On the other hand, we can notice how these economic interactions shape States’ foreign policies: normally, trade is concentrated within regions not only because of comparative advantage, but by political choices or dictates (Krasner, 29). Nowadays, globalization is creating a lot of controversy and disagreement about the future of our international system. While some emphasizes the benefits of a more interdependent and cooperative economy, others argue that globalization consequences are social inequalities and financial crisis. The challenge today is to decide whether the states should increase global trade or close their economies. Those political decisions are strongly influenced by social and public opinions; if individuals and other economic actors reject globalization, policies would be created to protect their national economies rather than maintaining the openness. History demonstrates how political actions of individual states clearly affect international trade and re lations; at the same time, those policies affect the behavior of economic actors in the international environment and foreign policy of other states. In a globalized world neither economic theories nor political theories alone can explain and predict the international system. IPE integrates both and is developing its theories to face the changes of the economies and politics of the globe. IPE has been forced to adopt new research methods and analytical tools to explain the new trends of the international arena. Today’s IPE theories have to include new units of analysis such as the role of international institutions and how policies affect particular groups. Today, we can differentiate between four IPE perspectives: international political (emphasizes the role of domestic policies), international economic (highlights global economic factors), domestic institutional (studies the role of the institutions of the state) and domestic societal (the role of sociopolitical actors). The most dominant approach today is the Open Economy Politics, which include new units of study such as the interest of particular groups, the role of institutions and the influence of one state’s decisions in other states’ behaviors. International Political Economy (IPE) is a â€Å"maturing interdiscipline† As we mentioned before, Political Economy, as the study of the interaction between economics and politics, is not new. However, during the past decades, changes in the global system have led to new and more developed studies, and IPE has emerged as new and renovated interdisciplinary field. IPE was born, as know it today, when scholars realized the importance to understand the simultaneous growth and conflict in international markets in the 60’s and 70’s. Since its birth, IPE has evolved and many different approaches have risen. On the one hand, the dependency theory was developed, which argues that the world is divided in a periphery (the poore st countries) that is dominated by the core (the most developed countries). On the other, the hegemonic stability theory was also created, which supports that the existence of a hegemonic power is necessary in other to control and stabilize a global economy. Another approach to IPE also emphasizes the importance of interest groups in trade policies. As we can notice, new perspectives and situations lead to different approaches. Today, the dominant approach is the Open Economy Politics (OEP), which incorporates new and more explicit variables to the study of the international political economy. OEP focuses in how individual or groups are affected by particular policies, how institutions aggregate conflicting societal interests and rule the political game, and how states negotiate when necessary to influence one another’s behavior. Therefore, we can see how IPE has grown and improved in the last decades to adjust their methods to changes in the global system. New tools and research methods have undoubtedly improved IPE outcomes. However, David Lake argues that it is not perfect, and there is a lot to improve. †For the same reasons that substantial intellectual progress has occurred in the past, I remain optimistic about the future of this emerging interdiscilpline† (Lake 2004) In conclusion, as long as the global political economy faces changes and new challenges, IPE has to adjust its methods in order to better explain international interactions and their influence in economy and politics. Although the IPE filed is rapidly developing nowadays, it can improve its theories. We also need to remember that globalization is changing our current system, and that even though IPE predicted this current era, it wasn’t as accurate as it could be. Many experts argue, for example, that globalization is increasing inequalities around the world and that more protectionist measures must be taken (Oatley p. 362). A better understanding and development of the IPE would help us understand and take decisions about our current economics and politics, and would help us predict the outcomes of those measures we take. As Jeffrey Frankel says, globalization is neither new nor very extensive; the same way IPE has been developing for years, it must keep emerging new theories and methods. IPE’s main contribution First of all, I want to emphasize that I do not consider IPE as a methodological approach, but a set of studies that attempt to explain international trade and politics; IPE is not a group of rules that countries and economies have to follow, but theories that help us explain the outcomes of our economic and political actions. Personally I do not think that any particular event or politic-economic decision is a direct outcome of IPE. Instead, what I think is that IPE is an essential social science that helps us to understand economic and institutional behavior in the international arena. IPE has showed us how politics and economics are not separate aspects of our society, but they are complementary and interdependent pieces of the international system. Although there is a lot to develop in the international political economy field, it has been able to predict outcomes of our political and economic decisions. Therefore, IPE does not directly tell us what policies we should apply, but show us the consequences of each one of them and help us to take decisions based on predictions. Also, IPE has showed us that our society is in continuous change; although there are many factors that are repeated throughout history, there are also new challenges that appear in each different period. The study of International Political Economy can better prepare us to face the new challenges of our society: the emerge of new powerful economies such as China and India and how their appearance will change international relations, the implications of the last global financial crisis, the roles of new social force and international institutions, and many others. Sources Oatley, Thomas. 2010. International Political Economy (4th Edition). New York: Longman. Frieden, Jeffry, David A. Lake, and Lawrence Broz, eds. 2009. International Political Economy: Perspectives on Global Power and Wealth (5th Edition). New York: Longman. Lake, David. International Political Economy: A Maturing Interdiscipline. Diss. University of California, 2004. N.p.: n.p., n.d. Print.

Nature and landscapes are nothing more than sedimented history Essay

Nature and landscapes are nothing more than sedimented history - Essay Example Once it regains, its original shape one may not be able to tell the difference between the original and the restored form (McKibben, 2009). Thus, is easier to say the landscapes and nature are just but a sentiment of history. The views can change but with time, they can regain their original shape and appearance. This fact makes the idea that the landscape and nature to be termed to just but a history. Since history repeats itself the same, the nature can repeat itself once it has been altered. When people settle in a place, they change position in a manner that the area can be habitable. If the same place can be abandoned for a while, it regains its original shape, and the earlier vegetation can cover the ground. Thus, the landscape and nature is just a repetitive occurrence that can repeat itself like the way history does. Taking a case of the white settlers who invaded the Zimbabwean country and settled there. This aspect can be treated as a case of the British where they found the nation being scorched and had no enough water to allow them to practice farming. The British had to change the landscape, and the landscape was changed they brought a new one. The new landscape was full of water from the dams, and they had conserved the soil well and the land was good for arable purposes. Thus, the new appearance of the area was good enough to allow many farming activities. Wildlife could at that time be well supported by the new look of the environment. The British changed the landscape to own it and performed their activities (Hughes, 2010). They used the water that was in the dams that they constructed to irrigate and support the wildlife. Maybe long ago the same place had a lot waters and was supporting wildlife, and it reached a point that the climate changed. It to be so dry that the animal was no mo re supported by the prevailing conditions. When the British came to the place, they changed the nature may be top the look of

Bottled water market Essay Example | Topics and Well Written Essays - 2000 words

Bottled water market - Essay Example The second part will contrast the bottled water market in two specific countries. The countries chosen for this purpose are Scotland and Saudi Arabia, whereas the major bottlers in these countries selected are Strathmore and Masafi mineral water respectively. There appear to be several reasons inducing people to purchase bottled water in any part of the world. Of course, bottled water is far costlier than the tap water for the people in the developing countries as compared to the under-developed countries. However, the demand for bottled water in all its forms has been on a substantial rise in both the sections of the world. People in the poor as well as rich countries are willing to pay a high price for bottled water while avoiding having tap water that is available to them cheaply. The motives driving the people to purchase bottled water are discussed below in the context of developed and developing countries of the world. The bottled water market is booming in all parts of the world with an annual volume of about 89 billion litres, which shows that an average person drinks 15 litres of bottled water every year (Danone, 2000). The western consumers comprise the major market for the bottled water companies especially from the European countries. Apparently, these are the developed countries of the world with high per capita income and enhanced awareness of health and purity matters. Scotland is also one of the developed nations of world with a booming bottled water market. It is interesting to note that in developed nations of the world, the tap water available to people is much safer to drink, albeit the people are inclined to purchase bottled water more than those in developing countries. The main reasons inducing people to purchase bottled water in a developed European country like Scotland are as follows: People buy bottled water in the country because they are concerned profoundly with health matters and thus inclined to regard bottled water as a source of good health. People also refrain from using tap water and opt for bottled water because of the contamination of tap water and disease threats associated with impure water. People also make their bottled water purchases under the influence of social practices and fashion symbols In Scotland, people have relatively higher level of income and good standard of living, therefore they tend to spend more on bottled water such as carbonated drinks etc for fun and pleasure Due to increase in the number of cars owned by individuals every year. Bottled water are easy to carry and dispose off due to their convenient package, therefore people prefer to buy bottled water while travelling. Developing Countries As evident from the above discussion, much of the reasons motivating people to purchase bottled water come from their life styles, fitness concerns, marketing influence, pleasure, income patterns and social status etc. These factors are rarely visible in most of the developing countries in the world. The two most important factors motivating the people to purchase expensive bottled water in developing world, especially in a country like Saudi Arabia are discussed below: Scarcity of water is one of the acute problems faced by

The Capabilities And Limitations Of Intelligence In Supporting Essay

The Capabilities And Limitations Of Intelligence In Supporting Homeland Security - Essay Example The fusion centers recommend the 9/11 Act that belongs to the state and local government in federal, state, local, tribal, and territorial governments. The intention is to share crucial information concerning terror threats, criminal activities, and any other related hazards. The goal of state and local fusion is to satisfy the customer needs at the federal and the local needs. The federal government maintains that it uses fusion centers as focal points to disseminate terrorism-related information to state and local governments. The transformation of United States intelligence entails editing of blueprints of the intelligence officers and the description they seek to accomplish. True intelligence transformation fuses creative business practices and the selected technologies for achieving strategic advantage. President Obama issues Intelligence Community Directive that stipulates that it is the duty of Intelligence Community to provide, discover, and request criminal information incon sistent with the tenets of DHS commitment to information sharing. In 2005, the 9/11 Commission stated that the nation has made minimal progress toward the seamless information sharing system. In 2009, the Markle report found that it was the responsibility of the Executive of America and Congress to reaffirm information sharing as its top priority. In addition to that, it was the duty of them to those policymakers has the best information to inform their decisions. The creation of the DHS in 2002 is in line with terror attacks.

Comparison Essay Example | Topics and Well Written Essays - 2000 words

Comparison - Essay Example Her main focus was to provide rights to the Blacks and give them a representation in the society. She has a literature Nobel prize to her name, along with eight novels and over two hundred short stories to her credit. The other form of literature that will be scrutinized is â€Å"What it’s like to be a black girl?† a poem by the famous Patricia Smith. Smith, also an activist wrote this specific poem to explain the feelings of a black girl, growing up to be a woman in a time when blacks were despised severely. (What its like to be a black girl, Poetry - CollegeTermPapers.com, 2013; Post Colonial Analysis of "Country Lovers" by Nadine Gordimer, 2013) â€Å"The Country Lovers† is a short story written by Nadine Gordimer, and it forms the second part of the story called â€Å"The Town and Country Lovers†. With the scene set in countryside, the story revolves around two protagonists namely: Thebedi and Paulus. Thebedi is a black girl and Paulus happens to be th e son of her white masters. Thebedi and Paulus have spent their entire childhood together; hence, when they grow up into teenagers, they get attracted to each other and fall in love. What they experienced cannot be typically termed as love, but they were physically involved and their love blossomed as they were over whelmed by the strength of emotions that they felt. Now in those times, interracial relationships were forbidden, which meant that it was close to committing a sin, hence, this whole relation was kept as a secret. Time passes with the way things are and Thebedi gets pregnant, but she hides this fact from Paulus. Paulus till such time was carrying on with his own life and Thebedi was getting married to a man named Njabulo, who had been in love with her for quite some time. When Thebedi gives birth to a daughter, her appearance raises questions because the girl, carrying her father’s genes is light in color and has colored eyes. Njabulo, being a sincere husband does not question this and treats the child like his own. As word travels, Paulus gets to know about the child and in an instance realizes the daunting truth. He pays a visit to Thebedi and asks her to five the child to someone else as it is a proof of their sin. On insisting, Thebedi leaves Paulus alone with the child and after a day, the girl dies. The matter is taken to court as Thebedi swears to confess that Paulus had poisoned her child. However, on the day of the trial, Thebedi fails to confess and says she did not â€Å"see† Paulus poison the baby. Hence, Paulus is freed without any charges due to the lack of evidence. (Country Lovers, 2013) This short story brings into focus the problems of being in an â€Å"interracial†, â€Å"forbidden† love. (Post Colonial Analysis of "Country Lovers" by Nadine Gordimer, 2013) It not just explains the problems that the protagonists, especially the female encountered, but it also portrays perfectly the thinking of the peop le in those times. The story remarkably portrays the female as the vulnerable character as men mostly get away with their acts easily. As the story was staged for the 20th century, a time when racial discrimination was at its peak, the role of Thebedi shows the negatives of being a black and a woman at the same time. Her character was questioned when her child turned out to be light in colored. Paulus’s selfish act of saving his reputation from being damaged, and poisoning the child to

TD#1 week 8 Assignment Example | Topics and Well Written Essays - 250 words

TD#1 week 8 - Assignment Example ors that may affect their wellbeing and discussing individualized care with patients and restricting the information that physicians and nurses can reveal to patients. Notably, these laws pose a threat to the nursing and medical profession as they generate undue problems that have the effect of restricting access to the required care and time nurses spend with patients. As a result, nurses have the responsibility of influencing change (Mason et al., 2011) and safeguarding the nursing profession from intrusion by the government and other authorities. In this case, it is imperative for the nurses to sensitize all the stakeholders in health care, including the authorities, on their responsibility and support towards the privacy and the significance of the patient-physician relationship in health care. This sensitization would involve lobbying to the local congressperson and health care commissioner. Through this lobbying, a nurse can also focus on showing the role of risk factors and disclosure of information to patients in patient care and identification of health care interventions (Mason et al., 2011). Additionally, as a nurse, it would be effective to use the internet as a medium to sensitize the distinct stakeholders within the health care on their role and how these regulations impact on the delivery of care. Ginsburg,  J., Snyder,  L., & Centor,  R. (2013). Statement of principles on the role of the government in regulating Patient-Physician relationship. American College of Physicians, 1, 1-16. Retrieved from

How graphic design and skateboard graphics coincide and have Essay

How graphic design and skateboard graphics coincide and have influenced the growth in skateboarding since the 70's - Essay Example consisting of roller-skate wheels attached to a two by four; once the push bar of the scooter-like contraption was broken off, skateboarding was born’ (Skateboarding History, 2007). Through the years, skateboarding has been developed extensively especially as of the shape and the size of the skateboards. Moreover, graphics were added on skateboards presenting figures of all types (always in accordance with the cultural and social trends of a specific period). Current paper examines the relation of skateboarding with graphic design. The influence of the latter to the development of the former especially after the period of 1970s is the main issue analyzed in this paper. In order for the above relationship to be clearer, it is necessary to present the history of skateboarding from its appearance (approximately in 1959) until today. At the same time, it would be useful to refer to the development of graphic design throughout the years especially in relation with skateboarding. Th e views of professionals in the specific area have been also considered to be a valuable tool towards the understanding of the role of graphic design in the development of skateboarding since the 70s. The historical development of skateboarding has not been continuous. The period that characterized by a high growth of this activity is 1970s. In fact, it was during that period that the first skatepark appeared while skateboarding was extensively advertised in the television and the cinema. Moreover, new styles of skateboarding were adopted like slalom and freestyle. Regarding the developments in skateboarding that took place in the above period it is noticed that ‘this was the first time skateboarding had stars, some of the first really big names being Tony Alva, Jay Adams and Stacy Peralta; the look of skateboards also changed from being six to seven inches in width to over nine inches, providing better stability on vertical surfaces’ (Scateboarding History, 2007). In the above context,

Mexican Cival Rights Essay Example for Free

Mexican Cival Rights Essay George I. Sanchez, Ideology, and Whiteness in the Making of the Mexican American Civil Rights Movement, 1930-1960 By CARLOS K . BLANTON Let us keep in mind that the Mexican-American can easily become the front-line of defense of the civil liberties of ethnic minorities. The racial, cultural, and historical involvements in his case embrace those of all of the other minority groups. Yet, God bless the law, he is white! So, the Mexican-American can be the wedge for the broadening of civil liberties for others (who are not so fortunate as to be white and Christian!). George L Sanchez (1958) By embracing whiteness, Mexican Americans have reinforced the color line that has denied people of African descent full participation in American democracy. In pursuing White rights, Mexican Americans combined Latin American racialism with Anglo racism, and in the process separated themselves and their political agenda from the Black civil rights struggles of the forties and fifties. Neil Foley (1998) 1 HE HISTORY OF RACE AND CIVIL RIGHTS IN THE AMERICAN SoUTH IS complex and exciting. The history of Mexican American civil rights is also promising, particularly so in regard to understanding the role of whiteness. Both selections above, the first from a Mexican American The epigraphs are drawn from George I. Sanchez to Roger N. Baldwin, August 27, 1958, Folder 8, Box 31, George I. Sanchez Papers (Nettie Lee Benson Latin American Collection, University of Texas Libraries, Austin); and Neil Foley, Becoming Hispanic: Mexican Americans and the Faustian Pact with Whiteness, in Foley, ed.. Reflexiones 1997: New Directions In Mexican American Studies (Austin, 1998), 65. The author would like to thank the Journal of Southem Historys six anonymous reviewers and Texas AM Universitys Glasscock Center for Humanities Research for their very helpful intellectual guidance on this essay. MR. BLANTON is an assistant professor of history at Texas AM University. THE JOURNAL OF SOUTHERN HISTORY Volume LXXII, No. 3, August 2006 570 THE JOURNAL OF SOUTHERN HISTORY intellectual of the mid-twentieth century and the last a recently published statement from a historian of race and identity, are nominally about whiteness. But the historical actor and the historian discuss whiteness differently. The quotation from the 1950s advocates exploiting legal whiteness to obtain civil rights for both Mexican Americans and other minority groups. The one from the 1990s views such a strategy as inherently racist. The historical figure writes of Mexican Americans and African Americans cooperating in the pursuit of shared civil rights goals; the historian writes of the absence, the impossibility of cooperation due to Mexican American whiteness. This contrast is worth further consideration. This essay examines the Mexican American civil rights movement by focusing on the work and ideas of George I. Sanchez—a prominent activist and professor of education at the University of Texas—in the 1930s, 1940s, and 1950s. Sanchez is the most significant intellectual of what is commonly referred to as the Mexican American Generation of activists during this period. As a national president of the major Mexican American civil rights organization of the era, however, Sanchezs political influence within the Mexican American community was just as important as his intellectual leadership. Sanchez pondered notions of whiteness and actively employed them, offering an excellent case study of the making of Mexican American civil rights. ^ First, this work examines how Sanchezs civil rights efforts were vitally informed by an ideological perspective that supported gradual, integrationist, liberal reform, a stance that grew out of his activist research on African Americans in the South, Mexican Americans in the Southwest, and Latin Americans in Mexico and Venezuela. This New Deal ideological inheritance shaped Sanchezs contention that Mexican Americans were one minority group among many needing governmental assistance. Second, this liberal ideology gave rise to a nettlesome citizenship dilemma. During the Great Depression and World War II, Mexican Americans strategic emphasis on American citizenship rhetorically placed them shoulder-to-shoulder with other U. S. minority groups. It also marginalized immigrant Mexicans. The significance of ^ For more on Sanehez see Gladys R. Leff, George I. Sanchez: Don Quixote of the Southwest (Ph. D. dissertation. North Texas State University, 1976); James Nelson Mowry, A Study of the Educational Thought and Aetion of George I. Sanehez (Ph. D. dissertation. University of Texas, 1977); Amerieo Paredes, ed.. Humanidad: Essays in Honor of George 1. Sanchez (Los Angeles, 1977); Steven Sehlossman, Self-Evident Remedy? George I. Sanchez, Segregation, and Enduring Dilemmas in Bilingual Education, Teachers College Record, 84 (Summer 1983), 871-907; and Mario T. Garcia, Mexican Americans: Leadership, Ideology, and Identity, J930-1960 (New Haven, 1989), chap. 10. WHITENESS AND MEXICAN AMERICAN CIVIL RIGHTS 571 citizenship was controversial within the Mexican American community and coincided with the emergence of an aggressive phase of Mexican Americans civil rights litigation that implemented a legal strategy based on their whiteness. Third, Sanchezs correspondence with Thurgood Marshall of the National Association for the Advancement of Colored People (NAACP) in the 1940s and 1950s reveals early, fragmentary connections between the Mexican American and African American civil rights movements. All these topics address important interpretive debates about the role of whiteness. This essay fuses two historiographical streams: traditional studies on Mexican American politics and identity and the new whiteness scholarships interpretation of Mexican American civil rights. In traditional works the Mexican American civil rights experience is often examined with little sustained comparison to other civil rights experiences. Conversely, the whiteness scholarship represents a serious attempt at comparative civil rights history. Taking both approaches into account answers the recent call of one scholar for historians to muster even greater historical imagination in conceiving of new histories of civil rights from different perspectives. ^ Traditional research on Mexican Americans in the twentieth century centers on generational lines. From the late nineteenth century to the Great Depression, a large wave of Mexican immigrants, spurred by dislocation in Mexico as well as by economic opportunity in the U. S. , provided low-wage agricultural and industrial labor throughout the Southwest. Their political identity was as Mexicans living abroad, the Mexicanist Generation. They generally paid little heed to American politics and eschewed cultural assimilation, as had earlier Mexicans who forcibly became American citizens as a result of the expansionist wars of the 1830s and 1840s. However, mass violence shortly before World War I, intensifying racial discrimination throughout the early twentieth century, and forced repatriations to Mexico during the Great Depression heralded the rise of a new political ethos. The community had come to believe that its members were endangered by the presumption of foreignness and disloyalty. ^ By the late 1920s younger Charles W. Eagles, Toward New Histories of the Civil Rights Era, Journal of Southern History, 66 (November 2000), 848. See Emilio Zamora, The World of the Mexican Worker in Texas (College Station, Tex., * 1993); George J. Sanchez, Becoming Mexican American: Ethnicity, Culture, and Identity in Chicano Los Angeles, 1900-1945 (New York, 1993); Benjamin Heber Johnson, Revolution in Texas: How a Forgotten Rebellion and Its Bloody Suppression Turned Mexicans into Americans (New Haven, 2003); and Amoldo De Leon, The Tejano Community, 1836-1900 (1982; new ed. , Dallas, 1997). 572 THE JOURNAL OF SOUTHERN HISTORY leaders—the Mexican American Generation—urged adoption of a new strategy of emphasizing American citizenship at all times. They strove to speak English in public and in private settings, stressed education, asked for the gradual reform of discriminatory practices, emulated middle-class life, and exuded patriotism as a loyal, progressive ethnic group. They also desired recognition as ethnic whites, not as racial others. The oldest organization expressing this identity was the League of United Latin American Citizens (LULAC). This ethos of hyphenated Americanism and gradual reform held sway until the late 1960s and early 1970s. ^ Studies of whiteness contribute to historians understanding of the interplay of race, ethnicity, and class by going beyond a black-white binary to seek the subtleties and nuances of race. This new scholarship examines who is considered white and why, traces how the definition of white shifts, unearths how whiteness conditions acts of inclusion and exclusion and how it reinforces and subverts concepts of race, and investigates the psychological and material rewards to be gained by groups that successfully claim whiteness. Class tension, nativism, and racism are connected to a larger whiteness discourse. In other words, this is a new, imaginative way to more broadly interrogate the category of race. Works on whiteness often share a conviction that thoughts or acts capitalizing on whiteness reflect racist power as well as contribute to that insidious powers making. They also generally maintain that notions of race, whether consciously employed or not, divide ethnic and racial minorities from each other and from workingclass whites, groups that would otherwise share class status and political goals. ^ In recent reviews of the state of whiteness history, Eric Amesen, See Mario Garcia, Mexican Americans; George J. Sanchez, Becoming Mexican American; David G. Gutierrez, Walls and Mirrors: Mexican Americans, Mexican Immigrants, and the Politics of Ethnicity (Berkeley, 1995); Ignacio M. Garcia, Viva Kennedy: Mexican Americans in Search of Camelot (College Station, Tex. , 2000); Carl Allsup, The American G. I. Forum: Origins and Evolution (Austin, 1982); Richard A. Garcia, Rise of the Mexican American Middle Class: San Antonio, 1929—1941 (College Station, Tex. , 1991); David Montejano, Anglos and Mexicans in the Making of Texas, 1836-1986 (Austin, 1987), chaps. 12 and 13; Julie Leininger Pyeior, LBJ and Mexican Americans: The Paradox of Power (Austin, 1997); Juan Gomez-Quinones, Chicano Politics: Reality and Promise, 1940-1990 (Albuquerque, 1990); and Guadalupe San Miguel Jr. , Brown, Not White: School Integration and the Chicano Movement in Houston (College Station, Tex. , 2001). ^ David R. Roediger, The Wages of Whiteness: Race and the Making of the American Working Class (1991; rev. ed.. New York, 1999); Roediger, Towards the Abolition of Whiteness: Essays on Race, Politics, and Working Class History (New York, 1994); Matthew Frye Jacobson, Whiteness of a Different Color: European Immigrants and the Alchemy of Race (Cambridge, Mass. , 1998); George Lipsitz, The Possessive Investment in Whiteness: How White People Profit From Identity Politics (Philadelphia, 1998). WHITENESS AND MEXICAN AMERICAN CIVIL RIGHTS. 573 Barbara J. Fields, Peter Kolchin, and Daniel Wickberg offer much criticism. These historians argue that scholars using whiteness as an analytical tool are shoddy in their definitions, read too finely and semantically into documents and literary texts, and privilege discursive moments that have little or nothing to do with actual people or experiences. More specifically, Kolchin and Amesen argue that many studies of whiteness incautiously caricature race as an unchanging, omnipresent, and overly deterministic category. In such works whiteness is portrayed as acting concretely and abstractly with or without historical actors and events. Ironically, studies of whiteness can obscure the exercise of power. Fields explains that studying race and racial identity is more attractive than studying racism because racism exposes the hoUowness of agency and identity . . . [and] it violates the two-sides-to-every-story expectation of symmetry that Americans are peculiarly attached to. ^ Research that applies the idea of whiteness to Mexican American history is sparse and even more recent. Several of these studies focus upon the use of whiteness as a legal strategy while others take a broader approach. ^ Historian Neil Foley offers the most significant and ambitious arguments by moving beyond an analysis of how white people viewed Mexican Americans to look instead at the construction of whiteness in the Mexican American mind. He shifts the perspective from external whiteness to internal whiteness and argues that Mexican Americans entered into a Faustian Pact by embracing racism toward African Americans in the course of trying to avoid de jure discrimination. Foley claims that Mexican Americans consciously curried the favor of racist whites: In pursuing White rights, Mexican Americans Peter Kolchin, Whiteness Studies: The New History of Race in America, Journal of American History, 89 (June 2002), 154-73; Eric Arnesen, Whiteness and the Historians Imagination, International Labor and Working-Class History, 60 (Fall 2001), 3-32; Barbara J. Fields, Whiteness, Racism, and Identity, International Labor and Working-Class History, 60 (Fall 2001), 48-56 (quotations on p.48); Daniel Wickberg, Heterosexual White Male; Some Recent Inversions in American Cultural History, Journal of American History, 92 (June 2005), 136-57. *Ian F. Haney Lopez, White By Law: The Legal Construction of Race (New York, 1996); Neil Foley, The White Scourge: Mexicans, Blacks, and Poor Whites in Texas Cotton Culture (Berkeley, 1997); Steven Harmon Wilson, The Rise of Judicial Management in the U. S. District Court, Southern District of Texas, 1955-2000 (Athens, Ga., 2002); Wilson, Brown over Other White; Mexican Americans Legal Arguments and Litigation Strategy in School Desegregation Lawsuits, Law and History Review, 21 (Spring 2003), 145-94; Clare Sheridan, Another White Race: Mexican Americans and the Paradox of Whiteness in Jury Selection, Law and History Review, 21 (Spring 2003), 109^14; Ariela J. Gross, Texas Mexicans and the Polities of Whiteness, Law and History Review, 21 (Spring 2003), 195-205; Carlos Kevin Blanton, The Strange Career of Bilingual Education in Texas, 1836-1981 (College Station, Tex., 2004); Patrick J. Carroll, Felix Longorias Wake: Bereavement, Racism, and the Rise of Mexican American Activism (Austin, 2003). 574 THE JOURNAL OF SOUTHERN HISTORY combined Latin American racialism with Anglo racism, and in the process separated themselves and their political agenda from the Black civil rights struggles of the forties and fifties. ^ Missing from such interpretations of whitenesss meaning to Mexican Americans is George I. Sanchezs making of Mexican American civil rights. Analyzing Sanchezs views is an excellent test of Foleys interpretation because Sanchezs use of the category of whiteness was sophisticated, deliberate, reflective, and connected to issues and events. An internationalist, multiculturalist, and integrationist ideology shaped by New Deal experiences in the American Southwest, the American South, and Latin America informed George L Sanchezs civil rights activism and scholarship. Sanchez regarded Mexican Americans as one of many American minority groups suffering racial, ethnic, and religious bigotry. Though Sanchez regarded Mexican Americans racial status as white, he also held that they were a minority group that experienced systematic and racialized oppression. Sanchezs articulation of whiteness was qualified by an anti-racist ideological worldview and supports Eric Amesens criticism of overreaching by whiteness scholars who appreciate neither ambiguity nor counter-discourses of race, the recognition of which would cast doubt on their bold claims. Â ° Sanchez was very much a New Deal service intellectual who utilized academic research in an attempt to progressively transform society. The term service intellectual is an appropriate description of Sanchez, who propagated his civil rights activism through academic research with governmental agencies (the Texas State Department of Education, the New Mexico State Department of Education, the U. S. Bureau of Indian Affairs, and the Office of the Coordinator of Inter-American Affairs) and national philanthropic organizations (the General Education Board, the Julius Rosenwald Eund, the Carnegie Foundation, and the Marshall Civil Liberties Trust). The pinnacle of Sanchezs scholarly contribution as a service intellectual was his evocative 1940 portrayal of rural New Mexican poverty and segregation in The Forgotten People: A Study of New Mexicans. Foley, Becoming Hispanic, 53-70 (quotation on p. 65); Foley, Partly Colored or Other White: Mexican Americans and Their Problem with the Color Line, in Stephanie Cole and Alison M. Parker, eds. , Beyond Black and White: Race, Ethnicity, and Gender in the U. S. South and Southwest (College Station, Tex. , 2004), 123-44. For an older whiteness study that discusses the external imposition of racial concepts on Mexican Americans and other groups, see Roediger, Towards the Abolition of Whiteness, chap. 10. Amesen, Whiteness and the Historians Imagination, 24. Richard S. Kirkendall, Social Scientists and Farm Politics in the Age of Roosevelt WHITENESS AND MEXICAN AMERICAN CIVIL RIGHTS 575 Sanchez particularly sought to transform society through the field of education. In the early 1930s he published blistering critiques of the shoddiness of IQ tests conducted on Mexican American children. Mexican Americans bad just challenged separate schools in Texas and California and were told by the courts that because they were technically white, racial segregation was illegal; however, the courts then claimed that pedagogical segregation based upon intellectual or linguistic deficiency was permissible. In challenging racist IQ science, Sanchez essentially advocated integration. ^ A decade of service intellectual work came together for Sanchez in Forgotten People. He called for a comprehensive federal and state program to uplift downtrodden Hispanic New Mexicans: Remedial measures will not solve the problem piecemeal. Poverty, illiteracy, and ill-health are merely symptoms. If education is to get at the root of the problem schools must go beyond subject-matter instruction. . . . The curriculum of the educational agencies becomes, then, the magna carta of social and economic rehabilitation; the teacher, the advance agent of a new social order. ^ Sanchez regarded Mexican Americans as similar to Japanese Americans, Jewish Americans, and African Americans. To Sanchez these were all minority groups that endured varying levels of discrimination by white, Anglo-Saxon, Protestant America. Sanchez was uninterested in divining a hierarchy of racial victimization; instead, he spent considerable energy on pondering ways for these groups to get the federal government, in New Deal fashion, to help alleviate their plight. Even in the mid-1960s when many Mexican Americans had come to favor a separate racial identity over an ethnic one, Sanchez still conceived of Mexican Americans as a cultural group, ignoring concepts of race altogether unless discussing racial discrimination. ^ Sanchez engaged the struggles of other minority groups and linked them to Mexican American activism. In 1948, for example, Sanchez (Columbia, Mo. , 1966), 1-6; George I. Sanchez, Forgotten People: A Study of New Mexicans (1940; reprint, Albuquerque, 1996), xvi-xvii. Befitting the service intellectual ideal of freely diffusing knowledge, the Carnegie Foundation gave the book away. Carnegie provided four thousand dollars for Sanchezs research at the same time it supported work on a much larger study on African Americans—Gunnar Myrdals classic An American Dilemma: The Negro Problem and Modern Democracy (New York, 1944). ^ Carlos Kevin Blanton, From Intellectual Deficiency to Cultural Deficiency: Mexican Americans, Testing, and Public School Policy in the American Southwest, 1920-1940, Pacific Historical Review, 72 (February 2003), 56-61 (quotations on p. 60). Sanchez, Forgotten People, 86. George I. Sanchez, History, Culture, and Education, in Julian Samora, ed.. La Raza: Forgotten Americans (Notre Dame, 1966), 1-26; Mario Garcia, Mexican Americans, 267-68. 576 THE JOURNAL OF SOUTHERN HISTORY published through the United States Indian Service a government study on Navajo problems called The People: A Study of the Navajos. ^^ In 1937-1938 Sanchez transferred his New Deal, reformist ideology across borders as a Latin American education expert with a prestigious administrative post in Venezuelas national government. Writing to Edwin R. Embree, director of the Julius Rosenwald Fund, Sanchez described his work as the chief coordinator of the countrys teachertraining program in familiar New Deal terms: the hardest task is breaking down social prejudices, traditional apathy, obstructive habits (political and personal) and in-bred aimlessness. His first program report was appropriately titled Release from Tyranny. ^ During World War II Sanchez was appointed to the Office of the Coordinator of Inter-American Affairs under Nelson A. Rockefeller, where he continued work on Latin American teacher-training programs as part of the war effort. Sanchez was deeply committed to progressive reform in Latin America that would lift educational and living standards. ^ Sanchez also took on African American issues. From 1935 to 1937 he worked as a staff member with the Chicago-based Julius Rosenwald Eund. This philanthropic organization was concerned with African American rural education in the South, and in this capacity Sanchez collaborated with Eisk Universitys future president, the eminent sociologist Charles S. Johnson, on preparing the massive Compendium on Southem Rural Life. Sanchez was listed in the studys budget as the highest-paid researcher for the 1936-1937 academic year with a $4,500 salary and a $2,000 travel budget. Sanchezs work with the Rosenwald Eund also involved numerous activities beyond his role as the groups pedagogical expert. In November and December 1936 he lobbied the Louisiana State Department of Education on behalf of a Dr. Sanchez Seeks Fulfillment of U. S. Promise to Navajos, Austin Daily Texan, November 16, 1946, in George I. Sanchez Vertical File (Center for American History, Austin, Texas; hereinafter this collection will be cited as Sanchez Vertical File and this repository as Center for American History); George I. Sanchez, The People: A Study of the Navajos ([Washington, D. C], 1948). ^ G. I. Sanchez to Edwin R. Embree, October 17, 1937, Folder 4, Box 127, Julius Rosenwald Fund Archives (Special Collections, John Hope and Aurelia Franklin Library, Fisk University, Nashville, Tennessee; hereinafter this collection will be cited as Rosenwald Fund Archives and this repository as Franklin Library) (quotation); Embree to Sanchez, October 29, 1937, ibid. Sanchezs work for the Instituto Pedagogico occurred just after its creation in 1936 during a brief liberal phase of Venezuelan politics. For more on its creation, see Judith Ewell, Venezuela: A Century of Change (Stanford, 1984), 75. Dave Cheavens, Soft-Spoken UT Professor Loaned to Coordinator of Latin-American Affairs, Austin Statesman, December 3, 1943, in Sanchez Vertical File; Texan Will Direct Training of Teachers, Dallas Morning News, November 3, 1943, ibid. ; George I. Sanchez, Mexican Education As It Looks Today, Nations Schools, 32 (September 1943), 23, ibid. ; George I. Sanchez, Mexico: A Revolution by Education (New York, 1936). WHITENESS AND MEXICAN AMERICAN CIVIL RIGHTS 511 Rosenwald teacher-training program and the broader issue of school equalization. Equalization had been the primary avenue of African American activism that culminated with the Gaines v. Canada decision of 1938, which mandated that the University of Missouri either admit a black law student or create a separate, equal law school for African Americans. Sanchez also lobbied in Washington, D. C. , in February 1937, consulting with the Progressive Education Association and various government agencies on Rosenwald projects. ^ As one of his duties on the compendium project, Sanchez studied rote learning for rural African American children who lived in homes lacking in formal education. This study was inspired by Charles Johnsons mentor at the University of Chicago, Robert E. Park. Johnson, Sanchez, and other young researchers such as famed historian Horace Mann Bond were to look at ways to educate populations handicapped by the lack of books and a tradition of formal education in the home. This venture was affiliated with the Tennessee Valley Authority and chiefly concerned with raising the cultural level of poor, rural African Americans more effectively than standard textbooks and pedagogies developed for privileged students in other parts of the country. The project aimed to equip teachers to integrate the knowledge which the school seeks to inculcate with the experiences of its pupils and with the tradition of the local community. Sanchezs comparable work with bilingual education in New Mexico and Latin America fit well within the scope of the new undertaking. ^ Sanchezs biggest project with the Rosenwald Fund was creating a well-recognized teacher-training program at the Louisiana Negro Normal and Industrial Institute at Grambling. Charles S. Johnson later described this Grambling teacher-training program as among the most progressive of the community-centered programs for the education of teachers in the country. He praised the Grambling endeavor for offering African American teachers opportunities for the development of creativeness and inventiveness in recognizing and solving * Charles S. Johnson to Edwin R. Embree, October 16, 1936, Folder 1, Box 333, Rosenwald Fund Archives; Embree to Johnson, October 23, 1936, and enclosed budget manuscripts Supplementary Budget on Rural Education Compendium and Rural School Exploration, Tentative Budget 1936-37, ibid. ; undated project time sheet [October 7, 1936 to April 27, 1937], Folder 3, Box 127, ibid. ; Numan V. Bartley, The New South, 1945-1980 (Baton Rouge, 1995), 15; Compendium on Southern Rural Life with Reference to the Problems of the Common School (9 vols. ; [Chicago? ], 1936). Charles S. Johnson to Edwin R. Embree, January 21, February 25, 1937, Folder 5, Box 335, Rosenwald Fund Archives; Johnson to Dorothy Elvidge, June 23, 1937, and study proposal by Robert E. Park, Memorandum on Rote Learning Studies, March 3, 1937, pp. 2 (first and second quotations), 3 (third quotation), ibid. Sanchez left shortly after the project began. 578 THE JOURNAL OF SOUTHERN HISTORY the problems to be found in rural communities, homes, and schools . . . .^Â ° Sanchez oversaw this project from its inception in September 1936 until he left for Venezuela in the middle of 1937. He set up the curriculum, the budgets, the specialized staff (nurses, agricultural instructors, home economists, and rural school supervisors), and equipment (the laboratory school and a bus for inspections). These duties involved close coordination with Grambling administrators, Louisiana health officials, and state education and agriculture bureaucrats. Difficulties arose due to Sanchezs departure. One Rosenwald employee summarized the programs problems, As long as George [Sanchez] was here he was the individual who translated that philosophy to the people at Grambling, and I am sure that you agree with me that he could do it far more effectively than the rest of us. But now that Sanchez [sic] is not here it is the job of the president of the institution to do both this interpretation and this stimulation. . . . I do not believe [President] Jones knows them. ^ Fisks Charles S. Johnson was elite company for Sanchez. Johnsons devastating attacks on southem sharecropping influenced public policy and garnered praise from President Franklin D. Roosevelt. He and others spurred the creation of Roosevelts Black Cabinet. ^^ Sanchez practiced a similar combination of academic research and social activism. When he began his work at Grambling he had recently lost his position in the New Mexico State Department of Education due to his pointed advocacy of reform as well as his penchant for hard-hitting, publicly funded academic research on controversial topics such as the segregation of Mexican Americans in schools. He had long sparked controversy with his research on racial issues. What especially limited ^Â ° Charles S. Johnson, Section 8—The Negro Public Schools, in Louisiana Educational Survey (7 vols, in 8; Baton Rouge, 1942), IV, 216 (first quotation), 185 (second quotation). A copy of this volume is in Folder 5, Box 182, Charles Spurgeon Johnson Papers (Franklin Library). ^ A. C. Lewis to G. I. Sanchez, October 14, 1936, Folder 13, Box 207, Rosenwald Fund Archives; Sanchez to Dr. R. W. Todd, September 28, 1936, ibid. \ Sanchez to Miss Clyde Mobley, September 28, 1936, ibid. ; Sanchez to J. W. Bateman, September 28, 1936, ibid. \ Sanchez to Lewis, September 28, 1936, ibid. ; Edwin R. Embree to Lewis, September 29, 1936, ibid. ; Sanchez to Lewis, September 30, 1936, ibid. ; Dorothy A. Elvidge to Lewis, November 27, 1936, ibid. ; Lewis to Sanchez, July 9, 1937, Folder 14, Box 207, ibid.; i. C. Dixon to Lewis, March 17, 1938, Folder 15, Box 207, ibid, (quotation on p. 2); Sanchez, The Rural Normal Schools TeacherEducation Program Involves . . . , September 17, 1936, Folder 16, Box 207, ibid. ; Sanchez, Suggested Budget—Grambling, April 9, 1937, ibid. ; Sanchez, Recommendations, December 9, 1936, ibid. ^^ John Egerton, Speak Now Against the Day: The Generation Before the Civil Rights Movement in the South (New York, 1994), 91-92; George Brown Tindall, The Emergence of the New South, ? 913-1945 (Baton Rouge, 1967), 543, 544 (quotation); Matthew William Dunne, Next Steps: Charles S. Johnson and Southem Liberalism, Journal of Negro History, 83 (Winter 1998), 10-11. WHITENESS AND MEXICAN AMERICAN CIVIL RIGHTS 579 Sanchezs future in New Mexico was a 1933 furor over his distribution of another scholars Thurstone scale (a psychometric technique developed in the 1920s) on racial attitudes to pupils in New Mexicos public schools. Governor Arthur Seligman publicly demanded that Sanchez be ousted and that the General Education Board (GEB) cancel the grant funding his position in the state bureaucracy. Partly due to the influence of New Mexicos U. S. senator Bronson Cutting, a progressive Republican champion of Mexican Americans, Sanchez survived an ugly public hearing that resulted in the resignation of the University of New Mexico faculty member who devised the scale. Nevertheless, the incident severely constrained Sanchezs future in the New Mexican educational and political arena. ^^ But Sanchez was not pushed into African American education simply out of desperation for employment. He appreciated the opportunities that the Rosenwald Fund provided to broaden his activism as a service intellectual beyond the Southwest. He was direct about this to his most ardent supporter. President James F. Zimmerman of the University of New Mexico: Im sorry the [Rosenwald] Fund is virtually prohibited from extending its interests and experiments into the Southwest. This is the only disappointment I feel in connection with my present work. I feel it keenly, however, as you know how deeply I am bound up with that area and its peoples. At the same time, though, being here has given me a wider viewpoint and experience that may well be directed at my first love sometime. Zimmerman was disappointed; he had groomed Sanchez for a faculty and administrative future at the University of New Mexico. Despite the uproar in 1933 Sanchezs talents were in high demand, however, as GEB agent Leo Favrot and Rosenwald director Edwin Embree coordinated which agency would carry Sanchezs salary with the New Mexico State Department of Education in early 1935 (GEB) and during a yearlong research project on Mexican higher education from 1935 to the middle of 1936 (Rosenwald Fund) until he joined the staff of the Rosenwald Fund on a full-time basis for his work at Grambling. ^* ^^ G. I. Sanchez to Leo M. Favrot, April 27 and May 11, 1933, Folder 900, Box 100, G.