ULUSLARARASI İLİŞKİLER TEORİLERİ I - Deneme Sınavı - 17

The theory of hegemonic stability holds the assumption that the world system is most prosperous when there is a hegemon to organize the international political and economic system. Historically, the periods of the Dutch (162072), British (1815-73), and United States (post1945) hegemony are commonly cited as evidence of the link between hegemony and prosperity (Kindleberger, 1977, 1981). When hegemony breaks down, it is assumed, the international system falls into disorder, with the resulting decline in peace and prosperity (Keohane, 1981). As also understood from the information given the correct answer is A. “The world system is most prosperous when there is a hegemon to organize the international political and economic system.” and “When hegemony breaks down, it is assumed, the international system falls into disorder, with the resulting decline in peace and prosperity.” are the assumptions which the theory ofhegemonic stability holds. However, some scholars argue that hegemony is a self-defeating and hence, temporary condition. While the hegemonic state bears the burdens of organizing the international system and supplying public goods, free-rider states prosper and increase the burdens on the hegemon. At some point, the hegemon comes to the conclusion that it is unable to bear the costs of the system it has created. So either it begins to put domestic interests over its international obligations or it becomes too weak to realize its widespread commitments. The Great Britain’s decline in the late 19th and early 20th century can be cited as an example of that (www. pugetsound.edu/what-is-ipe).

The history of MNCs is closely related to the history of colonialism. Some of the first multinationals were directed by European monarchs in order to conduct expeditions. Many of the colonies that were not held by Spain or Portugal were under the administration of some of the world’s earliest multinationals. The East India Company, which showed up in as early as 1660, founded by the British, was one of them. It was headquartered in London and took part in international trade and exploration with trading posts in India. Some other examples include the Swedish Africa Company, founded in 1649, and the Hudson’s Bay Company, which was incorporated in Canada in the 19th century. However, the MNCs, as we know today, did not really appear until the 19th century. That was due to the rise of industrial revolution. The development of the factory system; that is, capital-intensive manufacturing processes, combined with better storage techniques and faster transportation, rapidly brought about the emergence of many MNCs. During the 19th and early 20th century, the search for natural resources and pressure to protect or increase markets drove transnational expansion by companies almost exclusively from the United States and Western Europe. As also understood from the information given, all statements with regard to the history of MNCs in the options are correct, so the correct answer is E.

Right after the Second World War, the United States-based MNCs heavily dominated foreign markets for a few years. Then from the 1950s on, European and Japanese MNCs started to show up and in time, they quickly increased in number. At the same time, major technological advances in shipping and communication accelerated the expansion of these MNCs almost all over the world. By the early 1970s, major MNCs had come to control about 70-80 percent of the world trade outside the centrally planned economies. Over the past half century, particularly after the end of the Cold War, there has been an obvious proliferation of MNCs. For example, while in 1970, there were some 7.000 parent MNCs, today that number has jumped to roughly 38.000. Approximately 90 percent of them is based in the industrialized world, controlling over 207.000 foreign subsidiaries. The large number of MNCs can be somewhat misleading, however, since the wealth of MNCs is actually concentrated among the top 100 firms (Greer and Singh, 2018).

MNCs have long been subject to serious discussions. Advocates of MNCs argue that they create job opportunities for many and technologically advanced goods. It is also said that MNCs tend to establish operations in markets where their capital is most efficient or wages are lowest. By producing the same quality of goods at lower costs, multinationals reduce prices and increase the purchasing power of consumers worldwide. Some liberal economists go further than extolling the economic benefits of MNCs, pointing a positive relationship between the international liberal economy and peace. It is argued that through enhanced international trade and growing interdependence, national differences would vanish and increasing economic well-being would eventually lead to world peace (Mingst and Arreguin-Toft, 2011). Those opposed to MNCs, on the other hand, say that multinationals have undue political influence over governments, exploit developing nations, and create job losses in their own home countries. In addition, they argue that MNCs tend to develop a monopoly for certain products, driving up prices for consumers. MNCs are also said to have a detrimental effect on the environment because their operations may encourage land development and the depletion of local resources. Moreover, the introduction of multinationals into a host country’s economy may lead to the downfall of smaller, local businesses as well, since MNCs have better products and they can afford to even offer them at lower prices, as they have the financial resources to buy in bulk. Some critics further claim that MNCs breach ethical standards, accusing them of evading ethical laws and leveraging their business agenda with capital (Evans, 1979; Dunning, 1981). As also understood from the information given, the correct answer is C. The arguments in the option IV “Multinationals have undue political influence over governments, exploit developing nations, and create job losses in their own home countries.”, in the option V “MNCs are also said to have a detrimental effect on the environment because their operations may encourage land development and the depletion of local resources.” and in the option VI “The introduction of multinationals into a host country’s economy may lead to the downfall of smaller, local businesses as well, since MNCs have better products and they can afford to even offer them at lower prices, as they have the financial resources to buy in bulk.” can be expressed by the one who is opposed to MNCs. The arguments in the option I “MNCs create job opportunities for many and technologically advanced goods.”, in the option II “By producing the same quality of goods at lower costs, multinationals reduce prices and increase the purchasing power of consumers worldwide.” And in the option III “Through enhanced international trade and growing interdependence, national differences would vanish and increasing economic well-being would eventually lead to world peace.” can be expressed by the advocate of MNCs, not the one who is opposed to MNCs.

It is a fact that after the end of the Cold War, the globalization of the world economy has been occurring at an extraordinarily rapid pace. Accompanying the process of globalization, however, it has appeared as a trend counter to the benign vision of economic and political harmony from more open borders. While it is true that in terms of national welfare, greater openness to competitive market forces, including competitive market forces from abroad, and greater freedom from artificial market restrains are closely associated with higher economic growth, as well as higher standards of living, there are basically five areas posing a serious challenge to economic globalization and the triumph of economic liberalism. These include high-tech trade rivalry, trade discrimination, unpredictable economic crises, North-South inequalities, and illicit market. As also understood from the information given, the correct answer is E. All of the areas in the options are posing a serious challenge to economic globalization and triumph of economic liberalism.

People are the central and most important actors in world politics.

Post-behavioralism moved to fill this gap, and in 1980s the problem was still not completely overcome, but at least normative theories regained their popularity. It was required to adopt a new idealist viewpoint that moral values would play significant role for policy making processes to reach a stable and peaceful world.

Immanuel Kant

Cicero pointed out that a single justice depending on single law is valid for all society. For him, if there was not justice in the nature, it would not be known as the concept of justice.

Universal law or universal principle refers as concepts of legal legitimacy actions, whereby those principles and rules for governing human beings’ conduct which are most universal in their acceptability, their applicability, translation, and philosophical basis, are therefore considered to be most legitimate.

Kant (1724-1804), who is the best known representative of the cosmopolitan understanding, discusses ethics and reason in his studies, as well, and he takes on hand the concepts of peace and war as the basic phenomena of social structure. According to him, an individual has the freedom to choose right, ethic and moral. The ethical laws are known to individuals, and they are universally obligatory rules for all humankind.

Social contract theory depends on the assumption that the individuals might voluntarily bind themselves to the certain principles. From this point, like stag hunt model of game theory, individuals would sacrifice their small satisfactions to reach a highest satisfaction.

Emphasizing the concept of justice, Rawl insists that social values (freedom, opportunity, income, wealth and respectfulness) are delivered equally to individuals.

Furthermore, Truman Doctrine declared in the aftermath of the Second World War, was expressed as an “help to free nations”.

The principle of non-intervention involves the right of every sovereign State to conduct its affairs without outside interference.

According to realist writers, in a real world, sovereign state seeks to increase its power. States looking for power and national interest are not expected to be ethical.

According to Krasner, regime can be described as explicit and implicit rules, norms, principles and decision making procedures related to a certain subject in international relations. “International regime can be defined as sets of implicit or explicit principles, norms, rules, and decision-making procedures around which actors’ expectations converge in a given area of international relations. Principles are beliefs of fact, causation, and rectitude. Norms are standards of behavior defined in terms of rights and obligations. Rules are specific prescriptions or proscriptions for action. Decision-making procedures are prevailing practices for making and implementing collective choice”. Therefore, the correct option is D.

The purpose of regimes is to form a frame for facilitating the solution of problems through treaties. Regimes as Jervis stated are not only making the cooperation easier in short run, but also in the long run, providing an environment of cooperation for promoting relations. Therefore, the correct option is A.

International regimes reduce uncertainties and provide a reference for which behaviors are false or right. In other words, regimes facilitate the identification of violations of rules in social, political and security related fields. Moreover, they also reduce the cost of common effort for those responding to such violations. According to Krasner, regimes make it easier to reach an agreement for parties, since it increases the communication among sides and influence the quality and quantity of knowledge in a positive manner. Therefore, the correct option is E.

LIBERAL AND REALIST APPROACHES TO REGIMES

Common assumptions
1 States operate in an anarchic international system.
2 States are rational and unitary actors.
3 States are the units responsible for establishing regimes.
4 Regimes are established on the basis of cooperation in the international system.
5 Regimes promote international order.

Therefore, the correct option is B.