The Impact of Global Events on Economies

This assignment explores the interconnectedness of global events and their influence on national economies. It delves into topics such as the economic effects of refugee influxes, the impact of foreign direct investments, the role of international institutions in shaping economic landscapes, and the rise and fall of global powers like China. The analysis considers various perspectives, including realism, non-state actors, and sustainable business development.

Running head: INTERNATIONAL RELATIONS ASSIGNMENT 1
International Relations Assignment
Student’s name
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International Relations Assignment
Chapter 1 Question Set:
Intergovernmental organizations are part of the international organizations with
membership exceeding three states. The states create these IGOs to help them in solving their
shared problems thus ensure they make collective decisions to overcome the challenge
(Goldstein & Pevehouse, 2010). In the IGOs, the representatives of these states gather to
address the issues affecting the region. The most common intergovernmental organizations
include the Association of Southeast Asian Nations and the WTO (Laksmana, 2013). The
SEAN is mandated to promote regional culture, social, and economic cooperation in the
region. The WTO also manages conflicts or disputes related to trading partners.
The NGOs are the second non-state or private actors. In most cases, volunteers from
the community to promote the shared interests form these organizations thus influence the
state policies. The NGOs have helped in addressing various global issues including
disarmament, human rights, and environmental protection (Laksmana, 2013). These
organizations focus on respected and constructive objectives thus rarely trigger opposition
and controversies. For example, the Religious Movement and World Wide Fund for Nature
are popular NGOs. The WWF addresses issues related to environmental research, restoration,
and conservation while the Religious Movement promotes religious convictions and
principles of conduct.
The Multinational Corporations are businesses that engage in profit-maximization
goals and operate in different countries. These firms have headquarters in one country and
subsidiaries in other countries (Goldstein & Pevehouse, 2010). MNCs are large companies
operating worldwide and have employees and fixed assets. For example, the Honda and
Financial organization including banks are MNCs. Honda, for instance, manufactures its
products in different factories and sell them to different customers worldwide. Similarly,

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banking institutions operate internationally and they have to comply with stringent
restrictions than other businesses.
Chapter 2 Question Set:
Based on the events in Syria, it appears that any intervention can establish a post-
global order, especially the post-Westphobia. In the international law, no power is allowed to
interfere with the domestic affairs of any country (Goldstein & Pevehouse, 2010). Despite the
continued blood shade in Syria due to civil war, the country has avoided seeking the
intervention of other countries. Syria only requested Russia to intervene instead of seeking
solace from other strong democracies. The other powers have kept a distance from interfering
with the Syrian affairs because President Assad enjoys strong ties with Moscow. The Russian
government has supported the Syrian government by offering military personnel, equipment,
and housing. This has complicated matters for other countries which view any war against
Assad would be a declared war on Russia. The United States has avoided confrontation in
Syria because Russia can use nuclear arsenals. Therefore, any war with Russia would cause
the worst situation in the world. Many countries have also opposed the US intervention in
Syria because it can destabilize the region leading to war.
Chapter 3 Question Set:
The legislative branch of government has the responsibility to define the country’s
foreign policy. It is a representative of the masses thus allows the representatives to
participate in the foreign policy decisions. In most cases, each government has its own
foreign policy. Nonetheless, foreign policy decisions have to reflect the processes like the
domestic coalition. In democratic governance, the executive operates through political
debate. In the United States, for instance, the constitution defines the country’s foreign policy
power (Goldstein & Pevehouse, 2010). Both the executive and Congress has shared the
responsibility to define and reshape the foreign policy. Both branches of government can

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initiate changes in the U.S foreign policy. Although military action relates to war, the
economic embargoes and sanctions can be used to compel other countries to comply with the
nation’s standards and regulations. These sanctions rarely have grave consequences.
However, the military actions involve the use army is costly.
Chapter 4 Question Set:
Women play crucial roles in industrializing any country. However, the efforts to
entrench gender equity undermine the principles of democracy (UN, 2011). For instance, the
move by different countries to establish gender quotas to allow women have some political
positions is discriminatory. Indisputably, the feministic revolution has helped many women
earn senior positions in politics and government (Goldstein & Pevehouse, 2010). This makes
creating gender quotas for women to disrupt democratic processes. The political systems
should be left to select the best candidate without creating a predetermined people
(InternationalsymposiumSymOrg2016, Jaško, Marinković, & Beagrade, 2016) . Indisputably,
in the democratic principle, the previous political system can never compromise the gender
issues. Following the recent revolutions, many women have ascended to leadership in the
current systems. The systems represent the genders.
Chapter 5 Question Set:
The situation and environment have completely shifted because the U.S no longer
pursues a common enemy. Previously, the United States worked together with China to
contain Russia (Stratfor, 2016). However, new threats have emerged that can cause war
including space completion, purported espionage, and cyber-attacks. Unfortunately, any war
between the superpowers could have the worst economic impact (Goldstein & Pevehouse,
2010). Today, no country is an island because they must work together. Indisputably, these
countries have demonstrated real tension in certain areas but the costs of war would outwit
the benefits. For instance, the US and Russia have experienced serious conflict situations that

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could have triggered real war. In fact, both countries pursue different interests. Although the
US is superior to Russia, in the last two decades, Russia has tried to narrow the gap militarily.
Russia is taking an aggressive approach, especially following its entry into Syria thus
compelling the US to remain timid (Stratfor, 2016). The Russian move made the U.S protect
its allies instead of facing off with Russia over Syria. The United States has opted for
supporting the Ukraine through nonlethal means thus helps them overcome the Russian siege.
Since both countries have lethal weapons, none of them would opt for war but engage in cold
war.
Chapter 6 Question Set:
Previously, nations used to fight great conflicts using their navies, armies, and the air
forces. Nations with advanced military resources always emerged victorious in the end.
Undoubtedly, the United States enjoys the military superiority in the world (Petras, 2017).
Unfortunately, the country has found it difficult to employ its military resources in Ukraine,
the Middle East, and Africa due to the conflicting resolutions. For instance, the U.S should
focus on aiding and supporting these allies instead of inflicting its powers on them (Goldstein
& Pevehouse, 2010). Today, these countries are suffering from terrorism that has inflicted
suffering on their population. To this effect, the U.S is called upon to protect and support
them against the aggressors. The US has responded swiftly by imposing an economic and
political sanction of the countries posing threats to their democracies (Petras, 2017). These
regions no longer experience a single problem by faces multiple challenges including
terrorism, religious tensions, rising non-state actors, and falling governments. This shows the
region experiences multiple problems thus becoming difficult to for the US to employ its
massive force instead offers solutions based on the outcomes.
Chapter 7 Question Set:

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The national law and international law are incomparable in terms of enforcement.
Studies have demonstrated that enforcing the national law is effective because there is no
direct influence from international counterparts of local police, county sheriff, or federal
marshals (Baradaran, Findley, Nielsen, & Sharman, 2010). Today, the international law
enforcement officers are absent because any international enforcement requires the support
from the local officers (Voeten, 2014). In fact, even the political support for such laws is
absent. In the international community, the UN has established the UN Security Council,
which should use the Chapter VII of the Charter to enforce laws. Based on the UN Charter,
the council has to determine the existence of a threat to peace or any act of aggression. To
this effect, the Security Council can recommend military action, diplomatic interventions, or
economic sanctions to resolve the situation (Goldstein & Pevehouse, 2010). Unfortunately,
most of these international approaches are imperfect because they can apply unevenly or
enforced slowly. This is because the bodies mandated to implement them lack the
representation of the international communities.
Chapter 8 Question Set:
The protectionism is a policy, which many countries have used to promote their infant
industries. However, this policy presents numerous deficiencies including the economic
crisis. For instance, the use of tariff hinders an efficient global trade (Goldstein & Pevehouse,
2010). This makes tariff a deficiency that needs to be reviewed to promote good trading
culture. Trade protectionism has always weakened even strong industries because it rarely
gives room for companies to improve and innovate their products and services. This
deficiency also slows down the economic growth (Suranovic, 2012). For instance, when
businesses forgo export and import trading, the economy will lose jobs, especially workers
engaged in the importing and exporting businesses. Today, businesses operate on the global

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market because of globalization. It would be unjust for a firm to avoid seeking new
opportunities in other markets because of protectionism culture.
Chapter 9 Question Set:
FDI has been associated with increased demand for the host nation through
technology transfer and productivity improvements. However, this strategy raises many
concerns thus require redress (Goldstein & Pevehouse, 2010). This FDI jeopardizes the
balance of payment in the long run especially of the host nation. This is because the foreign
investors try to recover their initial capital outlay thus turning the investments into
profitability. This will see the capital returns to the home country from the host nation.
Additionally, the FDI has always generated negative externalities, especially in the host
nation’s labor market (Kurtishi-Kastrati, 2013). This is evident where the investor maximizes
the profits and reduces costs. Sometimes the investors use unique strategic reason to access
the host country. Nonetheless, these FDI intends to get returns from their capitals.
Chapter 10 Question Set:
The unification of the European countries to form the European Union was a
significant decision that transformed the region in a single trading bloc. The success of this
unification was evident when it adopted a single currency (Mursa, 2014). The move has
benefits and costs that the member states must converse. With a single currency, the
Eurozone members have managed to stimulate trade (Geoghegan, 2014). This is an
indisputable benefit of a single currency adoption within a trading bloc. The exchange rate
fluctuations exposed the countries engaged in trading activities. The fall of transaction costs
could also affect the companies from member countries (Goldstein & Pevehouse, 2010).
Therefore, by adopting a single currency, the region stimulated free flow of capital, people,
and goods thus stimulating trade activities.

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Although the euro currency has promoted trade in the region, this instrument is
imperfect because of its fiduciary currency. Such fiat currencies rely on the trust of people
instead of real standards (Geoghegan, 2014). To this effect, the European Central Bank can
adopt discretionary monetary policies adopted by national governments. This can deny the
currency its real standard or base. For instance, the European authorities opted to devalue the
currency and finance the Greek’s budget deficits (Mursa, 2014). During the Greece crisis, the
European Central Bank offered the Greek government monetary emissions thus violating
fundamental principles guiding the euro convergence.
Chapter 11 Question Set:
Population growth contributes significantly to global warming because humans
intensify their efforts to use fossil fuels to enhance mechanized lifestyles. With more people,
the demand for coal, gas, and oil and other fuels increase (Goldstein & Pevehouse, 2010).
Whenever the drilled or mined fuels are burned, they emit CO2 into the atmosphere leading
toe greenhouse effect. Based on the report of the Scientific Americans, the developed
economies consume more fossil fuels than the developing world (UNPF, 2017). For example,
the United States is home to over 5 percent of the global population but emits over 25 percent
of the total carbon dioxide output (Higgins, 2013). As the developing countries are
industrializing quickly, the global CO2 emissions would be high. Therefore, the consumption
patterns, global warming, and population are linked to the collective environmental impact in
the world. This because’ as developing countries invest in economic development initiatives,
the global emissions grow. The population growth rates and size also become significant
leading to global warming.
Chapter 12 Question Set:
Immigration is critical in helping the economy grow, especially the receiving nation’s
labor market. According to the OECD, the immigrants had defined the European country’s

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dynamic sectors including technology, science, mathematics, and engineering. These
immigrants serve this occupation diligently and boost the traditional occupations like
maintenance, repair, and installation (Goldstein & Pevehouse, 2010). Without a doubt, the
expansion of workforce through migration has aggregated GDP to grow. The migrants are the
source of innovation and entrepreneurial activity. Studies have demonstrated that skilled
immigrants have continued to boost innovation, entrepreneurship, technological change, and
research (EPSC, 2015). For instance, the founder of WhatsApp, John Koum was an
immigrant from Kiev. With the future economic models focusing on the frontier of creating
new markets and knowledge, the immigrants become valuable. Currently, Europe is below
the global race for expertise. The high-educated immigrants are driving the economy of the
European countries.
Researchers found that the net fiscal contributions of these immigrants are
insignificant compared to native-bone (Huttl & Leandro, 2015). This is because; the migrants
claim more benefits and pay fewer taxes. Since these people secure low employment level,
they end up paying less tax. Accordingly, Foged and Peri found that the German government
spends over 10 billion euros to pay refugees (Foged & Peri, 2015). Foged and Peri have
raised issues with the refugees in the labor market. For instance, the immigrants with lower
education level and experience have displaced the native workers in less manual work. The
immigrants have also increased the waiting hours in health care (Huttl & Leandro, 2015). The
statistics from the UK indicates that the immigration has affected the health care systems,
especially in elective care, accident, and emergency where the waiting time has increased.
Chapter 13 Question Set:
The export-led growth is a situation where governments opt to increase exports in
anticipation to improve increase growth, productivity, and exchange earnings. This is an
outward-oriented strategy because it links the world with the domestic economies. Indeed,

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this strategy ensures a country realizes growth by exporting manufactured goods instead of
enhancing their growth through protective domestic policies. However, the non-east Asian
countries have failed to use this strategy to succeed (Higgins, 2013). This is because these
countries believe in protecting their domestic producers thus preferring import substitution
strategy. In most cases, the developing nations, especially the non-East Asian countries
believe that exporting manufactured goods is disastrous because their products are inferior
and can rarely compete with established corporations in the international markets. They have
thus maintained high trade barriers (Goldstein & Pevehouse, 2010). The protectionist policies
as adopted by the non-East Asia countries can help the infant industries. These countries also
embrace import quotas; import tariffs and prohibit the importation of some commodities.
With these protectionist policies, these countries believe they can protect their manufacturing
industries. The countries have also used the import restrictions and tariffs to raise their
budgetary revenues and strengthen the national security.

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