PSCI 1100 Lecture Notes - Bretton Woods System, Free Trade, Capital Control

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Published on 14 Apr 2013
School
Carleton University
Department
Political Science
Course
PSCI 1100
4/6/2013 8:22:00 AM
INTERNATIONAL POLITICAL ECONOMY
US: reflects debate in international relations, liberalism and realism
CANADA: has a more Marxist approach
INTRO:
IPE AND ‘YOUR STUFF’
Basic concern of IPE: relationship of…
Political and economy (pursuit of power vs. wealth). Utility, justice, value,
States and markets
States and firms (esp. MNCs) Chinese investments, how/if they affect Canada
Interplay of economic, political, and social structures and practices (class, gender,
race)
International and domestic-level (comparative) questions
Though some corporations stem from the US, manufacturing is done in cheaper areas
(china, vietnam)
Shows us an example of power relations
Who and under what conditions are these sneakers made? Female low wage labour
Affecting foreign economic policies:
Relations between capital and labour the gvnt has how it is interconnected
Extent to which central bank is independent or dependent on gvnts and fiscal policy
THEORETICAL APPROACHES/HISTORICAL BACKGROUND:
Mercantilism (economic realism):
Predominant economic policy of European states (esp. Spain, Portug., Engl./Brit.
Empire, Netherl.ds) from 16th to 18th cent. (colonialism, early capitalism); also:
interwar period
Any kind of realist approach to economic relations
International economic relations = competition of states; states must encourage
exports and protect domestic producers
There’s a relationship between economic and security relations
A powerful economic base = strong military and ability to expand it
Connected to colonialism
Meant that colonial powers can prevent its colonies to trade with certain countries
Means that, ex. Britain alone can benefit from the trade
Colony was used for extraction of raw materials then reselling them abroad
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Liberalism:
Prevalent since mid 19th cent after British opening of markets; also post WW2
Dominance of liberalism as an approach to international econ relations,
As opposed to realist approach dominating IR
International economic relations result of:
“Natural propensity to truck, barter, and exchange” (A. Smith, Wealth of Nations,
1776)
It’s human nature to be traders; shifts focus away from states and focuses on
individuals as entrepreneurs and owners of private property
Benefits of specialization/division of labor.
Interactions (esp. Trade relations) of individuals and firms with limited role of
states
Free trade among countries can work because 19th cent and immediate post WW2
period were a time of hegemony
Benign connotation: one state that ensures that all states enjoy free trade through
military protection, side payments and support of states
Marshall Plan post WW2 allowed countries to rebuild and be capable of participating
in economic relations
These periods of hegemony = international order and free trade
Saudi Arabia exports oil because that’s its competitive advantage
LIB: if everyone does what they’re good at, we get better products, higher efficient and
therefore public good
Absolute gains: only interested in what your country gains
Relative gains: interested in what other countries gain too
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Document Summary

Us: reflects debate in international relations, liberalism and realism. Political and economy (pursuit of power vs. wealth). Interplay of economic, political, and social structures and practices (class, gender, race) Though some corporations stem from the us, manufacturing is done in cheaper areas (china, vietnam) Shows us an example of power relations. Relations between capital and labour the gvnt has how it is interconnected. Extent to which central bank is independent or dependent on gvnts and fiscal policy. Predominant economic policy of european states (esp. Empire, netherl. ds) from 16th to 18th cent. (colonialism, early capitalism); also: interwar period. Any kind of realist approach to economic relations. International economic relations = competition of states; states must encourage exports and protect domestic producers. There"s a relationship between economic and security relations. A powerful economic base = strong military and ability to expand it. Meant that colonial powers can prevent its colonies to trade with certain countries.

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