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Lecture

POLB81H3 Lecture Notes - International Political Economy, Autarky, Free Trade


Department
Political Science
Course Code
POLB81H3
Professor
Wiafe- Amaoko

Page:
of 2
POLB81 GLOBAL ISSUES AND GOVERNANCE
Part I: International Political Economy (IPE)
Week 3: International Trade and Globalization (cont’d) & North South Relations
(Feb 1)
Readings: Charlton’s “Can Trade Liberalization Benefit Both Rich and Poor?”; Sach’s
“The Strategic Significance of Global Inequality”
Cupe3902.org
Cont’d from last week’s article...
1. Main objective of Krasner’s article:
- Why at some points in time are the structure of international trade more open than
others
2. ITS:
- SPECTRUM: autarky |------------| openness
- 3 indicators that tell us what kind of ITS structure we live
o Tariffs
o Propensity of National Income From Trade (Foreign trade imports & exports)
o Trade patterns
In more autarkic system, we see limited trade pattern and mostly regional
patterns of trade
In more open, we see more global trading patterns
3. outlines 4 basic interest of state
1. aggregate national income
2. social stability instability would be protests, and in most extreme case revolution
3. political power maximize relative (in relation and comparison to another state)
political power
4. economic growth rate of econ growth
Why does this matter and how is it connected to what Krasner is doing? Shapes or determines
what type of ITS a state wants.
Do all states pursue these interests in the same way? No... dependent on state size and level of
development.
4. identifies 3 possible configurations of the int’l state system
a. many small developed system we expect to see open
b. few large, unevenly developed we would most likely see a closed system
-- reasons why are all discussed in article
c. hegemonic prepondent power; ex. U.S. in 1990s; open ITS
These are Krasner’s theories and assumptions
There are several times he is disproven and he tries to explain why...
Why do we care about ITS? What implications does it have?
Question: Is an “open” ITS a good thing?
Does it lead to more prosperity, economic stability and peace?
- When we talk about ITS, we are talking about free trade
- Whole debate on whether free trade is good
Pro-free trade Hoffbaer
- Int’l equality
- access to markets
- Ex. NKorea vs. SK great example on why you want to support free trade and open
markets. NK is not able to grow as much as SK and many died of famine
- Ex. Mexico Mexico is identified as a country that was really hurt by NAFTA. But hoff
said NAFTA said it’s been a good thing about Mexico but the problem is...not open
enough and not free enough, need to bring down their trade barriers
Con-Free Trade Stiglitz (won Nobel peace prize; very famous political scientist?)
- Trade liberalization doesn’t lead to econ growth he says states grow economically by
protecting their own domestic trade
- Ex. China (although China is not an example of a small, poor underdeveloped country)
- Hurt domestic health
- Jobs go to countries like India and china that employs much cheaper labour