POLB81 - Summary on IPE and Global Trade

2 Pages

Political Science
Course Code
Wiafe- Amaoko

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Summary- International Political Economy • Is an emerging interdisciplinary approach to dealing with global problems. • In particular, it addresses the nexus between international politics and international economics. • The political actions of nation-states clearly affect international trade and monetary flows and that in turn affect political choices. • The Breakdown of the Breton Wood monetary system in 1971 and the oil embargoes in the 1970s marked a significant break for the study of IPE • Economic Nationalism: Also referred to as mercantilism; associated with realism. The view that wealth is a source of power, that international politics amounts to a competition for primacy, and that the economy’s primary purpose is to contribute to state power. More concerned with relative than absolute gains. Interdependence leads to vulnerability. • All Nationalist subscribe to: • 1. The primacy of the state, of national interest, and of military power in the organization and functioning of the international system. • 2. Economic activities should be subordinated to the idea of state building and the interest of the state. • 3. There is a relationship between wealth and power. • “Benign” mercantilism: The safeguard of national economic interest as the minimum essential to the security and survival of the state. • Malevolent” mercantilism: View the international economy as an arena for imperialistic expansion and national aggrandizement. • Economic Liberalism: An approach to international political economy premised on the belief that efficiency creates growth and welfare. Committed to the standard case for international trade (Smith); concerned with absolute rather than relative gains. A limited role for governments: a laissez faire approach. • Marxism: Sees the world economy as dominated by capitalists who seek to maximize profit. Profit-seeking leads to overproduction, ultimately resulting in instability and systemic crisis. Lenin modified original Marxist theory to allow for imperialism as a means of delaying the ultimate crisis of capitalism. • Marxism- A critique to Capitalism (private ownership of means of production and the existence of wage labor). • Lenin: Capitalism would resort to oversees imperialism to survive; • Expansion of capitalism (for finite world resources) would bring tension among the mercantilist nation-states • Thus, though economic liberal/international capitalism is successful it is politically unstable and would lead to war. Summary- Global Trade • Global trade regime is Rules-based international agreements: States seek to promote and stabilize economic exchanges. It is against regulations that restrict economic exchanges. • Components of global trade r
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