PO232 Study Guide - Final Guide: Gross Domestic Product, Foreign Direct Investment, Preferential Trading Area
Document Summary
Concerned with the ways in which poliical forces (states, insituions, individual actors, etc. ) shape the systems through which economic interacions are expressed. Also the efect that economic interacions (power of collecive markets and individuals acing both within and outside of them) have upon poliical structures and outcomes. Derives from: fear of state abuse of power, individualism, liberty of enlightenment. Democracy for the state, capitalism for the economy. Neo-liberalism: market deregulaion, privaizaion of government enterprises, minimal government intervenion, open internaional markets, unlike classical liberalism (poliical economic perspecive), neo- liberalism is an agenda for economic policies. Government regulaion of economy in order to increase state power and security. Policies: import restricions (tarifs, export promoion (to accumulate wealth at the expense of other countries) Neo-mercanilism: post-ww2 period, protecionist trade, inance, and development policies to generate wealth and enhance naional security, policies generate economic growth, and control the business cycle, eliminate unemployment, policy examples: Interest rate changes: 2 common policies today:
