Political Economics Midterm

International Political Economy (IPE)

• the interplay of economics and politics in world affairs

Origin of IPE

• 16th century

• introduced to improve state behaviour, wealth

• post war forced countries to work economic and political differences to avoid global conflict

• established rules to minimise bad behaviour (countries that don’t follow rules end up isolated/backwards)

• rules based on democratic principles to establish friendship, meant to benefit everyone

State

countries/nations

IGOs

• Intergovernmental Organisations

• entity created by treaty between two or more countries to work together on issues of mutual interests (sovereign independent countries)

NGOs

• Nongovernmental Government Organisations

• group that functions independently of any government

• objective is to improve social conditions

• sometimes called civil organisations; established on community national/international levels

• providers of humanitarian goals

MNC

• multinational corporations

IPE Challenges

IPE Benefits

Research Methods in IPE

Aristotle (Views)

John Locke (Views)

Two Treaties of Government (1689)

Adam Smith (Views)

Wealth of Nations (1776)

Theory of Moral Sentiment (1759)

Laissez-faire

Invisible Hand

David Ricardo (Views)

Comparative Advantage

Free Trade Philosophy

John Stuart Mill (Views)

Karl Marx (Views)

The Communist Manifesto (1848)

Das Capital (1867)

Structuralism

Constructivism

Realism

Idealism

Institutionalism

Men who Promoted School of Thought

Conservatism

Liberalism

Immanuel Kant (Views)

Hegemony

NAFTA

USMC (Agreement)

World Bank

International Monetary Fund

World Trade Organisation

International Trade

Imports

Exports

Entrepot Trade

Embargo

Sanction

Boycott

Mercantilism

Economic Liberalism

John Maynard Keynes

The Consequences of Peace (1919)

A Treatise on Money (1929)