Political Economy Dominique

Key terms & Definitions from Dominique's class

Globalisation

Growing interdependance of world economies and cultures through cross border trade, flows of people, investment, data… ​

Economic globalisation

  International trade (measured by world exports+imports / world GDP) ​+ foreign direct investments (FDI)​

International trade

Exports (goods are produced domestically and sold abroad) and imports (the contrary)​. Trade is mostly intra-industry: EU27 imports basic apparel and exports fashion luxury . Trade is also intra-firm within the company’s global value chain: A firm exports components to a foreign affiliate facility and imports a final product​

Foreign direct investments (FDI)

Cross border investment flows to establish or control businesses abroad​.The flows include the financing of greenfield investments, subsidiaries, acquisitions​.And joint-ventures: Co-ownership between 2 business firms (50% for each one)​

Geopolitics

The term geopolitics was coined by Swedish political scientist Rudolf  Kjellen in 1905 (political geography was introduced by  Friedrich Ratzel (1897).​​Political relations among nation states (200 nation states in the world; 193 memberStates in the UN) including rivalries to exercise sovereignty or influence over one or more territories​​. Geopolitics is not limited to nation-states​: International organisations, multinational companies, NGOs, Panels of experts (GIEC) are geopolitical actors / stakeholders​

Hard power

 Capacity of enforcement/coercion not only with armed forces; economic sanctions, cyber-influence, arrest (Huawei case)​

Soft power

Ability to influence, attract (through culture and political values) and persuade (Joseph Nye, Bound to lead, 1990)​

Economic power

 Ressources that is natural resources capital, labour / population, innovation/productivity) ​