International Political Economy Mingst ( Monday)

economic liberalism

individuals act in rationale ways to maximize self-interest and markets produce, distribute, and consume goods without interference

mercantilism (realist)

build economic wealth as an instrument of state power using a strong central government

economic radicalism ( Marxism)

belied that there are naturally cooperative and conflictual groups

protectionism

a tool used by mercantilists that use tariffs to protect manufacturing

macroeconomic policies

two large scale economic policies that includes monetary and fiscal policy

monetary policy

increasing or decreasing the money supply through manipulation of short-term interest rates

fiscal

government budget and spending taxes

microeconomic policies

policies on regulation, subsidies, competition and anti-trust actions

tariffs

taxes on imports

exchange rates

the price of one currency in relation to another

non-tariff barriers

restrictions on international trade to protect health, safety, or national security ( domestic economy)

Balances of payments

current accounts + capital accounts

Current accounts

measures net border flows between countries of goods and services, capital investment, or governmental transfers

Capital accounts

measures flows of capital between countries

Bretton Woods Ints.

orgs that help support economic liberalism

Examples of Bretton Woods

World Bank, IMF, GATT, WTO

World Bank

designed for reconstruction, generates capital punishments by borrowing and contributions in markets

International Monetary Fund

designed to provide stability in exchange rates but later switched to policy advice on macro issues and economic restructuring

General Agreement on Tariffs and Trade *

helps promote trade of liberalization

Most Favored Nation Principle

non-discrimination in trade whereby states agree to give the same treatment to all other GATT members as they give their most favored trading partner

the foreign direct investment

construction of factories and investment in the facilities for extraction of natural resources by MNCs + portfolio developments