Summary
Summary Readings IPE + Lecture content overview
- Course
- Institution
- Book
Summary including most of the IPE readings including an overview of all the lecture content to help with revisions.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Lecture notes and book summary - International Political Economy - 2023 - Grade 9.5
-
International Political Economy (De Bièvre)
-
International political economy summary
7 reviews
By: ravipandya • 1 year ago
By: lorasukiasyan • 3 year ago
perfect and to the point
By: esmeestreefkerk • 3 year ago
By: kaatlageman • 4 year ago
By: Albertowang • 4 year ago
By: lau_mn • 4 year ago
By: magdakonewka8 • 4 year ago
Seller
Followdannydonker
Reviews received
Content preview
Chapter 1: International Political EconomyHow does the global economy affect life?
● impact on items we consume
● global economy makes consumers better off by reducing the prices of goods and
services and by expanding the range of choices
● IPE studies how the enduring political battle between the winners and losers from
global political economic exchange shapes the evolution of the global economy
What is International Political Economy?
● winners and losers of global economic exchange
○ e.g. lumber tariffs US: beneficial for US lumber manufacturers, but hurtful to
manufacturers who rely on lumber due to increased prices
● how the battle between winners and losers shapes the economic policies that
governments adopt
● issue areas
○ international trade system
■ central player WTO each country gains access to markets on equal
terms
○ international monetary system
■ enables people living in different countries to conduct economic
transactions with each other
○ multinational corporations
■ firm that controls production facilities in at least two countries
○ economic development
■ focus on the strategies developing countries’ governments adopt
● two important questions in IPE
○ How does society make about how to use the resource available to them?
○ What are the consequences of these decisions?
● consequences of choice
○ welfare consequences - determine the level of societal well-being
○ distributional consequences - influence on how income is distributed
among groups
● fields of inquiry
○ explanatory studies: why questions, asking for an explanation
○ evaluative studies: oriented towards policy outcome
○ welfare evaluation: if a particular choice raises or lowers social welfare
studying international political economy
● marxist school
○ critique on capitalism
○ three dynamics for a worker revolution
○ state plays no autonomous role, but acts as an agent of the capitalist class
■ natural tendency to the concentration of capital
■ capitalism as associated with a falling profit rate
1
, ■ imbalance between ability to create and purchase goods
○
● mercantilist school
○ 17th/18th century
○ relationship between economic activity and state power
○ three tenets
■ economic strength is a critical component of national power
■ trade is to be valued for exports, but governments should discourage
imports whenever possible
■ some forms of economic activity are more valuable than others
○ manufacturing preferred
○ large role for the state in allocating resources
● liberal school
○ Adam Smith & David Ricardo
○ the purpose of economics is to enrich the individual, not to enhance state
power
○ countries gain from trade regardless of whether the balance of trade is
positive or negative.
○ countries are made wealthier by making products that they can produce at a
relatively low cost at home and trading them for goods that can be produced
at home only at a relatively high cost
○ governments should make little effort to influence the country’s trade balance
or to shape the types of goods the country produces
○ market based system of resource allocation
● how politics shapes the allocation of resources
○ Mercantilism: state guides resource allocation in line with objectives for
national power
○ Liberalism: politics ought to play a small role, instead the role of market based
transactions of individuals should be big
○ Marxism: the most important decisions are made by large capitalist
enterprises supported by the political system that is controlled by the
capitalist class
2
,interests and institutions in IPE
● interests
○ the goals or policy objectives that the central actors in the political system and
the economy want to use foreign economic policy to achieve
○ assumed that actors prefer policies that raise rather than lower their income
● material interest
○ interests that arise from one's position in the global economy
● ideas
3
, ○ mental models that provide a coherent set of beliefs about cause-and-effect
relationships
● political institutions
○ establish the rules governing the political process
○ enables groups within countries and groups of countries in the international
system to reach and enforce collective decisions
the global economy in historical context
● first wave of globalization (19th century)
○ driven by the interaction between technological change and politics
○ invention of steam engine and telegraph
○ Britain first to adopt free trade policy in 1840
● Bretton woods
○ birth of WTO, IMF, WB
○ postwar planning
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller dannydonker. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.70. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now