Global Political Economy

Question 1

What is Political Economy?

Answer 1

The area of study which agrees that the political and economic spheres of life cannot be viewed as separate.

Question 2

Political Economy is the interaction between ___ and ___, and ___ and ___.

Answer 2

States, markets. Power, wealth.

Question 3

What is International Political Economy?

Answer 3

The study of the relationship between the political and economic spheres in international politics.

Question 4

What is Global Political Economy?

Answer 4

A critique on the concept of international political economy, arguing that the term “international” privileges some actors, when non-state actors can be just as important.

Question 5

What are some important actors in Global Political Economy?

Answer 5

Countries/states, corporations, intergovernmental organizations, NGO’s, individuals, regional organizations, social classes.

Question 6

What are Robert Cox’s 2 types of theory?

Answer 6

1. Problem Solving Theory.

2. Critical Theory.

Question 7

What is Cox’s Problem Solving Theory?

Answer 7

Works within given parameters, does not challenge parameters, creates narrow laws, ahistorical, fixed point of reference, perceived as value free, used in times of stability.

Question 8

What is Cox’s Critical Theory?

Answer 8

Challenges parameters, how they originated and formed and potential change, more holistic approach, theory of history constantly changing to deal with new realities.

Question 9

What do Mercantilists believe about GPE?

Answer 9

Is a zero sum game, winners win at the cost to losers. Hoarding all the silver and gold results in power.

Question 10

What did Marx say about GPE?

Answer 10

Role of material factors, means of production can tell us more about global economy and power than political factors can.

Question 11

What did Antonio Gramsci say about GPE?

Answer 11

Drawing from Marx, said that material factors were important in explaining who had power, but the role of ideas and language also important.

Question 12

Antonio Gramsci is associated with the concept of ___ ___.

Answer 12

Hegemony central.

Question 13

What did Karl Polyani say about GPE?

Answer 13

What had been thought of as natural order, specifically the free market, was in fact sustained through government intervention.

Question 14

What did Robert Cox say about GPE?

Answer 14

Control over the means of production, which leads to surplus, is a key factor in which classes can shape political economy.

Question 15

What is the Bretton Woods conference?

Answer 15

At the end of WWII, the world powers met and asked, how can we apply the learning from the 1920’s and 30’s to construct a new system of GPE?

Question 16

What did the Bretton Woods conference conclude?

Answer 16

An open system with a social security net was best.

Question 17

John Ruggae came up with the idea of…

Answer 17

The Compromise of Embedded Liberalism.

Question 18

Who came up with the idea of the Compromise of Embedded Liberalism?

Answer 18

John Ruggae.

Question 19

What is the Compromise of Embedded Liberalism?

Answer 19

To move towards a goal of increased trade and openness, national protection, you sacrifice fixing the north/south divide. Developing nations are forced to participate in the system, even though they have very little voice in shaping it.

Question 20

Which factors shaped the Compromise of Embedded Liberalism?

Answer 20

Hegemony of Keynesian ideas as well as American hegemony.

Question 21

How did the Global Financial Crisis of 1971 occur on a macro level?

Answer 21

Floating exchange rate set by the market and general liberalization leads to trade imbalances worldwide, especially with regards to U.S. and China.

Question 22

How did the Global Financial Crisis of 1971 occur on a meso level?

Answer 22

Neoliberalism globally and globalized pressures have led to deregulation.

Question 23

How did the Global Financial Crisis of 1971 occur on a micro level?

Answer 23

Individual irrationality, a belief that the housing market will always go up.

Question 24

How were politics related to the Global Financial Crisis?

Answer 24

There was free trade, free mocement of capital, growth of power of the financial system, and political pressures. In response to the GFS, there were bail outs, stimulus packages, austerity measures, and regulatory returns.