WEEK 1

Question 1

INTL Political Economy aka…

Answer 1

Global Political Economy

Question 2

IPE explores

Answer 2

the social science paradigms to uncover the relationships between STATE, ECONOMY and SOCIETY

Question 3

Lake 2010 IPE

Answer 3

A substantive area of enquiry rather than merely a methodology

Question 4

IPE.. interdisciplinary area.. draws from

Answer 4

Politics, Economics, History, Sociology, Cultural Studies, Development Studies

Question 5

Core Issue Areas (Traditionally)

Answer 5

Production&trade, Money&Finance(debt, exchange, capital liberalisation), foreign direct investments/MNCs, Economic Development

Question 6

Core Issue Areas (Increasingly)

Answer 6

Knowledge and technology, migration, security, environment, human development

Question 7

Intellectual Roots

Answer 7

Mercantilism, Liberalism, Marxism

Question 8

Mercantilism

Answer 8

a) States Want Power
b) Wealth required to gain more Power
c) Wealth+Power are zero-sum

Question 9

Mercantilism- 1) Economic Strength is..

Answer 9

a Critical Component of National Power

Question 10

Mercantilism- 2) Trade is

Answer 10

to be valued for exports, but governments should discourage imports whenever possible

Question 11

Mercantilism-3) Some forms of economic activity

Answer 11

are more valuable than others

Question 12

Liberalism

Answer 12

• Markets satisfy human needs

- better to have less state intervention in the market: “invisible hand”

Question 13

Liberalism Key Points: (part 1)

Answer 13

• Rational Self Interest+ Free Market= Economic Well being
• Labour + Income= societal benefit
• Free trade opens new markets and provides commodities at a lower cost
• Gov= regulator

Question 14

Liberalism Key Points: (part 2)

Answer 14

• Economic Development best fostered in environment of free competition- universal natural laws
• Quantity of money theory- Monetarism
• Law of diminishing returns
• Comparative costs/comparative advantage

Question 15

Marxism: History

Answer 15

series of class struggles between owners of capital (capitalists) and workers (the proletariat)

Question 16

Marxism: wealth concentrated in the hands of a few capitalists…

Answer 16

ranks of increasingly dissatisfied proletariat would swell… revolution… leading to classless society

Question 17

Marxism: Surplus value and exploitation

Answer 17

would ultimately lead to falling rate in profit and the collapse of industrial capitalism

Question 18

Marxism Key POINTS:

Answer 18

• Labour theory of value (classical variant)

- State=agent of capitalist class

Question 19

Marxism Key POINTS 2:

Answer 19

• Leads to human exploitation .. eventually revolution + conflict
• International economic relations are conflictual.. war=competition between capitalist classes

Question 20

Theories:

Answer 20

1 Dependancy
2 Hegemonic Stability
3 INTL Regime
4 Open Economy Politics

Question 21

DEPENDANCY THEORY key points 1-3

Answer 21

1- Core countries-developed
2- Periphery Countries- developing
3- Transfer of resources from periphery to core

Question 22

DEPENDANCY THEORY key points 4-6

Answer 22

4-Core use periphery as markets for goods
5-relationship of dependancy ensues
6-poor countries are poor because of exploitation

Question 23

Hegemonic Stability Theory: key points 1-3

Answer 23

1-systems created by powerful actors
2-systems remain as onus as powerful actors are willing to maintain them.. mutually beneficial system
3- in IPE- Hegemon= country who produces the largest share of worlds total output + leads in tech development

Question 24

Hegemonic Stability Theory: key points 4-6

Answer 24

4-Hegemon= interest in a liberal international trade system
5-Declining hegemonic becomes less supportive of liberal trade
6-» movement between openness and protectionism synchronise with changes of economic power characterises HST

Question 25

Hegemons:

Answer 25

• Portugal 1494-1580
• Holland 1580-1688
• Britain 1688-1792
• Britain 1815-1914
• USA 1945-1971