What is IPE?

Question 1

Mercantilism

Answer 1

(1) origins during gold standard era
(2) like realists, mercantilists espouse relative power and protection of self-interest
(3) economic transactions have military implications
(4) emphasis on conflicting interests in economic exchanges
(5) preference for trade surpluses (exports are good)
(6) some economic activities (manufacturing) are considered more desirable than others
(7) focused on resources and power

Question 2

Economic Liberalism

Answer 2

(1) states can mutually benefit from economic exchanges –> reinforced by institutions , norms , and interdependence
(2) emphasis on shared interests in economic exchanges
(3) main goal of economic policy: maximization of total wealth through achieving optimal efficiency
(4) trade can benefit both parties
(5) minimal government role
(6) focused on overall standard of living

Question 3

Marxism (and common misconceptions)

Answer 3

(1) labor theory of value
(2) exploitation would lead to a concentration of capital –> increasing inequality –> revolution where capitalism would be replaced by socialism
(3) unlike liberals, Marx saw the capitalists as the drivers of the system
(4) focused on distribution
(5) Marx focused on domestic society and expected revolutions to begin with the working class in industrial countries (Lenin expanded Marxist ideology on an international scale)