PLS 160 exam 3
Terms
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- International Political Economy
- Where power and money cross borders
- Mercantilism
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stats should reduce vulnerability and maximize wealth by domestically producing as much as possible... Create surplus stocks of goods and curency
*use wealth to promote industrial development and strenthen gov/army
*dominant policy in 19th c. europe - realism
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*states need to be stong and secure (reduce vulnerability)
*IOs and other nonstate actors do not matter. they do not threaten states
* states are dominant actors - liberalism
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*state is not important
*IOs and MNCs are key
*state power is limited to interdependence in international system - reletive gains
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*stressed by merchantilasim
*states use wealth against you, therefore you need more than them.
*trade is an even trade, then no one wins - absolute gains
- *states wont always use wealth against you, as long as you get something good out of it
- marxist
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*also called radicalism
*social harmony can not exist
* states are not unitary actors. - economic warfare
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*cut off states
*not common - sanctions
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*cuts one state from sone of the goods you produce or do not let one or some of thier goods into your domestic market
*more common - substitution
- can the state just get item from another state?
- vulnerability
- costs imposed on a state by external events. these costs must be absorbed because alternatives policy options are unavailable
- geo-economics
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we can now break out in *economic war because we are interdependant... and military conflict is less likely
*states are competition
*warfare has become costly and economics are more important
*more realist than liberal - command economics
- where government makes producion decisiouns. karl marx
- free market
- liberals. suply and demand at work. adam smith
- intervention tools
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*do it yourself
*centralized r and d
* subsidized research
*government purchases
*regulatory protection - industrial policy
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the support of an industry or industries bu the government.
*subltle and aids certain industries.
* - guns
- military spending
- butter
- social programs
- guns and butter debate: realists
- you need guns to protect your butter
- g and b: liberals
- you neeed to provide for an exonomic infrastructre and a healthy educated population
- g and b: marxists
- elites use defense spending to stilulate economy but still keeps social welfare from geing distributed fairly.
- how much does the us spend on defense?
- 3-4 % of GDP
- economic liberalism
- economic interactions that emphasize, free markets, privite propetey and free flow of goods, labor and capitol across borders
- sensitivity
- hwo quickly do the behaviors of other actors or decelopments in one part of the world, effect actors in other parts of the world and how big are these changes
- Protectionism
- *very few states pursure pure free trade or pure autarky.. instead they have some degree of protectionism of domestic porducts and services.
- non-tarriff barries
- regulations on what can be imported in, and quotas
- free riders
- those who benneffit from a collective good without having to contribute.
- public goods production
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how to get free riders to do things.
*coercion (are they bigger than you)
*rewards
*education (let them know that what they are doing is wrong - regimes
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rules to overcome free ride problem
*a set of rules that govern behavior in some specified area of international relations - Bretton woods
- tried to replace gold as the common currency for exchange
- gatt
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global agreements on trade tarriffs.
*based on free trade and nondiscrimination
*institutionalized discussions and mediation - regional economic integration
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*create larger domestic markets
*bigger may be better
*goal is to create a single market out of many markets - the road to the EU
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*started with european coal and steel companies (ecsc)
*failed european defense community (edc)
*treaties of rome
* cusomes union
*ec (european community)
*ec expands to 9, then 12,
*single eurppean act (sea)
*currently 25 members - benefits of the eu
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*a system whereby each european currency was valued relative to another and all together they floated against the dollar
*more stable than free floating - globalization
- a process by whiche economic, political nd cultural transactions are less and less constrained by national boundaries and sovereign autority of the national govenment
- globalization: old
- has been happening for centuries
- clobalization: new
- techonology has redefined it, long distance trade and travel make globalization easier