IPE is a social science field of study that attempts to understand ___________ and _______ problems using an eclectic interdisciplinary array of _______ tools and ______ perspectives.
international; global; analytical; theoretical
This theory focuses on the phenomenon of international _______ and analyzes the _______ effects of neo-colonialism.
What is IPE a combination of?
International relations and political economy.
What does it concentrate on?
The relationship between political forces and economic interactions.
IPE is the study of a set of related ________.
What does the traditional IPE problematique include an analysis of?
The political economy of international trade
True/False: IPE is today widely appreciated and the subject of much theoretical research and applied policy analysis. If false, why?
What clearly affects international trade and monetary flows?
The political actions of nation-states.
That, in turn, affects the environment in which nation-states make _____ choices and entrepreneurs make ______ choices.
The many meanings of political economy includes: (3 meanings)
Why did scholars divorce politics from economics in the past?
Up until that point: there had been theoretical heritage in ______ academe;
Politics and economics had been analyzed together by Adam Smith and David Ricardo in the _____ century, by ____ in the late 19th century.
When did politics and economics evolve as separate disciplines?
The 19th century.
What was the reason for this separation?
The theoretical assumptions of liberalism include: production, distribution, and consumption operate under _________ laws;
natural harmony exists and works best with _______ political interference;
economic activity is preserved of ________ ________, not __________;
private enterprise; government
______ does not obey natural laws.
Why does politics not obey natural laws?
It involves power, influence, public decision-making.
Contributing facors to the formal division between economics and politics in the 20th Century
The Cold War as a factor
Decision makers and observers were preoccupied with ____ issues.
These issues include: the USSR's domination of _______ _______ and the development of ______ nuclear capability;
Eastern Europe; Soviet
the division of ________;
the forging of __________;
Factors undermining the separation of economics from politics
Factors undermining the separation of economic from politcs: The ____-Soviet split;
__________ of ties within the Atlantic alliance;
U.S. and Western Europe no longer preoccupied with their _____ security;
long war in ______ ended;
______ freed their colonies;
the _______ countries are now at peace.
How do we describe IPE since the 19th century?
What has IPE been fragmented into? (2 things)
International politics and international economics.
What did economists ignore?
The role of political facots in international economic process and policy.
What do students of international politics ignore?
Economic issues in relations among states.
How economics politics
Economic resources are said to determine ______ and _____ power.
What determines a country's military strength?
How politics influence economics
What is the first way politics influence economics?
The political system shapes the economic system.
The international economic system is determined by the _______ and _______ of the international political system.
What is the second way politics influence economics?
Political concerns often shape economic policy.
Economic policies are frequently dicated by overriding _________ interests.
What are two examples of these overriding political interests?
What is the third way in which politics influence economics?
International economic relations themselves are political relations.
An example of this would be __________ transfers.
Production, distribution, and consumption have throughout modern history been affected by _______ and _____ forces.
Production, buying and selling were affected by ________, __________, and ____________.
laws; customs; governments
The origins of the dominance of the political over the economic goes back to the ______ period, in the ______ -_______ century.
The economic doctrine that government control of foreign trade is of paramount importance for ensuring the military security of the country.
What does mercantilism diminish the importance of?
Today, what is mercantilism considered?
An ancient method that does not function today.
There are two principal characteristics behind the origins of dominance of the political over the Europe: The first principal characteristic is the rise of powerful nation states from the ruins of ________ universalism and _______ particularism;
Politics caused the rise of ________ states and emerged out of the struggle against internal and external ________.
What is considered external balancing?
What is considered internal balancing?
Using your own resources.
The second principal is that nearly equal states did what?
Competed against each other.
Since power distribution was nearly equal, any development like economic change could be _________.
Thus, economics cannot be _______ from politics or economics ________ to politics.
If you're country starts later, why are you more aggressive?
Because you are trying to catch up.
The economic realm became the main arena for political conflict - __________ and _________ competition.
What was the pursuit of state power carried out through?
Through the pursuit national economic power, wealth
Competition was translated into _________ competition.
What are all economic transactions regulated for the purpose of ?
Today economic competition is bilateral, which means...?
Both sides gain.
What system dominates today?
What mercantilists stood for
Mercantilists stood for: wealth and power closely associated with possession of _________ metals;
governments aimed at favorable balance of ______ to accumulate these metals;
controls of _________ movement of precious metals;
and regulation of individual and general commercial ________ through tariffs, quotas.
States gave subsidies to export and import _______ industries and sometimes engaged in production or trade.
Mercantilism and colonialism
Mercantilists states acquired colonies with the goals of favorable _____ balances and self-_______.
Colonies existed to accomodate the ______ interests of the _______/_______.
What did those policies lead the American colonies to do?
To rebel against England.
Free trade linked to political power
In the 19th century, Great Britain became politically dominant when it followed a ______ trade.
True/False: When British power declined in the late 19th century, the liberal system declined. If false, why?
Britain's hegemonic dominance suffered after a number of ________ governments had reinstituted various forms of _________ trade programs in the last decades of the ______ century.
European; protectionist; 19th
These powers included...(2 countries)
The U.S. and Germany.
The decline of British economic dominance was linked to: disruptive influence of the emergence of modern _______;
equal ________ relations and new ________ led to a highly competitive international system.
Nationalism has it's own approach to economics in which ________ are discouraged.
Corporations are a provocative policy of _____ traders.
European political domination led to imperial economic domination
In just a few decades, much of _____ and all of _________ was divided up be Western Europe and the United States.
This is a ______ imperialism.
As in the days of mercantilism, colonies were integrated into an international economic system designed to serve the interest of the ___________/___________.
The political victors controlled ________ and _______, regulated ______ and ________, and manipulated ________.
investment; trade; currency; production; labor
Why did the postwar economic system (or Pax Americana) break down?
This breakdown was due to: the changing ______ scene in the 19___s;
the decline of ________ power;
increasing _______ (competition from other countries) in the West;
and a superpower _________.
Interest group conflicts occur between: groups favoring low _____ barriers and those advocating ________;
advocates of foreign _______ assistance and its opponents;
and those favoring energy ________ and those advocating reliance on _________ sources of energy;
Economic policy is the outcome of a polititcal bargaining process
How economics affect politics
What has been used as an economic tool of political warfare throughout history?
France applied an embrago to weaken Great Britain during the _________ wars.
League of Nations called for an embargo of _____ after its invasion of Ethiopia in 1935.
The 1973 Arab oil embargo of the United States and the Netherlands was an effort to alter their pro-_______ foreign policy.
Current day examples would be ______ against North Korea, Iran, and Syria.
What is another familiar economic tool used for strategic and diplomatic ends?
What happened under the Marshall Plan?
The United States gave $17 billion in outright grants to Western European countries to rebuild their economies after WWII.
What was the rationale behind the Marshall Plan?
It was designed to make Western Europe impervious to aggression by the Soviet Union.
What has foreign economic assistance to underdeveloped countries been used for?
To win friends for the West or the East during the Cold War.
Foreign aid has also been used by former colonial powers to retain ______ influence in those newly independent former colonies.
Early Intellectual Exponents of IPE
Early IPE thinkers include: (2 names)
What are the three political economy traditions in political science?
Liberalists believed that economics were dictated by the "_______ _______", or natural law.
Realists believed in ___________, which is making money for the sake of the state.
The role of voluntary exchange and markets is seen as ______ and ________.
Free trade and free movement of capital will ensure investment flows to ________ areas.
Hence the ______ world.
Liberalism allows countries to benefit from their _________ advantage.
The best state is _______ one;
fewer _____ goods;
_________-_______, which allows the economy to function as it wishes.
Results of Free Trade
Free trade: causes _______ to arise spontaneously;
fosters ______ among states;
creates peace and cooperation in competitive & _______ systems.
Mercantilists share _______ views in international relations.
The focus on world-economy is as an aerna of competition among states seeking to maximize relative _______ and __________.
The aim of every state is to maximize ______ and ________.
States seek to ensure their _______-_______ in key strategic industries and commodities.
Mercantilists use ________ policies.
True/False: Mercantilism encourages imports over exports. If false, why?
False. It encourages exports over imports.
True/False: It encourages industrialization over agriculture. If false, why?
Mercantilism protects _______ production.
Traditional mercantilism argues that surplus balance of _________ is critical to protect national interest.
What is a modern version of mercantilism?
Statism is the subordination of ecnomic activities to the goal of _______ __________.
Instruments of Restrictive Trade Policy
Tariffs, which direct fees levied on _______.
Subsidies, which is payment to a domestic producer, generated from ________.
Import quotas and voluntary export restraints, which is a restriction on the _______ of some goods imported into a country.
Marxism sees the world economy as what?
An arena of competition.
______ is the driving force in world-economy.
World-economic relations is a struggle between what?
"The oppressor and the oppressed"
Competition in international relations is a struggle between the ____ and ______.
The core is the ___________ countries, and periphery is _________ countries.
What is underdevelopment a result of?
Dependency on the core.
Analytical Perspectives on IPE - Marxism
Marxists focus on ______ and _____ forces.
What is the nature of economic relations?
Conflictual (zero-sum game)
When it comes to the relationship between economics and politics, marxists believe that ________ drive _________.