I International Political Economy a What is it IPE considers the flows of production distribution and consumption across national borders b The 3 approaches to IPE i Mercantilism or economic realism is focused on relative gains The goal of nation states is to build economic wealth as an instrument of state power Strong central gov t by taxes and exports High tariffs and low foreign investment imports Achieve national sufficiency Maximize national interest Politics determines economy ii Liberalism Adam Smith said humans act rationally and in self interested ways that lead to the benefit of all Worldwide wealth is maximized by international trade Goal is to maximize global welfare Minimal gov t intervention Markets need to be virtually free from gov t Trade is organized by comparative advantage Key role for MNCs is to promote internalization of product Firms and individuals are the primary actors Hegemon is needed for collective goods Economies should determine politics iii Marxism views society as conflictual and blames capitalism for widening the gap between classes who are the primary actors The goal is to maximize class interests Economics determines politics c What is comparative advantage States should engage in international trade based on what they can produce relatively more efficiently Trade and international wealth is maximized by comparative advantage d What are the three economic institutions and their role Established by the Bretton Woods System i World bank initially facilitated reconstruction in post WWII Europe Then shifted to reconstruction and development It generates capital funds from member state contributions and borrowing from international finance markets Approaches to development Economic infrastructure 1950s basic needs 60s and 70s private sector participation 90s and currently sustainable development International Monetary Fund Promotes monetary cooperation and stabilized exchange rates Focused on stabilization rather than development Short term loans to countries facing temporary crisis Policies trade liberalization government reform and privatization ii iii General Agreement on Tariffs and Trade WTO supports trade liberalization nondiscrimination in trade preferential access in developed markets to products from the South supports foreign enterprises most favored nation status e How does international trade work Protection of home industrustries from competition to maintain domestic employment GATT works to lower trade barriers and expand trade f Explain the different trade strategies Trade Strategies w o L h g i H Free Trade unconditionally cooperative Keep home markets open regardless Fair Trade conditionally cooperative tit for tat strategy Managed Trade manipulate trade on sector by sector basis Mercantilism maximize exports and minimize imports across the board Autarky reject international trade entirely m s i n o i t c e t o r p f o e e r g e D g What is regionalism Regionalism is a step to enhance globalization Focuses on the ideals of a region as opposed to anything else i The EU Liberal foundation A larger market and free movement of goods services capital and people Permits benefits of specialization Better investment opportunities Stimulates growth competition and innovation Involves uniform tariffs imposed on goods from outside and acceptance of state subsidies ii NAFTA Phased elimination of barriers Driven by MNCs seeking larger market shares than other competitors Europe and Japan One dominant U S and two dependent nations mexico and Canada iii ASEAN wants to attract foreign investment to the region Eliminates tariffs to increase members II competitive edge in the global market The Role of Individuals mainly leaders a According to the theories to what extent individuals matter in international affairs Foreign policy elites Private individuals Mass publics Neo Realism Constrained by anarchic international system and national interests Action of private individuals have effect only in aggregate as reflected in national interest Actions may be reflected in national interest Neo Liberalism Significant impact on international relations through choices made and personality factors Secondary role but may be involved in track two diplomacy and may fund important initiatives May affect international relations through mass actions that pressure state decision makers Radicalism Constrained by international capitalist system Individual capitalists may be influential Constructivism Shape popular understanding and incorporation of events and processes Actions of individuals less important than beliefs Agents of potential revolutionary change Agents of potential change through discourse b When do elites affect international affairs most When political institutions are unstable young in crisis or collapsed When institutional constraints are limited When the issue or situation is peripheral unusual or ambiguous c How does the personality of a leader affect their foreign policy Personality characteristics affect the leadership of dictators more than that of democratic leaders because of the absence of effective institutional checks Personality characteristics partly determine what decisions individual leaders make But those decisions also reflect the fact that all decision makers are confronted with the task of putting divergent info into an organized form Nationalism Perception of control Need for power Need for affiliation Conceptual complexity Distrust of others Personality Characteristics of Leaders Strong emotional ties to nation emphasis on national honor Belief in ability to control events high degree of control over situations governments able to influence state and nation Need to establish maintain and project power or influence over others Concern for establishing and maintaining friendly relationships with others Ability to discuss with other people places policies ideas in a discerning way Feelings of doubt uneasiness about others doubt about motives and actions of others Independent leader Participatory leader Foreign Policy Orientations High in nationalism perception of control need for power distrust in others Low in conceptual complexity Low in nationalism perception of control distrust in others High in need for affiliation conceptual complexity d What are the psychological mechanisms that affect individuals leaders while they process information i Cognitive consistency the desire to be consistent ignoring other info ii Evoked set look
View Full Document
Unlocking...