International Political Economy (IPE) Fundamentals

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Questions and Answers

What is the primary goal of a state in a mercantilist economy?

To reduce military spending

To promote free trade and economic cooperation

To increase economic efficiency

To increase state power (correct)

According to mercantilism, how do states view the international economy?

As a platform for international diplomacy

As a zero-sum game where one state's gain is another state's loss (correct)

As a means to achieve economic independence

As a cooperative effort to achieve collective prosperity

What is the primary difference between defensive and aggressive mercantilism?

The degree of military involvement

The level of economic development

The motivation behind economic expansion (correct)

The type of goods being traded

What is the relationship between economic strength and military-political power in mercantilism?

They are complementary in a positive feedback loop Signup and view all the answers

How do mercantilist states view relative gains in the international economy?

As a means to increase their relative power and influence Signup and view all the answers

What is the main difference between mercantilism and liberalism?

The choice between military expansion and being a trading state Signup and view all the answers

What event in 1989 highlighted the untenability of the division between post-communist states and western structures?

The end of the Cold War Signup and view all the answers

What is the proposal that arose from decolonization and the emergence of new, politically and economically weak states?

A new global economic order Signup and view all the answers

What is the main focus of International Relations (IR) in the context of war and peace?

Conflict and cooperation Signup and view all the answers

What is the relationship between politics and the economy in the modern market economy?

The economy is based on political rules Signup and view all the answers

What is the criticism of Economic reductionism, economic imperialism, and IPE?

It ignores the complex relationship between politics and economics Signup and view all the answers

What was the main goal of modern IR after World War I?

To avoid the next world war Signup and view all the answers

What led to the crisis of the Bretton Woods system?

The US treating its economic problems with political tools Signup and view all the answers

What did the 1970s question?

The separation of IR and IPE Signup and view all the answers

What is the focus of IPE?

Welfare and poverty, global distribution of wealth Signup and view all the answers

What is the relationship between states and markets in the international arena according to IPE?

Complex and complicated relationship Signup and view all the answers

Study Notes

What is IPE?

International relations link societies, and states are forced to interact with each other.
The relationship between politics and the economy is complex and multifaceted.
IPE is about the interaction between politics and economics, and states and markets in the international arena.
Economy refers to the system of producing, distributing, and using wealth.
Politics refers to the set of institutions and rules governing social and economic interactions.

Historical Roots: IR and IPE

International Relations (IR) and International Political Economy (IPE) were initially separate fields.
IR focused on war and peace, conflict and cooperation, while IPE concentrated on welfare, poverty, and global wealth distribution.
The artificial separation of IR and IPE during the Cold War was later questioned.
The 1970s crisis of the Bretton Woods system and the 1973 oil crisis highlighted economic vulnerability and led to a reevaluation of the separation of IR and IPE.

International Political Economy: Classical Theories

Three classical approaches to IPE: Mercantilism, Economic Liberalism, and Marxism.

Mercantilism

Mercantilism is similar to IR Realism's economic variant.
The economy should be subordinate to the primary goal of increasing state power.
Economics is a tool of politics, a basis for political power.
The international economy is characterized by a clash of conflicting national interests and is a zero-sum game.
States are interested in relative gains, which can be converted into military-political power.
Two forms of economic rivalry in mercantilism: defensive (benign) and aggressive (malevolent) mercantilism.
Aggressive mercantilism seeks to exploit the international economy through expansionary policies, such as imperialism.

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Description

Learn about the basics of International Political Economy, including classical theories, economic history, and the relationship between politics and the economy.