Theoretical Approaches in IPE
48 Questions
3 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is considered a key consequence of economic liberalism?

  • Increased competition among local industries
  • Reduced productivity in local markets
  • Greater global economic integration (correct)
  • Long-term barriers to trade

Which principle emphasizes the importance of self-interest in economic transactions according to Adam Smith?

  • Benevolence of producers
  • Protectionism
  • Absolute advantage (correct)
  • Mercantilism

What does protectionism aim to achieve in the context of economic policies?

  • Promoting local industries by limiting imports (correct)
  • Encouraging free trade on a global scale
  • Facilitating international competition
  • Enhancing economic cooperation globally

In which way did the industrial revolution impact economic theories?

<p>It highlighted the benefits of free markets and self-interest (C)</p> Signup and view all the answers

What does the concept of absolute advantage refer to?

<p>The capacity to produce a specific good at a lower cost than competitors (D)</p> Signup and view all the answers

What is the primary view of economic relations according to liberalism?

<p>Harmonious and mutually beneficial (A)</p> Signup and view all the answers

What is the role of markets in the liberal economic perspective?

<p>To be prioritized over state interests (B)</p> Signup and view all the answers

According to Adam Smith, how do producers ultimately serve society?

<p>By pursuing their self-interest to benefit society collectively (C)</p> Signup and view all the answers

What does Malthus suggest as a preventive check to control population growth?

<p>Limiting the number of children (D)</p> Signup and view all the answers

According to David Ricardo's 'iron law of wages', what happens to wages in a competitive labor market?

<p>Wages are driven down to subsistence level (C)</p> Signup and view all the answers

Which concept explains that a state can benefit from specializing in the production of goods with lower opportunity costs?

<p>Comparative advantage (A)</p> Signup and view all the answers

What does Malthus argue against regarding government assistance?

<p>Assistance for the poor (C)</p> Signup and view all the answers

How does Ricardo's theory explain poverty in society?

<p>Poverty is an inevitable outcome of competition (C)</p> Signup and view all the answers

Which of the following is true about the opportunity cost in China compared to Australia for producing iron?

<p>China has a lower opportunity cost for iron production (D)</p> Signup and view all the answers

What is one assumption made in Malthus's theory about the relationship between population and resources?

<p>Population growth will outstrip food supply (C)</p> Signup and view all the answers

What should individuals do according to Ricardo's perspective on personal responsibility?

<p>Work hard and save earnings (B)</p> Signup and view all the answers

What is meant by absolute advantage in production?

<p>The uncontested superiority of a country to produce a good better than others. (B)</p> Signup and view all the answers

According to the economics discussed, what should countries specialize in?

<p>Producing goods with the lowest opportunity cost. (B)</p> Signup and view all the answers

Which characteristic is NOT typically associated with capitalism?

<p>Centralized planning by the state. (C)</p> Signup and view all the answers

What is one critique that Marx made about capitalism?

<p>It creates alienation between workers and their work. (A)</p> Signup and view all the answers

How is wealth distributed in capitalist societies, according to the critiques?

<p>Wealth is concentrated in the hands of a few. (D)</p> Signup and view all the answers

What does the term 'invisible hand' refer to in a market economy?

<p>The self-regulating nature of the marketplace. (B)</p> Signup and view all the answers

Which of the following is a characteristic of a market economy?

<p>Goods and services are exchanged at prices determined by supply and demand. (D)</p> Signup and view all the answers

What is the profit motive in capitalism largely driven by?

<p>Economic laws of supply and demand. (D)</p> Signup and view all the answers

What is the primary motivation behind the proletariat seizing control of the government according to Marxist theory?

<p>To end poverty and desperation (D)</p> Signup and view all the answers

What does the concept of the 'dictatorship of the proletariat' entail?

<p>Economic equality among all classes (C)</p> Signup and view all the answers

Which of the following reflects a key aspect of historical materialism in Marx's theory?

<p>Economic forces influence historical development (A)</p> Signup and view all the answers

What was a significant effect of Marxist thought in the 20th century?

<p>Hysteria over perceived communist threats (B)</p> Signup and view all the answers

What does the term 'class struggle' refer to in Marxist theory?

<p>Conflict between the bourgeoisie and proletariat (B)</p> Signup and view all the answers

What is a characteristic feature of communism according to its theoretical framework?

<p>Shared ownership of means of production (A)</p> Signup and view all the answers

Which economic doctrine was dominant between the 16th and 18th centuries, particularly associated with colonization?

<p>Mercantilism (D)</p> Signup and view all the answers

What is the goal of economic nationalism as described in the context of mercantilism?

<p>To support domestic monopolies (B)</p> Signup and view all the answers

What do mercantilist arguments suggest is the best way to foster national wealth?

<p>National wealth and military power are fostered effectively by protecting domestic producers from overseas competition (C)</p> Signup and view all the answers

According to Adam Smith's theory of absolute advantage, what explains the benefits nations gain from specialization?

<p>Why nations will profit from specialization in producing cheaper goods (C)</p> Signup and view all the answers

What does the concept of a zero-sum game imply in mercantilist/realist viewpoints?

<p>One party's gain is another's loss (C)</p> Signup and view all the answers

What best describes the relationship emphasized by radicalism (Marxism) concerning societal classes?

<p>Society is conflictual, with tensions between owners of wealth and workers (D)</p> Signup and view all the answers

What is the defining characteristic of comparative advantage?

<p>A country has a lower opportunity cost in the production of a good than other countries (A)</p> Signup and view all the answers

Which international relations theory is closely linked with the theory of comparative advantage?

<p>Liberalism (B)</p> Signup and view all the answers

What concept suggests that markets function best when free from government intervention?

<p>Liberalism (D)</p> Signup and view all the answers

In which time period did colonialism expand significantly and European states industrialize?

<p>From the 19th century to World War I (B)</p> Signup and view all the answers

What is the primary outcome of specialization according to the theory of comparative advantage?

<p>An increase in overall consumption and efficiency (D)</p> Signup and view all the answers

In Marxist theory, who are the owners of property and the means of production?

<p>Bourgeoisie (C)</p> Signup and view all the answers

Which political economic system is best characterized by laissez-faire economics?

<p>Liberalism (D)</p> Signup and view all the answers

What does laissez-faire primarily advocate for in economics?

<p>The state should not interfere in the detailed operations of the economy (C)</p> Signup and view all the answers

What type of government system does Marx predict will emerge in socialism?

<p>A centralized state with a command economy (C)</p> Signup and view all the answers

What is the term for the working class in Marxist theory?

<p>Proletariat (D)</p> Signup and view all the answers

Which concept represents the interaction between supply and demand?

<p>Markets (A)</p> Signup and view all the answers

Which system seeks to replace the free market with a centrally planned economy?

<p>Communism (B)</p> Signup and view all the answers

Flashcards

Mercantilism

An outdated economic system where a nation's wealth is measured by its gold reserves, achieved through protectionist trade policies to maximize exports and limit imports.

Protectionism

Government policies that restrict international trade, often to protect domestic industries.

Economic Liberalism

An economic philosophy that emphasizes free markets, individual self-interest, and minimal government intervention.

Adam Smith

A key figure in economic liberalism, advocating for free markets and the concept of absolute advantage.

Signup and view all the flashcards

Absolute Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Signup and view all the flashcards

Specialization

Focusing on producing specific goods or services where a country has a comparative advantage, leading to greater efficiency and growth.

Signup and view all the flashcards

Free Trade

International trade without significant government restrictions.

Signup and view all the flashcards

Wealth of Nations

Adam Smith's influential book promoting free markets and economic liberalism, explaining the benefits of specialization and free trade.

Signup and view all the flashcards

Malthusian Population Trap

A theory that population growth will always outpace food production, leading to inevitable poverty and misery.

Signup and view all the flashcards

Thomas Malthus

An economist who predicted that population growth would outpace food production, advocating for population control.

Signup and view all the flashcards

Iron Law of Wages

A theory that wages will always fall to the subsistence level due to competition among workers.

Signup and view all the flashcards

David Ricardo

An economist who proposed the "iron law of wages" and contributed to the theory of comparative advantage.

Signup and view all the flashcards

Comparative Advantage

The ability of a country to produce a good or service at a lower opportunity cost than another country. This allows for beneficial trade.

Signup and view all the flashcards

Opportunity Cost

The cost of deciding to produce one good over another—the value of the next best alternative.

Signup and view all the flashcards

Laissez-faire

An economic approach advocating minimal government intervention in the economy.

Signup and view all the flashcards

Absolute Advantage

The ability of a country to produce more of a good or service using the same amount of resources as another country.

Signup and view all the flashcards

Comparative Advantage

The ability of a country or business to produce a good or service at a lower opportunity cost than another.

Signup and view all the flashcards

Absolute Advantage

The ability of a country or business to produce a good or service using fewer resources than another.

Signup and view all the flashcards

Capitalism

An economic system with private ownership, profit motive, and market economy.

Signup and view all the flashcards

Private Ownership

Individuals own businesses and resources, free to use them as they see fit.

Signup and view all the flashcards

Profit Motive

The driving force behind business activity, where individuals seek to earn a profit.

Signup and view all the flashcards

Market Economy (Capitalism)

An economic system where prices are determined by supply and demand, enabling the exchange of goods and services.

Signup and view all the flashcards

Critiques of Capitalism

Challenges and downsides to capitalism, including wealth inequality and poor working conditions.

Signup and view all the flashcards

Marx's Critique of Capitalism

Marx's criticisms of capitalism focusing on its outdated nature, worker alienation, and inherent contradictions.

Signup and view all the flashcards

Dictatorship of the Proletariat

Temporary rule by the working class (proletariat) after a revolution, aiming to control the means of production and eventually create a classless society.

Signup and view all the flashcards

Historical Materialism

The idea that economic forces shape history, focusing on how goods are produced and distributed.

Signup and view all the flashcards

Class Struggle

The ongoing conflict between the wealthy (bourgeoisie) and the working class (proletariat) throughout history, arising from differing economic interests;

Signup and view all the flashcards

Communism

Marxist theory advocating a classless society where all means of production are owned by the community, and basic needs are met.

Signup and view all the flashcards

Bourgeoisie

The capitalist class who own the means of production in a society.

Signup and view all the flashcards

Proletariat

The working class who do not own the means of production but sell their labor to survive.

Signup and view all the flashcards

Mercantilism

A system where governments control the economy to increase national wealth, especially through trade.

Signup and view all the flashcards

Cold War

A period of geopolitical tension between the United States and the Soviet Union after World War II.

Signup and view all the flashcards

Mercantilism

A system where countries want to gain wealth by exporting more than they import, protecting domestic businesses

Signup and view all the flashcards

Colbert/Hamilton

Advocated for national wealth accumulation and strong central government control of the economy.

Signup and view all the flashcards

Economic Liberalism

Philosophy emphasizing free markets and minimal government intervention.

Signup and view all the flashcards

Adam Smith

Key figure in economic liberalism, promoting free markets.

Signup and view all the flashcards

Zero-sum Game

A situation where one side's gain comes at the expense of another's.

Signup and view all the flashcards

Comparative Advantage

Ability of a country to produce a good at a lower opportunity cost than another.

Signup and view all the flashcards

Absolute Advantage

Producing a good at lower cost compared to others, regardless of opportunity cost.

Signup and view all the flashcards

Liberalism (in IPE)

In International Political Economy, focuses on cooperation and mutual benefit in trade and economic relations

Signup and view all the flashcards

Comparative Advantage

The ability of a country to produce a good or service at a lower opportunity cost than another country, leading to increased efficiency and trade.

Signup and view all the flashcards

Bourgeoisie

In Marxist theory, the class who owns the means of production.

Signup and view all the flashcards

Laissez-faire economics

An approach advocating minimal government intervention in the economy, allowing markets to regulate themselves.

Signup and view all the flashcards

Proletariat in Marxist theory

The working class who do not own the means of production.

Signup and view all the flashcards

Command Economy

An economic system where the government controls the production and distribution of goods and services.

Signup and view all the flashcards

Market

A place where buyers and sellers interact to exchange goods and services.

Signup and view all the flashcards

Social Democracy

An economic system that blends elements of free markets with social welfare programs.

Signup and view all the flashcards

Liberalism (economic)

An economic philosophy emphasizing free markets and limited government intervention.

Signup and view all the flashcards

Study Notes

Theoretical Approaches in IPE

  • Countries and non-state actors have historically used various approaches to the international political economy.
  • Key approaches include Mercantilism (Realism/Economic Nationalism), Liberalism/Capitalism, and Marxism.

Introduction

  • Countries and non-state actors historically used varied approaches to the international political economy.
  • These include Mercantilism (Realism/Economic Nationalism), Liberalism/Capitalism, and Marxism.

Mercantilism

  • Goal is to maximize state wealth (originally gold and silver).
  • A nation's economic health is assessed by the level of precious metals owned (e.g., gold or silver).
  • Methods involve government intervention, protectionism, and exporting.
  • Examples of Mercantilist policies include the Navigation Act of 1651 and the Sugar Act of 1764.
  • The goal of mercantilist policy is to export more than import, increasing the country's wealth.
  • The state is the key actor; companies are subordinate to the state.
  • The state is more important than the market.
  • International anarchy; markets are zero-sum; might is right.
  • Economics is a zero-sum game.
  • One country's gain is another's loss.
  • Emphasis is on relative gains.
  • National wealth and culture is protected by barriers against foreign penetration.
  • Trade is a tool used to enhance a state's economic power.
  • Establish colonies to increase home construction.
  • Increase agricultural output, and a strong merchant fleet to provide additional markets.
  • Control and regulate production.
  • Encourage colonies to export raw materials to Mother Country and finished products from Mother Country to colonies.
  • Favorable trade balance for mother country.
  • Wealth is not created, only acquired.
  • A balance of trade in favor of the mother country is sought, with more exports than imports.

Liberalism/Capitalism

  • Became popular in the 1800s.
  • Focuses on the individual (households, enterprises), and rational self-interest.
  • Economics drives politics.
  • Markets are more important than states.
  • Nature of economic relations is harmonious, with reconcilable interests.
  • Economics is a positive-sum game; it is possible to expand the economic pie.
  • Emphasis is on absolute gains, not relative gains.
  • Global economic integration is an aim, bringing increased peace.
  • International regimes help maintain order.
  • Adam Smith's theory of absolute advantage says that individuals, pursuing their self-interest, bring general benefits to society.
  • Specialization and absolute advantage allow countries to produce goods at the lowest cost.
  • Free markets, without government intervention, lead to higher productivity and economic growth.
  • Focuses on the individual, self-interest, and free markets.
  • Economics often drives the political system.
  • Markets are more important than states.
  • Sees cooperation between states as beneficial to all sides.
  • Includes ideas by Thomas Malthus, predicting population would outpace food supply, and advocating limiting population growth; and David Ricardo, introducing the iron law of wages, where wages are driven down to subsistence levels due to competition.

Marxism/Communism

  • A reaction to the social consequences of the Industrial Revolution.
  • Emphasizes class struggle, where the ruling class (the bourgeoisie) exploits the working class (proletariat).
  • Capitalism is inherently flawed, prone to internal contradictions, and a system that will eventually collapse.
  • Capitalism causes alienation among workers.
  • Ownership of capital creates conflicts between the capitalist classes and the exploited working classes.
  • Advocates for the working class to seize control through a violent revolution.
  • A stateless society and a classless society would emerge eventually after capitalism's collapse.
  • The idea is that history is shaped by economic forces.
  • Class struggle continually happens between the wealthy and the poor.
  • In industrial times, the wealthy are the capitalists; the poor are the laborers.
  • Private property is a social construct; it is not natural.
  • Workers create surplus value, but capitalists appropriate most of it.
  • Capitalism causes imperialism and creates conflict between capitalist states.
  • The accumulation of capital in the hands of capitalists can also lead to war.
  • Capitalism will eventually collapse.
  • The state plays an oppressive role; to be abolished.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Theoretical Approaches in IPE Lecture 2 PDF

Description

Explore the various theoretical approaches commonly used in International Political Economy (IPE). This quiz covers key concepts including Mercantilism, Liberalism, and Marxism, illustrating how countries and non-state actors engage with the global economy. Test your understanding of these fundamental theories and their implications.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser