Introduction The theory of International Political Economy is a theory that discusses the collapse of boundaries between economics and politics. It is a study of the political economy of international trade, international finance, North-South relations, multinational corporations and supremacy. The term of International Political Economy emerged during the 1970s due to the collapse of the Bretton Woods system. This failure alerted the United States of the status and the weakness of economic fundamentals
Realism has been a major player in international politics. Unlike liberalism, realism stresses the fact that nation states are concerned with their own security and their own interests. Liberalism was founded on the idea of equality. Relativists tend to neglect ethical decision making in regards to conflicts among other states. Thucydides, Machiavelli, and Hobbes are the true founders of the realism theory. The evolutions of realism began with Thucydides and his theories for the Peloponnesian War. Based
diplomatic balance of power in the period from 1650 - 1763 through growth in industry and population due to the establishment of new trade routes to the New World, the rise of new economic theories and practices resulting from political and economic centralization, and the downfall and lack of prosperity within various European countries. Through the establishment of ocean trade
Introduction: Free trade reached its peak during the 19th century, with the promotion of trade openness as the key to globalization and the best way to empower countries – especially of developing ones-. Trade liberalization sought to increase countries living standards and thus, speed up the “catching up” process, by exposing developing countries to the development and knowledge of the developed world. As well as by the spread of capital from where it was abundant to where is not. Nonetheless,
economic factors cannot be ignored longer for studying the international politics. All important international agendas from international security to development and climate change have an explicit or implicit economic dimensions. The political and economic future of nations can no longer be discussed in isolation and the status of every nation in the web of economic exchanges and political dealings must also be given due weightage. .International Political Economy (IPE) is a social science that attempts
INTERNATIONAL BUSINESS International business is largely defined as business carried out across the globe which involves commercial transactions between two countries or regions. These commercial transactions are undertaken by private companies and governments alike to earn profits. Cross border transactions undertaken by International business have following in common characteristics: • Product presence in different markets globally • Production bases across different countries • Diverse human resource
Spanish colonies. As the American Indians became a more common labor force, the Spanish created this encomienda system to protect the natives with the use of conquistadors; this would enable the Spanish to control land and labor. 2. Mercantilism was an economic theory that means colonies exist to benefit their founding countries Britain wanted the colonies to benefit Britain only. Britain’s policies stated that the colonies should sell raw goods to Britain only and the colonists should buy goods
the Keynesian economics during the 1930s in an attempt to understand the Great Depression. Keynes prefers that lower taxes and increase government spending or expenditure to increase the demand and make the global economy out of the depression. The theory of the Keynesian economics is the view in the short run, during recessions, economic output is strongly influenced by aggregate demand. Aggregate demand does not necessarily same with the productive capacity of the economy, view by the Keynesian economics;