Class 13 International Political Economy Flashcards
Liberalism 3 main assumption market
- what base on trade no need to conquer territory
- market more powerful by replacing of gov and politicize the pursuit of wealth
- free trade creates interdepences (war destroys trade0
whaat does the law of supply and demand ague
that self correcting equilibrium will be arrived at based on the consumer and the producer goal to maximize
whaat is the theory of comparative advantage
inter-trade brings benefits since it permits states to specialize in activities for which they have the predisposition.
ex: Portuguese wine for english wool
what are the critiques of liberalism
- liberal makes separation of economics from institutions and political bases
- international trade does not exist with naval hegemony
- economic interdependence is never symmetrical
- sate is suppose to not intervene, yet it intervened in market failure and the 2 dysfunctions (depressions and economic scale raise)
- state non intervention cost social equality
- no complete information
- economic growth recent phenomenon and no control over it
what does economic nationalism argues:
not aaa free market, sometime sate use it to make itself stronger
according to mercantilism who is the most important actor
the state
what are the critique of mercantilism
1.mercantilism undervalue the importance of alliance and positive-sum economic relations
2. protectionism decrease power if it encourages inefficiency
Example: In the mercantilist era, European powers’ pursuit of individual economic gain, as seen in their focus on accumulating gold and silver, often hindered the formation of strong alliances and positive-sum economic relationships.
Example: The protectionist measures, particularly high tariffs, implemented by the United States in the early 20th century aimed at shielding domestic industries resulted in inefficiencies and decreased overall economic power, as seen in the negative impact of the Smoot-Hawley Tariff Act of 1930 on global trade and the economy during the Great Depression.
marxism definition
capitalism is the private ownership of the means of production and the existence of wage labor. Capitalism strive for profit and capital accumulation in competitive market. Labor has been disposed of its and and is a commodity that is subject to price mechanisms
what are the 4 underlying mechanisms of capitalism
- The Law of disproportionality: mechanism against overproduction doesn’t exist creating period wheee supply and demand do not match. Creation of period of depression and crisis.Lead relation against owners of the means of production.
- The law of concentration: compedition in the market forces investor to increase their efficiency in order to survive, strive to a cumulate capital. Increase of capital in the hands of few, weaker capitalist out of market. Making revolution more likely.
- The law of failing rate profit: return rate decline due to the decreasing incentive to invest. The level of unemployment increase and the rate of profit will decrease. Causing slowing of economy and increase unemployment making revolution more likely.
- the law of uneven growth: the concept of the “law of uneven growth” suggests that economic and social development across regions or sectors is inherently uneven, with some areas experiencing more rapid progress than others. This phenomenon can be attributed to various factors, including disparities in resources, infrastructure, and institutional frameworks. Regions or sectors with advantageous conditions may witness accelerated growth, while others may lag behind due to limitations or challenges. The law of uneven growth underscores the importance of addressing disparities and promoting inclusive development policies to ensure more balanced progress across different areas or sectors within a society or economy.
what is the critic of marxism
major capitalist power do cooperate when it comes tot he exploitation of their colonies. cannot explain why most competitive imperials rivals were allies in the war.
