International Political Economy

Question 1

Liberalist pov

Answer 1

politics and economic separate

Question 2

Marxist pov

Answer 2

economy determines political sphere
-> but acknowledge the interconnection

Question 3

Mercantilist/Realist pov

Answer 3

politics/state determines economy

Question 4

Main thinkers

Answer 4

• Susan Strange

Mercantilism:
- Friedrich List
- Jean-Baptiste Colbert
- Louis XIV

Liberalism:
- David Ricardo
- Margaret Thatcher
- Ronald Reagan
- Adam Smith

Marxism:
- Karl Marx
- Friedrich Engels
- Lenin
- Kautsky

Question 5

determining dominant sphere

Answer 5

Strange:
depends on which values want to be promoted

Question 6

Actors in IPE

Answer 6

1. states
2. markets
3. civil global society

Question 7

public sphere

Answer 7

states

Question 8

private sphere

Answer 8

global civil society

Question 9

key aspect

Answer 9

there are different states but just one global market

Question 10

Assumptions on strong military states

Answer 10

Marxist: they also have a strong economy (because war protects and favours economic interest of capitalists)
Mercantilists: wealth is needed for warfare

Question 11

impact of IPE on IR

Answer 11

opened it up to new concerns

Question 12

how did mercantilism develop

Answer 12

• around time ov Luois XIV
• with the development of notion of a modern state

Question 13

central actors – Mercantilism

Answer 13

states (instead of church who had a lot of influence at that time)
-> rule over territory with internal and external sovereignty
-> interventionism

Question 14

main question – Mercantilism

Answer 14

Does my state gain the most from international cooperation?
-> Protectionism, Interdependence is bad
-> along the lines of Make America Great Again

Question 15

Mecantilism vs European integration

Answer 15

collision between nation-state thinking and integration

Question 16

central actors – Liberalism

Answer 16

private actors
-> goal is to enhance private wealth

Question 17

role of free market – Liberalism

Answer 17

• will favour individual wealth
• are self-regulating
• can lead to democratization
• competition favours efficiency and innovation

Question 18

role of free will – Liberalism

Answer 18

determines outcome of transactions
-> is uncoerced and reflects cost-benefit-calculations

Question 19

utility – Mercantilism vs Liberalism

Answer 19

Mercantilism: relative gains
Liberalism: absolute gains

Question 20

role of prices – Liberalism

Answer 20

• are important to show scarcity and accessibility
• free products only generate costs

Question 21

centralized knowledge – Liberalism

Answer 21

state controls market and its development

Question 22

localized knowledge – Liberalism

Answer 22

• market participants hold knowledge over what’s happening and how to develop it
• understand how to adapt quicker

Question 23

central actors – Marxism

Answer 23

• social classes (Marx)
• states (Lenin)

Question 24

main focus – Marxism

Answer 24

• modes of production
• role of human labour
• assuring benefits from innovations

Question 25

divison of labour – Marxism

Answer 25

- can be more efficient - but can create interdependencies between countries

Question 26

view on world economy – Marxism

Answer 26

- is capitalistic - is unstable - global capitalism is just as bad as domestic

Question 27

harm of capitalism – Marxism

Answer 27

- appeasement causes revolution - progress doesn't profit home state and civil society

Question 28

Internal capitalist debate

Answer 28

Lenin: - capitalist countries will always be conflict prone (especially amongst each other) Kautsky: - capitalist countries are rational and would cooperate to exploit other states

Question 29

prerequisites for capitalism

Answer 29

- open global economy -> capitalism is automatically global

Question 30

most important values – Strange

Answer 30

1. Justice 2. Security 3. Wealth 4. Freedom

Question 31

central question – Strange

Answer 31

how do the four values form interactions between political and economic sphere?

Question 32

role of structural power – Strange

Answer 32

power structures control specific resources

Question 33

primary power structures – Strange

Answer 33

1. knowledge 2. production 3. security 4. finance -> sources of structural power

Question 34

How does Marxism/Leninism explain the outbreak of WWI

Answer 34

imperialist powers were driven into war by economic competition

Question 35

Imperialism – according to Lenin

Answer 35

highest form of capitalism

Question 36

tensions between political and economic spheres (typical dichotomies)

Answer 36

Political: 1. power 2. state 3. security 4. hierarchy 5. authority 6. monopoly 7. public goods Economic: 1. money 2. market 3. wealth or justice 4. anarchy 5. exchange 6. competition 7. private goods

Question 37

historical areas for inquiry of IPE

Answer 37

colonialism

Question 38

traditional areas for inquiry of IPE

Answer 38

- trade policy - finance policy - development policy

Question 39

contemporary areas for inquiry of IPE

Answer 39

- ecology - migration - global public health

Question 40

actors of IPE

Answer 40

- States - IOs - NGOs - Multinational Corporations - Neworks/social movements

Question 41

main goal – Mercantilism

Answer 41

maintain security and wealth of state -> especially economic autarky and military preparedness

Question 42

main goal – Liberalism

Answer 42

- economic and military goals can't be separated -> they are complementary - wealth, equality and justice

Question 43

separation of high politics and low politics

Answer 43

separation between state (hight) and market (low) -> Mercantilist don't separate (only in case of doubt former is priotitized) -> Liberalist separate strictly

Question 44

nature of economic relations – Mercantilism

Answer 44

conflict-prone

Question 45

nature of economic relations – Liberalism

Answer 45

harmonic

Question 46

nature of economic relations – Marxism

Answer 46

conflict-prone until communism

Question 47

theory of change – Mercantilism

Answer 47

power transitions

Question 48

theory of change – Liberalism

Answer 48

innovation

Question 49

theory of change – Marxism

Answer 49

change of the system -> dialectic/historical materialism (change in mode of production and material contradictions/conflicts)

Question 50

Three laws of Marxism

Answer 50

1. disproportionality 2. accumulation 3. falling profit rate -> explains how capitalism functions and fails

Question 51

Measures that dampened Marxist law of disproportionality

Answer 51

-> overproduction in some sectors and underproduction in others demand management through fiscal and monetary policy in a welfare state

Question 52

Measures that dampened Marxist law of accumulation

Answer 52

-> capital tends to concentrate and centralize - income redistribution - support for trade unions - regional and small business policies

Question 53

Measures that dampened Marxist law of falling profit rate

Answer 53

-> rate of profit falls and causes crises increasing efficiency of factors of production

Question 54

Why has capitalism not collapsed?

Answer 54

Welfare state prevented it (preserving capitalist system)

Question 55

relational power (Strange)

Answer 55

power to get A to do something B would not otherwise do (coercion)

Question 56

structural power (Strange)

Answer 56

power to shape global political economy within which actors have to operate (more than just agenda setting) -> matters more than relational power in international system