POS 486 International Political Economy Questions
And Answers Latest Solutions
International Political Economy ANS Study of the political battle between the winners and losers of
globalization.
Globalization ANS The process of economic integrations of countries through the increasing flow of
goods, services, capital and labor.
Foreign Direct Investment ANS Establishment of a business operation in one country by a corporation
based in another country.
International Migration ANS The movement across national borders of labor
Realist Idea of Order ANS Conflictual, hegemony, anarchy - powerful states keep each other in check
Liberal Idea of Order ANS Cooperative, Network of groups that run the global economy, International
institutions.
Public Goods ANS Non-rivalrous, non-exludable. Ex. from IPE: Security against foreign powers, low
tariffs.
Hegemon ANS The dominant power in the global economy. Leader or major power. Ex: The U.S. is a
hegemon in global politics.
Hegemonic Stability Theory ANS the argument that regimes are most effective when power in the
international system is most concentrated.
Example of Trade Barrier ANS Tariffs - Taxes on imports
Government subsidy to domestic markets - gives an advantage to those goods domestically and makes them
more expensive for foreign markets.
, 4 eras of globalization ANS Globalization's Prehistory, 16th-19th Centuries - slow, chartered trading
companies, Mercantilism(economic strength leads to national power, trade valued for exports but not imports,
state should play a large role in economy, in conflict with IPE)
Globalization 1.0, 19th Century - massive increase to trade and GDPs, free trade policies spread, liberal
ideology on the rise.
Globalization 2.0 20th Century 1945-1995 - Bretton Woods, General Agreement on Tariffs and Trade (GATT).
Growth of global trade 1945-1995
Globalization 3.0 / "Hyperglobalization", 20th and 21st Centuries -The World Trade Organization (WTO),
Neoliberalism (liberal ideals but think state intervention still does more harm than good).
Mercantilism ANS an economic system (Europe in 18th C) to increase a nation's wealth by government
regulation of all of the nation's commercial interests.
Bretton Woods System ANS The economic order negotiated among allied nations at Bretton Woods, New
Hampshire, in 1944, which led to a series of cooperative arrangements involving a commitment to relatively
low barriers to international trade and investment.
Named for a conference held at Bretton Woods, New Hampshire, in 1944, this system provided the foundation
for postwar economic globalization, including the World Bank and the International Monetary Fund; based on
the promotion of free trade, stable currencies, and high levels of capital investment.
Liberalism ANS -Economic activity should enrich private actors
-Countries gain from trade regardless of trade balance
-Comparative advantage: production of certain types of goods should not be privileged (the ability of an
individual or group to carry out a particular economic activity (such as making a specific product) more
efficiently than another activity.)
-The state should play a small role in the economy
-IPE is inherently cooperative
Trade Openness ANS Eliminating restrictions allows countries to enjoy a wider variety of goods and
services.
And Answers Latest Solutions
International Political Economy ANS Study of the political battle between the winners and losers of
globalization.
Globalization ANS The process of economic integrations of countries through the increasing flow of
goods, services, capital and labor.
Foreign Direct Investment ANS Establishment of a business operation in one country by a corporation
based in another country.
International Migration ANS The movement across national borders of labor
Realist Idea of Order ANS Conflictual, hegemony, anarchy - powerful states keep each other in check
Liberal Idea of Order ANS Cooperative, Network of groups that run the global economy, International
institutions.
Public Goods ANS Non-rivalrous, non-exludable. Ex. from IPE: Security against foreign powers, low
tariffs.
Hegemon ANS The dominant power in the global economy. Leader or major power. Ex: The U.S. is a
hegemon in global politics.
Hegemonic Stability Theory ANS the argument that regimes are most effective when power in the
international system is most concentrated.
Example of Trade Barrier ANS Tariffs - Taxes on imports
Government subsidy to domestic markets - gives an advantage to those goods domestically and makes them
more expensive for foreign markets.
, 4 eras of globalization ANS Globalization's Prehistory, 16th-19th Centuries - slow, chartered trading
companies, Mercantilism(economic strength leads to national power, trade valued for exports but not imports,
state should play a large role in economy, in conflict with IPE)
Globalization 1.0, 19th Century - massive increase to trade and GDPs, free trade policies spread, liberal
ideology on the rise.
Globalization 2.0 20th Century 1945-1995 - Bretton Woods, General Agreement on Tariffs and Trade (GATT).
Growth of global trade 1945-1995
Globalization 3.0 / "Hyperglobalization", 20th and 21st Centuries -The World Trade Organization (WTO),
Neoliberalism (liberal ideals but think state intervention still does more harm than good).
Mercantilism ANS an economic system (Europe in 18th C) to increase a nation's wealth by government
regulation of all of the nation's commercial interests.
Bretton Woods System ANS The economic order negotiated among allied nations at Bretton Woods, New
Hampshire, in 1944, which led to a series of cooperative arrangements involving a commitment to relatively
low barriers to international trade and investment.
Named for a conference held at Bretton Woods, New Hampshire, in 1944, this system provided the foundation
for postwar economic globalization, including the World Bank and the International Monetary Fund; based on
the promotion of free trade, stable currencies, and high levels of capital investment.
Liberalism ANS -Economic activity should enrich private actors
-Countries gain from trade regardless of trade balance
-Comparative advantage: production of certain types of goods should not be privileged (the ability of an
individual or group to carry out a particular economic activity (such as making a specific product) more
efficiently than another activity.)
-The state should play a small role in the economy
-IPE is inherently cooperative
Trade Openness ANS Eliminating restrictions allows countries to enjoy a wider variety of goods and
services.
