The Current Governing Schools Of Thought For Nations

Global Political Economy is essentially a study of a political battle between the winners and losers of global economic exchange. In fact, understanding global economy relies on a clear knowledge of the process of political competition. Political power possessed by actors regulates economic activity and in turn this creates the basis for and affects political power. Through, critical analysis of the concept of global political economy it becomes clear that there are three prominent theories that form GPE, mercantilism, economic liberalism and Marxism.

Liberalism was previously a projection of how international relations ought to be; now, liberalism is a modern theory towards peace attained with a state’s ambition for dominance. “Self-interest” has two definitions in accordance to liberalism and realism. Liberalism considers the measure of power within states through stable economies, the possibility of peace and cooperation, as well as the concepts of political freedoms (human rights). Realism believes states are driven by competitive self-interest; international organizations hold little to no real influence because states are self-preserved. International relations is governed by states acting in their self-interest through liberalism; states act in their self-interest by cooperating with one another through international organizations, transnational advocacy networks, and non-governmental organizations. International organizations, normative values, and terrorism are all examples of how international relations is progressing into liberalism.

The world is not a large and strange place anymore. The world is a place that is interconnected and intertwined. The world has become from a place that each country and their peoples are separate and isolated to a place that each country and their peoples are part of a global network. Thanks to globalization this is occurring. Globalization is the ‘international integration” or ‘de-bordering’ – “a number of highly disparate observations whose regular common denominator is the determination of a profound transformation of the traditional nation-state” (Von Bogdandy 2). Globalization is connecting different people from different cultures and backgrounds together. More and more corporations are entering new foreign markets to sell their

The 20th century brought with it a rapid expansion of the global interrelatedness of the world. In the beginning of the 20th century the world was dominated by a European world system of colonial empires that was created through expansion by sea (Findley, 2011). The competition between Britain and the other colonial powers led to an insatiable appetite to expand their empires across the globe (Findley, 2011). As the 20th century progressed this European world system collapsed and a new three world system of the United States, Soviet Union, and the rest of the world emerged (Findley, 2011). The end of the century coincided with a new era of globalization that was made possible by the introduction of global communication via the internet (Findley, 2011). This new technology brought the entire world closer together than it had ever been before. The four events that best illustrate the progression of global interrelatedness throughout the 20th century are the Great Depression, World War II, Cold War, and the introduction of instant global communications via the internet.

International political economy is an important subdiscipline of international relation. It has three main ideologies, Liberalism, Mercantilism and Marxism. In this essay there will be three parts, first part is to demonstrate what the Liberalism and Mercantilism are on the perspective of international political economy and then the second part is to compare and contrast these two ideologies of political economy. At last, give a conclusion to the Liberalism and Mercantilism.

Since International Relations has been academically studied Realism has been the dominant theory of world politics. The theory’s inability to explain the end of the Cold War, however, brought strength and momentum to the Liberalism theory. Today Realism and Liberalism are the two major paradigms of International Relations. The aforementioned theories focus on the international system and the external factors that can lead to two phenomena - conflict and cooperation. Realism believes that as a result of anarchy and the security dilemma, conflict is inevitable. Liberalism argues that this conflict can be overcome through cooperative activities amongst states and international organizations. This paper will explore as well as compare and contrast the strengths and weaknesses of both theories. It will also debate which of the two theories is more valuable in the

While classical liberalism and mercantilism have fundamentally different ideological roots, both theories have profound implications beyond the international economy, creating ripples in the worldwide political and social climate. Thus, each theory needs to be evaluated to maximize the economic policy’s benefits and minimize its negative consequences. Along this line, the concept of freedom in classical liberalism offers clear benefits to market growth, yet the invisible hand does not always intervene to save these economies from the catastrophic effects of inequality and irrational human decisions. Therefore, a balance between freedom and state intervention needs to be reached. Keynesianism offers one approach to maximizing freedom, while still maintaining a safety net in terms of limited state intervention. The issue of security is relevant and important to consider within an economic system, yet the aggressive approach of malevolent intimidation demonstrates a social and political shortcoming within the mercantilist theory. Ultimately, in order to address the issues of inequality, imperialism, and violence within our international community, we have to start by understanding the impact of our globalized economic policies. Once we do this, we can start to move towards a more peaceful, equal, and flourishing society.

Liberalism is another concept that has significant arguments regarding international relations. Liberal economics have determined the shape of the monetary system and support the concept of open markets, where individuals have the freedom to engage in commerce. Unlike realists, liberals oppose mercantilism and the zero-sum game much like the countries in NAFTA. This disagreement is the cause of many disagreements during the NAFTA negotiations. If countries are able to work together and trust one another to attain power, conflict is less likely to occur and overall economic wealth for countries can be gained. Through free trade, the goal is to have a decreased amount of wasted resources on inefficient production because the more individuals that engage in this collective use of resources the more likely the system would become efficient and acquire heightened economic gains such as wealth. ) Finally, there is the liberal institutionalism perspective which approves of regimes and international organizations. Utilizing these rules through rapid growth of regimes, regulate economic affairs, determine which activities are allowed and disallowed, and assure that

In order for countries to cohesively overcome international barriers, frameworks of ideal political standards must be established. Two of these frameworks constantly discussed in international relations are the theories of Neo-realism and Liberalism; two theories with their own outlook at the way politicians should govern their country as well as how they should deal with others. Neo-realism lies on the structural level, emphasizing on anarchy and the balance of power as a dominant factor in order to maintain hierarchy in international affairs. In contrast, Liberalism's beliefs are more permissive, focusing on the establishments of international organizations, democracy, and trade as links to strengthen the chain of peace amongst

When trying to comprehend international politics, current events, or historical context, having a firm grasp on the various international relations theories is essential to understanding patterns when looking at interstate affairs. Realism, liberalism, constructivism, and marxist radical theory are used to provide a framework by which we can dissect international relations.

Free trade is exchange of goods and commodities between parties without the enforcement of tariffs or duties. The trading of goods between people, communities, and nations is not an innovative economic practice. Nations are however the main element within a free trade agreement. By examining free trade through three different political ideologies: Liberal, Nationalistic, and Marxist approaches, the advantages and disadvantages will become apparent. Theses three ideologies offer the best evaluation of free trade from three different perspectives.

The concept of globalization is a complex and peculiar one, failing to be definable by a single, precise definition. Centrally, globalization involves information and goods being exchanged amongst different countries. These interactions and interchanges among countries globally over time is due to an increase in communication and transport networks. Globalization is often divided into three main areas being economic globalization, cultural globalization and political globalization. All three are vital areas to one’s life and globalization is said to have a large impact on each. Although globalization is controversial in the aspect that it cannot be declared just how much of an influence the notion has in the world. Political scientists such as Muhammad Ijaz Latif, Anton Pelinka and Martin Wolf all discuss this issue in their respective pieces as well as differing aspects of globalization such as the role the European Union plays in relation to globalization, the different perspectives of globalization and the challenges of the nation-state in regards to globalization.

Do economic markets and state governments share an adversarial or symbiotic relationship? Scholars of International Political Economics have been at odds over what role, if any, the state should have in the International Economy. Despite such disagreements, most scholars can concur that IPE is ultimately concerned with the ways in which states shape the systems through which economic interactions are expressed, and conversely the results that economic interactions (including the power of collective markets and individuals acting both within and outside them) have upon political structures and outcomes. The relation between states and markets in the international scene, and whether, the relationship at home affects relationships abroad, is of great importance. One contemporary in particular Ian Bremmer has attempted to explain this relationship in light of the latest economic recession, and what impact the state should have in the future. In his book titled The End of the Free Market Bremmer believes that the Free Market Capitalism which has been a staple of American Economic prosperity is still the system that will provide for innovation and the free flow of ideas, information, people, money, goods, and services (Bremmer,183-184). Countries like China, Russia, Brazil, Mexico, and regions like Southeast Asia and Africa have all converted from command economies to a degree into state capitalist countries. These countries have all experienced the positives of the free market

However, in the recent 20 years, there have been many tries to resist the era of mutual cooperation. High class, capitalists, and corporation could get a lot of benefits from this free trade and open economy system, so the national and world economy grew consistently. On the contrary, as the higher class became richer and richer through the free trade, the lower class became poorer and poorer. As the free trade system became stronger, polarization became deeper. People belonging to lower class lost their hope and dream, only frustration and anger about free trade system remained. This anger made some lower class of each nation start to insist going back to isolation from world. This idea is called, ‘neoisolationism’. And the ‘neoisolationism’ movements became more and more powerful, and started to become serious problem for each nation now.

Global Integration “Global integration is shrinking time, shrinking space and eroding national boundaries.” (IMF & World Bank) Globalisation possibly the most important force at work at this time in history describes the process of increase integration and interdependence between national economies. It depicts the breaking down of national boundaries leading to the establishment of a single world market. This inevitable process of globalisation has and will continue to be accelerated by the electronic revolution. Advancement in telecommunications and information technology has lead to growth in cross border relationships initiated by the drivers of globalisation.