POLS 1160 Lecture Notes - Lecture 17: Foreign Direct Investment, Enlargement Of The European Union, Controlled Burn
23 Mar 2017
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Document Summary
Using power you have with economic tools rather than militarily. Economic statecraft: statecraft: use of instruments by central political authorities to serve foreign policy purposes, economic statecraft: use of economic tools and relationships to achieve foreign policy objectives, economic measures used in conjunction w/ military and diplomatic tools. History: used much more heavily in modern times (especially by democratic powers, 174 use of sanctions from 1914-2000, strong economies w/ many economic instrument= more likely to use than weaker economies. Objectives: possible goals for influencing target state, 1. Altering foreign policy: ex: end conflict to withdraw troops, 3. Investment restrictions: restricting foreign direct investment (fdi, most vulnerable: countries that depend heavily on fdi for economic growth and development, ex, iraq, iran, libya, south africa during 1980s. Monetary sanctions: destabilize a currency/ exchange rate, buy/sell large quantities of a target state"s currency, can cause serious financial crisis in target state, examples, us against uk during suez crisis.
