POLITSC 1300 Lecture Notes - Lecture 11: Classical Liberalism, Security Dilemma

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The problem of the international political economy is rooted in the fact that an economy is not a natural thing. There are many types of economies but we are focusing on the market economy because it happens locally and globally. Need property rights and currency (we all have to agree about what it is and what its value is in order for an economy to work), all of which are institutions. Need political stability so that way transactions can occur smoothly without dealing with any roadblocks in sales. Government plays a big role in retaining these institutions. The economy is rooted in a political system that is necessary for it to function. We need to keep in mind that governments play a large role in allowing this trade to occur. You need international agreements and institutions that allow goods in and out, safe travel, money to be exchanged, a stable medium of exchange .

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