INTL 3200 Lecture Notes - Lecture 7: International Trade, Economic Liberalism, Mercantilism
13 Feb 2019
School
Department
Course
Professor
Document Summary
Scholars of international political economy (ipe) study the politics of international political activities - especially trade, monetary relations, and multinational corporations. Core principles from chapter one and concept of power and bargaining apply to ipe. Share with realism the belief that each state must protect its own interests at the expense of others. Importance of economic transactions lies in their implications for the military. Most important goal of economic policy is the creation of the most favorable possible distribution of wealth. The creation of wealth underlies state power. By building international organizations, institutions, and norms, states can mutually benefit from economic exchanges. Wants state" wealth to increase in absolute terms. Most important goal of economic policy is the maximum creation of total wealth through achieving optimal efficiency. Believe in markets, supply and demand, equilibrium price. Politics should serve the interests of economic efficiency.
