POL 2103 Chapter 55: economic nationalism

• School: University of Ottawa
• Department: Political Science
• Course: POL 2103
• Professor: Kevin Mc Millan

Document Summary

World economy: arena for competition between states trying to maximize relative power. Pursuit of national interests leads to conflict and war. E(cid:272)o(cid:374)o(cid:373)i(cid:272) poli(cid:272)y: (cid:271)ased o(cid:374) effe(cid:272)t o(cid:374) state"s positio(cid:374) i(cid:374) (cid:449)orld. Primacy of state, national security and military power. Role of power in markets: wealth as key means of power (for security, aggression) Governments regulate economy to increase state wealth, security. Neo-mercantilism: trade policy whereby a state seeks to maintain a balance-of-trade surplus and to promote domestic production and employment by reducing imports, stimulating home production, and promoting exports. Strong centralized gov (efficient tax collection, maximize exports) Trade protectionism, subsidies, selective gov investment in domestic economy. Ft would entrench britain as top industrial power (launched revolution, encouraged others to adopt free trade) Germany, other euro states produce natural resources; subordinate position (largely produced natural resources) B was 1st to industrialize so ca i(cid:374) hea(cid:448)y i(cid:374)dustry. Cheaper to buy manufactured goods, high tech from b.