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Flashcards in International Political Economy Deck (15)
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1

International Political Economy (IPE)

the study of international economic activities

2

Bretton Wood Summit (1944)

called to address the needs of Western Europe after the war to repair their economy and infrastructure - lead to World Bank, IMF, and GATT

3

Economic Liberalism

government policies that reduce the role of the state in the economy
includes: dismantling trade tariffs and barriers, the deregulation and opening of the financial sector to foreign investors, and the privatization of state enterprises

4

Fiscal Policy

a governments decision about taxing and spending (according to economic liberalism, this should be weak)

5

Monetary Policy

Manipulations by the central bank to control inflation and regulate the economy

6

Interest Rates

The rates charged to private banks when they borrow from the central bank
High Rates: borrow less, save more, deflation
Low Rates: loans less expensive, borrow and spend more, growth of economy

7

Comparative Advantage Trade Policy

states should specialize in trading goods that they produce with the greatest efficiency and lowest cost relative to other goods they can/do produce

8

Export-lead Growth Trade Policy

international economic linkages are good for the economies of developing countries as they present important opportunities

9

Marxism-Communism in IPE

the modern state is designed to serve the interest of the capitalist class
the economically stronger states (Global North) oppress and profit from the weaker ones (Global South), hindering their development

10

Economic Nationalism

prioritization of the needs of the state over anything else, including the economy

11

Nationalistic Economic Policies

small welfare state, private and public ownership, neither individual freedom or collective equality emphasized, international politics as a zero sum game, beggar-thy-neighbor policies

12

Nationalistic Trade Policies

protectionism via tariffs and other trade barriers

13

Import Substitution Industrialization (ISI)

a national development strategy that aviods international economic linkages to instead focus on domestic production

14

Modernization Theory

reasons for economic underdevelopment are internal but by opening a state up to international investment and promoting a free market, an underdeveloped economy can take off

15

Dependency Theory

reasons for economic underdevelopment are external, caused by the Global North's exploitation of the south through unfair terms of trade agreements