Question

In: Economics

1)   Describe the three most important classical theories within the field of International Political Economy (IPE):...

1)   Describe the three most important classical theories within the field of International Political Economy (IPE): mercantilism, economic liberalism, and neo-Marxism.

2) Describe the relationship between politics and economics, and between states and markets.

3) What is the relationship between the haves and the have-nots on a global scale?

Solutions

Expert Solution

Answer:The three important classical theories within in the field of International Political Economy are discuss in detail below:

1) Mercantilism:Mercantilism is an economic policy that is designed to maximise its export and minimize the imports for an economy.It promotes imperialism,tariffs and subsidies on traded goods to achieve that goal.The policy aims to reduce a possible current account deficit or reach a current account surplus,and includes measures aimed at accumulating money reserves by a balance of trade,especially of finished goods.Historically,such policies frequently led to war and lead to colonial expansion.

Mercantilist ideas were the dominant economic ideology of all of Europe in the early modern period, and most states embraced to a certain degree.Mercantilism was centered on England and France,and it was in these states that mercantilist policies were most often enacted.

Mwecantilist regulations were steadily removed over the course of the 18th centrury in Britain,and during the 19th century,the Brisitsh government fully embraced free trade.On the continent,the process what somewhat different.In France,economic controls remained in the hands of royal family and merchantilism continued until the french revolution.

2)Economic Liberalism:Economic Liberalism is based on the principles of personal liberty,private property and government interference.The term 'liberalism' should be undestood in its historical context.Classical liberalism emphasized liberty from government regulation.In the economic context this would include the elinimation of restriction on the choice of occupation and transfer of lands.Liberalism asserts that self-interest is a basic component of human nature.In the economic arena,producers provide us with goods,not out of concern of our well being,but due to their desire to make a profit.Likewise, workers sell their labor and buy the producers as means of satisfying their own wants.This keads to the belief in a natural harmony of interests.By each individual serving their own interest the best interests of society are served.The forces of a free competitive market economy would guide production,exchange,and distribution in a manner that no government could improve upon.The government's role,therefore,is limited to the protection of property rights,the enforcement of contracts providing public goods,and ,maintaining internal and external security.

3)Neo-Marxism:Neo-marxism is a Marxist school of thought encompassing 20th-century approaches the amend or extend marxism and marxist theory,typically by incorporating elements from other intellectual traditions such as critical theory,psycoanalysis or existentialism.In industrial economics,the neo-marxisian approach stresses the monopolistic rather competitive nature of capitalism.Its concepts based on big business can maintian selling prices at high levels while still competing to cut costs.However,competiton is generally limited with a few large capital formations shring various markets,with the exception of a few atchual monopolies.

The relationship between politics and economics can be describe as politics study power relations and their relationships to achieve desired ends.Philosophy rigorously assesses and studies a set of beliefs and their applicability to reality.Economics studies the distribution of resources so that the material wants of a society are satisfied,enhance societal well-being.

The realtionship between states and markets can be describe as states and markets are in a hierarchial relationship with markets organized transnationally while states remain stuck at the national level and the society remains relatively fixed at the local level.The crisis is not of the market but of society and the state.

Relationship between haves and have nots on a globa scale

The objective of economic life might seem,at first glance,to be the primary source of rising preception of a have/have nots nation.And the trends are surely reflected in the grwing number of people who view themself personally as on the wrong side of that divide.Global attitude polls,for example,find that every income level,americans are far more likely than Europeans to believe that individulals,not society are responsible fo their own failures,economic and otherwise.Other factors contributing to modest economic gains among middle economic class-such as aging population and smaller families-that do not necessarily suggest a growing socio-economic divide among wage and salary earners,as well to a higher levels of consumption and expectations across the income board.


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