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In: Economics

Explain the Need and importance of understanding International Political Economy. (Please do not copy and paste...

Explain the Need and importance of understanding International Political Economy.

(Please do not copy and paste from the internet. Would be grateful if you could also include a couple of in-text citations from a journal or a book)

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Expert Solution

International political economy studies issues that arise or are affected by the interaction of international politics , international economics, and various social systems ( e.g., capitalism and socialism) and societal groups ( e.g. local farmers, different ethnic groups in a country, immigrants in a region like the European Union, and the transnationally poor in a region like the European Union). It explores a set of related issues ("problematic") arising from issues such as international trade , international finance, relations between wealthier and poorer countries, the role of multinationals, and hegemony issues.

In particular , economic liberals should restrict the State's position in the economy to allow market forces to decide on political and social outcomes. Structuralist theories are rooted in the Marxist theory and concentrate on how class interests and relations influence (i.e., exploit) the existing economic structures of society. Each of these perspectives is often applied to problems at various levels of analysis pointing to complex root causes of conflict traced to human nature (individual level), national interests (global level), and the structure of the international system (that lacks a single sovereign to prevent war).

After the end of the Cold War, the international political system centered on problems posed by economic globalization, including the stability of the state in an increasingly globalized international environment, the role of multinational companies in creating conflict as well as development in the "new global economy," and various wealth, justice and fairness concerns.

Reference- Book on Global Political Economy: Understanding the International Economic Order- Jean M. Gilpin and Robert Gilpin


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