Summary: International Political Economy Of Trade Week 1

Read the summary and the most important questions on International Political Economy of Trade Week 1

• V1. A brief introduction to the long history of economic globalization

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• What are the different perspectives of globalization?

  1. Cultural perspective
  > Assimilation of cultures
  
  2. Political perspective
  > Supranational governments
  
  3. Economic perspective

• What is economic globalization in the broad sense?

  Trend towards the transnational integration of national market economy

• Through what do national market economies transnationally integrate?

  1. Integration of capital markets (monetary relations)
  2. Internationalization of firms and value chains  
  3. Growing labor mobility 
  4. More Trade (important for the course)   
  1.  Cross-border exchange of goods and services
  • Material things are also carriers of scoail and cultural implications (ideas, knowledge and culture even)

• What are the stages of the deep historical roots of trade and economic globalization?

  1. Pre-historic period
     
  • Even in the prehistoric period, tribes exchanged goods. But not much because there was no agricultural surplus (not much to be traded)
  2. Cradles of civilization
  • More production because of technology > surplus, people could also do other labor now > important for trade 
  3. Pax Mongolica ("silk road")
  • Mongolian empire
  • Trade between east and the west
  • Goods could be transported more easily because of trading routes
  • exchange of cultures
  4. Rise of Europe
  • Rise of colonial empires
  • Trade was important in teh political and social development
  • Trade as a basis of prosperity of Europe

• V2. The idea of free trade and the globalization debate

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• What was the dominant ideology from 15th-18th century?

  Mercantilism
  > Protectionism
  > Opposing to free trade

• On what two grounds do Friedrich List and Alexander Hamilton oppose to free trade?

  • National power perspective: trade is a zero-sum game
    
  • Gold hoarding mentality: exports are good, but imports are bad because they enrichen rivals
  • Mun, 1664: "We must observe this rule: to sell more to strangers yearly than we consume of their value"
  • Nascent 'infant' industries must be protected from foreign competitors
  • Developing industries should not enter the market too soon as they cannot compete and catch up with the developed industries

• Who defended liberalism?

  • Adam Smith > trade is not a zero sum game
    
  • John Stuart Mill's and David Ricardo > theory of comparative advantage

• V3. What is IPE?

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• What does IPE study?

  • It is a field of inquiry, rather than a discipline

  • It studies: relationships between economics and politics
  • The pursuit of wealth and the pursuit of power

  
  
  

  1. How do economics constrain political choices?
  2. How do politics constrain economic choices?

• What is comparative political economy?

  Studies the relationship primarily at domestic level and compares them across countries

• What is international political economy? And what is the difference between IPE and CPE?

  IPE emphasizes transnational relationships > you can see IPE and CPE as complimentory 
  

  • How does domestic politics affect international order
  • How does the international order affect domestic politics

  
  
  Interactions between transnational and national and subnational