IPE
Reading 1 | Chapter 1: International Political Economy
The global econom makes consumers better off b reducing b reducing the prices of goods and
ser ices and e panding the range of choices e ha e
Because of international trade grocer stores can keep a ide ariet of fruits and egetables in
stock throughout the ear
Global production and increased trade in the apparel industr ha e helped to reduce the prices
e pa for clothing and foot ear
The price of smartphones and laptops is lo er because their production processes ha e been
organi ed globall
Global economic forces pla a large role in determining man of our career opportunities
Opportunit to ork in manufacturing industries steel mills automobile factories has decreased
Opportunit to ork in a ser ice industr and in high technolog has increased medical care
computer design finance
International political economy studies ho politics shape de elopments in the global econom
and ho the global econom shapes politics
Focuses on the political battle bet een inners and losers from global economic e change and
ho it shapes the e olution of the global econom
All societies benefit from participation in the global econom but these gains are not distributed
e enl among indi iduals
Global economic e change raises the income of some people and lo ers the income of others
The distributi e consequences of global economic e change generate political competition in
national and international arenas
Winners seek deeper links ith the global econom to e tend and consolidate their gains
Losers tr to erect barriers bet een global and national economies to minimi e or re erse
their losses
What is international political economy?
The stud of ho the political battle bet een the inners and lo ers of global economic e change
shapes the economic policies that go ernments adopt
Understanding de elopments in the global econom requires us to
dra on economic theor
e plore domestic politics
e amine the d namics of political interactions bet een go ernments
familiari e oursel es ith international economic organi ations
Scholars simplif the stud of the global econom b di iding the substanti e aspects of global
economic acti it into distinct issue areas
The global economy is broken into 4 issue areas:
The international trade s stem
The international monetar s stem
Multinational corporations
, M l i a i al c ai
Ec ic de el e
Ra he ha d i g he gl bal ec a a h le ch la ill f c he i e a ea i ela i e
i la i f he he
Each i e a ea i dee l c ec ed he he
H e e he ce al cha ac e i ic f each a ea a e fficie l di i c i e ha e ca d
each i ela i e i la i f he he a l g a e e ai e ii e he c ec i
a g he he ece a
The international trade s stem i ce e ed he WTO
e be a e WTO
Each c gai acce all he WTO e be a ke e al e
WTO a d GATT Ge e al Ag ee e Ta iff a d T ade ha e e abled g e e
g e i el eli i a e a iff a d he ba ie he c b de fl f g d a d e ice
A he e ba ie ha e bee di a led ld ade ha g eadil
D i g he la ea egi al adi g a a ge e ha e a i e ea e ial challe ge
he WTO ce e ed ade e
The e RTA NAFTA a e adi g bl c c ed f a all be f c ie h ffe
each he efe e ial acce hei a ke
The international monetar s stem e able e le li i g i diffe e c ie c d c ec ic
a ac i i h each he
I facili a e i e a i al e cha ge b c e i g c e cie f cha e cc b i g
Ja a e e g d i USD
M ltinational corporations a e fi ha c l d c i facili ie i a lea c ie
MNC ha e li ic beca e he e e d a age ial c l ac a i al b de e g
C a e a age i he US ake deci i ha affec ec ic c di i i Me ic
Economic de elopment
Th gh he a e i d de el i g c g e e ha e ad ed e lici
de el e a egie ha he belie ed ld ai e i c e b i gi d iali a i
S ec ie ha e bee cce f l i i gi d iali a i a d ai i g e ca i a
i c e he l ge ca be c ide ed de el i g c ie ch a he Ne l
I d iali i g C ie f Ea A ia Tai a S h K ea Si ga e he ha e bee le
cce f l b Saha a Af ica La i A e ica
S die ha e f c ed he a egie de el i g c ie g e e ad a d ha e
a e ed e lai h diffe e g e e ad diffe e a egie hich de el e
a egie ha e bee e cce f l a d h
Sch la h d he gl bal ec h gh he le f IPE a e i e e ed i
De c ibi g g e e licie a d c e a de el e i he e i e a ea
Maki g ge e al a e e ab h li ic ha e licie g e e ad i each f he e
i e a ea
D a i g ge e al c cl i ab he c e e ce f he e licie
e i icall ha e IPE ch la hi
H d e li ic ha e he deci i cie ie ake ab h e he e ce a ailable
he
Wha a e he c e e ce f he e deci i
Reading 1 | Chapter 1: International Political Economy
The global econom makes consumers better off b reducing b reducing the prices of goods and
ser ices and e panding the range of choices e ha e
Because of international trade grocer stores can keep a ide ariet of fruits and egetables in
stock throughout the ear
Global production and increased trade in the apparel industr ha e helped to reduce the prices
e pa for clothing and foot ear
The price of smartphones and laptops is lo er because their production processes ha e been
organi ed globall
Global economic forces pla a large role in determining man of our career opportunities
Opportunit to ork in manufacturing industries steel mills automobile factories has decreased
Opportunit to ork in a ser ice industr and in high technolog has increased medical care
computer design finance
International political economy studies ho politics shape de elopments in the global econom
and ho the global econom shapes politics
Focuses on the political battle bet een inners and losers from global economic e change and
ho it shapes the e olution of the global econom
All societies benefit from participation in the global econom but these gains are not distributed
e enl among indi iduals
Global economic e change raises the income of some people and lo ers the income of others
The distributi e consequences of global economic e change generate political competition in
national and international arenas
Winners seek deeper links ith the global econom to e tend and consolidate their gains
Losers tr to erect barriers bet een global and national economies to minimi e or re erse
their losses
What is international political economy?
The stud of ho the political battle bet een the inners and lo ers of global economic e change
shapes the economic policies that go ernments adopt
Understanding de elopments in the global econom requires us to
dra on economic theor
e plore domestic politics
e amine the d namics of political interactions bet een go ernments
familiari e oursel es ith international economic organi ations
Scholars simplif the stud of the global econom b di iding the substanti e aspects of global
economic acti it into distinct issue areas
The global economy is broken into 4 issue areas:
The international trade s stem
The international monetar s stem
Multinational corporations
, M l i a i al c ai
Ec ic de el e
Ra he ha d i g he gl bal ec a a h le ch la ill f c he i e a ea i ela i e
i la i f he he
Each i e a ea i dee l c ec ed he he
H e e he ce al cha ac e i ic f each a ea a e fficie l di i c i e ha e ca d
each i ela i e i la i f he he a l g a e e ai e ii e he c ec i
a g he he ece a
The international trade s stem i ce e ed he WTO
e be a e WTO
Each c gai acce all he WTO e be a ke e al e
WTO a d GATT Ge e al Ag ee e Ta iff a d T ade ha e e abled g e e
g e i el eli i a e a iff a d he ba ie he c b de fl f g d a d e ice
A he e ba ie ha e bee di a led ld ade ha g eadil
D i g he la ea egi al adi g a a ge e ha e a i e ea e ial challe ge
he WTO ce e ed ade e
The e RTA NAFTA a e adi g bl c c ed f a all be f c ie h ffe
each he efe e ial acce hei a ke
The international monetar s stem e able e le li i g i diffe e c ie c d c ec ic
a ac i i h each he
I facili a e i e a i al e cha ge b c e i g c e cie f cha e cc b i g
Ja a e e g d i USD
M ltinational corporations a e fi ha c l d c i facili ie i a lea c ie
MNC ha e li ic beca e he e e d a age ial c l ac a i al b de e g
C a e a age i he US ake deci i ha affec ec ic c di i i Me ic
Economic de elopment
Th gh he a e i d de el i g c g e e ha e ad ed e lici
de el e a egie ha he belie ed ld ai e i c e b i gi d iali a i
S ec ie ha e bee cce f l i i gi d iali a i a d ai i g e ca i a
i c e he l ge ca be c ide ed de el i g c ie ch a he Ne l
I d iali i g C ie f Ea A ia Tai a S h K ea Si ga e he ha e bee le
cce f l b Saha a Af ica La i A e ica
S die ha e f c ed he a egie de el i g c ie g e e ad a d ha e
a e ed e lai h diffe e g e e ad diffe e a egie hich de el e
a egie ha e bee e cce f l a d h
Sch la h d he gl bal ec h gh he le f IPE a e i e e ed i
De c ibi g g e e licie a d c e a de el e i he e i e a ea
Maki g ge e al a e e ab h li ic ha e licie g e e ad i each f he e
i e a ea
D a i g ge e al c cl i ab he c e e ce f he e licie
e i icall ha e IPE ch la hi
H d e li ic ha e he deci i cie ie ake ab h e he e ce a ailable
he
Wha a e he c e e ce f he e deci i
