What does Global Political Economy involve besides politics and economics?
Besides politics and economics, Global Political Economy also employs history, sociology, and other relevant social science disciplines to explain the interaction between the two systems of economics and politics.
What is Susan Strange's model which basically synthesises politics and economics?
Susan Strange offers a model that synthesizes politics and economics by means of a four-dimension structural analysis of the effects of political authority (including states) on markets, and, conversely, of market forces on states.
What were the two extraordinary developments in world politics in the early 1970s?
The temporary suspension of the dollar’s convertibility into gold and oil price shocks in world markets.
What was the global outcome of the Organization of Petroleum Exporting Countries declaration of oil embargo to the United States of America in 1970s?
Oil prices on world markets increased almost %400, gold prices increased steeply and the value of the dollar dropped significantly.
Could the Yom Kippur War and the OPEC embargo to America and other Western countries be explained by economics or politics alone?
Neither of those events could be explained by economics or politics alone. Economists and political scientists tend to approach reality from their alternative perspectives. Thus, while economists focus on issues of individual interest, efficiency and income, political scientists concentrate on the state. In the process, both analyses miss the dynamic interaction of markets and states that characterizes political economy.
Does China’s “One Belt, One Road” initiative only indicate Beijing’s economic approach?
The Chinese initiative called “One Belt, One Road” are indications not only of economic cooperation efforts but also deep political motivations.
What are the theoretical perspectives that dominate Global Political Economy studies?
Mercantilism, economic liberalism, and Marxism are the three theoretical perspectives.
What is the mercantilist worldview?
According to the mercantilist worldview, politics drives economics, which could be summarised as; politics has total supremacy over economics.
What were Alexander Hamilton and Fredrick List's theoretical perspectives?
Alexander Hamilton and Fredrick List were two well known supporters of mercantilism.
What was the neo-mercantilist perspective in the 1980s?
The neo-mercantilist perspective came up with a new concept in the 1980s, Strategic trade policy.
How could 'Liberalism' be described at the individual level?
Liberalism places great emphasis on liberty and holds that individuals must be encouraged to make their own choices. Individuals should be left free in their economic activities, that they should have the right to freely sell and buy in the market and start their own businesses.
How could the term 'Invisible Hand' be explained briefly?
In a free market environment, prices connect buyers and sellers, and an invisible hand (prices) regulates markets in the best available way.
What was Lenin's contribution to the Marxist theory?
Lenin extended Marx’s ideas and argued that as capitalism decayed in the most advanced states, the drive for profit and new markets would lead capitalists inevitably to search for imperialism, the highest stage of capitalism. This would result in competition between advanced capitalist states and to conflict over potential colonial territories.
What are the complains of the United States of America about the Chinese industrial policy?
The major complaints of the USA about Chinese government are; it supports domestic enterprises by refunds, exemptions from taxes and it keeps the value of its currency low.
What is assumed to happen to the BRIC countries by 2050?
It has been speculated that by 2050 the economy of Brazil, Russia, India, and China would be wealthier than most of the current major economic powers. China and India will become the world’s dominant suppliers of manufactured goods and services, while Brazil and Russia will become similarly dominant as suppliers of raw materials”.
What does the term 'GATT' stand for?
In Geneva, Switzerland, representatives of 23 countries met in 1947 to establish the postwar world trading system. The legal framework created was called the General Agreement on Tariffs and Trade (GATT).
What are the key emerging technology trends that OECD emphasises?
The Organization for Economic Co-operation and Development (OECD) gives prominence to ten key emerging technology trends. These are; big data, the internet of things, artificial intelligence, additive manufacturing, nano/microsatellites, neurotechnologies, synthetic biotechnology, nanotechnology materials, advanced energy storage technologies, blockchain.
How are the exchange rates determined?
Exchange rates are determined in the same way as any other commodity: in global markets, through the supply of and demand for foreign currency.
What is the Bretton Woods system?
The Bretton Woods system has been characterized as a global economic system constructed by the United States. The system also needed the United States to play a political and economic hegemonic role.
Why did the global economy need the Flexible (Hybrid) System?
The Bretton Woods system fell down with the collapse of the gold standard and International Monetary Fund members have been free to choose any form of exchange arrangement they wish except fixing their currency to gold.