The end of the Cold War opened new questions and perspectives in international political economy (IPE). This lesson explains how globalization, new technologies, and empirical research have reshaped the field.
During the Cold War, IPE scholarship often concentrated on a relatively small group of developed countries. Since the late 1980s, research has increasingly included countries from many regions and at different levels of development. This broader scope has made the international dimension of IPE more prominent and its subject matter more complex.
All flashcards
What is international political economy (IPE)?
IPE examines how politics and economics interact across countries, including how international economic forces shape domestic choices and outcomes.
What changed in IPE's scope after the late 1980s?
IPE expanded beyond a small set of developed countries to study a wider range of countries and regions, making its international dimensions more prominent.
How does Manuel Castells characterize a global economy?
It is an economy whose central activities operate as a unit in real time on a planetary scale, as illustrated by interconnected capital markets.
What is empirical analysis?
The systematic use of observations and evidence to investigate questions and evaluate explanations.
Name three contemporary issues that have risen to prominence in IPE.
Globalization and international trade, international finance and crises, and exchange rate regimes.
Quiz questions
What does trade liberalization involve?Answer: Reducing barriers to international trade.
How are the costs and benefits of trade liberalization typically distributed?Answer: Benefits are widespread, while costs are concentrated in some industries or communities.
What is capital flight?Answer: Large-scale movement of money out of a country due to uncertainty or risk concerns.
What is a key policy constraint associated with a fixed exchange rate?Answer: It limits the government's freedom to adjust monetary policy.
How can an independent central bank reduce short-term political influence over monetary policy?Answer: It makes monetary decisions with less direct influence from government or electoral pressures.
Based on Introduction to Political Science by Mark Carl Rom, Masaki Hidaka, Rachel Bzostek Walker (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.