International relationsLesson 1 of 4 in the course International Political Economy

International Political Economy: Policy, Mercantilism, and Trade

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

International political economy (IPE) examines how politics and economic activity shape one another across domestic and international settings. This lesson introduces IPE, explains how political factors influence public policy and the distribution of benefits and costs, and traces the emergence of political economy as a field of study.

International political economy, or IPE, is the study of political processes and their economic consequences. These consequences can affect groups within a country and relationships among countries. IPE asks how political institutions, political decisions, and public policies influence economic outcomes—and how economic interests can shape politics in return.

All flashcards

Balance of trade
The difference between the value of a country's exports and imports over a period.
Trade surplus
A balance of trade in which export value exceeds import value.
Tariff
A tax imposed on imported goods.
Subsidy
Government support provided to selected producers.
Capital accumulation
An increase in accumulated wealth.

Quiz questions

  1. What characterizes absolutism as described in early modern Western Europe?Answer: Political authority is centralized in the hands of a monarch.
  2. What did mercantilists primarily treat as the clearest measure of wealth?Answer: Holdings of precious metals, especially gold and silver.
  3. Why did many mercantilists regard wealth as zero-sum?Answer: They believed the supply of precious metals was finite, so one country's gain reduced what others could acquire.
  4. Which policy is an example of protectionism?Answer: Restricting imports to shield domestic producers from foreign competition.
  5. What economic shift did industrial change encourage at the end of the eighteenth century?Answer: A move away from protectionism and toward trade liberalization.

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.

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