ipe

• 4 Structures of IPE by Susan Strange

  Production and Trade

  Monetary and Finance

  Knowledge and Technology

  Security
• Structural Power


  The ability of certain actors or institutions to shape the rules and structures of the global economy to their advantage.
• Production and Trade Structure


  Power derived from control over the means of production, technology, and resources.
• is composed of the set of rules and relationships between states, IOs, businesses, and NGOs that influence what is produced and sold, where, by whom, and at what price.

  International Production and Trade Structure
• Robert Kuttner


  In the absence of a world government, cross border trade is always subject to rules that must be politically negotiated among nations that are sovereign in their own realm but not outside their borders.
• Comparative Advantage


  The ability of a country, individual, or business to produce a particular good or service at a lower

  opportunity cost relative to others.
• Opportunity Cost


  Refers to what you have to give up to buy what you want in terms of other goods or services.
• Thomas Friedman 


  The transformation of production processes associated with globalization.
• Global production


  Technology

  Investments

  Specialization

  Outsourcing
• International Trade


  Occurs when goods and services cross national boundaries in exchange for money or the goods and services of other nations.
• Trade


  It ties countries together, generating significant economic, political, and social interdependence.
• Trade 


  For most states,()is an easy way of generating income and jobs. For many developing nations, it is often a critical component of development plans.
• International Trade


  It plays a significant role in the global economy, allowing businesses, nations, or regions to specialize in the production of goods and services in which they have a comparative advantage and trade them for goods and services produced more efficiently elsewhere.
• Perfect Competition


  Exists when companies sell identical products or services with no differentiation; entry and exit are easy, and prices are determined by supply and demand forces.
• Monopolistic Competition


  Exists when companies produce similar but not

  identical products; companies have control over price.
• Oligopoly


  Exists when there are a few large firms that dominate the market, often producing differentiated products; there are significant entry barriers
• Monopoly


  Exists when there is only one company that dominates the market, producing a unique product with no close substitutes; entry is impossible due to significant barriers
• Duopoly


  Exists when two companies dominate the market, often with significant degree of interdependence in decision-making and competition
• Tariff


  taxes placed on imported goods to raise the price of those goods, making them less attractive to consumers. They are used to raise government revenue or protect domestic industries from foreign competition.
• Quota (import and export)

  limits or restrictions on imports/exports. By limiting these products, price of these goods increase.
• Export subsidy


  measures that reduce the price of an exported product, making it more attractive to foreign buyers.
• Currency appreciation and devaluation

  increase/decrease in the value of one currency relative to another in the foreign exchange market.
• Non-tariff barrier


  other ways of limiting imports, including government standards, legislation, licensing requirements, and labeling requirements.
• Strategic trade practices


  Efforts on the part of the state to create comparative advantages in trade by methods such as subsidizing research and development of

  a product or providing subsidies to help an industry increase production.
• Dumping


  Practice of selling an item for less abroad than at home; an unfair trade practice when used to drive out competitors from an export market with the goal of generating monopoly power.
• Countervailing trade practices


  state defensive measures taken to counter the

  advantage gained by another state when it adopts protectionist measures.
• Safeguard


  other defensive measures, used when, after tariffs are reduced, a product is imported in quantities that threaten serious injury to domestic producers

  of like or directly competitive products.
• Liberals


  the world was supposedly becoming a global workshop where everyone could benefit from free

  trade, guided by the invisible hand of the market.
• GATT


  General Agreement on Tariffs and Trade (GATT), in 1948, the GATT became the primary organization responsible for the liberalization of international trade.
• Mercantilist

  free-trade policies were merely a

  rationale for England to maintain its

  dominant advantage over its trading

  partners.
• challenged what became the accepted economic liberal doctrine about trade. (Mercantilist perspective)

  Alexander Hamilton and Friedrich list
• Tokyo Round

  tried to deal with a growing number of nontariff barriers (NTBs) that many believed were stifling world trade.
• Uruguay Round

  Under conditions of increasing protectionism, the Reagan administration sought to reassert the liberal vision of free trade. In addition, realist-mercantilists point out that the administration wanted to spread economic liberal policies to counter the influence of the “evil empire” (the Soviet Union) in developing nations.
• General Agreement on Trade in Services (GATS)


  liberalized trade in banking, insurance, transport, and telecommunications services by applying the principles of national treatment and most-favored-nation to them.
• Trade-Related Aspects of Intellectual Property Rights (TRIPS)


  require countries to maintain minimum

  standards for the protection of patents, copyrights, and trademarks—and to effectively enforce those standards.
• Dispute Settlement Panels (DSP)

  The WTO uses (what) that Rule on trade disputes, giving the WTO an enforcement mechanism that the GATT did not have. An impartial panel of experts oversees cases submitted to it for resolution, and members can appeal its findings. Countries that refuse to enforce the rulings of a DSP can be subject to trade sanctions by member states.
• Regional Trade Blocs

  Critics of the Doha round suggest that, instead of multilateral talks, states ought to pursue bilateral and regional trade agreements.
• Structuralists

  Cite mercantilism to be the cause of imperialism and colonialism; trade helped imperial countries to dominate and subjugate.
• Immanuel Wallerstein

  Argues that patterns of international trade are

  determined by an international division of labor between states from the core, semi-periphery, and periphery.
• Fast Development; Open of new programs

  Specialization