International Political Economy

by Lairson, Thomas D.; Skidmore, David

• ISBN13: 9780155074972
• ISBN10: 0155074970
• Edition: 3rd
• Format: Paperback
• Copyright: 2002-09-13
• Publisher: Cengage Learning

Summary

INTERNATIONAL POLITICAL ECONOMY focuses on the dynamics of conflict and cooperation among nations as each pursues power and wealth through international economic exchange. The authors provide a historical and topical overview of the development of the world economy from 1815 to the present, helping students understand how and why major economic powers rise and fall. This balanced blend of history, theory, and policy makes the book suitable as a main text for International Political Economy courses or as a supplemental text for an Introductory International Relations course.

Table of Contents

Introduction: The Political Economy of International Affairs	1	(16)
Domestic Political Economy	3	(3)
International Political Economy	6	(5)
Approaches to International Political Economy	11	(4)
Notes	15	(2)
The Economics of International Political Economy	17	(26)
Free Trade	18	(5)
The Balance of Payments	23	(4)
Monetary and Fiscal Policy	27	(3)
Monetary Policy	28	(2)
Fiscal Policy	30	(1)
Exchange Rates and Trade Deficits	30	(5)
How Exchange Rates Affect Trade	33	(2)
Exchange Rates, Trade, and Macroeconomic Policy	35	(3)
Conclusions	38	(1)
Notes	39	(3)
Annotated Bibliography	42	(1)
The Origins of a World Economy	43	(28)
Industrialization and International Trade	44	(2)
British Industrialization	44	(2)
The Turn to Freer Trade	46	(2)
Repeal of the Corn Laws	46	(1)
The Expansion of the World Economy	47	(1)
The Perils of Interdependence: 1873--1914	48	(7)
Transformation of the World Economy	48	(4)
British Hegemony?	52	(3)
Japan and Late Economic Development	55	(2)
The World Economy on the Eve of World War I	57	(1)
World War I and Its Aftermath	58	(5)
The Economic Consequences of World War I	59	(1)
A Failure of Political Vision	60	(1)
Collapse of the World Economy	61	(1)
Autarchy and Cooperation	62	(1)
Conclusions	63	(1)
Notes	64	(5)
Annotated Bibliography	69	(2)
The Political Economy of American Hegemony, 1938--1973	71	(31)
Structures and Trends in the Postwar World Economy	72	(4)
Growth of the World Economy	72	(2)
International Institutions	74	(2)
U.S. Hegemony and the World Economy	76	(6)
Economic Consequences of World War II	77	(1)
The United States and World Order	78	(2)
U.S. Purposes?	80	(1)
Power and Outcomes	81	(1)
The Consequences of U.S. Hegemony	82	(1)
The Heyday of U.S. Hegemony: 1958--1970	82	(7)
The European Economic Community	83	(1)
Military Keynesianism and Foreign Aid	84	(1)
Dollar Glut	84	(1)
Political Economy and Hegemony	85	(1)
The Emergence of Multinational Corporations	86	(3)
Money and Oil, 1971--1973	89	(6)
The End of Bretton Woods	90	(5)
Conclusions	95	(1)
Notes	96	(4)
Annotated Bibliography	100	(2)
Globalization and the World Economy	102	(45)
The Globalization of Finance	103	(13)
Indicators of Financial Globalization	108	(4)
Explaining the Globalization of Finance	112	(2)
The Consequences of Financial Globalization	114	(2)
The Globalization of Production	116	(21)
Trade Globalization	116	(6)
Foreign Direct Investment	122	(2)
Sources of the Globalization of Production	124	(2)
Consequences of the Globalization of Production	126	(4)
Evaluating Globalization	130	(7)
Conclusions	137	(2)
Notes	139	(6)
Annotated Bibliography	145	(2)
Cooperation Among Advanced Industrial States	147	(45)
Theories of Cooperation	148	(4)
Why Nations Cooperate	149	(3)
Case I: Macroeconomic Policy Cooperation	152	(3)
Case II: Managing Exchange Rates	155	(6)
Managing Exchange Rates: 1985--1987	157	(2)
Conclusions	159	(2)
Case III: The Uruguay Round and the World Trade Organization	161	(4)
Case IV: Economic Blocs	165	(20)
Globalization or Regionalization?	165	(1)
The European Union	166	(2)
Organization of the European Union	168	(2)
Economic and Monetary Union (EMU)	170	(1)
The Maastricht Agreement	171	(7)
Conclusions	178	(1)
A North American Trade Bloc?	179	(3)
An East Asian Trade Bloc?	182	(2)
Economic Blocs and the Future of the World Economy	184	(1)
Conclusions	185	(1)
Notes	186	(4)
Annotated Bibliography	190	(2)
Competition and Conflict Among Advanced Industrial States	192	(47)
Strategies of Competitiveness	196	(2)
The Rise and Decline(?) of Japan	198	(13)
The Strategy of Growth	198	(4)
Explanations for Japanese Growth and Weakness	202	(8)
Future Prospects	210	(1)
The United States and Competitiveness	211	(11)
Macroeconomic Measures of Competitiveness	212	(5)
Competition in Chips	217	(3)
Silicon Valley	220	(2)
European Approaches to Competitiveness	222	(4)
Protectionism	226	(4)
Protectionism without Tariffs	226	(3)
Why Do Nations Choose Protection?	229	(1)
Conclusions	230	(1)
Notes	231	(6)
Annotated Bibliography	237	(2)
Rich and Poor States in the World Economy	239	(26)
Indicators of Development	240	(5)
Measuring the Development Gap	245	(3)
Contending Perspectives on Development	248	(1)
Modernization Theory	249	(3)
Dependency Theory	252	(7)
Conclusions	259	(1)
Notes	260	(3)
Annotated Bibliography	263	(2)
Strategies of Southern Trade and Development	265	(48)
National Strategies of Trade and Industrialization	265	(9)
Transitions to Export-Led Industrialization: Three Country Studies	274	(9)
China	275	(4)
India	279	(2)
Brazil	281	(2)
The Least Developed Countries	283	(2)
Collective Strategies of Development	285	(10)
Global and Regional Trade Agreements	295	(6)
The World Trade Organization	295	(2)
Regional Free Trade Agreements	297	(4)
Conclusions	301	(2)
Notes	303	(7)
Annotated Bibliography	310	(3)
Foreign Aid and Third World Development	313	(34)
The Rationale for Aid	316	(1)
Strategies of Foreign Assistance	316	(5)
The Effectiveness of Aid	321	(14)
Poverty and the Misallocation of Aid	321	(2)
The Ironies of Food Aid	323	(3)
Growth versus the Environment	326	(2)
The Overreliance on Outside Experts	328	(1)
The Costs of Tied Aid	329	(1)
The Preference for Bigness	330	(1)
Receipient Country Corruption	331	(1)
Learning from Failure	332	(3)
The Future of Foreign Aid	335	(1)
Conclusions	336	(2)
Notes	338	(7)
Annotated Bibliography	345	(2)
Multinational Corporations in the Third World	347	(26)
Motives for Foreign Direct Investment in the Third World	349	(1)
The Benefits of Foreign Direct Investment to Third World Host Countries	350	(182)
Capital	350	(1)
Technology	351	(1)
Management Expertise	351	(1)
Marketing Networks	351	(181)
The Costs of Foreign Direct Investment to Third World Host Countries	532
A Bargaining Framework for Analyzing MNC-Host Country Relations	354	(2)
Regulating MNC Behavior	354	(2)
The Determinants of Relative Bargaining Power	356	(5)
Characteristics of the Host Country	357	(1)
Characteristics of the Investment	358	(1)
Changes in the International Economic Environment	359	(2)
Recent Trends in MNC-Host Country Relations	361	(4)
MNCS and NGOS	365	(2)
Conclusions	367	(1)
Notes	368	(4)
Annotated Bibliography	372	(1)
Third World Debt and North-South Finance	373	(46)
The Costs of Third World Debt	374	(1)
Actors	375	(2)
The Origins and Evolution of the Third World Debt Crisis	377	(11)
The Misplaced Optimism of the 1970s	378	(2)
The Bottom Falls Out: The Fickleness of the World Economy	380	(1)
Southern Mismanagement and Capital Flight	381	(1)
The World Holds Its Breath: The Mexican Crisis	382	(2)
The IMF Takes Charge	384	(1)
Inching toward the Inevitable: The Brady Plan	385	(2)
The Heavily Indebted Poor Countries Initiative	387	(1)
The Politics of Third World Debt	388	(6)
Why Not Repudiation?	388	(1)
Bargaining Power and the Debt: Southern Disunity and Northern Unity	389	(5)
North-South Finance in the 1990s: The Growth of Portfolio Investment	394	(4)
The Global Financial Crisis of 1997--1998	398	(9)
Reform of the International Financial System	407	(3)
Conclusions	410	(1)
Notes	411	(7)
Annotated Bibliography	418	(1)
Hunger, Population, and Sustainable Development	419	(31)
Population	420	(5)
The Aids Pandemic	425	(1)
Food and Hunger	426	(8)
Sustainable Development	434	(3)
Atmospheric Pollution and the Tragedy of the Commons	437	(6)
Ozone Depletion	438	(2)
Global Warming	440	(3)
Comparison of the Ozone and Climate Change Negotiations	443	(1)
Conclusions	444	(1)
Notes	445	(4)
Annotated Bibliography	449	(1)
Charting the Future: Cooperation and Conflict in the Global Economy	450	(11)
Harbingers of Cooperation	452	(3)
The Fruits of Interdependence	452	(1)
International Institutions	453	(1)
Internationalist Interest Groups	454	(1)
The Neoliberal Convergence	454	(1)
The Sources of Conflict	455	(4)
National Autonomy and Relative Gains	455	(1)
The Changing Nature of U.S. Hegemony	456	(1)
Complexity and International Cooperation	457	(1)
The Anti-Globalization Movement	457	(2)
Conclusions	459	(2)
Glossary	461	(9)
Acronyms	470	(2)
Links to IPE Web Sites	472	(7)
Index	479