Theories of / Approaches to International Political Economy correct answers Economic
nationalism (mercantilism)
Economic internationalism (neoclassical)
Economic structuralism (Marxism/Radicalsim)
Approaches to Economic Development: Economic Nationalist Approach correct
answers Realpolitik orientation where the political economy is a zero-sum game
Approaches to Economic Development: Economic Internationalist Approach correct
answers Believe that development can be achieved within the existing economic
structure through free trade and foreign investment supplemented by loans and foreign
aid
Approaches to Economic Development: Economic Structuralist Approach correct
answers Call for a radical alteration of the political-economic organization of the world's
pattern of production and trade
Economic Nationalism: Economic Statecraft or Mercantilism correct answers Realist
approach
-IPE as zero-sum game
-Emphasis on political goals (politics→ economics)
Practices
-Imperialism/neoimperialism
-Economic incentives and disincentives
-Protectionism and domestic economic support
(National Economic Power: Assets and Utilization)
*Economic Statecraft* correct answers -The use of political power to achieve national
economic goals and the reciprocal use of economic power to gain political goals
-Self-serving approach that is the core of economic nationalism
National Economic Power: Financial position correct answers Involves net trade, deficit
spending, foreign debts, among other aspects
National Economic Power: Natural Resources correct answers Possession or lack of
energy, mineral or other natural resources influences levels of self-sufficiency or
dependency
, National Economic Power: Industrial Output correct answers Industrial is highly
concentrated in a few countries
National Economic Power: Agricultural Output correct answers Power of food
production (self-sufficiency)
Methods of Manipulating Economic Interchange correct answers Barriers to
Merchandise Trade
Barriers to Trade in Services and Investment
Domestic Support of Trade
Barriers to Merchandise Trade correct answers 1. Tariffs
Domestic Support of Trade: *Ways in which governments intervene in free trade to gain
an unfair advantage in the international marketplace* correct answers Conducting
economic espionage
Providing domestic subsidies
Encouraging dumping
*All violate international trade agreements*
ex. 2003 U.S. steel case study
Applying Economic Power: Economic Incentives correct answers Includes providing
foreign aid, giving direct loans or credits, reducing tariffs, selling or licensing the sale of
sensitive technology
Applying Economic Power: Economic Sanctions correct answers Methods include
raising trade barriers, cutting off aid, trying to undermine another country's currency,
and even instituting blockades
*Both sanctions and incentives have a mixed success rate, highly
contentious/controversial*
Drawbacks of Sanctions correct answers Unintended victims
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