International Political Economies, Interdisciplinary Origins - Essay Example

Lecturer: (IPE) International Political Economies Introduction International Political Economy (IPE) is the fast developing social science discipline that endeavors to understand the international and global issues through employing varied analytical or theoretical perspectives. It takes into considerations the political and economic issues affecting the welfare of the international states through employing multidisciplinary and interdisciplinary approaches (Hobson 27). The IPE attempts to solve the related problems of international relations including political, economy and international trade issues. Frieden and David (31) argue that IPE is a maturing interdiscipline because of the great attempts towards solving the political and economic issues across the globe. The IPE field has undergone a significant transformation over the past thirty years. Hence, the IPE has become a popular area of study of relations of politics and economics in the global arena. Even though there are considerable variations between disciplines, the political and economic analysts are uninformed of corresponding advancement in the other arenas, but IPE is swiftly evolving as a true interdisciplinary. International Political Economy is a maturing Interdiscipline because the international trade now counts for about 38 percent of GDP (Gross Domestic Product). Imports and exports comprise 49 percent of the total national output in developing nations. The flow of FDI (Foreign Direct Investment) has doubled relative to GDP for the past two decades. According to Frieden and David (96), globalization now permits corporation, entrepreneurs and states to trade effective across the globe in a clear way, more than ever. The IPE arena is considerably maturing because of increased globalization. The political scientists have now started identifying themselves as the International political economists, but OEP( Open Economy Politics) bridges the political and economic disciplines; thus providing a vehicle for synthesizing the work performed in both arenas. Evolution of IPE, Interdisciplinary Origins and its relationship with IR, Comparative Politics and Economics IPE emerged as the international economy in the earlier 1960s and sparkle interests, in the field of political international economy. It emerged in the political fields and drew varied sources such as economics, history and the international relation (IR); thus manifesting itself as a disciplinary that remains up to date (Cohen 24). However, after the Post War, the IPE emerged and since then, varied changes have taken place. The end of the Cold War contributed to the economic liberation and the emergence of IPE as a discipline that focuses on political, as well as economic issues across the globe. This was the period when many states signed allies that provided a framework through which the world economy could function. Although, the main allies contributed to economic conflicts, earlier political leaders and the federal government introduced polices that aimed to maintain security of industries. The government laid emphasis on security and agreement made in the international trade offered the state political glue that joined the global economy together. Moreover, during the year 1970s, the IPE emerged as deviating international study approach in the political and economic arena. However, it started emerging as an interdisciplinary approach during the year 1973 after the emergence of the world oil crisis (Hall 272). Thus, it alerted may scholars especially in the United States on the significant changes to economic foundation of the global order. Therefore, earlier scholar started laying more emphasis on the IR and the related disciplines in politics, diplomatic history, economic, law and order. The IPE proposed a union in the political and economic field by drawing their views more on sociology and economic history. Some scholar such as Karl Marxist protest against the historical sociology and emphasized on the significant of taking into considerations the International relation system. Gilpin and Jean (54) argue that the realistic developmental perspective in IPE can be traced back to the practices that emerged during the creation of the international system of states. This took place during the earlier 16th and 18th centuries during the medial business practices that gave way to evolution of modern commercial world. During the earlier period, the International relations focused on the security of the states because mercantilists believed that, through proper security, they could increase the wealth of their state (Phillips 89). Therefore, they designed policies both at the domestic and international levels that enabled the countries to participate in fair trade. However, the political and economic nationalist approach that was implemented during the 19th century led to many changes concerning the international relations. This is the period when many states focused on developing strong manufacturing sectors. The IPE has now expanded; thus contributing to greater integration within the international economy. This has enabled even the third work countries to participate in the international trade because of improved security and trading opportunities. Balaam and Michael (23) assert that, with the formation of WTO (World Trade Organization), many least developing nations have now become active in the global economic, trade system. The mutual interactions between IR, comparative politics and economics have contributed a lot in the global economy. These disciplines are related because one discipline affects one another. For instance, the political actions of the state affect the international trade and monetary thereby affecting the welfare of the state (Oatley 67). Therefore, it is difficult to tackle the issues of political and economic disciplines without taking into account their mutual influences with the IPE. Frieden and David (1) argue that the evolution of international political economy has contributed to relative politics and economics in many fields. For instance, the evolution of the OPEC (Organization Petroleum Exporting Countries) and the restriction of the Arab oil emerged due to the evolution of IPE. Therefore, the OPEC has played various significant roles in the global economy. One of them is that the organization has influenced the economic tools in foreign policy. The oil crisis led to implementation of policies and these raised issues concerning the activities of multinational companies in the global economy. The multinational corporations have been viewed as the influential agent of political allegiance in their home countries. However, the agents of OPEC and governments acted upon the economic and political issues thus promoting the political economic ties (Sinclair 71). Moreover, the system of payment in the Arab oil led to economic liberation in the global economic system. This is vital because it contributes to solving of the global financial issues; thus contributing to global economic development. Through IPE, the domestic and international economies started to function perfectly in the competitive market. A variety of factors and polices influence the marketing activities in both domestic and international markets. This is because these policies focus on the way they operate the business in unchanging and competitive market (Carlsnaes, Thomas and Beth 122). The increasing use of technology in manufacturing products have made many economies produce the products at cheaper costs and produce innovative products that meet the expectations of consumers (Frieden and David 2). The government intervenes in the market and set marketing price that both consumer and producers should follow. For instance, the shopkeeper will learn the importance of marketing clearing equilibrium; thus enabling her or him to determine the pricing of commodities. This can enable the shopkeeper to determine the supply and demand of products; thus performing their business effectively. Main contribution of IPE It is difficult to imagine the world without IPE because, since its evolution, it has contributed to varied things in the global economy. First, the IPE has contributed to increased competitive advantage across the globe. The evolution of IPE and the policies that focused on maintaining political security of the international states have contributed to stable economies. This is because the IPE has enabled many countries including the third world countries to play varied roles in the global business. Therefore, many countries have now increased their global business activities with an aim of increasing wealth. This has made them compete favorably in order to not only to achieve a competitive advantage but also to become leaders in the global competitive market. Achieving a competitive advantage is essential for multinational companies carrying their business in many nations. This is because it enables them to increase their revenues; thus benefiting their mother countries. Secondly, IPE enables merchants to utilize the scarce resources effectively; thus increasing their productivity. Gilpin and Jean (23) point out that the basic task of economists is to instruct society on the way markets functions in wealth production and the way of maintaining market efficiency. Therefore, my opinion is that it is true that since the formation of IPE, many societies in the contemporary world are now equipped on the way they handle business activities in the market. Many small and large companies are aware of the way market functions. For instance, they understand the marketing equilibrium policy and the way it influences their business performance. Since the IPE deals with understanding the political and economic issues, many states have now made considerable improvement in the global busies. The societies now understand on the way they are supposed to distribute wealth in a moral and political manner that lies behind the economic science. Lastly, IPE is a fundamental issue that has benefited both consumers and suppliers in one way or another. The aim of carrying out economic activities is to benefit the social welfare of the economy; thus improving the GDP of an economy. For instance, a certain society can decide to distribute its resources in order to promote the welfare of the nation, but they in turn consider the marketing mechanisms of an economy. This is because the marketing mechanism is the principle that determines the distribution or allocation of resources. Thus, countries participating in the international business can determine the economic and political significant of economic activities. This will enable the merchants to achieve their business objectives effectively. This is because the political and economic factors impose limits on the things that the consumers or suppliers can accomplish is a state. In conclusion, the IPE is swiftly emerging as a proper interdiscipline in the political and economic arena. This is because the IPE attempts to solve the political and economic issues across the globe; thus encouraging states to perform their business effectively. The evolution of IPE has promoted effective international relations; hence, contributing to effective business performance participating in the international business. It has enabled merchants to utilize the scarce resources well in increasing their productivity. Lastly, the IPE have benefited both consumers and suppliers; thus enabling them to conduct their business effectively in order to achieve a competitive advantage. Work Cited Balaam, David N, and Michael Veseth. Introduction to International Political Economy. Upper Saddle River, N.J: Prentice Hall, 2001. Print. Carlsnaes, Walter, Thomas Risse-Kappen, and Beth A. Simmons. Handbook of International Relations. London: SAGE Publications, 2002. Print. Cohen, Benjamin J. International Political Economy: An Intellectual History. Princeton: Princeton University Press, 2008. Print. Frieden, Jeffry A, and David A. Lake. International Political Economy: Perspectives on Global Power and Wealth, 4th ed. London: Routledge, 2004. Print. Gilpin, Robert, and Jean M. Gilpin. Global Political Economy: Understanding the International Economic Order. Princeton, N.J: Princeton University Press, 2001. Print. Hall, Rodney B. "Human Nature As Behavior and Action in Economics and International Relations Theory." Journal of International Relations and Development. 9.3 (2006): 269-287. Print. Hobson, John M. The State and International Relations. Cambridge: Cambridge University Press, 2000. Internet resource. Oatley, Thomas H. International Political Economy: Interests and Institutions in the Global Economy. New York: Pearson/Longman, 2008. Print. Phillips, Nicola. Globalizing International Political Economy. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, 2005. Print. Sinclair, Adriana. International Relations Theory and International Law: A Critical Approach. Cambridge: New York, 2010. Print. Read More