Okyere G Obed - Week One Question

Student Name: Okyere Gyamena Obed
Course: International Economic Relations
Program: M.I.R
Lecturer: Mr Solomon Appiah
Date: 10th October 2021
Seminar Questions:
1. What are the main perspectives on international political
economy,and why is the study of IER so difficult?
2. Can domestic and international theories of political economy
be reconciled?
What are the main perspectives on international political economy,and why is the
study of IER so difficult?
Countries in the globe has always earn political influence to fuel their interest.
Since the era of civilization the approach of economic politics has impacted the way
countries related to each other on the international level. International Political
economy plays a major role in our lives (individuals living in the state). Such roles are
measured using the interacting between states(country to country, multi-states, and
other international organizations.
First of all, International Political Economy can be define as the structures,
hierarchies, and power dynamics that regulate finance and trade, drive globalization
and economic nationalism, and impact the distribution of wealth and poverty across
and within states, regions, and the world. According to Oatley, activities of
international political economy shape developments in the global economy and how
the global economy shapes politics.
International political economy study is divide into four distinct areas. These
areas are the international trade system, the international monetary system,multi-
national corporations and economic development. All these areas are effect of politics
and the process through which states make collective decisions to fuel their interest.
The perspectives in international political economy is not sharp to a specific position
but a subjective reasoning of competing demands,reconciling and political power
differences.
Also, international political economy try to examine the end-product of
resource allocation between groups within the state and between state in the
international system.This end-product can be grouped into two :welfare consequences
and distributional consequences.
Whether international economy relations is a difficult depends on individual
perspective. As a discipline, international economic relations is part of humanities and
how politics shapes the allocation of society’s resources.
2. Can domestic and international theories of political economy be reconciled?
In political economy each discipline focuses on different actors and interests.

Understanding developments in the global economy requires us to draw on economic
theory, explore domestic politics, examine the dynamics of political
interactions between governments, and familiarize ourselves with international
economic organizations.
Theories such as mercantilism, Marxism and liberalism help explain the idea
and practice of International Political Economy. All these theories have a different
approach in explaining how state act on the international market to gain power, trade,
build alliances and development whiles putting their national interest first.
Mercantilism is an economic theories that is designed to increase the exports
and minimize the imports for an economy. It promotes imperialism, tariffs and
subsidies on traded goods to achieve that goal. On the other hand, Marxism coined by
Karl Marx is the labor theory of value to explain relative differences in market prices.
This theory stated that the value of a produced economic good can be measured
objectively by the average number of labor hours required to produce it. In other
words, the value of manufactured goods can be determined by the amount of labor
used to produce them.
With liberalism , they argue that international political economy should be
morally philosophy based on liberty, consent of the governed and equality before the
law. We live in state where the international decisions are is done in the core interest
in the of the state. Domestic and international theories of political economy can be
reconciliation issue can be discuss under condition of the interest of the state. Any
state decision on the international stage is taken with the domestic economy in mind.
For example when the USA Lumber Coalition pressed for higher tariffs on
Canadian lumber because they were losing trade. Imported Canadian lumber was
capturing a large share of the American market, resulting in mill closings and layoffs,
and higher tariffs would protect American lumber from competition, thereby reducing
the number of American mills in distress
The two state took bold decision to protects its companies and individuals hence
acting on the interest of the state.
I strongly agree with the liberals to say that the purpose of economic activity
is to enrich individuals, not to enhance the state’s power.

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Student Name: Okyere Gyamena Obed

Course: International Economic Relations

Lecturer: Mr Solomon Appiah

Date: 10th October 2021

2. Can domestic and international theories of political economy be reconciled?

In political economy each discipline focuses on different actors and interests.

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