Politics and Economy: Analysing the Impact of International Relations - Essay Sample

Introduction

The field of economy is of the greatest national aspect that is influenced by different factors such as politics and international relation. According to Cohen, politics has a vital role in the economic life, as it influences the introduction of policies, which impact the growth rate (44). The theory of International Political Economy (IPE) is an interdisciplinary field that evaluates economics and politics, and how the two factors impact international relations. The theory was established in the 19th century by early political economists such as John Maynard and Karl Marx. The theory was meant to create nations integration by promoting the economy through trading and other economic factors. Despite the theory of having close contact with the politic economy, it has a close connection with cultural, sociology, and other fields that promote development and integration. The current system that most countries have adopted relies on the effectiveness of IPE. Through IPE, it is easier for nations to embrace the concept of globalization, which has become a crucial aspect of national development. Other aspects, such as international trade and finance, have their root on IPE (Cohen 89). Establishment of IPE influenced nations to introduce common policies that regulate both politics and economy. The technique promoted cross border flow of goods and capitals, which was a way of eliminating poverty. The flow rate helped nations to develop a clear way that was used in explaining the economic trend.

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According to Thies and Leslie, the establishment of IPE was meant to assist in explaining the world economy (715). Through IPE, political economists could effectively explain various events that are taking place in the world, and their impacts on the economy. Usually, the market of the world economy is more complex as compared to local. Therefore, IPE was meant to inform people about the internal market, which was a key way that shaped people ways of trading. Additionally, through IPE, political economists were able to explain forms and perpetuates institutions that impact the world's economy (Watson 271). Hence, in case there is an economic crisis, it is much easier for nations to understand the root and control approaches. Moreover, IPE creates a system that political economists would follow to understand how to manage nations' resources. Effective application and allocation of resources were perceived as the way to generate wealth. In the 19th century, the world was facing issues leading to an economic crisis. In order to control the issue, there was a need to establish a uniform system that would promote interaction at the world level (Black and Maya, 651). Furthermore, political economists relied on IPE to understanding how governments can participate in promoting international relations (Cohen 21). In this case, political economists examined how government can change their international participating to promote economic growth.

In our perception and thinking, the theory of IPE is the base of globalization. Currently, globalization has become a crucial aspect of word development. People are sharing their cultures, ideas, and much more, which promote world development. Through the establishment of theory, it is easier for people to effectively integrate and promote activities such as trading. Development of technology has introduced new approaches that connect to people much easier (Black and Maya, 658). Therefore, it has become easier for people to learn and implement international policies. Additionally, through the theory of IPE, nations promoted the development of industries to ensure they enjoy the benefit of international trade. In this case, IPE appears as the base of industrialization, which improved the economy through the creation of job opportunity and increases revenue income. The entrance of international companies, especially in third world countries, highly impacted the growth of local firms (Thies and Leslie 720). However, through the application of IPE, governments established approaches that helped to protect infant firms against international competitors; for instance, the establishment of tariffs and bans to regulate productivity. Through the aspect, the government managed to promote its economic growth, and this marketed the establishment of globalization and free trade. In case of risk, IPE assisted the world in developing faster solutions to avoid negative effects which would impact economic development.

The theory of IPE gave rise to the introduction of economic structuralism, liberalism, and nationalism. Usually, economic structuralism deals with labor exercise that a country embraces to attain its economic development. The concept rejects the division of labor; instead, people should integrate to promote human power, and this creates collaboration and overcome exploitation (Thies and Leslie 729). Economic liberalism illustrates that the power of a nation is described by its wealth. Free trade was a key aspect that nations could embrace to promote the wealth of nations. In this case, political leaders should allow trade between countries by reducing policies that prohibit free trade. Liberals should take the chance of making economic decisions, but the decisions should match political wills (Cohen 78). In this case, liberals should guide the government in formulating tariffs to avoid exploiting international companies through heavy taxes. Additionally, economic nationalism stated that nations should embrace economic competition instead of integration. As a way of embracing competition, nations should introduce more companies, which is a component of a state's power (Jamal and Helen 548). Supporting industries was a way to promote power and independence among nations. In order to remain powerful, the nation has to be leading to economic wealth.

Based on my position, I believed the theory was a great impact on world development. The theory highlights various aspect that a nation should embrace to promote national development. Policies that political leaders embrace have a great impact on the promotion of international relations. Through aspects such as tariff, leaders can influence how companies participate in trade. As a way of promoting economic development, leaders should introduce policies that promote free trade since it encourages more countries to participate. Free trade can assist the nation to more revenue which promotes the provision of national amenities (Jamal and Helen 549). Additionally, the perspective is so convincing since it creates a system that advances the economy due to high-quality products that compete effectively throughout the world. Due to high productivity, companies create employment, thus increasing the income rate in the nation. In developing nations, IPE has become an essential way that promotes domestic industries (Cohen 90). The theory encourages the government to set policies, which regulate how international companies operate to avoid unhealthy competitions.

Conclusion

In conclusion, IPE is a good way that countries should embrace to promote growth. The theory highlights the importance of free trade in economic development. Additionally, the theory promotes international relationship, thus influencing the spread of ideas across the world. Technology development has created a good approach to the application of the theory.

Works Cited

Black, David, and Maya Hibbeln. "Sport and Contemporary International Political Economy." The Palgrave Handbook of Contemporary International Political Economy. Palgrave Macmillan, London, 2019. 651-665. https://www.researchgate.net/profile/Hany_Besada/publication/330510011_Advancing_the_2030_Agenda_for_Sustainable_Development/links/5d1634c5458515c11c00603c/Advancing-the-2030-Agenda-for-Sustainable-Development.pdf#page=645. Accessed on 21 Feb. 2020.

Cohen, Benjamin J. International Political Economy. Routledge, 2017.

Jamal, Amaney, and Helen V. Milner. "Economic Self-Interest, Information, and Trade Policy Preferences: Evidence from an Experiment in Tunisia." Review of International Political Economy 26.4 (2019): 545-572. https://scholar.princeton.edu/sites/default/files/hvmilner/files/ripe-2019.pdf. Accessed on 21 Feb. 2020.

Thies, Cameron G., and Leslie E. Wehner. "The Role of Role Theory in International Political Economy." Cambridge Review of International Affairs 32.6 (2019): 712-733. https://www.researchgate.net/profile/Leslie_Wehner/publication/333222344_The_role_of_role_theory_in_international_political_economy/links/5d403ab54585153e592d38cc/The-role-of-role-theory-in-international-political-economy.pdf. Accessed on 21 Feb. 2020.

Watson, Matthew. "Historicising Ricardo's Comparative Advantage Theory, Challenging the Normative Foundations of Liberal International Political Economy." New Political Economy 22.3 (2017): 257-272. https://www.tandfonline.com/doi/full/10.1080/13563467.2016.1216535. Accessed on 21 Feb. 2020.