International Political Economy (POL11000) an der TU München

international political economy > international economic relations between states, national polices and feedback on national & international level

Mercantilism, Liberalism, Marxism

the state intervenes in the economy to allocate resources, conflicts between countries over trade, enhance power of the nation state 

individual property rights facilitate market-based exchange, harmonious trade benefits all, enhance aggregate social welfare

Interests, Institutions and Interactions

channel interests - electoral systems, interest groups

structure of decision-making - political regime, legislature 

national and international level - strategy, enforcement 

A tax on imports or exports between two sovereign countries.

1820-1879, increasing openness, repeal of the Corn Laws in GB

1900-1913, greater openness, less regional trade patterns (globalization)

from 1945, great openness (accelerating)

open international markets as a Prisoner's Dilemma: State A and State B get highest payoff when one protects and the other liberalizes > dominant strategy is protectionism. But in an iterative game, the socially optimal (and sub-optimal for both states) outcome is for both states to liberalize