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. International Political Economics

Global Politics

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PL SC 014 Monday, March 15th, 1999 Announcements: Second Writing Assignment (See end of notes) assigned Lecture notes: I. International Political Economics A. Very important in today's global arena 1. Economics is the focus of leaders, not conflict a. Some see economics as a form of conflict 2. Economics is an exchange a. Voluntary interaction b. Participants many not be happy that they have to pay, but they rather have the good/service than the money. II. Comparative Advantage A. Trade and why it is beneficial 1. Assumptions: Trade is voluntary and enforceable property rights B. Economics is the size of the pie, while politics is how much of the pie you get. 1. Fight over pie is now secondary 2. Major goal is to create resources III. Example of comparative advantage A. Two countries in this imaginary world ----- Japan and the United States B. They can each only produce only two goods ----- airplanes and automobiles C. In Graph 1, Japan has the absolute advantage in this trade scenario.
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