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Unformatted text preview: Prompt 1 Conflict seems a persistent feature of economic relations between sovereign states. Yet only rarely does the international political economy break down into outright economic warfare. How can this be explained? Address the reasons for conflict in international economic relations as well as the different approaches that governments have used to try to cope with the challenge of system governance. Illustrate your answer with examples drawn from the past history and current circumstances of at least two of the issue areas: trade, money, economic development. The interwar period is perhaps the best example of what is considered economic warfare (Monetary as well as trade) Much of this was due to the collapse of the Classical gold standard and the rise of protectionist policies (such as the Smoot Hawley Tariff). During the Classical gold standard each national currency was freely convertible into gold, allowing for an international monetary system of fixed exchange rates between countries. After WWI countries attempted to go back to the Gold Standard, but at exchange rates between countries....
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This note was uploaded on 06/06/2010 for the course POL S 186 taught by Professor Cohen during the Winter '10 term at UCSB.
- Winter '10