Cohn GPE Questions

Cohn GPE Questions - Cohn Questions Chapter One Cohn...

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Cohn Questions Chapter One Cohn, Chapter 1: Questions 1-3 1) What is IPE and why do IPE scholars criticize some economists and political scientists? What is the relationship between the state and the market. IPE is concerned with interaction between the state, a sovereign territorial unit, and the market, a coordinating mechanism where buyers and sellers exchange goods and services at prices determined by supply and demand. o State pursues power and market pursues wealth, generally. Some IPE scholars accuse economists of economism – focusing too much on economics and too little on politics. Political scientists accused of politicism – the inverse problem. Relationship marked by inherent tension between state and market because the market’s association with economic openness and the removal of state barriers pose a threat to state sovereignty. Also important to IPE is state interaction with multinational corporations. 2) What is the 2008 global financial crisis, and what are some of its causes? The worst financial meltdown since Great Depression. Resulted in significant increase in unemployment rates and major reductions in the value of pension funds. Most immediate cause was subprime mortgage crisis in US housing market. o Subprime mortgages are mortgages granted to people who don’t qualify for regular mortgages at market interest rates. With these people now able to buy houses starting in the 1990s, the increased demand for housing led to a building boom, eventually resulting in oversupply of houses and collapse of home prices in mid- 2006. o Subprime mortgages started coming up for renewal at higher interest rates than before and borrowers could no longer afford to make payments. Became a global crisis because subprime mortages had been repackaged and sold to investors all around the world. Other underlying causes: o Inadequate regulation of banks o Imbalance in financial relations between borrowers and savers. o American monetary/fiscal policies allowing Americans to borrow too much and live beyond their means. 3) What is the importance of theory and what are some of the main theoretical perspectives in IPE? Without theory we can’t asses the broader implications of statistical and factual studies. Main theoretical perspectives o Realism (economic nationalism) Realists consider state to be primary national actor in international relations. IR is a self-help system without a centralized authority in which states must build up their power or form alliances to prevent being dominated by others. IR seen as a zero-sum game: one state’s gain is another’s loss.
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Focus on relative gains rather than absolute ones. o
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This document was uploaded on 10/26/2011 for the course PLIR 2050 at UVA.

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Cohn GPE Questions - Cohn Questions Chapter One Cohn...

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