PLS 220 Chapter 9 Summary

PLS 220 Chapter 9 Summary - PLS 220 - Chapter 9 Summary...

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PLS 220 - Chapter 9 Summary Chapter 9 Summary I. Introduction Economic globalization describes the international political economy of 2010. Goods and services are produced and traded globally. A global “virtual” world ties us together through new technology. New technologies and economic ties also lead to the decreasing territorialization of daily life. II. The Evolution of the International Economy: Clashing Ideas and Practices The era from the late Middle Ages to the end of the eighteenth century saw a number of key changes in technology, ideas, and practices. European explorers opened up new frontiers in the Americas, Asia, and Africa. The exchange of good and people tied the colonies and the home states together. Adam Smith wrote of the idea that human are rational and self-interested. To Smith, markets develop through individual, rational action. Markets need to be free from government action to function properly. Mercantilism (statism) was the common practice of many governments at the time. Mercantilism’s goal is to build economic wealth to build the power of the state. Jean-Baptiste Colbert (1617-83) argued that states should accumulate gold and silver as well as build a strong central government. Alexander Hamilton (1757-1804) made similar arguments in the United States. From the start of the nineteenth century to World War I colonialism expanded greatly. During the same period the states of Europe industrialized. Industrialization was spurred by technological change Economic links in global trade were followed by political and cultural domination by the industrial states. Britain acted as a hegemon to promote a more peaceful world order. The “Pax Britanica” is an example of hegemonic stability theory. A large, dominant state provides collective goods to the global system. Radicalism emerged in this period as a response to the excesses of the time. Based in the teaching of Marx and others, radicalism attacked the inequalities of the time. Radicals argued that society was conflictual. 1. Conflict was focused on competition between groups. 2. Owners of wealth versus workers Radicals argued that the state would support the owners of wealth. The holders of capital must expand their markets and the capitalist system until it embraces the entire world. 1. This pressure for expansion creates tensions and creates the seeds of the destruction of the system as a whole. After the end of World War II, we enter the most recent phase of internationalization The 1930s saw the spread of harmful “beggar thy neighbor” policies that shut off international trade At the end of World War II, the goal was to create a new system that could prevent the disaster of the 1930s. The post-World War II system sought to promote the following:
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PLS 220 Chapter 9 Summary - PLS 220 - Chapter 9 Summary...

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