Global political economy is recognition of the need to properly study the interaction of the economy and the state for a better understanding of society. This concept is concerned with the way that governments intervene in the state’s economy and the implications that this has, and the role the government plays. Study into this relationship has given birth to conflicting theories from liberals and Marxists. The ideas of Liberalism in the global economy emerged in 18th- and 19th- century Britain alongside the Industrial Revolution. This liberal outlook offered a new analysis of economic nationalist by arguing that protectionism and restriction of economic activity were actually impoverishing states.
The person wants the state’s traditions to stay stagnant as it will lead to individuals with initiative to come out on top. The source, regarding the issue of the status quo in society, is a belief that connects to conservatism. Classical Liberalism is rooted in liberalism, meaning that the basic principles of democracy are behind their ideas in benefitting society. The intentions of conservatives are to provide opportunities through a private enterprise economy. The system highly encourages the ideals of individualism.
Capitalism is an economic-political system where the individual and economic freedom is considered primary compulsion for the country 's development. Unlike other economic systems which eclipses the freedom of the market, it creates an environment for self-regulating market system. The ensuing essay focuses on capitalism as the best economic system. It gives a general idea about other economic systems like socialism, communism and fascism in brief and compares and points out the advantages of capitalism over these systems. The essay casts light upon both the pros and cons of the capitalism but takes a positive position and defends the notion of capitalism as the best economic system with arguments which are supported by suitable facts and figures.
states are in Anarchy. 3) Neoclassical Realism: The actions of the states in international politics cannot be explained just through human nature and system, it needs methodical variables- distribution of power and threats from other states as well as domestic institutes. Liberalism: Liberalism is another leading theory in International relations. According to liberals, states are in anarchical system and there is a perception of pluralism of other actors that play important role in international politics and policies. Liberals also emphasizes on mutual welfares of the states and international collaboration.
Heckscher-Ohlin Theory Comparative advantage comes up from differences in national factor endowments, such as land, labour, or capital, as opposite to Neoclassical trade theory which stresses productivity of products being produced for consumption. This theory suggest that the country should focus on exporting products using its scarce resources and brings across a free trade principle where goods will be moving freely without any trade barriers implying that this would make flow of resources in and out more demand and more supply will increase the country’s economy(Eli Heckscher 1919 &Bertil Ohlin1933). 2.4. New Trade Theory Achievement of economies of in 1970’s scale, trade can increase the different sorts of goods available for consumption and those goods can be in a decreased affordable price. Further, the ability to capture economies of scale before anyone else is an important first-mover advantage.
But the political agenda of providing a common foundation for world governance throughout the world does exist, if only for the sake of the ideal of free trade. As mentioned above, the theory of economic liberalism has a theory of public goods as an imperfect substitute for a theory of the state, and one can at least imagine a similar approach to the discussion of international relations. In short, if a liberal theory of international relations is to apply the theory of the domestic market economy to the international economy, then the suppliers of public goods who are tacitly assumed to exist in the domestic economy should also be assumed to exist in the international economy. The mainstream of existing theory on international relations has in fact ignored this necessary requirement. However, we must consider the question of public
1. Introduction Public choice or public choice theory means the use of economic tools to deal with traditional problems of political science, it also tries to explain how public decision are made. It is directed towards the study of politics based on the economic principles. The public choice theory is a strong variant of the rational choice theory. The theory is concerned with the provision of so-called public goods, goods that are delivered by government rather than the market, because, as with air, their benefit cannot be withheld from individuals who choose not to contribute to their provision.
Individual freedom and social equality are equally important. In modern history, individual freedom and social equality are seen as two forces in continuous tension. If a government wants to guarantee one of them, it has to suppress the other. These two forces have been represented in politics by two big ideologies: liberalism and communism. Individual freedom is the core of liberalism, while social equality is the core of communism.
It means that capitalism eviscerates liberalism and creates neoliberalism which is technical rationality for its own purposes. Capitalism sees us as a quantities, now we measure the value of our lifes as quantities (money, interests,likes) rather than qualities. Neoliberalism not only harms the substance of the democracy but also devalues the human body and soul by seeing the humans as a quantities. We are not political animal anymore that negocicate, deliberate, compromise like Aristo once said, we are now economic animal that try to buy politics with
When the society is full of such occurrences undoubtedly a means of achieving the legitimate boundaries become evident and then people try to stabilize such a society where there is everything on a fair basis. The evolution of the Fair trade originated from such backgrounds and the below written is an eye opener to such facets in the society of modern economy and trade. It illustrates what economy is and what a countries economy is and how the economy and trade are bound to one another with the difference of nation’s races and ethnic