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CHAPTER 1
WHAT IS INTERNATIONAL POLITICAL ECONOMY?
Overview
As in previous editions of this textbook, Chapter 1 introduces students to the study of
International Political Economy (IPE). We discuss how IPE combines and juxtaposes political,
economic, and sociological concepts and ideas to paint a more comprehensive and compelling
explanation of global processes than that offered by any single social science discipline. We
acquaint students with the “levels of analysis” concept, four major frameworks of analysis
(neoliberalism, mercantilism-realism, structuralism, and constructivism), and five “IPE
structures” (production, trade, security, finance, and technology). These tools help students
describe and explain a variety of policy issues. The conclusion provides students a broad
summary of the text’s main points and includes some of the authors’ views on issues covered in
the following chapters.
One of the themes that ties together many chapters is the way in which U.S. president Donald
Trump and other nationalist-populist leaders are tearing apart the post-World War II world order.
The end of the Cold War was followed by robust global economic growth and reduced tensions
promote more political rights and liberties, greater access to education, protection of the
environment, and rights of immigrants has also begun shrinking.
Factors fostering these developments include: the revolution in communications tools; efforts to
spread “fake news” and hack communications systems; the rise in support for “alt–right” (anti–
immigrant) parties; and efforts to undermine democratic political systems. National-populist
leaders have also adopted similar tactics to promote their authority while attacking liberal values
and institutions such as the judiciary. At the same time, many market actors, international
institutions, and political elites are fighting to preserve the liberal world order from growing
threats.
Key Terms
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regime
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international political economy
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economic liberalism
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globalization
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mercantilism
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realism
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nation
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state
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global governance
Teaching Tips
• Key terms are highlighted where they first appear in a chapter, and they are listed at the end of
every chapter and formally defined in the glossary at the end of the book. Most of the
highlighted terms are widely used in IPE, refer to key concepts and processes, or identify
important institutions. We urge instructors to hold students responsible for understanding
these terms. In addition, students should be expected to learn the names of government leaders
and political economists who are prominently discussed in the textbook (along with the ideas
and policies associated with them).
• At the end of Chapter 1 we offer four teaching suggestions. Questions 1 and 3 could be the
basis of a short (1-2 page) essay. After the first class, have students choose an article about an
international issue from a major newspaper and analyze it using a level of analysis, an IPE
analytical perspective, or one of the five IPE structures. Students can hand in their essays for
extra credit or have peers read them. If time allows, have a student read his or her paper to the
understand, let alone appreciate, especially at the introductory level. In general, we encourage
instructors to routinely make references to the levels of analysis, perspectives, and structures
and to apply them throughout the course.
• We strongly encourage instructors to assign essay questions to students, even if the class is a
large one of more than 50 students. In classes lasting a quarter there could be two 3-page
essays; if a class lasts a full semester it is easier to assign a 4-5 page paper two or more times.
Essays challenge students to think through a problem, both theoretically and in terms of
policy. Students can be given a choice of essay topics that focus on some of the major issues
in the chapters. For instance, an essay might ask students to consider the argument that
structuralist ideas are not very useful any more since the downfall of the Soviet Union. Ask
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them to use evidence in the chapters and in newspapers and journal articles to support and
counter this argument. Encourage students to be very conscientious about levels of analysis,
different IPE perspectives, how we frame questions, what data we look at, and what we expect
to find.
• It is important to provide students with essay guidelines that include criteria the instructor will
use in grading their work. Guidelines should include at least:
o The need for a problem statement or main argument near the beginning of the essay
and a conclusion that matches the thesis statement.
• We strongly recommend that instructors encourage students to regularly read a newspaper or
news magazine as a way of reinforcing what they learn in class and expanding their
knowledge of international affairs. Recommended sources include the New York Times, the
Washington Post, the Guardian, the Wall Street Journal, and the Economist. Perhaps take a
few minutes at the beginning of each class to highlight current international events.
• A good subject for class discussion is the proliferation in Europe of laws restricting the
wearing of certain religious clothing and symbols in public and at the workplace. Ask
students if they think governments should have the right to place restrictions on what people
wear in public places. Do students think that these restrictions are specifically targeting
Muslims? Do students think that employers should be able to prevent employees from
wearing necklaces with visible religious symbols?
• Instructors may want to discuss why “fake news” has become such a phenomenon in recent
years. Ask students about different sources of news that they read regularly. Ask them what
they consider to be reliable and unreliable domestic news sources, and why. What foreign
sources of news do they consider credible or unreliable, and why? What measures would
they recommend, if any, to reduce the likelihood that “fake news” will reach a large
audience?
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Sample Essay Questions
1. Pick a recent news article dealing with an IPE topic and identify the different levels of
analysis (individual, state/societal, interstate, OR global) that help explain the main issue the
article deals with. Somewhere in the essay explain how much the levels of analysis help you
understand the issue.
2. Why do Balaam and Dillman think that the international order established after World War II
is threatened? What trends do they point to suggesting that this order is weakening?
3. How do detractors of President Trump characterize his personal disposition and personality
traits? Explain the extent to which Trump’s behavior impacts the global political economy.
4. What evidence is there that democracy and liberal values in Europe, the United States, and
Turkey are threatened? In what ways might these fears be overblown? Include in your essay
a statement about the extent to which IPE helps you explain this issue.
Sample Multiple-Choice Questions
1) Which of the following is mismatched?
a) hard power: military weapons
d) Donald Trump
d) The U.S.-North Korea summit in Singapore: the interstate level
4) Which of the following statements related to IPE perspectives is incorrect?
a) Liberal economic values were the basis of the globalization campaign.
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5) A scholar studying how climate change, free trade, and changes in technology constrain the
choices of political elites is focusing on which level of analysis?
a) The individual level
6) Which of the following is not a factor that would be considered at the state/societal level of
analysis?
7) Which of the following is not usually regarded as typical of a populist-authoritarian political
leader?
a) Attacks on the press and journalists
8) In which of the following European countries in late 2017 did the largest populist party hold
only a handful of seats in the national parliament?
a) Hungary
9) Which statement about European laws on the wearing of religious clothing in public is
incorrect?
a) Bulgaria has banned the wearing of the full-face veil in public.
10) U.S. president Donald Trump has promoted all of the following policies except
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d) pulling the United States out of the Paris Accord on climate change.
Suggested Readings and Links
Acharya, Amitav. “After Liberal Hegemony: The Advent of a Multiplex World Order.” Ethics &
International Affairs 31:3 (Fall 2017): 271-285.
Eichengreen, Barry. The Populist Temptation: Economic Grievance and Political Reaction in the
Modern Era. New York: Oxford University Press, 2018.
Guillén, Mauro F. Rude Awakening: Threats to the Global Liberal Order. Philadelphia, PA:
University of Pennsylvania Press, 2018.
McCoy, Alfred W. In the Shadows of the American Century: The Rise and Decline of US Global
Power. Chicago, IL: Haymarket Books, 2017.
Project Syndicate. Has many short opinion pieces by scholars (especially economists) on global
affairs. At https://www.project-syndicate.org/.
ni, Ziya. “The Age of Anxiety: The Crisis of Liberal Democracy in a Post-Hegemonic Global
Order.” The International Spectator 52: 3 (2017): 18-35.
Sorensen, Georg. Rethinking the New World Order. New York: Palgrave Macmillan, 2016.
Strange, Susan. States and Markets: An Introduction to International Political Economy. New
York: Basil Blackwell, 1988.
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Waltz, Kenneth N. Man, the State, and War: A Theoretical Analysis. New York: Columbia
University Press, 1959.
Audiovisual Resources
People’s Century. A co-production of the BBC and WGBH Boston, 1990-1999. A 26-part
television series tracing the history of the 20th century. Different episodes, especially those
covering the post-WW II era, can be assigned to help provide students important historical
background.
Trump/Russia. ABC Australia, producer. 2018. Three episodes.