Economic Determinants of Foreign Policy

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Presentation transcript:

Economic Determinants of Foreign Policy

Economics and IR Theory Marxism Realism – Mercantilism Liberal Theory – Laissez Faire or Complex Interdependence

Economics Drives Foreign Policy? Imperialism MNCs Dependency Economic driver of development Military-Industrial Complex Availability of Resources Overpopulation Economic Interdependence

Models of Political Economy Economic Liberalism – Liberal Theory Socialism – Marxism Economic Nationalism – Realism, Mercantilism

The US Economy Good News/ Bad News

Trade History of Trade Relations Bretton Woods - Gold Standard Subsidies GATT WTO US responsibility

Foreign Aid National interest v. Economic need US is generous or greedy? Security Commitments trump the aid budget

Economic Sanctions Do they work? Who do they hurt? Multilateral v. Unilateral