The 4 Most Important Things about IPE 1. What IPE is 2. The IMS 3. The ITS 4. II & IF 5. IPE & the GS

# 1 What IPE IS IPE= 3 Parts 1. International Monetary System Currency exchange 2. International Trade System Exchange of goods & services 3. International Investment & Finance Funds invested abroad How funds affect states’ economies

#2 The IMS 1. About the IMS Measures of monetary wealth of countries Gross Domestic Product (GDP) Gross National Product (GNP)

# 2 The IMS 2. IMS is interdependent In 2011, $410.6 T flowed through the system That’s about $1.1 T/ per day 60% of global capital through 4 cities  London  New York  Paris  Tokyo

# 2 The IMS 3. IMS is Western Dominated Colonization Post WWII US Goals Institutions International Monetary Fund (IMF) Structural Adjustment Plans (SAPs) 1 st World Bank institution- IBRD Support Western allies GN currencies = more buying power Big Mac Index India-$117/mo. ; BMcosts $1.62= ~ 3% of income

# 3 The ITS 1. About the International Trade System Exchange of goods & services 2 types of trade 1. Merchandise trade Primary goods Foods, fuels, fibers, minerals, water Manufactured goods Processed 2. Service trade

#3 The ITS 2. ITS is Interdependent 3 countries accounted for >1/4 of world merchandise trade in 2010world merchandise trade Merchandise flow (p.3) Merchandise flow 5 countries accounted for 1/3 of world service trade in 2010world service trade Goods & Services $20 Billion 2011$4.15 Trillion

#3 The ITS 3. ITS is Western Dominated Colonization GS focus on primary goods Uneven trade GN & Emerging Economies dominate GATT  WTO Trade as political tool Economic sanctions Policies Iran sanctions bite, but will they work?

# 4 II & IF 1. About II & IF Foreign Direct Investment (FDI) MNCs Control assets  $$$ Foreign Portfolio Investment (FPI) Stocks, bonds, etc Earn dividends Countries’ ‘checking accounts’

# 4 II & IF 2. II & IF is Interdependent FDI and FPI increased since WWII $1.5 T FDI in 2011FDI Investment is not evenly distributed Investment

# 4 II & IF 3. II is Western Dominated Measured in Gross Corporate Product (GCP) Value of goods & services revenues for one year Product of post-WWII US hegemony Top 500 MNCs  80% GN80% GN

# 4 II & IF 3. II is Western Dominated MNCs rival states in power Wal-Mart: top for 2 nd yeartop for 2 nd year GCP of $421.8 B in 2011 Would be 24 th largest economy in world MNCs ranked with countries

# 5 IPE & the GS GS =Emerging Economies & Lesser Developed Countries Africa has poorest countries in the world US (GDP per capita=ranks 10th) at ~$46,500 Average GDP per capita of poorest at $750 Burundi, Congo, Somalia at $200 GDP per capital

# 5 IPE & the GS Development Factors & Economy Human Development Index Health and income over 200 years Corruption and transparency

Thai jungle irrigation system

Solar cells on Turkish apartment buildings

GS landscaper

Hauling goods & people

Spice market, Morocco

Central Market, Cambodia

# 1 What IPE IS 3 Main IPE Parts 1. International Monetary System Currency exchange 2. International Trade System Exchange of goods & services 2 types of trade 1. Merchandise trade Primary goods Manufactured goods 2. Service trade 3. International Investment Foreign Direct Investment (FDI) Foreign Portfolio Investment (FPI)