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 -Currency -GDP  measures of monetary wealth

#2 The IMS 2. Interdependence In 2011, $410.6 T flowed through the system ~$1.1 T/ per day 60% of global capital through 4 cities

#1 London #2 NYC #3 Paris #4 Tokyo

# 2 The IMS 3. Western Dominated Colonization Post WWII US Goals Support allies Institutions International Monetary Fund (IMF) World Bank (IBRD was 1st) GN currencies = more buying power Big Mac Index Big Mac (ave. cost) % of income U.S.$4.20<.01% India$1.623%

# 3 The ITS 1. About the ITS 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. Interdependence Goods & Services $20 Billion 2011$4.15 Trillion

Merchandise Trade U.S., Germany, China = 28% world total Asia = 30% world total No African state < $250 B

Service Trade U.S., Germany, UK, China, Japan = 33% world total Europe= 45% world total Only 2 African states < $25 B

#3 The ITS 3. Western Dominated Colonization GS  primary goods Uneven trade GATT  WTO Trade as political tool Economic sanctions Iran

# 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. Interdependence FDI, FPI  WWII Investment  not evenly distributed, EEsEEs

# 4 II & IF 3. Western Dominated Gross Corporate Product (GCP) Post-WWII US hegemony Top 500 MNCs  80% GN80% GN

RankCompany 1Wal-Mart Stores 2Royal Dutch Shell 3Exxon Mobil 4BP 5Sinopec Group 6China Nat’ l Petroleum 7State Grid 8Toyota Motor 9Japan Post Holdings 10Chevron # 4 II & IF 3. Western Dominated (cont.) MNCs’ power Wal-Mart: Top for 2 nd year GCP of $421.8 B in 2011 = 24 th state GDP

# 5 IPE & the GS GS =Emerging Economies & Lesser Developed Countries Poorest in Africa GDP p/c = $750 (ave. of 10 poorest) Burundi, Congo, Somalia = $200 GDP p/c

# 5 IPE & the GS Economic Development General development issues Corruption Health Infrastructure

Political Candidate Symbols in the Fez, Morocco Race

Thai jungle irrigation system

Solar cells on Turkish apartment buildings

Guatemalan landscaper

Electrical lines in Lima, Peru

Internet Café, Belize

Central Market, Cambodia

Bronze shop, Morocco

Hauling goods & people in Thailand

Harvest transport, Peru

# 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)