1. Interaction between economics and politics
Source:
IPE
Interaction between economics and politics

2. Approaches Look at LDCs vs EDCs Prescriptive vs. descriptive
3 main approaches:
Economic nationalist
Economic internationalist
Economic structuralist

3. Economic Nationalist
State should use its economic strength to further national interests
Realist
Imperialist/Neoimperialist
Economic incentives/disincentives
Protectionist

4. Economic Internationalist
International economics can and should be cooperative with prosperity available to all
Liberal
capitalism, laissez-faire, free trade
Keynes: IMF, World Bank, GATT

5. Structuralist Economic structure determines politics
What does the world look like?
Further refinements:
Marxist
World systems/Dependency theory

6. North vs South World Bank (IGO) statistics: World Bank projects:
10 things you should know
World Bank projects:
What does the world look like?

7. Trade Goods vs. Services Balance of Trade
Source: back/2004/569/toonjb.jpg
Trade
Goods vs. Services
Balance of Trade
Trade has expanded exponentially:
Supply/Demand
Technology
Politics
Trade is uneven/growth unfair

8. World trade growth vs. GDP

9. What you export matters

10. Global Information: Trade statistics from US gov’t
Global Statistical maps
from nationmaster

11. International Monetary Policy
Financial Institutions
Currency
FDI vs. FPI
Exchange rates
Source: Dana Deluca, Initiative for Policy Dialogue
Region FDI 1990 ($B) FDI 2001
Latin America
South, East, and SE Asia
West and Central Asia
Central and Eastern Europe
Africa
This growth across regions masks the high concentration of FDI to developing nations. In 2001, about 62% of inward FDI to developing countries went to five countries: China, Mexico, Brazil, Hong Kong, and Poland.

12. Growth in IMF loans

13. MNCs: Top 10 things
Source:
1. Of the 100 largest economies in the world, 51 are now global corporations; only 49 are countries.
2. The combined sales of the world's Top 200 corporations are far greater than a quarter of the world's economic activity.
3. The Top 200 corporations' combined sales are bigger than the combined economies of all countries minus the biggest 9; that is they surpass the combined economies of 182 countries.
4. The Top 200 have almost twice the economic clout of the poorest four-fifths of humanity.
5. The Top 200 have been net job destroyers in recent years. Their combined global employment is only 18.8 million, which is less than a third of one one-hundredth of one percent of the world's people.
6. Not only are the world's largest corporations cutting workers, their CEOs often benefit financially from the job cuts.
7. Japanese corporations have surpassed U.S. corporations in the ranking of the Top 200.
8. Over half of the sales of the Top 200 are in just 5 economic sectors; and corporate concentration in these sectors is high.
9. When General Motors trades with itself, is that free trade?: One-third of world trade is simply transactions among various units of the same corporation.
10. The Top 200 are creating a global economic apartheid, not a global village. The top eight telecommunications firms, for example, have been expanding global sales rapidly, yet over nine-tenths of humanity remains without phones.

14. Free Trade or Not? PRO Increased wealth CON Specialization/Efficiency
Source:/
Free Trade or Not?
PRO
Increased wealth
Specialization/Efficiency
Competition
New capital
World cooperation/less conflict
Greater democracy
CON
Domestic economy vulnerable
Diversification
Environment
Sovereignty
National security
Policy tool
Interactive exercise: Rourke