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

4. # 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

6. #2 The IMS 1. About the IMS -Currency -GDP  measures of monetary wealth

7. #2 The IMS 2. Interdependence In 2011, $410.6 T flowed through the system http://www.joneslanglasallesites.com/gcf/wp-content/uploads/2011/08/GlobalCapitalFlowQ4.pdf http://www.joneslanglasallesites.com/gcf/wp-content/uploads/2011/08/GlobalCapitalFlowQ4.pdf ~$1.1 T/ per day 60% of global capital through 4 cities

8. #1 London #2 NYC #3 Paris #4 Tokyo

9. # 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%

11. # 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

12. #3 The ITS 2. Interdependence Goods & Services http://stats.oecd.org/index.aspx?queryid=167 1913$20 Billion 2011$4.15 Trillion

13. Merchandise Trade U.S., Germany, China = 28% world total Asia = 30% world total No African state < $250 B http://www.wto.org/english/res_e/statis_e/its2011_e/its11_world_maps_merchandise_e.pdf

14. Service Trade U.S., Germany, UK, China, Japan = 33% world total Europe= 45% world total Only 2 African states < $25 B http://www.wto.org/english/res_e/statis_e/its2011_e/its11_world_maps_serv_e.pdf

15. #3 The ITS 3. Western Dominated Colonization GS  primary goods Uneven trade GATT  WTO Trade as political tool Economic sanctions Iran http://www.bbc.co.uk/news/business-19800532

17. # 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’

18. # 4 II & IF 2. Interdependence FDI, FPI  WWII Investment  not evenly distributed, EEsEEs http://www.economist.com/node/21543571

19. # 4 II & IF 3. Western Dominated Gross Corporate Product (GCP) Post-WWII US hegemony Top 500 MNCs  80% GN80% GN

20. 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 http://money.cnn.com/magazines/fortune/global500/2011/full_list/ http://www.businessinsider.com/25-corporations-bigger-tan-countries-2011-6?op=1

22. # 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 http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita

23. # 5 IPE & the GS Economic Development General development issues Corruption Health Infrastructure http://hdr.undp.org/en/statistics/hdi/

24. Political Candidate Symbols in the Fez, Morocco Race

25. Thai jungle irrigation system

26. Solar cells on Turkish apartment buildings

27. Guatemalan landscaper

28. Electrical lines in Lima, Peru

29. Internet Café, Belize

30. Central Market, Cambodia

31. Bronze shop, Morocco

32. Hauling goods & people in Thailand

33. Harvest transport, Peru

35. # 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)