1. International political economy Political determinants of international economics How do changes in intern.distr.of power impact the international trade system? Is 3 rd world conditions domestically or internationally determined?

2. Central debate in IPE Between realists and liberals Liberals focus on incentives and opportunities for cooperation Realists focus on how power influences the international economic interactions

3. Liberalism acc.to Krasner Multitude of actors All actors are rational and calculating- different actors have different power capabilities IR offer opportunities for everyone to win- absolute gains vs.relative gains

4. Variants of liberalism in IR theory Functionalism-Mitrany Neofunctionalism-Haas Transactionalism-Deutsch Transnationalism-Keohane and Nye Cooperation theory-Keohane, Axelrod

5. Explanatory variables for liberalism and realism Liberalism-configuration of interests and capabilities associated with a given issue area-outcomes are a function of the preferences and capabilities of a variety of different actors concerned with max.utility Realism-distribution of power among states-explain the system and behaviour of individual states

6. Future of IPE Liberalism predicts an increasingly integrated global economy-benefits all Liberalism predicts consolidation of universal international rules of the game Realism predicts emergence of regional blocs Realism predicts specific reciprocity with states focusing on immediate gains-not long term

7. IPE’s impact on IR approaches Major problem is the divide between domestic and international problems in IR IPE attempts to bridge this gap-integrate IR and comparative politics Examines the impact of the international system on domestic groups Examines how variations in domestic politics impact foreign policy choices