• Lack of legitamate authority
• no one has international monopoly on force

Core Assumptions

• international system is anarchic
• states have power
• states are unaware of other states intentions
• state preferences are survival and self interest

• relative gains matter
• weak states form alliances and seek balance of power

• money can be transformed into power by buying weapons and allies

• Distribution of power and serving interest of powerfull states
• realist use institutions to create international sercurity when there is a common interest

• not much because state interest are determined by structure of international system
• realist only care about international system

• Domestic politics matter
• States have different preferences don't have to be security
• absoute gains matter more than relative gains
• Difference from realism Agency matters

• Institutions foster Cooperation by monitoring, sharing info, communication
• provide or enforcement or institutionalze reciprocity
• can make gains from comercial cooperation
• can promote issue linkage

• States have different preferences
• Image matters
• types of governments matter

• Stage 1 (Feudal)- landlords and surfs merge to form merchan class
• Stage 2 (merchant/capitalist)- merchant class and proletariate
• Stage 3 (dictatorship)- Proletatriate roots out vestages of capitalism brings socialism then communism (classless society)

Law of Marxist Motion

(Law Disproportionality)

• Overproduction and underconsumption
• more and more things produced no one can buy, less labor, less production, less consumption

Law of Marxist Motion

(Law of Falling rate of Profit)

Law of Marxist Motion

(Law of concentration of capital)

• Instead of class exploitation you have exploitation of poor states and rich states
• Dual economy- developing countries import finished goods and export primary goods
• developing countries get locked into under development 

• improvement in production technology
• Decrease in regulation 
• increased mobility of capital
• Movement of people
• decrease in cost due to improved transportation and technology

• Firms negotiate directly with states for things like tax breaks
• Developing countires fight for their share of globilization pie

• Government/Region with sovreingty- absolute power over law making and enforcement within a specified territorial area
• Unitary actor- one person speaks for state

• States create institutions
• non economic state interest can impact global politcal econ
• ex. not allowing any trade or allowing all trade

• states want to maximize utility
• wealth, security/power, exploitation, stability, cooperation

• made up of government entities
• ex. UN, IMF, World Bank, E.U., NATO

• at first primarily a security orginization to prevent war

• 5 permanent members US, UK, Russia, France, and China
• Authority to use legit force internationally
• Economic Sanctions- restrict trade, financial flows, and movement of people

• WTO- trade
• IMF- Currency
• WB- Finance

• IGOs provides rules and regulation
• IGOs can make processes of IPE permanent or valid
• If IGOs have their own interest they can shape direction of IPE

Multinational Cooperations

(MNCs)

• Enterprise that engages in foreign direct investment and that was or controls value activities in one or more country

• MNC- has a parent firm and a home country
• TNC- stateless firm

• Large firms in terms of revenue, employment, etc.
• They not only sell abroad, but have signifcant assets abroad
• captial, labor, technology/production
• Centralized decision making or Global HQ
• Horizonatally or vertically integrated across countries 

1. Inovation of product in home market expansion leads to surplus exports

2. As product grows technology diffuses others try and enter foreign market, set up production overseas to pre-empt competition

3. Commodinization- everyone makes it -> all production goes overseas and exports back to home country

• MNCs acount for 75% of innovation in the worlds civilian tech
• MNCs acount for 66% of global trade in manufactored goods
• Increase flow of Federal domestic income to world stimulating employment, infrastructure, productivity, growth, external econ
• Conversely, decrease domestic investment, repatriation of profits, monopolistic threats, social concerns (labor, stability)

• relational power- power to lobby and influence policy change
• structural power- setting limits of what is feasable

• Less restriction so they can bargain directly with states without internal resistance
• governments intefere with markets getting rid of uncertainty

Non Governmental Orginizations (non profit)

(NGOs)

1. developing and disseminating info and or providing expertise to influence policy

• lobbying public, advocacy, name sharing, setting agenda

2. Implementing polcies or aid efforts

• international volounteer orginizations often not politcal (ex. Doctors without Borders) 

3. Civil disobedience (ex. Peta Hackers

• can be indivduals or groups
• low or high entry barriors

• extensive growth- growth due to population expansion
• intensive- real increase more than pop expansion some inputs get more output
• population increase by 22x
• Emergence of global market economy
• Voyage of discovery to asia and Americas

• states should organize and drive economic action
• Aquire wealth (gold, silver, bullion) to build state -> fuel frequent wars, and aquire more colonies
• wealth necessary for power

• After 1730 rise of chemical power
• taste and preferences led to external trade
• International exploits- property rights/taxes/ lower transaction cost (contract enforcement)
• British consittutional Monarchy unique in world

• In the short run Hegemons have archived security, so not concerned with relative gains and instead focus on absoloute gains
• Preponderance of power- provides secutiry throught out the system

1. Rule Establishment- especially with trade and finance as global public good because it is in hegemonic individual interest in doing so
2. Foster policy consistency between states trhough leadership
3. Macro element management as lender of last resort

• Return of higher protection in Europe and continued higher protection US and Russia. British markets stay open

• Britain starts gold standard in 1819 and other countries move to gold standard in 1870s
• Britai accumulates large account surplus and invest surplus abroad

• 1918-1924-> Instability floating exchange rates and hyperinflation in Europe
• 1925-1931-> Restore gold standard
• 1930 US passes Smoot Hawley tarrfis and 23 other countries follow suit
• 1931-1933-> Great depression colapse of gold standard. In UK floating exchange rates, rise of protection, and colapse of free trade
• 1933-1940 path to war

• US banks promote monitary stabilization in Europe
• Daws loan from US to Germany to support repayments France and Germany who were indebted to US