International Politics, Week 4 of Notes
International Politics, Week 4 of Notes PSC 1003
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This 5 page Class Notes was uploaded by Jaimee Kidd on Friday February 5, 2016. The Class Notes belongs to PSC 1003 at George Washington University taught by Talmadge in Spring 2016. Since its upload, it has received 35 views. For similar materials see Introduction to International Politics in Political Science at George Washington University.
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Date Created: 02/05/16
The Expansion of World Trade in the 19 Century th Trade existed in the 17 and 18 centuries but was heavily monitored and regulated by government o As it became more economical to trade, governments competed to have control over trade Mercantilism o Dominant view of trade at this time: trade as a zerosum contest Explains why there were tariffs and regulations on trade o Emphasis on the hoarding of gold Reason why people would sell more than they would buy to thus hoard gold, allowing for resources to be built such as armies because of their accumulating wealth Challenges to Mercantilism o Adam Smith, Wealth of Nations, 1776 Wealth is not about how much gold you have Instead, wealth is about a nation’s productive capabilities Nations should trade, just as people do Specialization and division of labor If we don’t do this it’s inefficient, mercantilist ideas are harmful to the economy Ricardo and Comparative Advantage o Principles of Political Economy, 1817 o Trade is beneficial as long as nations have different comparative advantages Absolute advantage is irrelevant Lower opportunity costs (alternative production foregone) comparative advantage o Countries should do what they do best relative to other things they do Not compared to what other countries to, instead just focus on what they do best Ex. A country without a large oil supply, should not base their exports on oil, instead, find something they personally have a large supply of o Specialization and division of labor o Sources of comparative advantage? Endowments: Land, Labor, Capital The Rise of Free Trade in Europe British Repeal of Corn Laws, 1846 o Restrictions on agricultural imports o Richard Cobden and the AntiCorn Law League Argues against this set of laws Economist magazine formed to lobby against the corn laws o Who was in Support of the corn laws? Those in charge of farmers—the elites who would benefit from limiting the price competitions o The Great Reform Act of 1832 Takes power away from elites to working class who would benefit form cheaper food o Famine in Britain and Peel’s decision to repeal o Gladstone (Prime Minister) full liberalization by 1860 CobdenChevalier Treaty of 1860 o Reciprocal trade reforms o Most favored nation status Additional agreements after Britain and France Agreement will never be as good as the one they made incentive to expand trade Web of trade treaties The Gold Standard o Stable international monetary system o Britain links currency to fixed amount of gold, 1819 £100 = 22 ounces gold o Others follow Including US, 1873 o Adopted essentially as a way to make trade easier and less tricky Clear prices No foreign exchange losses RESULT: Massive expansion in trade and investment British Hegemony o Economically dominant state o Key feature of international structure o Hegemonic stability theory Powerful state economic cooperation, liberalization o Nice v Nasty Nice- global trading orders facilitate trades, etc. Nasty- coerce other states to trade for their own benefit The Spread of Liberal Ideas Smith, Ricardo, others Impact of Ideas? o “Switchmen” for interests (Weber) ideas are basically the switchmen (someone who changes the direction of the tracks for the trains) that determine the tracks on which people travel Windowdressing for interests International: UK relations with France o Geopolitical interest for Britain to stabilize trade Domestic: sectorial shifts o Shifts in relative power of certain industries in countries Domestic Political Support for Free Trade Free trade beneficial in aggregate (nation) Sectorial effects vary (different industries) Owners of input used in exporting v importing—competing industries Britain o Agricultural interests v manufacturers and workers France o Agriculture, iron, steel, v silk and wine US o Northeastern textiles, iron, steel v southern cotton and tobacco WANT FREE TRADE WANT PROTECTIONALISM Globalization and Imperialism Before 1914 The First Era of Globalization Globalization o The increasingly free movement of goods, people, and capital across national borders Rising Trade, Investment, Immigration o Spread of free trade, adoption of gold standard o Technological innovations in communication and transportation o Foreign investment, foreign banks growing o Movement of people out of Europe into New world The Backlash Against Globalization o Marriage of iron and rye Result of agriculture and iron/steel workers looking for protection of these products Bismarck’s 1879 Tariff French, US Tariffs Industrial north doesn’t want free trade Agricultural south wants it Continued British Free Trade Imperialism o Imperialism before this time by Britain was more towards the interest of open trade routes and access to markets; now they are starting to be interested in full political authority over these territories o Britain: From Informal to Formal Control “Informal Empire” trade routes, open ports, and gunboat diplomacy self governing territories “Formal Empire” India and Rebellion, 1857—The Sepoy Rebellion o East India Company couldn’t hand the rebellion so they asked British government to help, military helps take over India and thus a transition from informal to formal rule Egypt and Instability, 1882 o Egypt was having financial issues, selling shares of the Suez Canal to keep themselves afloat, the Egyptian regime falls and France and Britain decide to take over the entire Suez canal backlash, but they essentially occupy Egypt Other states look at this and fear Britain’s growing greed o Set off scramble for Africa as insecurities and competition rise Cecil Rhodes: An Empire from Cape Town to Cairo Why did Imperialism Happen? Was Imperialism Rational? o Rationality means… Weighing costs and benefits to determine utility Stabile ranking of goals over time (though strategies to achieve goals can change) Stable risk acceptance Using available information o Economic Benefits? Minimal at best in aggregate Sectorial interests benefit: bankers, military, press 2 image: no unitary actor Imperialism economically nonrational for states but rational for actors within states o Security Benefits? Instability abroad and British formal control Worry other powers in Europe And cause spirals of fear and expansion Very similar to Peloponnesian War o Worried about potential difference in power and acquisition of allies (SECURITY DILEMMA) Imperialism did not bring security benefits but wasn’t necessarily non rational o The Idea of Empire Honor, glory, prestige Racism and the “civilizing” mission Religion patriotism, nationalism Changes the way actors calculate costs and benefits
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