International Political Market in today's world

Since the 15th century, numbers of IR theories have been shaped and development. Among that, there are four major ideas which have deeply used into IR review and today world explanation namely Realism, Liberalism, International Political Current economic climate (IPE), and International Modern culture. Some theories were applicable in the past period only, but some still have a concrete justification to the current world's styles. However, I think IPE is the most acceptable theory which best make clear today world. As we can easily see among all the classes of International Studies that people are taking, IPE is recognized as one subject for measurement. Therefore, it shows the importance and the actual of this theory. In other word, it is the most appropriate theory to make clear today world.

The world today is the world of political current economic climate (Jackson & Sorensen, 2007). Everyone face this. Whenever we are buying and selling products in market, it is considered as one kind of financial activities already. However, is politic involved with this activity? The answer is of course yes. All of the products that are brought to the market are subject matter of taxation which is set by government. Administration can play its political role in whether increasing the taxes or reducing it. In addition, politic entails in current economic climate such as consumer safeguard, investment regulation, working condition, ect. Therefore, politics economy exists all around the world today. Thus I said that it is the most satisfactory theory to explain the present world.

International political overall economy is about the study of problems that happen from or are influenced by the interaction of international politics, international economics, and various communal systems (e. g. , capitalism and socialism) and societal communities (e. g. , farmers at the neighborhood level, different ethnic communities in a country, immigrants in a region) (international politics economy, 2010). Relating to Jackson and Sorensen (2007), International Political Market is about a modern market which is based on political guidelines, and political rules and regulations constitute a framework within which the market functions.

Indeed, there are three main theories of IPE particularly mercantilism, Economic Liberalism, and Marxism which the primary idea of the ideas is integration between politics and overall economy together. They may be hardly separated. In one word, the globe is a politics market. However, in here, I am not heading to give attention to each theory but rather its main idea, political current economic climate.

As above meaning has already been pointed out, the main process of IPE is politic and current economic climate which are linked together.

The traditional IPE includes evaluation of the political economy of international trade, international funding, North-South relations, multinational companies, and hegemony (Veseth). Nevertheless, I will raise only three subjects to go over in this newspaper, international trade, international fund, and multinational organizations or regional integration. North-South relation and hegemony were best described during the frosty war period.

In international trade, areas and non-states stars often use trading as a foreign insurance policy tool to get nationwide interest (Diamantis & Roukanas, 2010; Veseth). For instance, state needs transfer because not only simple trading activities, but it relates to security as well such as importing weapons or other sustains and materials to increase expresses' capacities in military services defense (Veseth). Moreover, as we can see the true example from Cambodia in joining WTO in 2004, its goal is to increase trading activities internationally while Cambodia has to show its determination through some reforms on judicial system and polices such as creating special commercial judge and creating forty seven new regulations and regulation to be able to satisfy WTO's requirements (Chea & Sok). Besides, the boundary dispute between Thailand and Cambodia is using trade as a international policy too. For instance, Cambodia has declared and warned Thailand that Cambodia would close its boarder and restricted all Thai products to import to Cambodia. Cambodia was using financial tool in trade for political stableness. Additionally, on trading activities between claims, they often use embargo and high tariff to ban some products to find yourself in their own countries. This is a policy which uses to protect local production. For instance, United Stated has prolonged another 47 years trade embargo in Cuba until there is a political reform (Voss, 15 Sept 2009). Japan enforced 778% tariff on rice in order to protect its local creation (Yamashita, 19 Febuary 2010). In short, Nations have frequently enforced transfer and export controls for both monetary and armed forces reasons (Veseth).

The IPE of International Fund includes research of exchange rate policies, foreign exchange systems, international capital actions, particularly stock portfolio capital and credit debt flows, and the international and domestic institutions and political structures to that they related (Veseth). For example, China's exports have been bolstered by its policy of keeping its money, known as the renminbi or yuan, pegged at a almost fixed rate to the money (Bradsher, 8 Apr 2010). In other term, China is keeping depreciating its money to be able to increase export. China becomes an extremely competitive rival of U. S. , and it includes recinded United State governments' market shares in foreign market. If we look from political perspective, China is wanting to make use of its national insurance policy to increase export for balancing with the United States in trading activities. In addition, the purpose of creating single currency in Europe Union, Euro is to ensure steady currency with low inflation and low interest, and eradication exchange cost, deal expenses, and facilitate international trade (European Commission). On the other hand, it also implicates politics goal behind that. The Euro would bind Germany permanently to its European Union partners and prevent its target from moving towards Central and Eastern Western european relations (Veseth). This means creating boundary for Germany which the concern is resulted from the frigid war alliance. Besides, Bretton Woods which agreements designed a global financial system built after a dollar-gold standard was created to manage world funding. However, USA had been playing its political functions toward international affairs through this organization. In August 1971, U. S. Chief executive Richard Nixon declared the "brief" suspension system of the dollar's convertibility into platinum which designated the breakdown of Bretton Woods establishment, IMF (IMF). Bretton Woods financial system is that monetary arrangements create politics obligations which can be subject to politics manipulation (Veseth).

Since the cool war, multinational co-operation has become increasingly more popular. IPE scholars have asserted the discussion that U. S. and western-based international businesses were linked with their governments by a low profile handshake (Veseth). As we have known because the cold conflict, there are several of cooperation and regional integration such as ASEAN, European union, NAFTA, MERCOSUR, and SADC. Claims cooperate and integrate for monetary development with the implication of politic behind the sense. States create regional integration to become more desirable to investment and aid development donor (Krapohl, April 2008). For example, ASEAN has established numbers of preferential trade agreements and polices to help capital flow to be able to get more international direct investment to the region such as AFTA. FDI inflows to ASEAN in a global context above the 1995-2005 period has increase triple from 1995 to $916 billion in 2005. By subscribing to ASEAN, some poor country says such as Cambodia and Laos have grabbed the international attention for assisting help or loan for development. Furthermore, regional bloc can increase more powerful words on international level for bargaining especially in WTO which poor areas can demand for more advantageous trade agreement for development (Krapohl, April 2008). It is some sort of collective security to have a stronger electric power in international community. Furthermore, regional integration really helps to be more appealing to bilateral or multilateral contracts too. As country states links jointly by local or global cooperation like that, it is not hard to spread impact if one country is facing both monetary and politics instability. For instance, the dispute between North and South Korea has trapped a lot of attention from international community. The U. S. and China has also involve in that issue, which dispute also create some shaking to international economical as well especially on funding market.

In conclusion, the planet today can be an international political current economic climate. Even though super electricity or small and poor says are relating in international trade with the effect from politic. International Political Overall economy is a mindful switch towards understanding issues of riches and poverty; of who gets what in the international system (Aston, 2004). Economic outcomes more often than not have politics implications. Economic regulations are determined by politic because different insurance policy selections generally have varying results on the syndication of wealth or the economic outputs (Walter & Sen, 2009). In short, IPE is the idea which best explain the globe today.

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