1. GO131: International Relations Professor Walter Hatch Colby College Economic Power

2. Old Debate over Economic Power Mercantilism versus Liberalism

3. Mercantilism 16 th to 18 th centuries Gold and Silver Bullion = State Power X > M

4. Neo-Mercantilism 19 th century economic philosophy Germany (Friedrich List), U.S. (Alexander Hamilton), and Japan (Ministry of Commerce and Industry) Promote and protect manufacturing

5. Commercial Liberalism Eighteen and nineteenth centuries David Ricardo and Adam Smith Gains from trade via specialization

6. Comparative Advantage TVsBeerAutarky Ratio Country A1 hour per unit 3 hours per sixpack 1 B: 3 TVs Country B2 hours per unit 4 hours per sixpack 1 B: 2 TVs

7. Heckscher-Ohlin Theory

8. Laissez-Faire

9. So …Why do governments still intervene in markets? Classical liberals: domestic politics Realists: relative gains

10. Hegemonic Stability (Neo-Realism)

11. Neo-liberal Institutionalism

12. The International Economic Order: Fair or rigged? Realists and liberals don’t care Marxist theorists do Leninism Dependency Theory Modern World System Theory