1. What is International Political Economy?

2. #1 The International Monetary System

3. About the IMS Int’l Monetary Fund (IMF), World Bank (WB)
Currency exchange
Int’l Monetary Fund (IMF), World Bank (WB)
WB = Development
IMF = Stability
GDP measures of monetary wealth
GDP per capita

4. Country
GDP (IMF 2016)
GDP per capita (IMF 2016)
United States (1)
$18.57 T
$57,400 (14)
China (2)
$11.22 T
$15,400 (81)
Japan (3)
$4.7 T
$38,894 (30)
Germany (4)
$3.49 T
$48,190 (19)
India (7)
$2.25 T
$6,658 (126) EU
$17.1 T
$35,604

5. China’s Income Distribution

6. Calculations based on IMF data 2015 and 2016 Big Mac Index
IMS: Buying Power
How money works
Purchasing Power Parity (PPP)
Compare currency values
Currency exchanges
2013- $5.3 T exchanged
~$14.5 B/ per day
Top 5 city currency exchange centers?
Big Mac (ave. cost)
Could Buy
Abroad
U.S.
$4.93
11,028 Big Macs
28,616 Big Macs in India
India
$1.90
895 Big Macs
345 Big Macs in U.S.
Calculations based on IMF data 2015 and 2016 Big Mac Index

7. #1 London #2 NYC #5 Tokyo #4 Singapore #3 Hong Kong
also see

8. IMS: GN Domination Created IGOs Colonization Post WWII US Goals
Democracy, capitalism
Created IGOs
Bretton Woods Conference -1944
IMF, WB

9. Europe Tries to Compete
European Union – 1992
Expansion- 28 members
Brexit- U.K. votes to leave= 27
Adoption of euro -1999
19 members
Global recession
Eurocrisis – 2010

10. #2 The International Trade System

11. About the ITS GN- services EEs- mix GS- primary
Exchange of goods & services
2 types of trade
Merchandise trade
Primary goods
Raw foods, fuels, fibers, minerals, water
Manufactured goods
Processed
Service trade
GN- services
EEs- mix
GS- primary

12. ITS: Interdependent Global trade flows Outsourcing Offshoring
3rd party
Offshoring
Abroad
Reshoring
Returning
Goods & Services
1913
$20 Billion
= $55,000/ day
2013
$18.3 Trillion
= $50 B/day
Barcelona, Spain

13. ITS: Trade Pacts Why countries trade How they trade
Bilateral
China- Japan, Canada- UK, US- EU
Multilateral 
NAFTA, WTO, etc.
How do trade deals affect you?
Cheaper imports
More product choices
Standardized products
One adapter

14. ITS: Trade Pacts What pacts do Challenges WTO’ dispute mechanism
Jeep Billboard in Shanghai
What pacts do
Fight protectionism
Challenges
WTO’ dispute mechanism
Ruled on 450+ cases
Recent rulings
US tariffs on steel from India, China
Chinese tariffs on US cars

15. ITS: GN Advantage Colonization GS Primary goods Uneven trade
Cash crops
Uneven trade
Rising role of EEs
Bigger economy = more leverage

16. #3 The International Investment & Finance

17. About II & IF Int’l Finance Countries’ ‘checking accounts’ Debits
Credits

18. About II & IF Int’l investment Funds invested abroad 2 ways:
1) Foreign Direct Investment (FDI)
MNCs
Control assets $$$
2) Foreign Portfolio Investment (FPI)
Stocks, bonds, etc.
Earn dividends

19. II & IF: Interdependent
FDI, FPI  WWII
U.S.  MNCs invest abroad after war
Most FDI  China, US EEs, EU
Not even

20. II & IF: GN Domination Post-WWII US hegemony Top 500 MNCs 80% GN
Gross Corporate Product (GCP)
Rank
Country
# of top
500 MNCs 1 US
134 2
China
103 3
Japan 52 4
France 29 5
Germany 28

21. Economic Sanctions

22. Economic Sanctions What are they? IMS, ITS, II Why are they used?
Boycott, embargo, aid, assets, etc.
IMS, ITS, II
Why are they used?
Political sanctions
Embassy, travel, sports, etc.

23. Economic Sanctions (cont.)
Effectiveness
U.S.  Cuba
E.U., U.S.  Russia
Global, unilateral
Iran
N. Korea /

24. NK Trade & Workers 90% of NK trade is w/ China NK workers
~35% of NK’s GDP
Rejected $1M coal shipment
NK workers
Earn in China, Russia, ME, Poland, Uruguay
Most goes to NK gov’t
Goods exported to US

25. Sanctions & NK UN Resolution China’s concerns Shared border
Missile tests
Assassinated brother
Trade

26. Recap

27. IPE Recap IPE: 3 Sectors Monetary System Trade System
Investment & Finance
Economic Sanctions