1. What is International Political Economy?

2. #1 The International Monetary System

3. About the IMS Currency exchange GDP measures of monetary wealth
GDP per capita- dev. level
Country
GDP (IMF 2018)
GDP p/c in PPP(IMF 2018)
United States
$20.5 T (1)
$59,495 (11)
China
$13.5 T (2)
$16,624 (79)
Japan
$5 T (3)
$42,659 (28)
Germany
$4 T (4)
$50,206 (17)
India
$2.7 T (7)
$7,714 (122)
Nigeria (1st non-EE GS)
$400 B (31)
$5,927 (129) EU
$19.1 T
$38,370 (32-bt. SP & IT)

4. China’s Income Distribution

5. 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
2018- $5.3 T exchanged source
~$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

6. #1 London #2 NYC #5 Tokyo #3 Singapore #4 Hong Kong

7. IMS: GN Domination Bretton Woods Agreement (1944) Colonization
Post WWII US Goals
Democracy, allies, capitalism
Bretton Woods Agreement (1944)
Int’l Monetary Fund (IMF)
Stability
World Bank (WB)
Development

8. Europe Tries to Compete
European Union (1992)
28 members
Brexit- U.K. votes to leave =27
Adoption of euro (1999)
19 members
Global recession – (2008)
Eurocrisis – (2010)

9. #2 The International Trade System

10. 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

11. ITS: Interdependent Global trade flows Outsourcing Offshoring
3rd party
Offshoring
Abroad
Reshoring
Returning
Goods & Services ;
1913
$20 Billion
= $55,000/ day
2017
$17.43 Trillion
= >$47.75 B/day
Barcelona, Spain

12. ITS: Trade Pacts Why countries trade How they trade
Bilateral
EU-Japan, Canada- UK, US- EU
Multilateral 
USMCA (was NAFTA), WTO, etc.
How do trade deals affect you?
Cheaper imports
More product choices
Standardized products
One converter

13. ITS: Trade Pacts & Issues
Jeep Billboard in Shanghai
What pacts do
Fight protectionism
Challenges
Trade disputes
US-SK washing machines link
WTO dispute mechanism link
500 complaints; Ruled on 350+ cases
Recent rulings
US tariffs on steel from India, China
Chinese tariffs on US cars

14. ITS: Trade Issues What’s up with cheesemakers?
Denomination of origin = proprietary name
When is ‘manchego’ really ‘manchego’?
Spain wants to own the name
Mexico says it’s generic
How does this issue affect trade?
Dispute slowing EU-MX trade update
Viewed as trade barrier
SP wants sole use
Belgium 1996

15. ITS: GN Advantage Colonization Uneven trade Rising role of EEs
GS Primary goods
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
Who gets the most FDI?
Not even

20. II & IF: GN Domination Post-WWII US hegemony Top 500 MNCs- Who?
 Where?
Gross Corporate Product (GCP)
Rank
Country
# of top
500 MNCs 1 US
132 2
China
109 3
Japan 52 4
France 29 5
Germany 28

21. Economic Sanctions

22. 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

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