International Economics And World Politics - 1789 Words

Introduction: The lives of people are impacted by international economics and world politics. What is an International Political Economy? The international political economy is how economics and politics intertwine. â€Å"These are both very important aspects of international relations and have become more important internationally in recent years because of increased levels of trade, economic interdependence between countries, and the growing impact of international economics on domestic economics.†( International Politics P.312) How are Economics and Politics interconnected? International economics and world politics are interconnected and economic factors like trade and tariffs, economic growth or recession, fluctuating or stable currency†¦show more content†¦The North is a creditor, the South is a debtor. The North has a low population growth and high living standards where as the South has a high population growth and low living standards due to poverty. The North has political stability where the South has political instability. The North has many multinational corporations, and the South has multinational corporations from outside the LDC’s. The North has a developed structure for banking and education and the South has a weak structure and weak systems and institutions. The North has regional cooperation and moderate nationalism, and the South has regional conflict and very harmful nationalism. The North has surplus goods and services, where as the South has subsistent economic systems. The North has mostly democracies, and the South has mostly dictatorships. This gap seems to still exist between the North and the South countries, and in some cases it seems to have even grown. B. Explain how the widening gap can be narrowed?†¨ The widening gap can be reduced through several factors. The first of these factors is increased trade, it is obvious that in most places in which people live, international trade is evident in the things that we use everyday. This affects our immediate environment, provides us with improved technology, and most resources. It is impossible to relate international politics and economics without considering and accounting for their mutual contributions, and trade plays such a major