SlideShare a Scribd company logo
1 of 34
Download to read offline
208-Geopolitics & World
Economic Systems
UNIT1:
1. Introduction to Global Economic &
political Systems: Meaning of Global
Economy and its History Structure and
Components of Global Economy, Theory of
Hegemonic Stability, Differences among
National Economies, Market Oriented
Capitalism, Developmental Capitalism, Social
Market Capitalism, Comparative Analysis,
Effects of Globalization on Indian Economy
Geopolitics is a term which was first used in 1899 by Rudolf
Kjellen. It`s first meaning was a combination of geography
and political interests.
At that time, people believed there was a strong
connection between physical land and politics. The first
people who worked on geopolitics were from nations
who had build empires.
Therefore, their understanding was based on the relationship
between the center of the empire and colonies.
The empire was based on international trade, production of
goods and taxes and other resources brought from the
imperial colonies
Introduction to Global Economic &
political Systems:
Kjellen (Swedish citizen, 1864-1922) was the first who coined the concept of
Geopolitics in 1899 (Cohen, 2003), defining it as: “the theory of the state as a
geographical organism or phenomenon in space”
In 1993, Peter Taylor wrote that the revival of Geopolitics had taken shape in three
ways:
“…geopolitics has become a popular term for describing global rivalries
in world politics.”
“…the second form…is an academic one, a new more critical
geopolitics. Critical historiographical studies of past geopolitics have
been a necessary component of this ‘geographer’s geopolitics’.”
“…the third form…is associated with the neo-conservative, pro-military
lobby which have added geopolitical arguments to their ‘Cold War
rhetoric’. Such studies talk of ‘geopolitical imperatives’ and treat
geography as ‘the permanent factor’ that all strategic thinking must
revolve around.”
Gottman defines geopolitics as “the influence of
geographical factors on political action”
• Physical geography: relates to the surface of the earth
• Cultural geography: relates to human interaction w/h
the land (language, religion, economics)
There is a relationship between the two
• Theories: abstractions that are systematically developed
and convincing
• Geopolitical actors: international organisations and nation-
states
• Deterritorialisation: doing away with territory
• Reterritoralisation: creation of new territory – redefining
Politics and Markets
○ Role of the state in liberal democracies: to induce
economic performance
○ Pluralist Approach
▸ The state is a neutral arena
▸ Actors have varying particular interests
▸ State has no intrinsic interests
▸ The study of politics is about government processes
○ Class Approach
▸ There are common class interests
▸ The ruling class controls the agenda
▸ It implements policy
▸ Thereby reducing popular influence
Silk roads (1st century BC-5th century AD, and
13th-14th centuries AD)
For the first time in history, luxury products from China started to appear on the
other edge of the Eurasian continent – in Rome.
Spice routes (7th-15th centuries)
Islamic trade in those Middle Ages were spices.
Age of Discovery (15th-18th centuries)
Aided by the discoveries of the so-called “Scientific Revolution” in the fields
of astronomy, mechanics, physics and shipping, the Portuguese, Spanish
and later the Dutch and the English first “discovered”, then subjugated,
and finally integrated new lands in their economies.
Introduction to Global Economic &
political Systems:
First wave of globalization (19th century-1914)
By the end of the 18th century, Great Britain had started to dominate the
world both geographically, through the establishment of the British
Empire, and technologically, with innovations like the steam engine,
the industrial weaving machine and more.
The world wars
In the years between the world wars, the financial markets, which were still
connected in a global web, caused a further breakdown of the global
economy and its links. The Great Depression in the US led to the end of
the boom in South America, and a run on the banks in many other
parts of the world. Another world war followed in 1939-1945. By the end
of World War II, trade as a percentage of world GDP had fallen to 5% –
a level not seen in more than a hundred years.
Introduction to Global Economic &
political Systems:
Second and third wave of globalization
The end of the World War II marked a new beginning
for the global economy. Under the leadership of a
new hegemon, the United States of America, and
aided by the technologies of the Second Industrial
Revolution, like the car and the plane, global trade
started to rise once again. At first, this happened in
two separate tracks, as the Iron Curtain divided the
world into two spheres of influence. But as of 1989,
when the Iron Curtain fell, globalization became a
truly global phenomenon.
Introduction to Global Economic & political Systems:
Globalization 4.0
In a world increasingly dominated by two global
powers, the US and China, the new frontier of
globalization is the cyber world. The digital
economy, in its infancy during the third wave of
globalization, is now becoming a force to reckon
with through e-commerce, digital services, 3D
printing. It is further enabled by artificial intelligence,
but threatened by cross-border hacking and
cyberattacks.
Introduction to Global Economic & political Systems:
UUUU
Meaning of Global Economy and its History Structure and Components of
Global Economy
Meaning of Global Economy and its History Structure and Components of
Global Economy
Those who organize & sustain it
–States & governments
–International organizations & associations
•Those who play a role in it
–Capitalists & investors
–Int’l financial institutions (IFIs)
–Production managers
–Consumers
–Labor
•Those marginal but connected to it
–The global poor, small farmers
–Grey & black marketeers
•Transborder flows of goods, information, money, people &
other things
What is included in the “global
economy”
Theory of Hegemonic Stability
Hegemonic Stability Theory
• Central Idea: The stability of the International System requires a
single dominant state to articulate and enforce the rules of
interaction among the most important members of the system.
• To be a Hegemon, a state must have three attributes:
– The Capability to enforce the rules of the system;
– The Will to do so;
– A Commitment to a system which is perceived as mutually
beneficial to the major states.
• Capability rests upon three attributes:
– A large, growing economy;
– Dominance in a leading technological or economic sector;
– Political power backed up by projective military power.
The Historical Record
• Portugal 1494 to 1580 (end of Italian Wars to Spanish invasion of
Portugal) Based on Portugal's dominance in navigation
– Hegemonic pretender: Spain
• Holland 1580 to 1688 (1579 Treaty of Utrecht marks the foundation of the
Dutch Republic to William of Orange's arrival in England) Based on Dutch
control of credit and money
– Hegemonic pretender: England
• Britain 1688 to 1792 (Glorious Revolution to Napoleonic Wars) Based on
British textiles and command of the High Seas
– Hegemonic pretender: France
• Britain 1815 to 1914 (Congress of Vienna to World War I) Based on British
industrial supremacy and railroads
– Hegemonic pretender: Germany
• United States 1945 to 1971 Based on Petroleum and the Internal
Combustion Engine
– Hegemonic pretender: the USSR
What does the Hegemon Do?
The system is a collective good which means that it is
plagued by a "free rider" syndrome. Thus, the hegemon
must induce or coerce other states to support the system
The US system tries to produce democracy and capitalism,
thus it champions human rights and free trade.
Other nations will try to enjoy the benefits of these institutions,
but will try to avoid paying the costs of producing them.
Thus, the US must remain committed to free trade even if
its major trading partners erect barriers to trade. The US
can erect its own barriers, but then the system will
collapse.
What does the Hegemon Do?
• Over time, there is an uneven growth of power within
the system as new technologies and methods are
developed. An unstable system will result if economic,
technological, and other changes erode the
international hierarchy and undermine the position of
the dominant state. Pretenders to hegemonic control
will emerge if the benefits of the system are viewed as
unacceptably unfair.
study of the different types of national economies or “national
systems of political economy” and their significance for the
global economy has become an important aspect of the
study of international political economy
While national systems of political economy differ from one
another in many important respects, differences in the
following areas are worthy of particular attention:
(1) the primary purposes of the economic activity of the nation,
(2) the role of the state in the economy, and
(3) the structure of the corporate sector and private business
practices.
Differences among National Economies
The purpose of economic activity in a particular
country largely determines the role of the state in
that economy. In those liberal societies where the
welfare of the consumer and the autonomy of the
market are emphasized, the role of the state tends
to be minimal.
Although liberal societies obviously differ in the extent
to which they do pursue socialwelfare goals, the
predominant responsibility of the state in these
societies is to correct market failures and provide
public goods.
Differences among National Economies
On the other hand, in those societies where
more communal or collective purposes
prevail, the role of the state is much more
intrusive and interventionist in the economy.
Thus, the role of such states can range from
providing what the Japanese call
“administrative guidance” to maintaining a
command economy like that of the former
Soviet Union.
Differences among National Economies
Capitalism, as I define the term, is an indirect system of governance
based on a complex and continually evolving political bargain in
which private actors are empowered by a political authority to own
and control the use of property for private gain subject to a set of
laws and regulations.
Workers are free to work for wages, capital is free to earn a return, and
both labor and capital are free to enter and exit from various lines of
business.
Capitalism relies upon the pricing mechanism to balance supply and
demand in markets; it relies on the profit motive to allocate
opportunities and resources among competing suppliers; and it relies
upon a political authority (government) to establish the rules and
regulations so that they include all appropriate societal costs and
benefits.
Market Oriented Capitalism
The key institutions that form the foundation of a
market-oriented economy are:
1. Private Property: Private individuals, rather than
governments, are the primary owners of resources,
goods, and other assets.
2. Individual Freedom: Those who own resources,
goods, and other assets have the freedom to use
their property as they see fit.
3. Competitive Markets: Market are used to exchange
privately owned commodities and to answer the
three questions of allocation.
Market Oriented Capitalism
○ Consumer sovereignty exists in the economy i.e.
producers produce those goods only that are
○ wanted by the customers.
○ Extreme competition exists in the market between
firms which uses tools like advertisement and
○ discounts to call customer attention.
○ The profit motive is the key component; that
encourages people to work hard and earn wealth.
,, Differences among National Economies, Market
Oriented Capitalism, Developmental Capitalism, Social
Market Capitalism,

More Related Content

What's hot

Theories of international trade
Theories of international tradeTheories of international trade
Theories of international trade
nisaa89
 
GLOBALIZATION IN INDIA
GLOBALIZATION IN INDIAGLOBALIZATION IN INDIA
GLOBALIZATION IN INDIA
Shashank Singh
 
Commodity agreements
Commodity agreementsCommodity agreements
Commodity agreements
Ravi Karthik
 
International Trade Theory : Absolute Advantage Theory
International Trade Theory : Absolute Advantage Theory International Trade Theory : Absolute Advantage Theory
International Trade Theory : Absolute Advantage Theory
Machiraju Presentations Pvt. Ltd.
 

What's hot (20)

Safta
SaftaSafta
Safta
 
Lecture 1 introduction to international trade
Lecture 1 introduction to international tradeLecture 1 introduction to international trade
Lecture 1 introduction to international trade
 
SAFTA - South Asian Free Trade Area
SAFTA - South Asian Free Trade AreaSAFTA - South Asian Free Trade Area
SAFTA - South Asian Free Trade Area
 
International Business Management full notes
International Business Management full notesInternational Business Management full notes
International Business Management full notes
 
World trade in goods and services – major trends and developments
World trade in goods and services – major trends and developmentsWorld trade in goods and services – major trends and developments
World trade in goods and services – major trends and developments
 
UNCTAD
UNCTADUNCTAD
UNCTAD
 
Theories of international trade
Theories of international tradeTheories of international trade
Theories of international trade
 
Regional Economic Integration and International Business
Regional Economic Integration and  International BusinessRegional Economic Integration and  International Business
Regional Economic Integration and International Business
 
Functions of wto
Functions of wtoFunctions of wto
Functions of wto
 
Regional economic integration for developing countries
Regional economic integration for developing countriesRegional economic integration for developing countries
Regional economic integration for developing countries
 
Free trade agreement by India
Free trade agreement by IndiaFree trade agreement by India
Free trade agreement by India
 
Regional trade agreements
Regional  trade agreementsRegional  trade agreements
Regional trade agreements
 
Unit 3 international strategic management
Unit 3 international strategic managementUnit 3 international strategic management
Unit 3 international strategic management
 
Trade Agreements
Trade AgreementsTrade Agreements
Trade Agreements
 
International monetary system
International monetary systemInternational monetary system
International monetary system
 
GLOBALIZATION IN INDIA
GLOBALIZATION IN INDIAGLOBALIZATION IN INDIA
GLOBALIZATION IN INDIA
 
International business: THEORIES OF INTERNATIONAL TRADE
International business: THEORIES OF INTERNATIONAL TRADEInternational business: THEORIES OF INTERNATIONAL TRADE
International business: THEORIES OF INTERNATIONAL TRADE
 
Commodity agreements
Commodity agreementsCommodity agreements
Commodity agreements
 
International Trade Theory : Absolute Advantage Theory
International Trade Theory : Absolute Advantage Theory International Trade Theory : Absolute Advantage Theory
International Trade Theory : Absolute Advantage Theory
 
Mint Parity theory of Exchange rate determination
Mint Parity theory of Exchange rate determinationMint Parity theory of Exchange rate determination
Mint Parity theory of Exchange rate determination
 

Similar to 208 - Geopolitics & World Economic Systems UNIT 1

GLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paper
GLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paperGLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paper
GLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paper
amita marwaha
 
Historical And Contemporary Overview Of GlobalizationIntroductio.docx
Historical And Contemporary Overview Of GlobalizationIntroductio.docxHistorical And Contemporary Overview Of GlobalizationIntroductio.docx
Historical And Contemporary Overview Of GlobalizationIntroductio.docx
pooleavelina
 
Economics Assignment Help
Economics Assignment HelpEconomics Assignment Help
Economics Assignment Help
Online
 
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docxChapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
keturahhazelhurst
 
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docxChapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
zebadiahsummers
 
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docxChapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
bartholomeocoombs
 
Economics and International Relations
Economics and International RelationsEconomics and International Relations
Economics and International Relations
Austin Lee
 

Similar to 208 - Geopolitics & World Economic Systems UNIT 1 (20)

global trend Chapter 3.pptx
global trend Chapter 3.pptxglobal trend Chapter 3.pptx
global trend Chapter 3.pptx
 
gl chapter 3.pptxffgedgtggeefgygeertgg4r
gl chapter 3.pptxffgedgtggeefgygeertgg4rgl chapter 3.pptxffgedgtggeefgygeertgg4r
gl chapter 3.pptxffgedgtggeefgygeertgg4r
 
International Business Politics
International Business PoliticsInternational Business Politics
International Business Politics
 
Global education and current trends from social abstract for the paper
Global education and current trends from social abstract for the paperGlobal education and current trends from social abstract for the paper
Global education and current trends from social abstract for the paper
 
GLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paper
GLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paperGLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paper
GLOBAL EDUCATION AND CURRENT TRENDS FROM SOCIAL-abstract for the paper
 
THE_CONTEMPORY_WORLD_1-2_Weeks.pptx
THE_CONTEMPORY_WORLD_1-2_Weeks.pptxTHE_CONTEMPORY_WORLD_1-2_Weeks.pptx
THE_CONTEMPORY_WORLD_1-2_Weeks.pptx
 
Historical And Contemporary Overview Of GlobalizationIntroductio.docx
Historical And Contemporary Overview Of GlobalizationIntroductio.docxHistorical And Contemporary Overview Of GlobalizationIntroductio.docx
Historical And Contemporary Overview Of GlobalizationIntroductio.docx
 
Economics Assignment Help
Economics Assignment HelpEconomics Assignment Help
Economics Assignment Help
 
Global Trends Chapter-3.pptx
Global Trends Chapter-3.pptxGlobal Trends Chapter-3.pptx
Global Trends Chapter-3.pptx
 
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docxChapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
 
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docxChapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
 
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docxChapter 10Political EconomyChapter Objectives1. Describe the r.docx
Chapter 10Political EconomyChapter Objectives1. Describe the r.docx
 
The Globalization of World Politics: An Introduction to International Relations
The Globalization of World Politics: An Introduction to International RelationsThe Globalization of World Politics: An Introduction to International Relations
The Globalization of World Politics: An Introduction to International Relations
 
ABOUT_THE_BOOK
ABOUT_THE_BOOKABOUT_THE_BOOK
ABOUT_THE_BOOK
 
The Contemporary World: The Globalization of World Politics
The Contemporary World: The Globalization of World PoliticsThe Contemporary World: The Globalization of World Politics
The Contemporary World: The Globalization of World Politics
 
Pol2_014757.pptx
Pol2_014757.pptxPol2_014757.pptx
Pol2_014757.pptx
 
PHILOSOPHY OF PUBLIC ADMINISTRATION
PHILOSOPHY OF PUBLIC ADMINISTRATION PHILOSOPHY OF PUBLIC ADMINISTRATION
PHILOSOPHY OF PUBLIC ADMINISTRATION
 
Roland Vaubel Why Europe should not be centralised
Roland Vaubel Why Europe should not be centralisedRoland Vaubel Why Europe should not be centralised
Roland Vaubel Why Europe should not be centralised
 
Economics and International Relations
Economics and International RelationsEconomics and International Relations
Economics and International Relations
 
Chapter 2 market globalism
Chapter 2 market globalismChapter 2 market globalism
Chapter 2 market globalism
 

More from ASM's IBMR- Chinchwad

108INDIANECONOMY.pdf
108INDIANECONOMY.pdf108INDIANECONOMY.pdf
108INDIANECONOMY.pdf
ASM's IBMR- Chinchwad
 
Import Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdfImport Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdf
ASM's IBMR- Chinchwad
 
International Business Environment.pdf
International Business Environment.pdfInternational Business Environment.pdf
International Business Environment.pdf
ASM's IBMR- Chinchwad
 
103 Economic Analysis for Business Decisions mcq bhati
103 Economic Analysis for Business Decisions mcq bhati103 Economic Analysis for Business Decisions mcq bhati
103 Economic Analysis for Business Decisions mcq bhati
ASM's IBMR- Chinchwad
 

More from ASM's IBMR- Chinchwad (20)

M.B.A. 206 FIN PERSONAL FINANCIAL PLANNING(OCT 2022).pdf
M.B.A. 206 FIN PERSONAL FINANCIAL PLANNING(OCT 2022).pdfM.B.A. 206 FIN PERSONAL FINANCIAL PLANNING(OCT 2022).pdf
M.B.A. 206 FIN PERSONAL FINANCIAL PLANNING(OCT 2022).pdf
 
MBA 206 FIN PERSONAL FINANCIAL PLANNING APRIL 2023.pdf
MBA 206 FIN  PERSONAL FINANCIAL PLANNING APRIL 2023.pdfMBA 206 FIN  PERSONAL FINANCIAL PLANNING APRIL 2023.pdf
MBA 206 FIN PERSONAL FINANCIAL PLANNING APRIL 2023.pdf
 
108 INDIAN ECONOMYUnitwise QuestionBank.pdf
108 INDIAN ECONOMYUnitwise QuestionBank.pdf108 INDIAN ECONOMYUnitwise QuestionBank.pdf
108 INDIAN ECONOMYUnitwise QuestionBank.pdf
 
108INDIANECONOMY.pdf
108INDIANECONOMY.pdf108INDIANECONOMY.pdf
108INDIANECONOMY.pdf
 
Import Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdfImport Export Documentation and Procedures.pdf
Import Export Documentation and Procedures.pdf
 
301strategic management.pdf
301strategic management.pdf301strategic management.pdf
301strategic management.pdf
 
International Business Environment.pdf
International Business Environment.pdfInternational Business Environment.pdf
International Business Environment.pdf
 
Ibe307 unit4b
Ibe307 unit4b Ibe307 unit4b
Ibe307 unit4b
 
international business environment
international business environment international business environment
international business environment
 
Deloittle placement orinteation
Deloittle placement orinteationDeloittle placement orinteation
Deloittle placement orinteation
 
103 Economic Analysis for Business Decisions mcq bhati
103 Economic Analysis for Business Decisions mcq bhati103 Economic Analysis for Business Decisions mcq bhati
103 Economic Analysis for Business Decisions mcq bhati
 
208 - Geopolitics & World Economic Systems MCQ 23
208 - Geopolitics & World Economic Systems MCQ 23208 - Geopolitics & World Economic Systems MCQ 23
208 - Geopolitics & World Economic Systems MCQ 23
 
208 - Geopolitics & World Economic Systems MCQ 2
208 - Geopolitics & World Economic Systems MCQ 2208 - Geopolitics & World Economic Systems MCQ 2
208 - Geopolitics & World Economic Systems MCQ 2
 
208 - Geopolitics & World Economic Systems mcq 1
208 - Geopolitics & World Economic Systems mcq 1208 - Geopolitics & World Economic Systems mcq 1
208 - Geopolitics & World Economic Systems mcq 1
 
208 gwes unit5c
208 gwes unit5c208 gwes unit5c
208 gwes unit5c
 
208 gwes unit 4c
208 gwes unit 4c208 gwes unit 4c
208 gwes unit 4c
 
208 gwes unit 4b
208 gwes unit 4b208 gwes unit 4b
208 gwes unit 4b
 
208 gwes unit 4b
208 gwes unit 4b208 gwes unit 4b
208 gwes unit 4b
 
208 gwes unit 4a
208 gwes unit 4a208 gwes unit 4a
208 gwes unit 4a
 
208 - Geopolitics & World Economic Systems unit3
208 - Geopolitics & World Economic Systems unit3208 - Geopolitics & World Economic Systems unit3
208 - Geopolitics & World Economic Systems unit3
 

Recently uploaded

PPT- Chapter 5- Cost Allocation presentation pdf
PPT- Chapter 5- Cost Allocation presentation pdfPPT- Chapter 5- Cost Allocation presentation pdf
PPT- Chapter 5- Cost Allocation presentation pdf
Kalkaye
 
wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
allysaamping
 
Zepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptxZepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptx
aryan963438
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
AbdulNasirNichari
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
joshuaclack73
 

Recently uploaded (20)

how do I get a legit pi buyer in the internet (2024)
how do I get a legit pi buyer in the internet (2024)how do I get a legit pi buyer in the internet (2024)
how do I get a legit pi buyer in the internet (2024)
 
PPT- Chapter 5- Cost Allocation presentation pdf
PPT- Chapter 5- Cost Allocation presentation pdfPPT- Chapter 5- Cost Allocation presentation pdf
PPT- Chapter 5- Cost Allocation presentation pdf
 
NO1 Popular Best Rohani Amil In Lahore Kala Ilam In Lahore Kala Jadu Amil In ...
NO1 Popular Best Rohani Amil In Lahore Kala Ilam In Lahore Kala Jadu Amil In ...NO1 Popular Best Rohani Amil In Lahore Kala Ilam In Lahore Kala Jadu Amil In ...
NO1 Popular Best Rohani Amil In Lahore Kala Ilam In Lahore Kala Jadu Amil In ...
 
wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
 
Consumer rights and its importance and value
Consumer rights and its importance and valueConsumer rights and its importance and value
Consumer rights and its importance and value
 
Goldamn report on India's economy in 2024
Goldamn report on India's economy in 2024Goldamn report on India's economy in 2024
Goldamn report on India's economy in 2024
 
Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]
 
Juspay Case study(Doubling Revenue Juspay's Success).pptx
Juspay Case study(Doubling Revenue Juspay's Success).pptxJuspay Case study(Doubling Revenue Juspay's Success).pptx
Juspay Case study(Doubling Revenue Juspay's Success).pptx
 
Indirect tax .pptx Supply under GST, Charges of GST
Indirect tax .pptx  Supply under GST, Charges of GSTIndirect tax .pptx  Supply under GST, Charges of GST
Indirect tax .pptx Supply under GST, Charges of GST
 
Top 5 Asset Baked Tokens (ABT) to Invest in the Year 2024.pdf
Top 5 Asset Baked Tokens (ABT) to Invest in the Year 2024.pdfTop 5 Asset Baked Tokens (ABT) to Invest in the Year 2024.pdf
Top 5 Asset Baked Tokens (ABT) to Invest in the Year 2024.pdf
 
International economics – 2 classical theories of IT
International economics – 2 classical theories of ITInternational economics – 2 classical theories of IT
International economics – 2 classical theories of IT
 
Zepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptxZepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptx
 
Digital Finance Summit 2024 Partners Brochure
Digital Finance Summit 2024 Partners BrochureDigital Finance Summit 2024 Partners Brochure
Digital Finance Summit 2024 Partners Brochure
 
how can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best pricehow can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best price
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
 
Abhay Bhutada: A Journey of Transformation and Leadership
Abhay Bhutada: A Journey of Transformation and LeadershipAbhay Bhutada: A Journey of Transformation and Leadership
Abhay Bhutada: A Journey of Transformation and Leadership
 
How can I sell my Pi coins in Vietnam easily?
How can I sell my Pi coins in Vietnam easily?How can I sell my Pi coins in Vietnam easily?
How can I sell my Pi coins in Vietnam easily?
 
Abhay Bhutada’s Plan to Boost Financial Growth in 2024
Abhay Bhutada’s Plan to Boost Financial Growth in 2024Abhay Bhutada’s Plan to Boost Financial Growth in 2024
Abhay Bhutada’s Plan to Boost Financial Growth in 2024
 
How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
 

208 - Geopolitics & World Economic Systems UNIT 1

  • 1. 208-Geopolitics & World Economic Systems UNIT1: 1. Introduction to Global Economic & political Systems: Meaning of Global Economy and its History Structure and Components of Global Economy, Theory of Hegemonic Stability, Differences among National Economies, Market Oriented Capitalism, Developmental Capitalism, Social Market Capitalism, Comparative Analysis, Effects of Globalization on Indian Economy
  • 2. Geopolitics is a term which was first used in 1899 by Rudolf Kjellen. It`s first meaning was a combination of geography and political interests. At that time, people believed there was a strong connection between physical land and politics. The first people who worked on geopolitics were from nations who had build empires. Therefore, their understanding was based on the relationship between the center of the empire and colonies. The empire was based on international trade, production of goods and taxes and other resources brought from the imperial colonies Introduction to Global Economic & political Systems:
  • 3. Kjellen (Swedish citizen, 1864-1922) was the first who coined the concept of Geopolitics in 1899 (Cohen, 2003), defining it as: “the theory of the state as a geographical organism or phenomenon in space” In 1993, Peter Taylor wrote that the revival of Geopolitics had taken shape in three ways: “…geopolitics has become a popular term for describing global rivalries in world politics.” “…the second form…is an academic one, a new more critical geopolitics. Critical historiographical studies of past geopolitics have been a necessary component of this ‘geographer’s geopolitics’.” “…the third form…is associated with the neo-conservative, pro-military lobby which have added geopolitical arguments to their ‘Cold War rhetoric’. Such studies talk of ‘geopolitical imperatives’ and treat geography as ‘the permanent factor’ that all strategic thinking must revolve around.”
  • 4. Gottman defines geopolitics as “the influence of geographical factors on political action” • Physical geography: relates to the surface of the earth • Cultural geography: relates to human interaction w/h the land (language, religion, economics) There is a relationship between the two • Theories: abstractions that are systematically developed and convincing • Geopolitical actors: international organisations and nation- states • Deterritorialisation: doing away with territory • Reterritoralisation: creation of new territory – redefining
  • 5. Politics and Markets ○ Role of the state in liberal democracies: to induce economic performance ○ Pluralist Approach ▸ The state is a neutral arena ▸ Actors have varying particular interests ▸ State has no intrinsic interests ▸ The study of politics is about government processes ○ Class Approach ▸ There are common class interests ▸ The ruling class controls the agenda ▸ It implements policy ▸ Thereby reducing popular influence
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Silk roads (1st century BC-5th century AD, and 13th-14th centuries AD) For the first time in history, luxury products from China started to appear on the other edge of the Eurasian continent – in Rome. Spice routes (7th-15th centuries) Islamic trade in those Middle Ages were spices. Age of Discovery (15th-18th centuries) Aided by the discoveries of the so-called “Scientific Revolution” in the fields of astronomy, mechanics, physics and shipping, the Portuguese, Spanish and later the Dutch and the English first “discovered”, then subjugated, and finally integrated new lands in their economies. Introduction to Global Economic & political Systems:
  • 11. First wave of globalization (19th century-1914) By the end of the 18th century, Great Britain had started to dominate the world both geographically, through the establishment of the British Empire, and technologically, with innovations like the steam engine, the industrial weaving machine and more. The world wars In the years between the world wars, the financial markets, which were still connected in a global web, caused a further breakdown of the global economy and its links. The Great Depression in the US led to the end of the boom in South America, and a run on the banks in many other parts of the world. Another world war followed in 1939-1945. By the end of World War II, trade as a percentage of world GDP had fallen to 5% – a level not seen in more than a hundred years. Introduction to Global Economic & political Systems:
  • 12. Second and third wave of globalization The end of the World War II marked a new beginning for the global economy. Under the leadership of a new hegemon, the United States of America, and aided by the technologies of the Second Industrial Revolution, like the car and the plane, global trade started to rise once again. At first, this happened in two separate tracks, as the Iron Curtain divided the world into two spheres of influence. But as of 1989, when the Iron Curtain fell, globalization became a truly global phenomenon. Introduction to Global Economic & political Systems:
  • 13. Globalization 4.0 In a world increasingly dominated by two global powers, the US and China, the new frontier of globalization is the cyber world. The digital economy, in its infancy during the third wave of globalization, is now becoming a force to reckon with through e-commerce, digital services, 3D printing. It is further enabled by artificial intelligence, but threatened by cross-border hacking and cyberattacks. Introduction to Global Economic & political Systems:
  • 14. UUUU
  • 15. Meaning of Global Economy and its History Structure and Components of Global Economy
  • 16.
  • 17. Meaning of Global Economy and its History Structure and Components of Global Economy
  • 18. Those who organize & sustain it –States & governments –International organizations & associations •Those who play a role in it –Capitalists & investors –Int’l financial institutions (IFIs) –Production managers –Consumers –Labor •Those marginal but connected to it –The global poor, small farmers –Grey & black marketeers •Transborder flows of goods, information, money, people & other things What is included in the “global economy”
  • 19. Theory of Hegemonic Stability
  • 20. Hegemonic Stability Theory • Central Idea: The stability of the International System requires a single dominant state to articulate and enforce the rules of interaction among the most important members of the system. • To be a Hegemon, a state must have three attributes: – The Capability to enforce the rules of the system; – The Will to do so; – A Commitment to a system which is perceived as mutually beneficial to the major states. • Capability rests upon three attributes: – A large, growing economy; – Dominance in a leading technological or economic sector; – Political power backed up by projective military power.
  • 21. The Historical Record • Portugal 1494 to 1580 (end of Italian Wars to Spanish invasion of Portugal) Based on Portugal's dominance in navigation – Hegemonic pretender: Spain • Holland 1580 to 1688 (1579 Treaty of Utrecht marks the foundation of the Dutch Republic to William of Orange's arrival in England) Based on Dutch control of credit and money – Hegemonic pretender: England • Britain 1688 to 1792 (Glorious Revolution to Napoleonic Wars) Based on British textiles and command of the High Seas – Hegemonic pretender: France • Britain 1815 to 1914 (Congress of Vienna to World War I) Based on British industrial supremacy and railroads – Hegemonic pretender: Germany • United States 1945 to 1971 Based on Petroleum and the Internal Combustion Engine – Hegemonic pretender: the USSR
  • 22. What does the Hegemon Do? The system is a collective good which means that it is plagued by a "free rider" syndrome. Thus, the hegemon must induce or coerce other states to support the system The US system tries to produce democracy and capitalism, thus it champions human rights and free trade. Other nations will try to enjoy the benefits of these institutions, but will try to avoid paying the costs of producing them. Thus, the US must remain committed to free trade even if its major trading partners erect barriers to trade. The US can erect its own barriers, but then the system will collapse.
  • 23. What does the Hegemon Do? • Over time, there is an uneven growth of power within the system as new technologies and methods are developed. An unstable system will result if economic, technological, and other changes erode the international hierarchy and undermine the position of the dominant state. Pretenders to hegemonic control will emerge if the benefits of the system are viewed as unacceptably unfair.
  • 24.
  • 25.
  • 26.
  • 27. study of the different types of national economies or “national systems of political economy” and their significance for the global economy has become an important aspect of the study of international political economy While national systems of political economy differ from one another in many important respects, differences in the following areas are worthy of particular attention: (1) the primary purposes of the economic activity of the nation, (2) the role of the state in the economy, and (3) the structure of the corporate sector and private business practices. Differences among National Economies
  • 28. The purpose of economic activity in a particular country largely determines the role of the state in that economy. In those liberal societies where the welfare of the consumer and the autonomy of the market are emphasized, the role of the state tends to be minimal. Although liberal societies obviously differ in the extent to which they do pursue socialwelfare goals, the predominant responsibility of the state in these societies is to correct market failures and provide public goods. Differences among National Economies
  • 29. On the other hand, in those societies where more communal or collective purposes prevail, the role of the state is much more intrusive and interventionist in the economy. Thus, the role of such states can range from providing what the Japanese call “administrative guidance” to maintaining a command economy like that of the former Soviet Union. Differences among National Economies
  • 30. Capitalism, as I define the term, is an indirect system of governance based on a complex and continually evolving political bargain in which private actors are empowered by a political authority to own and control the use of property for private gain subject to a set of laws and regulations. Workers are free to work for wages, capital is free to earn a return, and both labor and capital are free to enter and exit from various lines of business. Capitalism relies upon the pricing mechanism to balance supply and demand in markets; it relies on the profit motive to allocate opportunities and resources among competing suppliers; and it relies upon a political authority (government) to establish the rules and regulations so that they include all appropriate societal costs and benefits. Market Oriented Capitalism
  • 31. The key institutions that form the foundation of a market-oriented economy are: 1. Private Property: Private individuals, rather than governments, are the primary owners of resources, goods, and other assets. 2. Individual Freedom: Those who own resources, goods, and other assets have the freedom to use their property as they see fit. 3. Competitive Markets: Market are used to exchange privately owned commodities and to answer the three questions of allocation. Market Oriented Capitalism
  • 32. ○ Consumer sovereignty exists in the economy i.e. producers produce those goods only that are ○ wanted by the customers. ○ Extreme competition exists in the market between firms which uses tools like advertisement and ○ discounts to call customer attention. ○ The profit motive is the key component; that encourages people to work hard and earn wealth.
  • 33.
  • 34. ,, Differences among National Economies, Market Oriented Capitalism, Developmental Capitalism, Social Market Capitalism,