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introduction to IPE Prof. Thomas Oatley's book (3 traditional schools…

- - - - career opportunities have changed
        
        more jobs available in high technology sectors and service
        
        medical care, computer design, biotechnology, high-technology manufacturing
      - reduced price
        
        the consumers in us better off by reducing the prices of the goods and services we buy
      - plenty of choices
        
        expanding the range of choices we have
- - - - studies how the enduring political battle between the winners and losers from global economic exchange shapes the evolution of the global economy
        
        The winners seek deeper links with the global economy in order to extend and consolidate their gains, whereas the losers try to erect barriers between the global and national economies in order to minimize or even reverse their losses
        
        case study: the political battle
        
        after tariff
        
        the decision by the Trump administration to raise tariffs on softwood lumber imported from Canada in April 2017. The decision to raise tariffs was prompted by lobbying by American lumber mills and timberland owners. The U.S. Lumber Coalition pressed for higher tariffs on Canadian lumber because they were losing trade.Higher tariffs would protect American lumber from competition, thereby reducing the number of American mills in distress.
        
        The tariff hurt Canadian lumber producers, who could sell less lumber in their largest market. Groups that suffered from the lumber tariff turned to the political system to try to reverse the decision.
        
        The higher tariff on Canadian lumber had negative consequences for other groups in society, however. The tariff hurt American industries that use lumber to produce goods, such as home builders, because these firms had to pay more for wood
        
        In the United States, The National Association of Home Builders pressured the Trump administration and Congress to reduce and even remove the tariff.
        
        The Canadian government responded to pressure from its producers by imposing a tariff on American gypsum (drywall) exported into Canada
        
        before tariff
        
        losser
        
        winner
        
        Imported Canadian lumber was capturing a large share of the American market, resulting in mill closings and layoffs,
    - - IPE studies how politics shape developments in the global economy and how the global economy shapes politics
- - - - national power and wealth
        
        First, the classical mercantilists argued that national power and wealth are tightly connected. National power in the international state system is derived in large part from wealth. Wealth, in turn, is required to accumulate power.
      - trade
        
        Second, the classical mercantilists argued that trade provided one way for countries to acquire wealth from abroad. Wealth could be acquired through trade, however, only if the country ran a positive balance of trade, that is, if the country sold more goods to foreigners than it purchased from foreigners.
      - economic activity
        
        Third, the classical mercantilists argued that some types of economic activity are more valuable than others. In particular, mercantilists argued that manufacturing activities should be promoted, whereas agriculture and other nonmanufacturing activities should be discouraged.
    - - Mercantilism is rooted in seventeenth- and eighteenth-century theories about the relationship between economic activity and state power.
    - - Economic strength is a critical component of national power.
      - Trade is to be valued for exports, but governments should discourage imports whenever possible.
      - Some forms of economic activity are more valuable than others.
  - - - strong line
      - countries gain from trade, not trade surplus or regardless positive or negative of balance of trade
      - producing manufactured goods does not necessarily make the countries rich. countries should produce the products that they can produce at relatively low cost.
  - - - private ownership of capital (means of production)
      - wage labour
- - - - Is society better-off? does it maximize society's social welfare?
    - - income distribution among the groups in the society and nations in the international system