International Political Economy

Simply, International Political Economy means the interaction and analysis between global matter and political economy. In short , it called IPE , which is a subject/discipline of social science. From the beginning of nineteenth century , this subject has been rises ans has become one of the talk of the world.

International Political economy discusses how economy effect the politics and politics effect economy.
Economist called International Political Economy as "creative destruction.". IPE reduces interdisciplinary boundaries among countries , nations, regions and has make a blend of politics and economy.
International  political economy take its consideration in the supply of production, distribution, and consumption to outside the border of the country. It also counts the effect of these economical factor from the approach of  local government, foreign country, International rules and global financial institutions like WTO ,IMF etc.

International  political economy also analyzes the law,economy,interest of countries, international relationship with a view to explaining the overall scenario of efferent countries of world.

Area of International Political Economy:

1.Global trade (goods & service) development.
2. Formulating law relating to International Trade and Exchange.
3. Maximizing Globalization.
4. Removing inter-border conflict within neighboring countries
5. Keep good relation and good working environment for MN C's.
6. Increase the Influence of democracy and Implementation of capitalism in all spheres of International Trade.
7. Building co-operation within countries.

Variables in International Political Economy:

1. Trade policy
2. financial and exchange rate policy
3. foreign investment policy
4. Migration of citizen  
5. Influence in International arena. 
6. Balance of Trade.

Features/Advantages of International Political Economy :

• It Increases the influence of the country in global arena.
• It helps in interaction of multidisciplinary,interdisciplinary and interdisciplinary actions among countries.
• It develops, amendment and cancel the law relating to Internationals trade.
• It finds the interdependence between and among domestic politics, domestic economics, international politics, and international economics.

Segment of International Political Economy :

1. Globalization
2. International Business.
3. International Finance.
4. South-North Interaction
5. Transnational business organization and Giant Companies.
6. Hegemony.
7. International trade Law and Regulations.

Causes for economy related politics :

There are very high effect of economy on the International economy. USA, UK has a very strong desire to have dominance on Middle East area as it this area is very natural resourceful area. Suez canal has a great impact on International Trade. In middle Asia , the big Muslim countries are also full of natural resources area. So for long term both USA and Russia want to have dominance on Middle Asia.

China has the second largest economy in world with $4.99 trillion GDP in 2009. This emerged economy have have created an influential country in Global surrounding. Recent , Turkey economy is the 15th largest economy on world with a dramatic rise in few years. 

To be a Super-state , a country need a big , dedicated, large amount of Defense persons. And to survive these defense (Army,Air,Navy,Space!!!) , a country need huge supple of money. The money comes from the internal source , like tax, vat. These money collection is higher when the country have a good economy and natural resourceful. Without a strong economy , a country may not have any effect on International politics and may also be dominated by other country. The country may loose its image in International recognitions. Thus International political is important.A strong economy may carry some extra advantages in international deal.