International Relations: A Simple Introduction
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International Relations: A Simple Introduction offers an accessible guide to the central ideas and tools of international relations, with theory, empirical evidence, examples, and diagrams to support the analysis.
Examine gains from trade theory, using the concepts of absolute efficiency, relative efficiency, opportunity cost, comparative advantage, and the terms of trade to learn why countries get involved with international trade.
Explore trade liberalization, as the role of power and interdependence in states’ liberalization policies is assessed with realist and liberal theories of international relations, and the case studies of India and Mexico.
Apply game theory to the problem of global warming and climate change, as the challenge to see the two biggest greenhouse gas polluters the United States and China reduce emissions is represented as an assurance game, prisoners’ dilemma game, and chicken game, and the prospects for a resolution evaluated.
Investigate the role which cultural difference plays in international relations, as communitarian, constructivist, and cosmopolitan theories are examined, and their predictions for cultural conflict, cultural change, or cultural unity are discussed.
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International Relations - K.H. Erickson
International Relations: A Simple Introduction
By K.H. Erickson
Copyright © 2015 K.H. Erickson
All rights reserved.
No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the author.
Also by K.H. Erickson
Simple Introductions
Accounting and Finance Formulas
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Corporate Finance Formulas
eBay
Econometrics
Economics
Financial Economics
Financial Risk Management
Game Theory
Game Theory for Business
International Relations
Investment Appraisal
Investment Formulas
Marketing Management Concepts and Tools
Mathematical Formulas for Economics and Business
Methods of Microeconomics
Microeconomics
Table of Contents
1 Introduction
2 Gains from Trade
2.1 Output without International Trade
2.2 Output with International Trade
2.3 Flaws in Gains from Trade Theory
3 Trade Liberalization, Power & Interdependence
3.1 Realist and Liberal Models of International Trade
3.2 India Case Study
3.3 Mexico Case Study
4 The Games of International Relations
4.1 The Problem of Global Warming
4.2 Emissions Cuts as an Assurance Game
4.3 Emissions Cuts as a Prisoners’ Dilemma Game
4.4 Emissions Cuts as a Chicken Game
5 Cultural Difference
5.1 Communitarianism and Cultural Conflict
5.2 Constructivism and Cultural Change
5.3 Cosmopolitanism and Cultural Unity
Bibliography
1 Introduction
International relations examines the issues and frameworks which states, institutions, groups and individuals face in the global arena. Focusing on political economy, and social, cultural or technological factors, the subject explores the role of interdependence and the distribution of power in international expectations and outcomes. This book looks at some of the central issues in international relations, investigating four different areas which can be examined individually but which also all link together to form a coherent and enlightening narrative.
First, the motivation for international trade is examined with the theory of the gains from trade. This looks at production and efficiency, and explains how countries may benefit by only producing goods where they hold a comparative advantage. But the gains from trade model is not without flaws and the forecasted gains may not occur in practice for a variety of reasons, which largely revolve around issues of power and interdependence among countries. The second area of the book explores this idea in greater depth, investigating the differing realist and liberal theories on the role of power and interdependence in international trade. The motivations behind the global trend toward liberalization and the removal of trade barriers between states are then examined, with two detailed case studies examining the decisive factors in the liberalizations of India and Mexico.
In the third area of focus the discussion of power and interdependence at the international level is escalated, with an investigation of the prospects for international cooperation on global issues. The ongoing international problem of global warming is explained, both in terms of its potentially catastrophic effects and the struggle to get states to take meaningful action beyond token gestures. This discussion reveals that states appear to treat greenhouse gas emissions and the associated global warming as a game, and this leads to the application of game theory models to the topic to bring a greater understanding of the forces at work. The challenge to get countries to reduce greenhouse gas emissions is explained and represented as an assurance game, prisoners’ dilemma game, and a chicken game between the USA and China, currently the two biggest sources of greenhouse gas emissions. The applicability of each of the three types of game to the real world is then assessed, along with the associated implications for solving the problem of global warming.
The struggle to get different countries to come together leads on to the fourth and final topic to be investigated, and the impact which cultural difference between nation-states has upon international outcomes. Communitarian, constructivist, and cosmopolitan theories of culture’s role in international relations are explained, with each predicting international conflict, change, and unity respectively. Evidence supporting each theory is then examined, as a means to understand the possible causes of past, current and future events in the global arena.
2 Gains from Trade
2.1 Output without International Trade
Imagine that there are two different countries producing goods; country A and country B. And imagine that each of these countries only has two goods available for production; mobile phones or shirts. In this example country A has 1,000,000 workers, and each individual worker can either produce 5 mobile phones or 20 shirts per week. Country B has 100,000 workers, and each individual worker can either produce 50 mobile phones or 100 shirts per week.
Country A output
Looking first at the case of country A, if every one of its workers produced mobile phones then weekly output for country A would be calculated as follows:
1,000,000 workers producing phones
5 phones per worker per week
1,000,000 x 5 = 5,000,000 phones produced per week
If every worker in country A instead produced shirts then its national output per week would be:
1,000,000 workers producing shirts
20 shirts per worker per week
1,000,000 x 20 = 20,000,000 shirts produced per week
And if country A split its workers between mobile phones and shirts evenly, with 500,000 workers producing each of the two products, then weekly national output for country A would be calculated as follows:
500,000 workers producing phones
5 phones per