Question

With reference to international political economy, can you identify the following concepts and terms, or provide the required answer: autarky

a. A policy advocating for increased international trade and economic openness.
b. A strategy for economic self-sufficiency, minimizing reliance on international trade.
c. A framework for global economic governance.
d. A currency union among multiple countries.

Answer 1

Autarky is a strategy for economic self-sufficiency that minimizes international trade, contrasting with policies that promote international trade and openness.

Step-by-step explanation:

In international political economy, the concept of autarky refers to a strategy for economic self-sufficiency, minimizing reliance on international trade. This strategy is at odds with policies advocating for increased international trade and economic openness, which emphasize the benefits of global economic integration through comparative advantage and specialization.

Nations may adopt protectionist policies, like those seen in mercantilist or nationalist economic frameworks, to protect key industries or preserve national security. Conversely, liberal economic policies favor free trade agreements and reduced trade barriers, often with the support of global institutions such as the World Trade Organization (WTO).

Countries enacting trade policies consider multiple levels of government and international relations. They may engage in regional negotiations, global treaties, or enact domestic laws to govern trade relationships. While free trade often provides economic benefits, it also presents tradeoffs, including income redistribution and its disruptive effects on domestic industries.

Nonetheless, the global trend, especially in the latter half of the twentieth century, has been towards liberalizing trade and reducing barriers.