Final answer:
The subject revolves around International Political Economy (IPE), focusing on democratic peace theory and commercial liberalism within the context of democratic liberalism. These concepts shape both domestic governance and international relations, influencing the policies and interactions of democratic liberal states.
Step-by-step explanation:
For International Political Economy (IPE), the democratic peace theory focuses on regime type, acknowledging how democracies are less likely to engage in conflict with one another. On the other hand, commercial liberalism looks at the myriad ways that non-state actors, including businesses and other organizations within society, can influence global economic relations and ultimately, international peace and stability. These theories fall under the broader umbrella of democratic liberalism, an ideology that has shaped political and economic systems in the industrialized world, advocating for elected representative governments, protection of individual rights, and free-market capitalism.
Democratic liberalism plays a significant role in shaping foreign policies, especially under the concept of liberal internationalism. This foreign policy strategy, utilized by countries such as the United States, promotes global engagement and cooperation to foster a peaceful world order, frequently through international institutions like the United Nations. The principles of democratic liberalism seek a balance between safeguarding individual liberties and ensuring equitable treatment within and across nations. The philosophy thus infuses both domestic governance and international relations, impacting the way that countries interact on the world stage, and it has driven much of the progress toward democracy and free-market economies worldwide, particularly after the end of the Cold War.