International political economy final homework assignment

PSI213 INTERNATIONAL POLITICAL ECONOMY
FINAL HOMEWORK ASSIGNMENT

Fall 2022

Instructor: Deniz Yükseker
Istanbul Kent University
Student: Saidakhror Makhsudov
ID: 225071005

QUESTION ONE:
Production has become increasingly globalized in the past four decades. At the same time, the volume of international trade has increased. What is the neoliberal argument about the globalization of production and trade? What is the mercantilist/ neomercantilist argument against the globalization of production and trade? Discuss. (50 points)
As a result of the industrial revolution that took place between 1750 and 1850, the volume of production and its global sales and the demand for quality products increased dramatically. The globalization of products, which has continued to develop continuously over the years, has accelerated in the last 4 decades compared to the previous period. At the same time, the volume of trade has reached its highest level worldwide. In this essay, I will discuss neoliberalism's approach to the globalization of production and international trade, and the approaches of mercantilism and neomercantilism to commodity production and trade.
First of all, we need to understand what neoliberal globalization is, and the dictionary meaning of globalism is as follows: An ideology based on the belief that people, goods and information ought to be able to cross national borders unfettered. A socio-economic system dedicated to free trade and free access to markets. By neoliberal globalism, we can understand that neoliberal globalization is a term used to describe the worldwide spread of an economic model emphasizing “free markets” and “free trade.” Decreased governmental regulation, privatization of government-owned enterprises, reduced government spending, and the lowering of barriers to international trade and investment play central roles in the neoliberal approach. The stated goal of these policies is to maximize economic efficiency and economic growth. While these policies have not been consistently applied neoliberal ideas have nonetheless dominated the rhetoric of global economic policy and much of its practice since the early 1980s.¹ Two of the main embodiments of neoliberal principles have been “structural adjustment” policies and “free trade” agreements. Accordingly, the process of globalization of trade relations is carried out independently of the state, mainly through foreign investments, according to the principles of free market in trade and production processes, according to demand and supply at the international level and goods are delivered to the domestic market.
In this paragraph, we will try to understand why mercantilism and neomercantilism oppose the globalization of international trade. These theories can be said to be a synonym of the theory of realism. Because in both theories, the state is considered to be the most important factor in the center of trade relations, therefore, it is considered that it should not be allowed in the liberalization of trade. There are minor differences between mercantilism and neomercantilism, which appear to be the same in terms of general idea. They took the approach that economic activity is and should be subordinated to the primary goal of building a strong state. In other words, economics is a tool of politics, a basis for political power. That is a defining feature of mercantilist thinking.² Mercantilists see the international economy as an arena of conflict between opposing national interests, rather than an area of cooperation and mutual gain.
From this it can be concluded that the globalization of production and trade is criticized by mercantilism because it is against the basic views of mercantilism and because globalism promotes the concept of free market, and the proponents of the mercantilist theory of globalization condemn competition in international trade because it does not correspond to the interests of the state.