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Contemporary Issues in World Politics - Essay Example

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Generally, politics and international relations influence economic policy. The political undertakings of nations determine world trade and financial flows. On the other hand, the…
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Contemporary Issues in World Politics
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Download file to see previous pages International trade is one of the aspects of the global political economy that are prominent with regards to international relations. Foreign investment is one of the resultant aspects of economic globalization. As nations continued to advance technologically after the industrial revolution, better means of transport and communication led to the movement of investors beyond political boundaries, especially during the colonial period (Oatley, 2011). As economies expanded, trade grew and exchange of goods and services between investors from different countries continued to grow. This made international trade a phenomenon of political scrutiny. The political view point depicts foreign trade as different from domestic economic activity (Jeffrey et al. 2000).
Foreign trade between different countries generates various political issues that are of interest to the nation state, particularly issues regarding the financial and military security of a country. A nation exporting products to a foreign country increases its monetary wellbeing and also promotes job creation. Nevertheless, national security may be jeopardized especially if the product is used to strengthen a foreign country’s military strength (Gilpin, 2001). For example, the discovery of gun powder by Chinese researchers in the 11th century led to a great transformation of the world order by the 17th century and subsequent centuries. China as a nation state could not achieve the military might of European countries that resulted from the application the invention of gun powder (Friedberg, 2005).
On the other hand, importing leads to the development of dependency of the receiving nation on foreign countries. It also leads to a reduction in national reserves thereby contributing to inflation. Moreover, local businesses as well as the labor market are threatened. On the other hand, the importing nation may experience security concerns ...Download file to see next pagesRead More
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