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Theoires Of International Political Economy - Essay Example

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This paper will describe three theories presenting details of how they functioned and highlighting the role of the state in accordance with the theories. Economic theories that have defined the growth of different economies in different centuries are of interest in the modern day…
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Theoires Of International Political Economy
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Theoires Of International Political Economy

Download file to see previous pages... This essay discusses that Karl Marx, who was a staunch communist and opponent of capitalism, developed the Marxism theory. He highlighted that capitalism introduced a system governed by money. This aspect divided the society into two classes. Those who had money as well as a means of production qualified as the capitalists, which he referred to as the bourgeoisie and the laborers whom he called the proletariat. The laborers did not have the capital and were hence unable to access a means of production. The purpose of the capitalists was to ensure that their systems registered the highest profits but minimal costs. This means that they were only willing to pay little wages to the laborers. On the other hand, the laborers purposed to get the highest possible wage while doing the least work possible. Evidently, the needs for both classes were contrary to each other a factor that introduced class conflicts as Marx highlighted. As described above, different historians and economists described the three economic theories. Their relevance in the modern day cannot receive any form of underestimation. Different historians have highlighted that Mercantilism is of significance because it highlights the specific roles that a strong state should play if it is to promote the economic stability and the reinforcement of liberal rules across the globe. On the other hand, there is evidence that Marxism answers the increasing questions on why there is under development in third world countries. ...Download file to see next pagesRead More
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