Aaron De Gelder Matteo Falcioni How has realism

Aaron De Gelder Matteo Falcioni How has realism improved the world economy?

Realism - Introduction The theory of Realism Comparing Realism with 4 tenets Characteristics of Realism (In economics) Examples

The theory of Realism Economic view People are self-interested, self-serving World politics/economy is a struggle against self-interested states A struggle for power and position under anarchy Each state pursuits it’s own national interests Economic power is seen as achieving power and domination over other states

Comparing Realism Four strutural tenets 1. Colonialism 2. Mercantilism 3. Neo-Colonialism 4. Ethno-Nationalism

Characteristics of these tenets Free trade Capital markets Open economies

Examples Free Trade The European Union Transatlantic Trade and Innvestment Partnership World Trade Organisation Free Trade Agreement

Examples Capital Markets Companies use capital markets to raise money for a project Stock market Bond market Example: A company needs 10000£ The company offers a 10 -year bond The bond is bought by someone who wants to earn interest on the 10000£ After 10 -years he gets back the 10000£ + the interest

Open Economies Examples The European Union Chile and Argentina (managed economy open economy)

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