5 Key Facts: 1.

In mercantilism, a nation should have a greater amount of exports over imports and keep the bullion in the nation because the international political economy is a zero-sum game. 2. Liberalism holds that an invisible hand controls the market and the producers should stick to their comparative advantage. 3. According to Marxism, change occurs due to economic class struggles and that communism ensures equality. 4. The key difference between the three political economies is that mercantilism focuses on resource scarcity, liberalism focuses on production of wealth, and Marxism focuses on distribution of wealth. 5. (Macro) While rules and institutions may change, resources may be scare or plentiful, and markets may boom or crash, (micro) individuals adapt and prosper to the best they can. It is truly the unseen hand of economy. 3 Fun Facts: 1. It was liberalism that led to formation of the Middle Class. 2. The Wealth of Nations, an important book to economics even today was written in 1776, the same year as American Independence. 3. Japan prohibited the imports of skis due to their supposedly unique snow. 4. No country or system falls entirely under one type. 1 Discussion Question: Considering some critical issues of improvement in technology i.e. outsourcing, do you believe that any nation with a solely liberal, mercantilist or Marxist system could thrive today? Or do you think the hegemonic system would help thrive the IPE today?