Relationship between Government and Business Organizations Government and business institutions in a country in many ways are interrelated and interdependent on each other. In a planned economy or even in market economy government holds control of shaping the business activates of a country. For maintaining a steady and upward economic growth The Government must try to make the environment for business organizations suitable.
Origin[ edit ] Political economy was synonymous with economics until the nineteenth century when they began to diverge. Economics, as some[ who? Only during the s to early s did an alternative system, Keynesianismcommand wide support in universities.
Keynes was concerned chiefly with domestic macroeconomic policy. The Keynesian consensus was challenged by Friedrich Hayek and later Milton Friedman and other scholars out of Chicago as early as the s, and by the s, Keynes' influence on public discourse and economic policy making had somewhat faded.
In President Richard Nixon began the rolling back of the Bretton Woods system and until the trend has been for increasing liberalization of international trade and finance. From later world leaders have also been increasingly calling for a New Bretton Woods System.
Game theory[ edit ] Some academics[ citation needed ] within IPE use game theory to model the outcomes of negotiations and policies. Global trade, strategic trade theorytrade wars, the national balance of payment and trade deficits are topics that IPE scholars are interested in. The mercantilist view largely characterised policies pursued by state actors from the emergence of the modern economy in the fifteenth century up to the mid-twentieth century.
Sovereign states would compete with each other to accumulate bullion either by achieving trade surpluses or by conquest. This wealth could then be used to finance investment in infrastructure and to enhance military capability.
After WWII a notable success story for the developmentalist approach was found in South America where high levels of growth and equity were achieved partly as a result of policies originating from Raul Prebisch and economists he trained, who were assigned to governments around the continent.
IPE is also concerned with development economics and explaining how and why countries develop. The Americans are positivist and attempt to develop intermediate level theories that are supported by some form of quantitative evidence.
British IPE is more "interpretivist" and looks for "grand theories".
They use very different standards of empirical work. Cohen sees benefits in both approaches. Higgott and Watson in particular, queried the appropriateness of Cohen's categories. Please help improve this section by adding citations to reliable sources.
Unsourced material may be challenged and removed.International political economy (IPE), also known as global political economy (GPE), refers to either economics or an interdisciplinary academic discipline that analyzes economics and international relations.
When it is used to refer to the latter.
Sociology is the study of human interactions and inter-relations their conditions and consequences. But Economics deals with economic activities of man. It is a science of wealth and choice. Political, Economic, and Social Developments in Western Hemisphere Affairs September Inter-American Dialogue The Inter-American Dialogue is the leading U.S.
center for policy analysis, continuing importance of US economic and political relations with Latin America. Economic, Political and Legal Systems The examiner has stated that in the exam, you may be required to: Explain the inter-relationship of economic and political and legal systems (application level).
Explain the doctrine of the separation of powers and its impact on the legal system (application level). Relationship between Government and Business Organizations Government and business institutions in a country in many ways are interrelated and interdependent on each other. In today’s global economy, its businessmen and entrepreneurs are the driving forces of the economy.
between economic interdependence and political con›ict. One view that has focused too much on addressing whether there is a relationship between inter-dependence and con›ict and too little on identifying the underlying micro-foundations of any such relationship.
Particularly important in this regard is.