International Relationship

In a free market economy the allocation of resources is determined by the demand and supply without any interference of the government.

Examples of free market economy are listed below.

★ Deregulation of the US airlines in 1979 provided consumers with more choice and lower air fares.

★ The cable industry was deregulated in 1996 and the cable TV rates went up enormously. As per the report presented by the US Public Interest Research Group (PIRG) in 2003, cable rates increased by more than 50% between 1996 and 2003. Clearly, in this case of deregulation, increased competition did not reduce prices for consumers.

★ It provides low-interest loans, interest-free credits and grants to developing countries.

★ The World bank loans are usually to invest in education, health, and infrastructure. The loans can also be used to modernize a country's financial sector, agriculture, and natural resources management.

★ The Bank's goal is to "bridge the economic divide between poor and rich countries, to turn the rich country resources into poor country growth and to achieve sustainable poverty reduction.

State must plan on the basis of available options which would meet the goals, and in what circumstances.

Government will make formal decisions that are usually made by the executive branch of the government.

There must be multiple goals for a foreign policy, and the state must find out which goal is affected at what time by the international and domestic political environment.

The World Bank is the only common bank to the world that provides financial and technical assistance to countries with emerging market.

It is divided into five different institutions that look after different areas of requirement.

This is a state level theory that claims that all states seek power. States try to increase their power through decreasing the power of their enemies. They see other states as more powerful.

The actors involved in international relations are the states and the non-state actors.

States are the main actors in international affairs, whereas non-state actors focus more and more on the analysis. The most influential non-state actors are international business firms, often called transnational corporations (TNCs).

It is a state level theory which promotes cooperation more in the world, not more of rivalry. States do not just compete or worry about power. They know that cooperation is a better strategy than conflict.

This is a system level theory that is an outcome of classical realism. It contradicts what classical realism says. However, it sees the cause of all the power struggles and rivalries not as a function of the nature of states but as a function of the nature of the international system. If some other state is more powerful than your state, you have no way to protect yourself but to defend yourself or attack your rival first.

Implementation of the chosen policy is done once it has been chosen and a formal decision has been made.

★ As against the new technologies, it can sometimes create problems for the workers and the country to cope up with.

★ Information flow connects workers and citizens across boundaries, but they can also threaten social and economic networks at the local level.

★ Many institutions face problems at the time of responding to an ever-increasing set of global challenges.

International politics plays an important role in civil wars as:

★ They provide new insights to civil war, presenting that civil wars have cross- border features and that need to be acquired if we are to understand them.

★ It applies new theories to the study of civil war.

★ It shows how causal mechanisms work in action, emphasizing the special methods needed to measure them.

★ Democracy encourages free press which is not accepted by most of the leaders.

★ Excessive of everything is bad. So, when people get extra freedom they use it in a wrong way.

★ Most of the countries having democracy face a lot of communal violence issues, political issues and, as they are very sensitive matters, they need extra care. Every system has some loophole or the other. So, it is very difficult to get judgmental about what is good and what is bad.

★ New opportunities are created.

★ Globalization is helpful in the process of knowledge integration and the development of non-market connections.

★ It helps in the flow of information, culture, ideology and technology as new technology is always helpful in solving old problems.

★ Globalization plays an important role in global governance as it helps in the development of infrastructure of international agreements and institutions globally.

★ It enhances global inequities.

IR theory explains the following theories:

★ Classical realism

★ Neorealism

★ Liberalism

★ Cognitive Theories

★ Constructivism