How would you describe International Political Economy Essay - 1

How would you describe International Political Economy - Essay Example Consequently, interactions define cooperation amongst nations and corporations in various countries. Hence, it is essential to note that governments have a responsibility of defining economic policies that determine transaction of international trade. Thus, the government’s role in defining economic policies enhances international relations in terms of the economy and politics while international forces in the economy can influence the policies of governments in international relations. Based on the foregoing, this expose describes international political economy on the foundation of interaction between international politics and the global economy. Frieden and Lake defined international political economy as the study involving the reciprocated interaction of politics and the economy in the global economic world (1). Following this perspective, it is common knowledge that the economy is the system that governs the processes constituting manufacturing, supplying, and consumption of products while managing a nation’s wealth efficaciously. On the other hand, politics is the approach towards governing a society and the society’s economy. In effect, international political economy involves studying the relationship between economic systems and political systems in the international arena. Political decisions and actions of nations influenced the flow of products in international trade. In effect, these political actions and decisions influenced the choice of decisions made by nations and entrepreneurs due to the prevailing economic environment (Veseth 3). In this case, international economy and international politics a re two mutually interacting aspects that governments and businesses should consider while developing policies meant to enable a nation to develop by participating in international trade. Despite this knowledge, it is possible for economists to disassociate international