International Political Economy

International Political Economy
Students Name
Institution

Political economy 1
Question 1
Primarily, the hegemonic stability theory advocates for one single dominant country to be
at the center of international relation (Harell, 2015). Basically, this theory thrives on the notion
that the dominant state has the power and capability to enforce the mutual good of most mutual
countries. However, the theory has been faulty for using undemocratic ways such as coercion in
the enforcement of international goals. Undoubtedly, the United States economy has been
enjoying hegemonic status for a while. Specifically, a rise in the value of the American dollar
impacts directly on the price of crude oil globally hence goes to show the hegemonic position of
the United States economy (Kemp 2018). Also, the fact that the American currency is an
international medium for foreign exchange in most global economies goes to show the dominant
position the United States economy has on the other countries of the world. According to some
economist views, the United Stets tariff reforms encourage local rather than international trade
thus affecting the international political economy (White, 2018).In addition, the recent
withdrawal of the United States government from the Trans-Pacific Partnership creates barriers
to international trade between the United States and Pacific countries such as Canada and
Australia among others
However, some economists hold the view that China equally occupies this hegemonic
power in international trade matters. Practically, the recent Trump administration economic
policies have caused a ripple effect of global trade (Benecka 2018). Following the
implementation of new tariffs on the steels and aluminum imports in the United States countries
such as China had equally retaliated to this protection measure. This goes to show that the
actions of the United States in this case a hegemonic state has an effect on the international

Political economy 2
exchange of goods and services. As depicted in the figure below. On the defense, the Trump
administration justifies the recent protectionist measures to the fact that it holds an unequal
position in the world which has contributed to the rising of the deficit in its accounts
(Benecke,2018). The consequences of the United States government pulling out of the Paris
climate agreement hasn’t deterred the commitment of other stated such as the United Kingdom
China, India from phasing out carbon emissions. This stance is a good thing in the sense that the
overall good is maintained with or without the existence of a hegemonies authority.
Conclusively, it is not necessary that on single state dominate the international political and
global platform in light of recent events.
Despite the fact that the hegemonies stability theory has its perks due to the ability to
enforce mutually beneficial interests, it eliminates the essence of democracy at the international
level for the rest of the other countries. In as much as dominance is a consideration, the dominant
state might not always uphold the interest of the majority nations like the United States pulling
out of the Trans-pacific partnership agreement and the Paris climate agreement Overall, the
world economic orders should be an integration of the dependency theory and the hegemonies
stability theory.