Macroeconomic Principles: Comparing Liberal and Realist Approaches

This essay delves into the core concepts of macroeconomic principles by comparing and contrasting the liberal and realist approaches within international relations. It highlights the key similarities, such as both theories operating in an anarchical world and viewing states as primary actors, while also pinpointing crucial differences. The realist approach, with its focus on statism, survival, and self-help, contrasts with the liberal approach's emphasis on cooperation and progress. The essay further examines how globalization influences state autonomy, illustrating its impact on state roles and functions. It also explores the concept of globalization, its benefits, and how it affects the autonomy of states. The paper concludes by arguing that the realist approach provides the most effective framework for understanding international politics due to its focus on power dynamics and the state as the central actor. This analysis is supported by various academic sources, providing a comprehensive overview of these critical perspectives.

Macroeconomic Principles

Table of Contents
Key similarities and differences between Liberal and Realist Approach...............................1
Determining the concept of globalization and it also limits the autonomy of states. ............4
REFERENCES................................................................................................................................8

Key similarities and differences between Liberal and Realist Approach
Internal relations are those relations which are inbuilt to the nature, thus it is concerned
with relationship between political entities i.e. sovereign states, inter-governmental organization
and international non-governmental organization etc. Moreover, the scope of international
relations include issues like globalization, diplomatic relations, state sovereignty and many more
(Kay, 2020). There are some theories which is used by many countries are different situation in
order to provide solution but among all, Liberalism and Realist Approach are as mention below:
Similarities: The first main similarity between these two theories is such that it will
affect the way states should act. Hence, both Realist and Liberal approach under international
approach are used when there is no world government who regulates the relationship among
different states. As realist approach helps to explain the reality of international politics and that
is why, it explain the constraints on politics which result from human kind's egoistic nature
(Ikenberry Parmar and Stokes, 2018). In the same way, Liberal Approach also believe in an
anarchical world where human are act rationally and state plays a main role in global politics.
These both theories are used as a main device that helps to simplify and explain the complexity
of international relationship between countries and states. Beside this, both approach consider
states are the main actor, but Liberal approach appreciate other key factors as well. Also, the
same suggest that Realist approach provides the reality of facts and provide an absolute
existence independent from the thoughts, ideas as well as consciousness. Thus, these two
approaches also have their own assumptions which clearly stated that theories are used to
resolve the critical issue on their own, but there should be no any external interference so that
international relations are maintained in proper manner.
Both realist and liberalism approach are made to promote aggregate social welfare and
both theory are work for groups and later states which are generally cooperative as well as
follow international norms. Ulaş (2020) also stated that for both approach, outside the borders of
the state a condition of disorder exist, under this situation, there is no government who regulates
the relationship between different states. During this time, both theories used and these are
rational which means it as human being think before taking any action, countries or government
should always think about what is best for them , due to different perspective. Both theories are
support to increase economy and share the ideas for the survival and progress. Also, these
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approaches have a basic similarity i.e. they both believe in an anarchical world outside the state
in which human are act rationally and state are consider as a main actor in this global politics.
Differences: Realist approach has a conservative view which is mainly rely upon the
ancient tradition of thoughts. It also have three main tenets such that Statism, Survival and Self-
help. On the other side, Liberal Approach is more progressive and stated that people are good
and cooperate each other in order to make positive change. Thus due to main difference, Liberal
Approach of International relation is consider more idealism as compared to Realist (Prinz and
Rossi, 2017). However, it is also analyzed that Realist does not believe in cooperation and
progress. In Contrast, Liberalism believes in the measurement of power through state
economies, also provide a linkage and economic progress between the free trade and market
capitalist. So, it is stated that both approaches is based upon tits own beliefs which makes them
different i.e. they distinguish themselves on how they understand human nature as well as their
beliefs in goals, they also set different strategies in order to attain them.
In addition to this, it is also analyzed that Liberalism hold the state preference while
Realist Approach use state capabilities because it is the primary determinant of state behavior.
Moreover, Realism more focused upon the state preference because it is unitary actor, but these
preference are vary from state to state and depend upon factor like culture, economic system and
government type. Thus, it can be stated that Realism deals mainly with security and material
power, while on the other side, liberalism mainly focus upon the economic interdependence as
well as domestic level factor (Ripsman, Taliaferro and Lobell, 2016). The theory develop ways
through which state interact with one another through negotiation, but Realism approach
interpret international politics as armed conflicts, chances of aggression which all indicating
dominance of divergent interest. Another key difference is Realist approach does not believe in
universal moral principle because it is not in its own self- interest. In addition to this, the theory
support individuals in war to protect the survival of state but never become a main reason to
promote humanitarian value which Liberalism do. Thus, it is stated that liberalism actually
believe in measurement of power through state economies because of getting peace and
cooperation between state but realist approach thinks the results which will be generated if the
action takes place.
Realist approach is also argued that the need for survival requires state leaders to
distance themselves from traditional ethics. The theory also provide the criteria in which
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American leaders has to focus on interest rather than ideology in order to seek peace through
strength, also to recognize great powers as well. While on the other side, liberalism theory
stated that individual are good and capable to bring positive change through cooperation and
they consider government, NGO and IGO as a key actor so that they communicate the rules and
laws which in turn provide a way to many people (Sanjaume‐Calvet, 2020). Another key
difference between the theories is such that for the survival of a country, Realist approach
believes that balance of power is between two states is the only situation. But on the other hand,
liberalism approach understand and weighs the importance of other actors beside states i.e.
individuals and international actors. As the theory is complete relies upon the actor because it
believes that to adopt power, survive and progress, cooperation between states and other
transnational institution is the best and effective way that helps to regulate relations. On
contrary, Realism did not see morality in the same way, that is why it set standards which in turn
helps to preserve the life of people in better manner.
Best theory between liberalism and Realist approach
From these theories, realist approach is consider one of the most effective and
convincing theory because it is the easiest way to approach the international politics and also
describe the world. Another reason of consider this method as a best approach is such that it is
best applies to daily individual lives and also dominates how to shape the international relations.
Moreover, this theory also allow to understand and try to make a sense of world around the
people through different perception (Sabl, 2017). While another theory consider many factor
but, Realist approach only consider state as an main actor and also it supplies the lot of discourse
in international relation. As a result, it contributes to a powerful explanation on the nature of war
which is comprised with international communities.
Another reason for choosing Realist approach over other is such that it is seek to broaden
the attributes of power in international politics which also include neo- realism that tries to
explain international system in broad manner rather than to depict military system, which other
theories do (Parvin, 2020). Though the theory also face some dilemma like struggle of power
and frequent war which was brought by search for power. But there are many development
which emerged in international politics that solve the issue and then the theory is used by most
of the countries. As, liberalism theory is based upon interdependence and things which lead to
peace and that is why, Realist approach is different, like it is based upon the self-help system.
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Also, it provide different ways through which the survival of a country or state is protected and
this in turn leads towards success as well.
On the other side, with the help of Realist, reality of the state is presented and each
define the perception so that better decision has been taken which help to minimize the conflict.
While on the other side, Liberal theory do not consider state as an actor but it uses economic
prosperity as a tool which assist to help in state's survival and it can be consider as a high
politics (Sleat, 2016). But Realist approach of international theory do not prefer these as an
actor, that is why, it is chosen as a best and most convincing theory among all. It is also known
as a dual moral standard because it is consist one moral standard for all individual who are living
inside the state and another standard for other actor which belongs to external relations. Hence,
realism does not believe in universal moral principle, if it do not have its own self- interest.
Determining the concept of globalization and it also limits the autonomy of states.
Globalization is referred to as the speeding up of the movement of capital, goods and
services and technology across the globe (De Lucchi, 2019). It is useful in the increasing
interaction and promotion between the key states and population across the world. Globalization
is significant because it tends to benefit the economies of individual around the globe by
effectively making market more efficient, spreading wealth, better use of technology, increase in
competition, higher market share and limited military conflicts. Economic globalization is useful
in the increased degree of interdependence within the world economy which is useful for
growing up the cross border trades related with the services and commodities of the
organization. It is useful for the continued level of increased degree of interdependence,
expansion and also mutual integration linked with the market frontiers. Economy globalization
has eventually led to the intensifying of the international and competitive market. The
multinational organization operates at the global level (Erauskin and Turnovsky, 2020).
Outsourcing is one of the prominent measure which eventually leads to the economic
development. It is prominent in the creation of the whole new range of avenues for the key
relevant purpose of trade. The travel and tourism industry is one of the effective measure which
helps in exploring the business to various international market. The barrier between the states
can be broken with the help of technological globalization. Globalization is considered to be
highly useful because it helps in creating new set of jobs and leads to growth of the economy
through cross border flow of capital, goods and labor. Globalization is significant because it
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helps the company in attaining competitive set of advantage in various fronts. It helps in the
purchase of the cheaper set of raw material and gain wider access to the large number of
customers (Sleat, 2016). It is useful in effectively integrating the effective free market economic
system and is useful in the reduction of tariffs.
Globalization has changed the way the state work. Moreover, politically through
independence and interdependence related with the state, technological change, threat of
terrorism, social problems change because of the global and international economies. However,
globalization can significantly limit the autonomy of the state. Globalization has been
compressing the world because of the wide set of change within the spatial organization related
with the social relations and key transactions (Webster, 2017). Globalization make the state
highly superfluous. The state have high degree of sovereignty by carrying out internal role
which effectively governs with the people of state. Moreover, the state is varied on the key basis
of politics, socially, economically and technologically. The globalization has limited the
autonomy of the state. It has also changed the key role of the state politically. This is mainly
because of the high degree of strengthened relationship between the inter- state and also the key
relevant dependence upon one anther. Globalization helps the state to effectively become highly
developmental. The role of the state has changes because of the high degree of interdependence
among one state to anther. The key role linked with the state at the time of globalization . This is
mainly kinked because there is high degree dependence on the various states. The globalization
have high degree of problematic set of effects. Change in the wide degree of role of the state
mainly have wide degree of negative impact on the state. Terrorism is considered to be as one of
the major risk and has negative set of impact upon the formulation of terrorism (Forte and
Portes, 2017). However, terrorism is one of the key controlling power which significantly limit
the access to the state. The key threat which in turn is highly relevant in effectively controlling
the new power and also effectively control the people and create new set of authorities in order
to significantly take control over the specific state.
Globalization limits the autonomy of states because there seems to be reduced set of
information within the states (Goyal and Kumar, 2018). There seems to be high degree of use of
the technology which largely influence the role of the state. Usage of internet helps in making
high degree of strong relationship between the states. The internet is useful in making the key
relevant situations across the states and is useful for the better transfer of information to the
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people. However, due to globalization the state can not control the all in state education and
language because of the global mass media. Globalization is one of the key positive
phenomenon through which it helps in enhancing the interstate benefits (HAS GLOBALIZATION
DIMINISHED THE POWER OF THE STATE?, 2016). It overpower the state. The governments
are pressurized to comply with the key needs of the global market. For example, the acquisition
of the MCI by the British Telecom, amalgamation of Citibank with Travelers and also
acquisition of the Mannesmann by Vodafone are the key relevant factors where they tend to
improve the results and outcomes.
Globalization can significantly affect the autonomy of state because it increases the
threat of transmission of deadly disease through the change the national economy to the global
economy. The raising globalization of the market has led to the erosion of state's authority.
Globalization has been compressing the world because there seems to be significant level of
change in the social relations and also the transactions which create inter- regional flow of the
network. Globalization has effectively changed the key role associated with the state politically
because of the strong interstate dependence and relationship of one another. This eventually has
resulted in the increase in the similar set of jurisdiction across the states. High degree of power
has been done within the economic progress (Prinz and Rossi, 2017). The role of the state has
been changed because most of the states tends to have high degree of dependence upon other
states. Cross border movement results in increasing the risk of the deadly disease, threat of
terrorism, etc. are considered to be as the key relevant social problem associated with the
globalization.
Technological globalization is one of the key prominent measure where it helps in
breaking the key barriers within the state and function effectively. Changes within the economic
globalization has resulted in imposing the substantial degree of effect upon the role of the state.
Development of the global economy has led to the strengthening of the inter-state relation.
Globalization has significantly limit the autonomy of the state, politically through the
independence and interdependence of the state. Moreover, socially it has been done through the
key problems of deadly disease and terrorism (Ikenberry, Parmar and Stokes, 2018).
Globalization has significantly limit the autonomy of the state, technologically with the change
in the internet and media over a period of time. Moreover, globalisation has also limited the role
of the state by posing significant degree of change within the national and global economy. It
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has been evaluated that, the globalization limit the autonomy of the state. It is considered to be
of key relevance importance that the state must effectively comply with the changes in order to
sustain the market for the longer period of time. It is of key relevance importance to effectively
adapt to the changes and improve the efficiency of the business (Gaspar, 2018). The nation
states have appropriate degree of power which is useful in effectively dealing with the foreign
and domestic affairs without being interfered and controlled by the other states. However, the
globalization has significantly diminished the sovereign status associated with the nation state
within the international relations.
Globalization has been making the nation state obsolete and also limits the autonomy of
the state because of the ineffective politics and the national sovereignty. The economic
globalization is mainly linked with the human connection and is mainly linked with the
economic activity at both national as well as the state level. It is considered to be very important
to effectively draw distinction between the global as well as the international level (De Lucchi,
2019). Globalization has been compressing the world and this way it limits the autonomy of the
state. However, the globalization has made the state highly superfluous. It is of key relevance
importance to make necessary set of changes to improve the working of the states. The role of
the state is considered to be different in political, social, technological and economic way. For
example, the scientific and the technological revolution and its key significant dynamics tends to
impose greater set of limitation on the autonomy of the state. There seems to be wide degree of
economic imbalance which tends to limit the role of the state (Erauskin and Turnovsky, 2020).
The nation state has high degree of power to effectively deal with the foreign as well as the
domestic affairs. Globalization tends to have political, economic, social and cultural implications
for the state. However, the globalization has limited the autonomy of the nation states.
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Online
HAS GLOBALIZATION DIMINISHED THE POWER OF THE STATE?. 2016. [ONLINE].
Available through:<https://atlascorps.org/has-globalization-diminished-the-power-of-the-state/>
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