Money In International Relations Essay

Money is extremely relevant in International relations because money makes vast amounts of people and goods go around the world to exchange skills and money respectively. Bonds are the main link between money and the international system, due to the fact that governments spend more than they can raise in tax resulting in them selling bonds to make up for their credit, furthermore bad debts within banks are the reason countries go bankrupt therefore loaning money from other countries hence money influences foreign policy because states are always power seeking. The pursuit of power can without a doubt be related to money and this money can be found if a state associates itself with the economies of other states.
The film characterises the international dimension to money and war as one that has a dominoes effect because when one country’s economy crashes it influences another, an example of this can be seen through the 2008 financial crisis which lead to a world recession after the American economy crashed, which influenced Europe more and lead to what is known as the ‘Euro crisis’ because it lead to rising debts, increasing unemployment and declining competitiveness within Europe’s economy. It also characterises it as one that requires trust in both money and war because within money, money is exchanged if there is a form of security that one will get something in return, trust that credit will be paid if money is loaned and furthermore the recipient must believe in the money. In respect of trust with war, we see an example through what is known in International Relations study as the security dilemma whereby one country does not particularly trust another if there is a development in the advancement of its military because the co...

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... United States of America(USA) with an advantage of natural, tangible and intangible sources of power, furthermore who has a the strongest economy, with the help of wall street, and military in the world hence she possesses so much power and is seen as unipolar. In addition, money loaning became a new form of power when it became reputable because it was now done from a proper institution and not loan sharks whom charged ridiculous interest rates. The film brings attention to the factor that money has the power to influence individuals which explains the reason we see the emergence of formations such as BRICS, IBSA and MINT amongst others which represent a structural change in the global economy with the aim of the collaborating countries to grow their economy provided that they share the same interests in order to advance, in addition it creates a balance of power.