Topic > Essay on Money in International Relations - 1097

Money is extremely relevant in international relations because it causes large quantities of people and goods to 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 taxes, resulting in them selling bonds to offset their credit, furthermore bad debts within the Banks are the reason countries fail. by lending money from other countries, therefore, money influences foreign policy because states are always seeking power. The quest for power can undoubtedly be linked to money and this money can be found if a state partners with the economies of other states. The film characterizes the international dimension of money and war as a dimension that has a domino effect because when one country's economy collapses, it affects another, an example of this can be seen in the 2008 financial crisis which led to a worldwide recession after the collapse of the American economy, which affected Europe most and led to what is known as the "euro crisis" because it led to rising debts, rising unemployment and declining competitiveness within the European economy. He also characterizes it as something that requires trust in both money and war because within money, money is exchanged if there is a form of security that you will get something in return, trust that credit will be paid if money it is lent and furthermore the recipient must believe in the money. Regarding trust in war, we see an example through what is known in the study of international relations as the security dilemma whereby one country does not particularly trust another if there is a development in the progress of its armed forces because the co..... .middle of paper...... United States of America (USA) with the advantage of natural, material and immaterial sources of power, also having the strongest economy, with the help from Wall Street, and the military in the world therefore possesses so much power and is seen as unipolar. Furthermore, money lending became a new form of power when it became reliable because it was now done by a proper institution and not by loan sharks charging ridiculous interest rates. The film draws attention to the fact that money has the power to influence individuals, which explains why we see the emergence of formations such as BRICS, IBSA and MINT, among others, which represent a structural change in global economy with the aim of collaborating countries to grow their own economy as long as they share the same interests to advance, it also creates a balance of power.