How does globalization affect state power? The course examines how market outcomes shape both politics and economics. Develops a dynamic understanding of international political economy and assesses its impact in rich/poor gap models, inequality questions, the convergences of productivity, and problems of trade liberalization and neomercantilism. Applications include state breakup, the oil dilemma and currency crises. Uses this dynamic approach to identify key regional problems in North America, Europe and Asia and to offer policy solutions.