The knowledge on international political economy (IPE) can significantly help in understanding matters related to globalization. The changes in the domestic and the international policies can bring about the interaction of the international economies which is an aspect of globalization. This change in the policies and that of the economic beliefs and practices gives rise to the technological developments in the political economies that are essential in globalization (Spero Hart, 8). From this point, the improved technologies will reduce the costs of the communication and business processes hence increasing the internationalization of the economies productions and finance.
There is a great link between the international economies policies and their systems of governance. With the different forms and levels of governments and systems throughout the globe, there is an increased adoption of different policies, regulations and the international liberalization. As a result of these differences, the trade exchange controls are reduced or removed, the trade barriers are removed and the bans to investments are removed. This will result to better trade within economies globally hence leading to globalization (Spero Hart, 8).
Globalization is, in a greater perspective, involved in the development of the international political systems of different economies. It controls the governments ability to manage their economies using the international economic policies such as the exchange rates policies between countries (Spero Hart, 9). This enables the governments to continue with the achievement of other national goals to be able to meet the international standards. Since the international economics are not mainly addressing the global crisis, globalization challenges the international institutions and the international rules that govern the international economic relations to solve the global crisis.
In general, learning more about international political economies can bring about a cheaper understanding of globalization in the modern economies of the world since the two aspects are related.