PAPER 1 Essay Example | Topics and Well Written Essays - 1500 words

radical 1 - Essay ExampleHowever, one thing to note is that foreign relations lead existed as long as states and that states are sovereign and are guided by informal rules in their relations. The bearing of this paper is to describe an international final result of conflict or cooperation that has occurred since 1980, and evaluate it using theoretical approaches to international relations. There are many theories such as realism, liberalism/idealism, constructivism, Marxism and feminism, but the paper exit focus on liberalism and Marxism. First, a brief summary of the international event will be given in army to understand how, where and when it occurred and to explain how it can be understood as an international event. Secondly, theories of international relations (liberalism and Marxism) will be used to discuss the reasons why the event occurred. This will give the roles played by the state, non-state actors, international corporations, etc. Thirdly, strengths and weaknesse s of the two theories in explaining the event will be evaluated and a conclusion made nearly which theory is the most effective in explaining the event. ... Both first world and third world economies were not spared and are still recovering from the effects of the crisis. The crisis began due to an asset bubble fall aparting. Economists have blamed the event on monetary policy failure and deregulation of financial institutions, but international relations theorists have different versions of the reasons for the crisis. fiscal institutions were not mitigating risks but instead making risky investments in form of owe backed securities (Davies, 2010). Housing prices had gone up and the government through mortgage lenders Fannie Mae and Freddie Mac was encouraging little income earners to take up mortgages at low interest rates. The financial institutions saw an opportunity to gain and gum olibanum gave mortgages even to subprime borrowers. Mortgage brokers sold the mortgage to ban ks which, in turn, bundled it into products which they securitized. They borrowed money from other banks to buy mortgages and securitize thus lavishly earnings. The interests were later to rise and home owners were unable to pay mortgages, leading to mass repossession of houses and the housing bubble burst (Kolb, 2010). Financial institutions could not lend to borrowers anymore, leading to a credit crunch and slow economic growth. Financial institutions such as Northern Rock, Lehman Brothers and Merrill Lynch collapsed. Other casualties were insurance companies and stock markets due to falling portion prices. A $700 bailout was offered by the Bush administration among other measures, but the economy was badly affected (Davis, 2010). credence tightening and massive bailouts by US, UK and other western countries were a blow to third world countries that believe on foreign aid for development.