What is neoliberalism theory in international relations?

In the study of international relations, neoliberalism (or liberal institutionalism) is a school of thought which holds that international cooperation between states is feasible and sustainable, and that such cooperation can reduce conflict and competition.

What are absolute and relative gains?

Absolute gains looks at the total effect of the decision while relative gains only looks at the individual gains in respect to others. Absolute gains will engage in comparative advantage and expand the overall economy while relative gains is a zero-sum game where one state can only get richer by gaining from others.

What is the difference between absolute gains and relative gains?

Relative gain is related to zero-sum game, which states that wealth cannot be expanded and the only way a state can become richer is to take wealth from another state. Relative gains differ from absolute gain, which is the total effect of a decision on the state or organization, regardless of gains made by others.

What are the main assumptions of neoliberalism?

Neoliberalism reflects the tenets of classical liberalism (the self-interested individual and free market, laissez-faire economics) but is characterized by intense individualism, consumer sovereignty, freedom and choice, competition, marketization, and modes of governmental and institutional regulation that rely on …

What does neoliberalism mean in terms of international relations?

In the study of international relations, neoliberalism refers to a school of thought which believes that states are, or at least should be, concerned first and foremost with absolute gains rather than relative gains to other states. Neoliberalism is a revised version of liberalism .

How are absolute and relative gains defined in neoliberal theory?

According to neoliberals, states are individualistic or “rational egoists”, and define interest in terms of individual gains (Grieco, 1988). The “absolute gain” theory measures the total effect, comprising power, security, economic, and cultural effects of an action. Neoliberals are indifferent to relative gains.

How old or New is neoliberal institutionalism?

This article argues that disagreement about definitions, about how old or new the phenomenon, and about its exact impact cannot mask the reality of a growing number and the role of international institutions.

What does absolute gain mean in international relations?

Absolute gain (international relations) According to liberal realist international relations theory, absolute gain is what international actors look at in determining their interests, weighing out the total effects of a decision on the state or organization and acting accordingly. The international actor’s interests not only include power…