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The Info List - Economic Power





"Economic Power is often seen as the foundation of military and political power" ( Richard Payne, pg 16)[1] Economic power can be measured through GNP (Gross National Production). Can also be measured through GDP (Gross Domestic Production).[2] Economic power can also be divided into different categories-

Market power
Market power
is the ability of a firm to profitably raise the market price of a good or service over marginal cost

Monopoly power
Monopoly power
is a strong form of market power - the ability to set prices or wages unilaterally. This is the opposite of the situation in a perfectly competitive market, in which supply and demand set prices.

Purchasing power, i.e., the ability of any amount of money to buy goods and services. Those with more assets, or, more correctly, net worth, have more power of this sort. The greater the liquidity of one's assets, the greater one's purchasing power is. Bargaining
Bargaining
power, i.e., the ability of players in a bargaining game to influence the outcome, which is the players sharing rule for something (a prize, a cake, access to resources). See e.g. Muthoo, Abhinay 1999: Bargaining
Bargaining
theory with applications, Cambridge University
Cambridge University
Press. To be able to bargain prices ( toggle prices, or rewards etc... ). Also see definition of bargaining. Managerial power, i.e., the ability of managers to threaten their employees with firing or other penalties for not following orders or for not giving in satisfying reports. This exists if there is a cost of job loss, especially due to the existence of unemployment and workers' lack of sufficient assets to survive without working for pay. Worker
Worker
power, i.e., the ability of workers to threaten their managers with resignation for not providing satisfying working conditions. This exists if there is a cost of hiring, especially due to the existence of low unemployment, recruiting costs, or training costs. Class power in Marxian political economy: under capitalism this refers to a situation where a minority (the capitalists) in society controls the means of production and thus is able to exploit the majority (the workers).

Information
Information
is also a form of economic power. In the case of two agents entering into a contract; if one agent knows that their deal with turn out significantly better, or worse, than the other suspects, then they are exercising a form of informational economic power (see information asymmetry). Further reading[edit]

Vatiero M. (2009), Understanding Power. A 'Law and Economics' Approach, VDM Verlag. ISBN 978-3-639-20265-6 [1]

v t e

Power in international relations

Types

Economic Energy Food Hard National Power politics Realpolitik Smart Soft Sharp

Status

Emerging Small Middle Regional Great Super Hyper

Geopolitics

American Asian British Chinese Indian Pacific

History

List of ancient great powers List of medieval great powers List of modern great powers International relations of the Great Powers (1814–1919)

Theory

Balance of power

European

Center of power Hegemonic stability theory Philosophy of power Polarity Power projection Power transition theory Second Superpower Sphere of influence Superpower
Superpower
collapse Superpower
Superpower
disengagement

Studies

Composite Index of National Capability Comprehensive National Power

Organizations and groups by region or regions affected

Africa

African Union Union for the Mediterranean

Africa–Asia

Arab League Cooperation Council for the Arab States of the Gulf
Cooperation Council for the Arab States of the Gulf
(GCC) Organization of Islamic Cooperation
Organization of Islamic Cooperation
(OIC)

Americas

Mercosur North Atlantic Treaty Organization (NATO) Organization of American States
Organization of American States
(OAS) Union of South American Nations
Union of South American Nations
(Unasur)

Asia

Asia Cooperation Dialogue
Asia Cooperation Dialogue
(ACD) Asia-Pacific Economic Cooperation
Asia-Pacific Economic Cooperation
(APEC) Association of Southeast Asian Nations
Association of Southeast Asian Nations
(ASEAN) China–Japan–South Korea trilateral summits Economic Cooperation Organization
Economic Cooperation Organization
(ECO) South Asian Association for Regional Cooperation
South Asian Association for Regional Cooperation
(SAARC) Shanghai Cooperation Organisation
Shanghai Cooperation Organisation
(SCO)

Europe

Council of Europe
Council of Europe
(CE) European Union
European Union
(EU) Nordic Council Visegrád Group

Eurasia

Commonwealth of Independent States
Commonwealth of Independent States
(CIS) Collective Security Treaty Organization
Collective Security Treaty Organization
(CSTO) Economic Cooperation Organization
Economic Cooperation Organization
(ECO) Eurasian Economic Union
Eurasian Economic Union
(EaEU) Turkic Council

North America–Europe

North Atlantic Treaty Organization (NATO) Arctic Council

Africa–Asia–Europe

Union for the Mediterranean

Africa–South America

South Atlantic Peace and Cooperation Zone

Oceania-Pacific

Australia–New Zealand–United States Security Treaty (ANZUS) Asia-Pacific Economic Cooperation
Asia-Pacific Economic Cooperation
(APEC) Melanesian Spearhead Group
Melanesian Spearhead Group
(MSG) Pacific Islands Forum
Pacific Islands Forum
(PIF) Polynesian Leaders Group
Polynesian Leaders Group
(PLG)

Non-regional

Brazil–Russia–India–China–South Africa (BRICS) Commonwealth of Nations Francophonie Colombia–Indonesia–Vietnam–Egypt–Turkey–South Africa (CIVETS) E7 E9 G4 G7 G8 G8+5 G20 G24 G77 India–Brazil–South Africa Dialogue Forum (IBSA) Mexico–Indonesia–Nigeria–Turkey (MINT) Next Eleven
Next Eleven
(N-11) Non-Aligned Movement
Non-Aligned Movement
(NAM) Organization for Economic Co-operation and Development (OECD) Uniting for Consensus

Global

United Nations
United Nations
(UN)

References[edit]

^ Payne, Richard (2016). Global Issues (5th ed.). Boston: Pearson Education Inc. p. 16. ISBN 978-0-13-420205-1.  ^ Payne, Richard (2016). Global Issues (5th ed.). Boston: Pearson Education Inc. p. 16. ISBN 978-0-13-420

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