International Politics and Economy

【Public Affairs / Politics & Economics】International Politics & Economics: Let’s Complete the Puzzle of Understanding the World!

Hello everyone! Welcome to the "International Politics & Economics" chapter. When you hear terms like "weaker yen" or "UN resolution" on the news, you might think, "This sounds complicated..." But don't worry!
This field is all about learning "how countries get along (or clash) within the large classroom that is the world." Once you understand the rules (international law) and the mechanisms of money (international economics), the current news will start to feel a lot more interesting. It might feel tough at first, but let’s take it one step at a time!

1. How the International Community Works and International Law

There are many countries in the world, and each one is called a "sovereign state."

(1) The Three Elements of a Sovereign State

To be recognized as a country, it must possess the following three elements:

• Territory (Land, territorial waters, and airspace)
• Population
• Sovereignty (The right to make decisions for one's own country independently)

An analogy: A sovereign state is like "living in your own apartment." You set the rules for your own room, but you also need rules to avoid trouble with the people in the next room (other countries), right? That is international law.

(2) The Father of International Law: Grotius

The Dutchman Grotius argued that "even in times of war, there are rules that must be followed!" He is known as the "Father of International Law." This name is a common target in exams, so make sure to memorize it!

【Key Point!】
The international community lacks a "world police" or "world government" like we have within individual countries. That is precisely why "treaties" between nations and "international customary law," which consists of long-standing practices, play such an important role.

2. The Role and Structure of the United Nations (UN)

The United Nations was founded in 1945, born from the lessons learned during World War II.

(1) Roles of Principal Organs

• General Assembly: Every member state has one vote. While decisions do not have legal enforcement power, it is a forum to consolidate global opinion.
• Security Council: The center for maintaining global peace. It consists of 5 permanent members (USA, UK, France, China, Russia) and 10 non-permanent members.
• International Court of Justice (ICJ): A venue for resolving disputes between countries through judicial processes.

(2) The Barrier of Veto Power

The 5 permanent members of the Security Council have "veto power." If even one country opposes a motion, it cannot be passed. This often prevents the UN from stopping major wars, which remains a significant challenge for the modern international community.

【Did you know?】
A good way to remember the permanent members is to think of them as the "Big 5" of the current world: America, Britain, France, China, and Russia!

3. From the Cold War to Modern International Relations

The post-war world was defined by the confrontation between the "Capitalist bloc (Western bloc)" led by the United States and the "Socialist bloc (Eastern bloc)" led by the Soviet Union (now Russia, etc.). This was called the "Cold War"—a war where countries didn't directly engage in open conflict.

• 1989: The Cold War ended with the Malta Summit.
• Modern Day: After the Cold War, ethnic conflicts, terrorism, and regional disputes have become more prominent.

4. The Mechanisms of International Economics and Trade

The act of countries buying and selling goods from one another is called "international division of labor."

(1) Theory of Comparative Advantage (Ricardo)

This is the theory that "everyone is happier if we exchange what we are good at producing rather than making everything ourselves!"

Example: If Country A is good at making bread and Country B is good at making wine, both countries end up with more goods if they focus on their specialty and trade with each other.

(2) Understanding Exchange Rates (Strong Yen/Weak Yen)

Many people find this difficult, but it's simple if you think in terms of "value"!

• Strong Yen (Yen Appreciation): The value of the yen goes up. (e.g., $1 = 150 yen becomes 100 yen) → Overseas travel becomes cheaper!
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• Weak Yen (Yen Depreciation): The value of the yen goes down. (e.g., $1 = 100 yen becomes 150 yen) → Exporting companies (like Toyota) make more profit!

【Common Mistake】
It’s easy to think, "It went from 100 yen to 150 yen, so it must be a strong yen!" but it's the opposite! Think of it this way: "To get $1, I now have to pay more (150 yen) = the power of the yen has weakened (weak yen)."

5. Economic Globalization and Regional Integration

While the world is becoming one big market, there is also a movement for neighboring countries to band together.

• EU (European Union): A union of European countries. The common currency is the Euro.
• WTO (World Trade Organization): An organization that sets rules to promote free trade.
• IMF (International Monetary Fund): Acts like a global bank that helps countries in financial trouble.

6. The North-South Problem and Global Challenges

The gap between wealthy countries in the Northern Hemisphere and developing countries in the Southern Hemisphere is known as the North-South problem.

• SDGs (Sustainable Development Goals): A common global goal to solve poverty and environmental issues by 2030.

【Summary: Remember these points!】
1. The basic unit of international society is the sovereign state.
2. The UN Security Council permanent members hold veto power.
3. A weak yen favors exports, while a strong yen favors imports and overseas travel.
4. The Theory of Comparative Advantage is about "specializing in what you are good at."

Great work today! International politics and economics are directly connected to our daily lives. For instance, changes in the price of your smartphone or conflicts occurring abroad are all tied to the rules we learned in this chapter. Try to connect what you've learned here to the news you see around you. I'm rooting for you!