Liberal institutionalism is a version of liberalism that emphasizes the positive role of international institutions and global governance in promoting peace and cooperation. It holds that both domestic and international institutions are instrumental in ending wars, rivalry, and conflict between nation states. It rejects the idea that world politics is destined to be dominated by powerful states whereas international institutions and global governance are without any power that may effect change in the system. Realists and neorealists appreciate the primacy of great powers and the balance of power system in managing world order. However, for liberals, international institutions play (and should play) a key role in world politics. Choice (e) is the correct answer.