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Winter 2002 |
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University of California, San
Diego |
Assistant Prof., Political Science |
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TuTh 3:55 – 5:15, WLH 2111 |
Office: SSB 389 |
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Office
hours: TH 1:00 – 3:00 |
POLI 142B: U.S. Foreign Economic Policy
The integration of national economies and the development of international
markets has created tensions within the United States (and elsewhere) and
generated much academic and official debate.
Does an integrated world economy jeopardize social cohesion at home by
increasing income inequality, job insecurity, and financial instability? Does the growth of global markets pose a
threat to our distinctive national goals (e.g, environmental protection and
high labor standards)? Can the
government muster the political will to develop policies for containing the
risks of economic globalization, such as national safety nets and new
international financial institutions, or will it succumb to populist pressures
for protection?
For analytical insight, we look to Political Science and Economics. Political Science provides tools for analyzing how voters, interest groups, political parties, politicians, and bureaucrats interact within political institutions to shape American foreign economic policy. Economics identifies the welfare (benefits and costs) and distributional (winners and losers) consequences of economic globalization and of alternative public policies toward the world economy.
Topics include: Benefits and Costs, Winners and Losers, Labor and the Environment, Lessons from History, Determinants of Trade Policy, Political Economy of Foreign Direct Investment and Multinational Corporations, and Reforming the International Financial Architecture. We also discuss late-breaking issues.
Readings: The following required books are available for purchase at the bookstore:
Jeffry R. Frieden and David A. Lake, eds. International Political Economy: Perspectives on Global Wealth and Power. 4th ed. (New York: Bedford/St. Martin’s, 2000). ISBN: 0312189699
Mancur Olson, The Logic of Collective Action: Public Goods and the Theory of Groups (Cambridge: Harvard University Press, 1971). ISBN: 0674537513
Dani Rodrik, Has Globalization Gone Too Far? (Washington, DC: Institute for International Economics, 1997). ISBN 0-88132-241-5
I. M. Destler and Peter J. Balint, The New Politics of American Trade: Trade, Labor, and the Environment. (IIE, October 1999). ISBN: 0-88132-269-5
Edward M. Graham, Fighting the Wrong Enemy: Anti-global Activists and Multinational Enterprises (Washington, DC: Institute for International Economics, 2000).
Prerequisites: Familiarity with Political Science and Economics is helpful but not required. We will cover the necessary material.
Requirements: Performance is based on a midterm examination (35% of grade) and a final examination (65%). The midterm exam is an essay question covering material through Feb 12. The in-class midterm exam is an essay question. The final exam is in three parts. Part I consists of short-answer (identification) questions; Parts II and III are essays.
* Be sure you can attend all exams before you commit to the course because there are no make-up exams.
Jan 8: Orientation (goals, description of course materials, syllabus overview, requirements).
Dani Rodrik,
“Sense and Nonsense in the Globalization Debate.” In Frieden and Lake, pp. 461-70.
Richard B. Freeman, “Are Your Wages Set in Beijing?” In Frieden and Lake, pp. 343-52.
Dani Rodrik, “Introduction." In Rodrik, Has Globalization Gone Too Far? pp. 1-10.
Roberto Chang, “Understanding Recent Crises in Emerging Markets.” Federal Reserve Bank of Atlanta Economic Review 84, 2 (1999): 6-16.
Edward M. Graham, Fighting the Wrong Enemy, pp. xi-14.
Frieden and Lake, "Introduction: International Politics and International Economics," pp.1-16.
Charles Kindleberger, “The Rise of Free
Trade in Western Europe.” In Frieden and Lake, pp. 73-89.
Peter Gourevitch, "International Trade, Domestic Coalitions and Liberty: Comparative Responses to the Crisis of 1873-1896." In Frieden and Lake, pp. 90-108.
Mancur Olson, The Logic of Collective Action, pp. 1-97, 132-67.
Jan 22: The World Economy in
the 19th Century
Jeffrey Williamson, “Globalization and Inequality, Past and Present.” In Frieden and Lake, pp. 405-16.
J. Bradford DeLong, "Trade Policy and America's Standard of Living: An Historical Perspective," in Susan Collins, ed., Trade and the American Worker (Washington, DC: Brookings Institution, 1998).
Barry Eichengreen, “The Political Economy of
the Smoot-Hawley Tariff.” In Frieden and Lake, pp. 37-46
Jeffry Frieden, “Sectoral Conflict and U.S. Foreign Economic Policy 1914-1940,” International Organization 42, 1 (Winter 1988): pp. 59-90.
Frieden and Lake, “Trade,” In Frieden and Lake, pp. 299-302
Cletus Coughlin, et al., "Protectionist Trade Policies," in Frieden and Lake, pp. 303-318.
James E. Alt and Michael Gilligan, “The Political Economy of Trading States,” in Frieden and Lake, pp. 327-42
Richard B. Freeman, “Are Your Wages Set in Beijing?” In Frieden and Lake, pp. 343-52.
Ronald Rogowski,
“Commerce and Coalitions.” In Frieden
and Lake, pp.318-26.
Stephen D. Krasner, "State Power and the Structure of International Trade," in Frieden and Lake, pp. 19-36.
David A. Lake, “British and American Hegemony Compared.” In Frieden and Lake, pp. 127-39.
Ronald Cox, “Explaining Business Support for
Regional Trade Agreements.” In Frieden and Lake, pp. 366-76.
Edward
D. Mansfield and Marc L. Busch, “The Political Economy of Nontariff Barriers.” In Frieden and Lake, pp. 353-65.
Feb 12: Midterm Examination
Alison Butler, "Environmental Protection and Free Trade: Are They Mutually Exclusive?" In Frieden and Lake, pp. 493-505.
Destler and
Balint, “Trade and Labor,” “Trade and the Environment,” “The New Trade Politics
Kaleidoscope,” pp. 15-66.
IV.
U.S. International Financial POlicy
Frieden and Lake, “Money and Finance,” pp.
193-97.
Benjamin Cohen, “The Triad and the Unholy Trinity.” In Frieden and Lake, pp. 245-56.
Barry Eichengreen, “Hegemonic Stability Theories of the International Monetary System.” In Frieden and Lake, pp. 220-44.
No readings
Jeffry Frieden, “Exchange Rate Politics.” In Frieden and Lake, pp. 257-69.
Lawrence Broz, “The Domestic Politics of International Monetary Order: The Gold Standard.” In Frieden and Lake, pp. 199-219.
Frieden and Lake, “Production.” pp. 141-44.
Richard Caves,
The Multinational Enterprise as and Economic Organization.” In Frieden and
Lake, pp. 145-55.
Jeffry A. Frieden, “International Investment and Colonial Control.” In
Frieden and Lake, pp. 109-26.
Shah M. Tarzi, “Third World Governments and
Multinational Corporations.” In Frieden and Lake, pp. 156-66.
David Fieldhouse, “A New Imperial System?” In
Frieden and Lake, pp. 167-79.
Edward
M. Graham, Fighting the Wrong Enemy, pp. 81-184.
VI. Current Issues in U.S. Foreign Economic policy
Dani Rodrik, “How Far Will International Economic Integration Go?” Working paper, 1999.
Kenneth Rogoff, “International Institutions for Reducing Global Financial Instability.” NBER Working Paper No. 7265 (July 1999).