Fall 2002	J. Lawrence Broz
TH 11:00-1:50 SSB 104	Department of Political Science
University of California, San Diego	Office: SSB 389
Seminar webpage: http://weber.ucsd.edu/~jlbroz/Courses/POLI144F	Email: jlbroz@ucsd.edu Phone: 822-5750
	Office hours: TU 2:00-4:00

POLI 144F: POlitics of international trade and finance

The integration of national economies via trade, investment by multinational companies, and flows of financial capital is said to have changed the way the world works. Indeed, the economic and political consequences of economic globalization are hotly debated. Does economic globalization cause inequality, instability, unemployment, and environmental degradation? Or is it an engine of prosperity and wealth for the vast majority of the world's citizens? Does globalization pose a fundamental challenge to the policymaking autonomy of the nation-state? Or is there a positive role for national governments, individually and collectively?

This seminar explores the integration of trade and financial markets from a political economy perspective. That is, we examine the welfare and distributional aspects of international trade and finance as they relate to the politics of national and international economic policymaking. Substantive topics include: the winners and losers of globalization; determinants of trade policies; international capital mobility and currency crises; the role of the IMF, the World Bank, and the WTO; and globalization and economic development.

Prerequisites: Familiarity with political science and economics is helpful but not required. We will cover the necessary material.

Requirements: Students can fulfill seminar requirements in one of two ways:

Track 1: In-class midterm exam (20%), take-home final exam (50%), and participation (30%).

Track 2: In-class midterm exam (20%), original research paper (50%), and participation (30%).

Track 2 allows students to substitute an independent research project for the final exam. See the attached "Research Proposal Template" for a description of what is entailed. Virtually any topic involving international trade or financial integration is appropriate and students are encouraged to pursue their own interests. To ensure proper guidance, the paper assignment is divided into three parts:

1. Paper Prospectus (2-3 pages, 15%, due Oct 17)

2. First Draft (10-15 pages, 25%, due Nov 21)

3. Final Draft (20-25 pages, 60%, due Dec 12).

We will set aside some of our last meeting for Track 2 students to present and discuss their research projects.

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Participation is a major component of the seminar and involves serious discussion of the readings and the ability to relate theories and concepts to real world events. To ensure that everyone has a chance to participate, students are assigned to introduce and lead at least one weekly discussion during the term. The use of handouts or transparencies is strongly encouraged. See the attached "Template for Weekly Presentations" for guidelines.

Late policy: All late work will be penalized at the rate of 1/3 letter grade per day, including weekends (e.g., a “B” paper one day late will earn a “B-”).

Readings: The following required books are available for purchase at the bookstore:

· Burtless, Gary, et al. 1998. Globaphobia: Confronting Fears about Open Trade. Brookings. ISBN 0815711891

· Scheve, Kenneth F., and Matthew J. Slaughter. 2001. Globalization and the Perceptions of American Workers. Institute for International Economics. ISBN 0-88132-295-4.

· Stiglitz, Joseph. 2002. Globalization and Its Discontents. Norton, W. W. & Company. ISBN 0393051242.

· Bhagwati, Jagdish N. 2002. The Wind of the Hundred Days: How Washington Mismanaged Globalization. MIT Press. ISBN 0262523272.

· Easterly, William. 2001. The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics. MIT Press. ISBN 0262550423 (paperback, July 2002) or 026205065X (hardcover).

WEEK 1: Orientation (goals, description of course materials, syllabus overview, requirements, weekly presentation assignments).

WEEK 2: Economic Globalization: Benefits and Costs, Winners and Losers

• Burtless, et al. Globaphobia, Chapters 1-2, pp. 1-43.
• Bhagwati, The Wind of the Hundred Days, Chapters 7-10, pp. 65-120.

WEEK 3: Globalization, Jobs, and Wages

· Burtless, et al. Globaphobia, Chapters 3 and 4, pp. 44-88.

· Bhagwati, The Wind of the Hundred Days, Chapter 12, pp. 137-152 (Chapter 11 is optional).

WEEK 4: Workers and the World Economy

• Scheve and Slaughter, Globalization and the Perceptions of American Workers, pp. 1-96 (skim statistical sections).

WEEK 5: MIDTERM EXAM

WEEK 6: Sources of Protection and Autarchy

• Burtless, et al. Globaphobia, Chapters 5-7, pp. 89-150.
• Bhagwati, The Wind of the Hundred Days, Chapters 13-20, pp. 153-202.

WEEK 7: Trade Disputes Between Countries and Within Them

• Bhagwati, The Wind of the Hundred Days, Chapters 21-35, pp. 203-290.

WEEK 8: Capital Flows and Currency Crises

• Bhagwati, The Wind of the Hundred Days, Chapters 1-6, pp. 1-64.

WEEK 9: The IMF, the World Bank, and the World Trade Organization

• Stiglitz, Globalization and Its Discontents, Chapters 1-9, pp. 3-250.

WEEK 10: Globalization and Economic Development

• Easterly, The Elusive Quest for Growth, pp. 5-291.

Research Proposal Template

(From Jeffry Frieden)

I. Introduction. A clear, concise statement of the puzzle you are addressing, of your proposed resolution, and of the empirical work you will do.

II. The dependent variable. What you are trying to explain and why, as well as some sense of the range of variation in the dependent variable. Remember you are trying to convince others that this is a question worth asking (and answering).

III. Synthetic literature review. Develop an analytical summary of the existing attempts to explain your dependent variable or solve your puzzle. Do not catalog a "he said-she said" chronology; synthesize the existing literature (5).

IV. Your proposed explanations. Present a coherent logical case for each proposed explanatory variable, going step by step (formalized, if such is your wont) and leading up to working hypotheses.

V. Operationalization. Explain how you will measure your dependent and explanatory variables, and how you will evaluate the relationship among them.

VI. Methodology. Describe in some detail the ways in which you will gather data (statistics, interviews, archives, secondary reading, etc.), perform data analysis (econometrics, counter-factuals1 historical analysis, focused comparisons, etc.).

VII. Implications. Explain what you expect the completed dissertation to add to our understanding of some broader set of analytical or empirical issues in Political Science.

Append a bibliography, and a preliminary chapter outline with a one or two-sentence description of each chapter.

Remember:

*Be concise, be precise.

*Ask only questions to which there may be answers.

*Provide logical underpinnings to all hypotheses.

*Illustrate your puzzle and proposed resolution with a few choice examples.

*Demonstrate the feasibility of your research design.

*Indicate the broader relevance of your research.

Template for Weekly Presentations

One or two students will introduce the topic each week. This entails critically summarizing the readings and leading the subsequent discussion. The presentations, 5 to 10 minutes in length, are meant to develop seminar communication skills and to encourage participation by all members.

The following “template” provides a sense of what is required.

• Go to the heart of the analysis and succinctly state the author’s explanatory "puzzle", key arguments, and findings. Avoid summarizing the details - stick to the most central points.

Use the following template to help isolate each author’s main topic and arguments. The template can be used for handouts and transparencies that accompany presentations:

Author	Outcome Variable	Input Variables
Name	What does the author try to explain?	The factors that the author thinks are crucial to the explanation.
Here's an example:
Mancur Olson	Variation in the formation of interest groups - Why do some people with shared interests form special interest groups and others do not?	- Number of people involved. - Proportion of benefits going to each group member. - Use of “selective” (private) incentives to induce membership in the group.

Note: If the author explains more than one outcome, as is likely with books, you will need multiple listings. Feel free to disaggregate readings according to the number of outcomes variables addressed.

• Handouts or transparencies are extremely useful. They help highlight main points and focus attention on areas of debate for further discussion. Keep them simple! As a rule, less is more. I recommend the above template for your presentations. An overhead projector will be in class every week.

• Begin your presentation by introducing the topic. The heading in the syllabus is a good clue but try to go beyond it, indicating, for example, why the topic is important. For example, why is it relevant to discuss “Globalization in Historical Perspective"?

• Close your presentation with a set of discussion questions aimed at getting the discussion going. A visual can help here too. You might develop a set of questions on hotly debated topics. For example: Is international trade good or bad for the environment? What evidence do proponents and opponents of free trade bring to bear to make their case? Do you find this evidence compelling? How would you attempt to resolve the debate?