Political Science 319: International Political Economy
Emory University, Spring 2001
Tarbutton Hall 105, MWF 12:50p-1:40p
Section 000, Class No. 1442
September 12, 2012
Professor: Eric Reinhardt
Office: 333 Tarbutton Hall
Office hours: W 2:00p-3:30p & by appointment
My home page: http://userwww.service.emory.edu/~erein/
Course home page: http://userwww.service.emory.edu/~erein/courses/pols319/
Course Description & Objectives
This course examines the politics of international economic relations, or globalization. We will ask
questions like “Why do government adopt the economic policies they do?”, “Why do states manage to
cooperate economically in some cases but not others?”, and “Why do governments promote or oppose
globalization under different circumstances?” More specifically, we will examine issues like the
admission of China into the World Trade Organization; the harmonization of different governments’
measures to regulate genetically modified foods; longstanding US and European Union trade wars over
(of all things) bananas and hormone-treated beef; the high-unemployment macroeconomic policies of
stabilization packages negotiated with the International Monetary Fund and World Bank (or necessitated
by commitments to keep the currency stable in foreign exchange); economic integration in the European
Union, Mercosur, NAFTA, and other regional groupings; etc. More broadly, we will study international
trade policy and protectionism, foreign investment and multinational corporations, exchange rate regimes
and capital mobility, financial crises and stabilization in developing countries, regional economic
integration, and the effects of globalization on environmental and labor standards. For each topic, we
will consider theoretical explanations along with historical and contemporary examples.
Grades in the course will be based on the following items:
10% class participation, i.e., asking questions, responding to the professor’s questions,
demonstrating knowledge of readings assigned for the day
20% in-class midterm exam, on ___, of which a portion will cover current events
35% in-class final exam, on Wednesday, May 9, of which a portion will cover current events
35% research paper (15-20 pages), with a 10-12 page draft due Friday, Apr 13 and a final version
due after class ends, on Friday, May 4, at 12p in my office or my departmental mailbox
Students are required to keep up with current events by reading the main international economics
stories of the day/week in either the New York Times, the Wall Street Journal, the Financial Times, or the
Economist. All but the WSJ have free (if in some cases only partial) on-line editions, and you can also
find them and many other periodicals in full-text on-line at Lexis-Nexis (http://web.lexis-
nexis.com/universe), not to mention the hard copies at the library. We will frequently discuss current
economic events in class, and any story on international economics and politics, international business,
or U.S. foreign economic policymaking is fair game for the current events question(s) on the midterm and
final exam, which will add up to a small but not insignificant portion of your total course grade. The
final exam will be cumulative, but it will heavily emphasize the material subsequent to the midterm.
The research paper is on a topic of your choice, though I expect each student to consult with me
about the topic and approach. A draft is due in class on Apr 13. The final version is due after the
semester ends but before the final exam. A good essay should (1) identify a puzzle or research question;
(2) make an explicit argument, i.e., your view of the issues; and (3) back that argument with logic and
evidence as culled from scholarly research on the subject. The emphasis here must be on your own
critical evaluation of the ideas presented in lecture and in the readings, as they bear upon the topic.
Check the course web site for a sheet of guidelines and instructions for this assignment as the course
The course prerequisite is POLS 110 or ECON 231. The course does not satisfy the new college
writing requirement. Absolutely no excuses will be accepted for late assignments or missed exams,
unless they are formally approved by the academic counselors in Student Affairs at the Emory College
office in White Hall, and communicated directly to me from the College. See a College representative
before you come to me with an excuse for any assignment whatsoever. There will be no exceptions. In
the absence of a formal College waiver, late assignments will be penalized. Each day the assignment is
late will result in a drop of a half letter grade, e.g., A to A-, etc. The academic counselors at the College
office are your advocates and are wonderful resources for all academic-related questions during your
time at Emory (e.g., choice of major, distribution requirements, resources for coping with personal
problems interfering with academic progress, etc.). Contact information is below:
Helen Blier, email@example.com, Academic Counselor
Karen Brown-Wheeler, firstname.lastname@example.org, Academic Counselor
Angela Hunter, email@example.com, Academic Counselor
White Hall 218, phone 404-727-6048
M-F 9a-4p, call ahead for appointment when possible
In keeping with College practice, students with disabilities are advised to register with the Office of
Disability Services (ODS) and, if desired, inform the professor at the start of the semester about their
special needs. Call 404-727-6016 or see http://www.emory.edu/EEO/ODS/ or Tricia Jacob for more
There are two required textbooks for the course. Both are available at the Emory Bookstore.
Jeffry A. Frieden and David A. Lake, eds., International Political Economy: Perspectives on Global
Power and Wealth, 4th ed. (Boston: Bedford/St. Martin’s, 2000).
Mark R. Brawley, Turning Points: Decisions Shaping the Evolution of the International Political
Economy (Orchard Park, NY: Broadview Press, 1998).
A number of additional readings are also required; these are all available on-line. You can access them
from the course home page. Generally, these files are in Adobe Acrobat (i.e., PDF) format. You may
need to download the free Acrobat Reader before viewing them. Instructions in doing so are available on
the course home page. Students are expected to have completed the reading by the day for which it has
been assigned. Both the textbook and on-line items are equally vital, and will provide material for the
exams and assignments.
Part I: International Trade
Jan 17 (W): Introduction. Course administration. Perspectives on international political economy.
“Introduction,” Frieden & Lake, 1-16.
Jan 19 (F): Why does international trade happen?
Coughlin, Chrystal, and Wood, “Protectionist Trade Policies: A Survey of Theory,
Evidence, and Rationale,” in Frieden & Lake, 303-317.
Jan 22 (M): Why is trade not free? Forms and patterns of protectionism. Domestic distributive
politics I: collective action problems and logrolling.
“The Global Grocery War,” New York Times Magazine (March 21, 1999), 24.
??? another cite on examples in practice and costs of protection.
Brawley, 155-156, 253-263.
Eichengreen, “The Political Economy of the Smoot-Hawley Tariff,” in Frieden & Lake,
Jan 24 (W): Domestic distributive politics I: collective action and logrolling (continued).
Jan 26 (F): Domestic distributive politics II: the “factors” model.
Rogowski, “Commerce and Coalitions: How Trade Affects Domestic Political
Alignments,” in Frieden & Lake, 318-326.
Brawley, 149-154, 197-207.
Jan 29 (M): Domestic distributive politics III: asset specificity and the “sectors” model.
??? cite from a journalistic account discussing forces of anti-protection, or the first few
pages of Hiscox’s ms??
Jan 31 (W): Domestic distributive politics IV: Which groups prevail? How do they influence
??? cite from journalistic accounts of lobbying contributions, how influence/access was
achieved case study???
Feb 2 (F): Domestic institutions and trade policy I.
Kindleberger, “The Rise of Free Trade in Western Europe,” in Frieden & Lake, 73-89.
Feb 5 (M): Domestic institutions and trade policy II.
Gourevitch, “International Trade, Domestic Coalitions, and Liberty: Comparative
Responses to the Crisis of 1873-1896,” in Frieden & Lake, 90-108.
Feb 7 (W): The global distribution of power and trade. United States hegemony and leadership.
Krasner, “State Power and the Structure of International Trade,” in Frieden & Lake, 19-
Lake, “British and American Hegemony Compared: Lessons for the Current Era of
Decline,” in Frieden & Lake, 127-139.
Feb 9 (F): International institutions and trade I. GATT & WTO. (Last day withdrawal with no
penalty. Last day degree application.)
“Trade,” in Frieden & Lake, 299-301 (up to “The readings in this section…”).
“Fifty Years On,” Economist (May 16, 1998), 21+.
????FAQ on WTO? History of GATT/WTO principles, workings, etc.
Feb 12 (M): International institutions and trade II. WTO dispute settlement.
skim United States General Accounting Office, World Trade Organization: U.S.
Experience to Date in Dispute Settlement System (June 2000).
?????Something on the environmental disputes, Seattle demonstrations.
Feb 14 (W): Strategic trade and competitiveness. Great power trade conflicts.
Hart and Prakash, “Strategic Trade and Investment Policies: Implications for the Study
of International Political Economy,” in Frieden & Lake, 180-191.
??? case study ???
Feb 16 (F): Trade liberalization and development I: the shift to export orientation.
“Economies in Development and Transition,” in Frieden & Lake, 377-381.
Carlos Lozada, “Economic Policy Trends in Post-World War II Latin America,” Federal
Reserve Bank of Atlanta Economic Review 84:4 (Fourth Quarter 1999), 38-45.
Oussama Kanaan, “Tanzania’s Experience with Trade Liberalization,” Finance &
Development 37:2 (June 2000).
Feb 19 (M): Trade liberalization and development II: intellectual property rights.
World Trade Organization, “Intellectual Property: Protection and Enforcement.”
Trade and Development Centre, “Country Case Study: India,” starting with “Overview”
and continuing with “New Drug Patents” and “Local Species and Intellectual Property.”
Sudhir D. Ahuja, “IP Treaties Show Little Effect in India,” IP Worldwide (Jan-Feb
Feb 21 (W): The Millenium Round, China’s accession to the WTO, and other new issues
???reading on China???
???developing countries’ positions in the new round???
??? US, EC statements on new round???
Feb 23 (F): Regionalism I: patterns, cases, explanations.
Stephen J. Kay, “Mercosur: Back on Track?”, EconSouth 2:2 (2000).
Feb 26 (M): Regionalism II: causes.
Cox, “Explaining Business Support for Regional Trade Agreements,” in Frieden & Lake,
Raquel Fernández and Jonathan Portes, “Returns to Regionalism: An Analysis of
Nontraditional Gains from Regional Trade Agreements,” World Bank Economic Review
12 (2): 197-220.
Feb 28 (W): Regionalism III: consequences.
“Alphabetti Spaghetti,” Economist (October 3, 1998), S19.
???cites on debate over stumbling stepping???
skim United States General Accounting Office, North American Free Trade Agreement:
Impacts and Implementation (September 11, 1997).
Mar 2 (F): Midterm exam.
Part II: International Investment
Mar 5 (M): Multinationals in theory and practice.
“Production,” in Frieden & Lake, 141-144.
Caves, “The Multinational Enterprise as an Economic Organization,” in Frieden & Lake,
Mar 7 (W): Multinationals, international politics, and development.
Fieldhouse, “‘A New Imperial System?’ The Role of the Multinational Corporations
Reconsidered,” in Frieden & Lake, 167-179.
Mar 9 (F): Tax competition, bribery, & other problem areas.
“Gimme Shelter,” Economist (January 29, 2000), 15-19.
Frank Vogl, “The Supply Side of Bribery,” Finance & Development 35:2 (June 1998).
Mar 12-16: Spring Recess.
Part III: International Finance
Mar 19 (M): Introduction to international financial politics. The “impossible trinity.”
“Money and Finance,” in Frieden & Lake, 193-197.
Cohen, “The Triad and the Unholy Trinity: Problems of International Monetary
Cooperation,” in Frieden & Lake, 245-256.
“Big MacCurrencies,” Economist (April 27, 2000).
Mar 21 (W): Central bank politics.
“Born Free,” Economist (February 27, 1999), 76.
Michael Peterson, “Developing an Independent Streak,” LatinFinance (September 1999),
???cite on latest pressures on Greenspan, ECB???
Mar 23 (F): The Gold Standard and the Great Depression. Domestic interest groups and financial
Broz, “The Domestic Politics of International Monetary Order: The Gold Standard,” in
Frieden & Lake, 199-219.
Mar 26 (M): Bretton Woods and “embedded liberalism.” Hegemons and financial politics.
Eichengreen, “Hegemonic Stability Theories of the International Monetary System,” in
Frieden & Lake, 220-244.
Mar 28 (W): The Bretton Woods regime in practice.
Mar 30 (F): The fall of Bretton Woods.
Goodman and Pauly, “The Obsolescence of Capital Controls? Economic Management in
an Age of Global Markets,” in Frieden & Lake, 280-297.
Apr 2 (M): Exchange rate politics today I: pegs, boards, & floats.
Jeffry Frieden, “The Politics of Exchange Rates,” in Mexico 1994: Anatomy of an
Emerging Market Crash, Sebastian Edwards and Moises Naim, eds. (Washington, DC:
Carnegie Endowment, 1997), ch. 3.
Jeffry Frieden, “Currency Politics: Dollarization and Other Dilemmas”, 1999.
“Currency Dilemmas,” Economist (November 18, 2000).
Apr 4 (W): Exchange rate politics today II: management.
???cite on late 2000’s intervention on behalf of euro???
Apr 6 (F): Financial crises I: patterns and sources.
Haggard, “Inflation and Stabilization,” in Frieden & Lake, 417-429.
“The Asian Crisis: Causes and Cures,” Finance & Development 35:2 (June 1998).
???journalistic cite on Japan???
???cite on histories of various crises???
Apr 9 (M): No class.
Apr 11 (W): Financial crises II: conditionality, the IMF & World Bank.
“FAQ: The International Monetary Fund,” Financial Times (September 26, 2000).
Louis Uchitelle, “A Pox on the High Rates Cure,” New York Times (January 31, 1999),
Jeffrey Sachs, “The IMF and the Asian Flu,” American Prospect (March-April 1998),
Stanley Fischer, “A Year of Upheaval,” Asiaweek (July 17, 1998), 58+.
(further reading) Paul Krugman, “Saving Asia: It’s Time to Get Radical,” Fortune
(September 7, 1998), 74+.
(further reading) International Monetary Fund, “IMF Chronology,” IMF Survey
Supplement (September 1998),
(further reading) Jeffrey E. Garten, “Lessons for the Next Financial Crisis,” Foreign
Affairs (March-April 1999), 76+.
Apr 13 (F): Financial crises III: more on conditionality, the IMF & World Bank. Essay draft due.
Dani Rodrik, “Can One International Financial Architecture Fit All?”, August 1999.
“Time for a Redesign?”, Economist (January 28, 1999).
Apr 16 (M): Financial crises IV: political economy of reforms.
“Responding to Global Crises: Dollarization in Latin America,” EconSouth 1:2 (1999).
Roberto Chang, “Dollarization: A Scorecard,” Federal Reserve Bank of Atlanta
Economic Review 85:3 (Third Quarter 2000), 1-11.
Part IV: Contemporary Issues in the International Political Economy
Apr 18 (W): European monetary integration & union.
Wyplosz, “EMU: Why and How It Might Happen,” in Frieden & Lake, 270-279.
Michael Chriszt, “Perspectives on a Potential North American Monetary Union,”
Federal Reserve Bank of Atlanta Economic Review 85:4 (Fourth Quarter 2000), 29-38.
???Economist survey??? ???effects of euro currency???
Apr 20 (F): Globalization and its discontents I: the environment.
Butler, “Environmental Protection and Free Trade: Are They Mutually Exclusive?”, in
Frieden & Lake, 433-445.
Suzanne Berger, “Globalization and Politics,” Annual Review of Political Science 3
Apr 23 (M): Globalization and its discontents II: labor standards, wages, and inequality.
Freeman, “Are Your Wages Set in Beijing?”, in Frieden & Lake, 343-352.
Williamson, “Globalization and Inequality, Past and Present,” in Frieden & Lake, 405-
Rodrik, “Sense and Nonsense in the Globalization Debate,” in Frieden & Lake, 461-470.
Apr 25 (W):
Apr 27 (F):
Apr 30 (M):
May 4 (F): Essay due, 12p, Prof. Reinhardt’s office/mailbox.
May 9 (W): Final exam, Tarbutton 105, 8:30a-11:00a