Thomas Oatley University of North Carolina at Chapel Hill PEARSON. This book is not for sale or distribution in the U.S.A.

Transcription

1 INTERNATIONAL ECONOMY OTD Thomas Oatley University of North Carolina at Chapel Hill PEARSON This book is not for sale or distribution in the U.S.A. or Canada no CD PO CO CJ1 Longman Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

2 BRIEF CONTENTS Preface xi THE LIBERAL INTERNATIONAL ORDER 1 1] Geopolitical Change Threatens the Liberal Order v. The Liberal Order Remains Robust 3 INTERNATIONAL TRADE 29 i Trade Deficits Reduce Total Jobs v. Trade Deficits Produce Different Jobs 32 3 Retrain Workers v. Redistribute Income 53 4 Migration Brings Economic Gains v. Migration Reduces Cultural Cohesion 76 i Free Trade Agreements are Stepping-Stones v. Free Trade Agreements are Stumbling Blocks 95 5 Restrict Trade to Reduce Greenhouse Gases v. Don't Restrict Trade to Support Climate Change Goals 122 MULTINATIONAL CORPORATIONS 157?l 7 Sweatshop Regulation Is Counterproductive v. Governments Must Regulate Sweatshops 159 W S The Multinational Corporation Race to the Bottom v. the Myth of the Multinational Corporation Race to the Bottom 183 S Sovereign Wealth Funds Threaten U.S. Interests v. Sovereign Wealth Funds Do not Threaten U.S. Interests 210

3 vi Brief Contents INTERNATIONAL MONETARY ISSUES 233 H Too Little Market Regulation Caused the Financial Crisis v. Too Much Government Intervention Caused The Financial Crisis 235 n China Must Revalue to Correct Global Imbalances v. Chinese Revaluation will not Correct Global Imbalances 253 DEVELOPMENT IN THE GLOBAL ECONOMY 271 i Trade Promotes Growth v. Trade Does not Promote Growth 273. Foreign Aid Promotes Development v. Foreign Aid Is Ineffective 295 Microcredit Facilitates Development v. Microcredit Does not Facilitate Development 314 THE FUTURE OF GLOBALIZATION 331 US The Beijing Consensus Will Replace the Washington Consensus v. The Myth of The Beijing Consensus 333 "OS The Consequence of Crisis: Fundamental Change or Essential Continuity? 364 Credits 381

4 DETASLED CONTENTS Preface xi THE LIBERAL INTERNATIONAL ORDER 1 ^ H GEOPOLITICAL CHANGE THREATENS THE LIBERAL ORDER v. THE LIBERAL ORDER REMAINS ROBUST 3 Mathew J. Burrows and Jennifer Harris, "Revisiting the Future: Geopolitical Effects of the Financial Crisis" G. John lkenberry, "The Liberal International Order and Its Discontents" INTERNATIONAL TRADE 29 TRADE DEFICITS REDUCE TOTAL JOBS v. TRADE DEFICITS PRODUCE DIFFERENT JOBS 32 Robert E. Scott, "The China Trade Toll" Douglas A. Irwin, "The Employment Rationale for Trade Protection" RETRAIN WORKERS v. REDISTRIBUTE INCOME 53 Howard F. Rosen, "Strengthening Trade Adjustment Assistance" Kenneth F. Scheve and Matthew J. Slaughter, "A New Deal for Globalization" MIGRATION BRINGS ECONOMIC GASNS v. MIGRATION REDUCES CULTURAL COHESION 76 Philippe Legrain, "The Case for Immigration" David Goodhart, "Too Diverse?" VII

5 viii Detailed Contents FREE TRADE AGREEMENTS ARE STEPPING- STONES v. FREE TRADE AGREEMENTS ARE STUMBLING BLOCKS 95 Daniel T. Griswold, "Free-Trade Agreements: Steppingstones to a More Open World" Jagdish Bhagwati, "Why PTAs Are a Pox on the World Trading System" RESTRICT TRADE TO REDUCE GREENHOUSE GASES v. DON'T RESTRICT TRADE TO SUPPORT CLIMATE CHANGE GOALS 122 Jeffrey A. Frankel, "Addressing the Leakage/ Competitiveness Issue in Climate Change Policy Proposals Jason E. Bordoff, "International Trade Law and the Economics of Climate Policy: Evaluating the Legality and Effectiveness of Proposals to Address Competitiveness and Leakage Concerns" MULTINATIONAL CORPORATIONS SWEATSHOP REGULATION IS COUNTERPRODUCTIVE v. GOVERNMENTS MUST REGULATE SWEATSHOPS 159 Paul Krugman, "In Praise of Cheap Labor: Bad Jobs at Bad Wages Are Better than No Jobs at All" John Miller, "Why Economists Are Wrong about Sweatshops and the Antisweatshop Movement" THE MULTINATIONAL CORPORATION RACE TO THE BOTTOM v. THE MYTH OF THE MULTINATIONAL CORPORATION RACE TO THE BOTTOM 183 Debora Spar and David Yoffie, "Multinational Enterprises and the Prospects for Justice" Daniel W. Drezner, "Bottom Feeders"

6 Detailed Contents - SOVEREIGN WEALTH FUNDS THREATEN U.S. INTERESTS v. SOVEREIGN WEALTH FUNDS DO NOT THREATEN U.S. INTERESTS 210 Gal Luft, "Sovereign Wealth Funds, Oil, and the New World Economic Order" Edwin M. Truman, "The Rise of Sovereign Wealth Funds: Impacts on U.S. Foreign Policy and Economic Interests" INTERNATIONAL MONETARY ISSUES 233 W TOO LITTLE MARKET REGULATION CAUSED THE FINANCIAL CRISIS v. TOO MUCH GOVERNMENT INTERVENTION CAUSED THE FINANCIAL CRISIS 235 Joseph E. Stiglitz, "The Anatomy of a Murder: Who Killed America's Economy?" Lawrence H. White, "How Did We Get into This Financial Mess?" n CHINA MUST REVALUE TO CORRECT GLOBAL IMBALANCES v. CHINESE REVALUATION WILL NOT CORRECT GLOBAL IMBALANCES 253 C. Fred Bergsten, "The Dollar and the Renminbi" David D. Hale and Lyric Hughes Hale, "Reconsidering Revaluation: The Wrong Approach to the U.S.-Chinese Trade Imbalance" DEVELOPMENT IN THE GLOBAL ECONOMY 271 1! TRADE PROMOTES GROWTH v. TRADE DOES NOT PROMOTE GROWTH 273 David Dollar and Aart Kraay, "Spreading the Wealth" Dani Rodrik, "Trading in Illusions"

7 Detailed Contents FOREIGN AID PROMOTES DEVELOPMENT v. FOREIGN AID IS INEFFECTIVE 295 David Dollar, "Eyes Wide Open: On the Targeted Use of Foreign Aid" William Easterly, "The Cartel of Good Intentions" MICROCREDIT FACILITATES DEVELOPMENT v. MICROCREDIT DOES NOT FACILITATE DEVELOPMENT 314 Muhammad Yunus, "Poverty Is a Threat to Peace" Karol Boudreaux and Tyler Cowen, "The Micromagic of Microcredit" THE FUTURE OF GLOBALIZATION W THE BEIJING CONSENSUS WILL REPLACE THE WASHINGTON CONSENSUS v. THE MYTH OF THE BEIJING CONSENSUS 333 Xin Li, Kjeld Erik Bradsgaard, and Michael Jacobsen, "Redefining Beijing Consensus: Ten Economic Principles" Scott Kennedy, "The Myth of the Beijing Consensus" THE CONSEQUENCE OF CRISIS: FUNDAMENTAL CHANGE OR ESSENTIAL CONTINUITY? 364 Roger C. Altman, "Globalization in Retreat: Further Geopolitical Consequences of the Financial Crisis" Niall Ferguson, "What "Chimerica" Hath Wrought" Credits 381