Robert Gilpin, Global Political Economy (Princeton 2001). ISBN: X.

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1 Political Science 3915 International Political Economy Monday and Thursday, 10am-11:15am Room: Dealy 206 Professor Marcus Holmes Office: Faber 671 Office hours: M and R, 1-2:15pm and by appointment Course description: What caused the Global Financial Crisis of 2008? What are its international effects? Using 2008 as a backdrop, this course provides a survey of the field of international political economy (that is, the study of the interactions between politics and economics in the global arena). While some basic economic concepts will be presented, we will primarily concentrate on the political aspects of global economic relations. Among the specific topics we will examine are: international trade, multinational corporations and foreign direct investment, international monetary and financial relations, North-South relations and development, regional integration, migration, and the environment. For each topic, we will examine the central economic and political issues at stake, put them in historical perspective, and consider current policy debates (for example, debates over issues such as the role of the WTO, sweatshops and labor standards, trade and the environment, immigration reform, the future of the dollar, debt relief for poor countries, the IMF s role in financial crises, and so forth). More broadly, we will consider larger questions such as: How has global economic interdependence affected national sovereignty? How has it affected the distribution of wealth and power among nations as well as among different groups within nations? How have different national governments responded to globalization and what explains these reactions? What explains conflict or cooperation in international economic relations? In exploring these questions, we will examine various theoretical approaches toward the study of international political economy. The goal is not just to become conversant with these the theories, but also to assess whether and how they help us to make sense of historical outcomes and to evaluate the arguments around current policy issues in a more systematic and rigorous way. Prerequisites: None. It may be helpful if you have some background knowledge in economics and/or international relations, but such knowledge is not assumed. While some unfamiliar economic concepts may be introduced, the discussions will be non-technical in nature and accessible to non-economists. Readings: The required books for this course are: Robert Gilpin, Global Political Economy (Princeton 2001). ISBN: X. Roger Fisher and William Ury, Getting to Yes: Negotiating Agreement Without Giving In (Penguin, 2011). ISBN: Russell Roberts, The Choice: A Fable of Free Trade and Protection (Prentice Hall). ISBN: Naomi Klein, No Logo (Knopf 2010). ISBN:

2 Amy Chua, World on Fire (Random House, 2003). ISBN: Jared Diamond, Collapse: How Societies Choose to Fail or Succeed (Penguin 2011). ISBN: Paul Krugman, Return of Depression Economics (Norton, 2009). ISBN: In addition, there is one international negotiation exercise to be purchased: 67 Fishpond Lake to be purchased at There are a few additional readings that will be placed on Blackboard. Finally, I ask that you keep up with current events related to the subject of the course. This can be done by regularly reading a publication like The Wall Street Journal, The Financial Times, The Economist, Business Week, or the business section of The New York Times. Requirements: Students are expected to attend every class session and to keep themselves updated on current events involving international affairs. We will spend a considerable amount of time discussing on-going international political events. In addition students will be assigned to on call groups on particular days and will be responsible for leading class discussions and answering questions about the readings on those days. Graded assignments include: (1) an in-class midterm exam on March 4, (2) a take-home final exam due May 10, (3) a quiz on February 14 and another on April 18, a (4) 5-page paper (more detailed instructions on this assignment will be forthcoming in class) due May 10, and 5) short 1-page responses to negotiations conducted in class. The quizzes and exams will test course readings and information covered during class sessions. Class lectures and discussion will often cover material that is not covered in the course texts. Grades: The course grade will be determined as follows: Negotiations performance: 5% (including one-page responses) Midterm: 15% Memo: 15% Quizzes: 20% (10% each) Final exam: 25% Participation: 20% (including on call participation) Course Policies: Extensions will only be granted for emergency cases and late work will be penalized. All students are expected to arrive to class on time, silence cell phones, iphones, etc. All students are responsible for understanding Fordham s academic integrity rules. These can be reviewed at: graduate_s/undergraduate_colleg/fordham_colleg e_at_l/studying_at_lincoln_/academic_integrity_23682.asp. Students are required to read the rules by the end of the first week of classes. Ignorance of the rules is not an excuse if violations occur. Cheating and plagiarism will not be tolerated. Papers will be submitted to plagiarism detection websites such as turnitin.com randomly. If you have any questions about the guidelines, please see me.

3 Some students may wish to take part in religious observances that occur during this academic term. If you have a religious observance that conflicts with your participation in the course, please meet with me before the end of the second week of the term to discuss appropriate accommodations. Any student who feels s/he may need an accommodation based on the impact of a disability should contact me privately to discuss your specific needs. All work should follow APSA guidelines for citation formatting. This will be discussed more in class. Guidelines are available here: Please note that the syllabus is subject to change. Any changes will be announced in class.

4 Course Schedule 1/14 (M): Objective vs. Subjective Distinction Vanderwicken Why the News is Not the Truth, HBR, May-June (BB) Tversky and Kahneman, The Framing of Decisions and the Psychology of Choice (BB) Benjamin Valentino, YouGov Poll Results from April 26-May 2, 2012 (BB) 1/17 (Th): Choosing a Framework for Analysis Lovely, Mary. "Thinking Locally, Acting Globally: Congressman Jim Walsh and the NAFTA Vote," Pew Case Studies in International Affairs, Case 160 (Georgetown University, 1994). (BB) Snyder, Jack. One World, Rival Theories. (BB) 1/21 (M): NO CLASS (Martin Luther King Day) 1/24 (Th): IPE Theories and Assumptions Gilpin, Chapters 1-2. Gary Becker The Economic Approach to Human Behavior. In Jon Elster, ed., Rational Choice. (BB) 1/28 (M): Rationalist-Constructivist Debate James Fearon and Alex Wendt, Rationalism v. Constructivism: A Skeptical View (BB) Kenneth N. Waltz, "The Anarchic Structure of World Politics" (BB) 1/31 (Th): Neoclassical Economics and Its Limits Gilpin, Chapter 3. Ronald Coase The Problem of Social Cost. The Journal of Law and Economics 3 (October): (BB) 2/4 (M): Collective Action Problems Mancur Olson The Logic of Collective Action (selections). (BB) Garrett Hardin, "The Tragedy of the Commons" (BB)

5 2/7 (Th): Institutions (I) Douglass North & Barry Weingast Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in 17th-Century England. The Journal of Economic History 49(4): (BB) Paul Milgrom, North & Weingast The Role of Institutions in the Revival of Trade. Economics and Politics 1: (BB) 2/11 (M): Institutions (II) Gilpin, Chapter 4. John J. Mearsheimer, The False Promise of International Institutions (BB) David G. Victor, "International Cooperation on Climate Change: Numbers, Interests, and Institutions" (BB) 2/14 (Th): Hegemony QUIZ #1 Charles Kindleberger Dominance and Leadership in the International Economy: Exploitation, Public Goods, and Free Rides. International Studies Quarterly 25(2): (BB) Stephen Krasner State Power and the Structure of International Trade. World Politics 28(3): (BB) 2/18 (M): NO CLASS (President s Day meet on Tuesday 2/19 instead) 2/19 (T): Understanding Trade Roberts, The Choice. Paul Krugman, What Do Undergrads Need To Know About Trade? (BB) 2/21 (Th): The WTO and Trade Disputes (I) Gilpin, Chapter 8. Robert Hudec The New WTO Dispute Settlement Procedure: An Overview of the First Three Years. Minnesota Journal of Global Trade 8(1): (BB) 2/25 (M): The WTO and Trade Disputes (II) Paul Stephan Sheriff or Prisoner? The United States and the World Trade Organization. Chicago Journal of International Law 1(1): (BB) Marc Busch & Eric Reinhardt Bargaining in the Shadow of the Law. Fordham Intl. Law Journal 24: (BB)

6 2/28 (Th): The Politics of Trade Negotiations Yoram Haftel From the Outside Looking In: The Effect of Trading Blocs on Trade Dispute in the GATT/WTO. International Studies Quarterly 48(1): (BB) Tow Truck Exercise Simulation with assigned partner. Turn in one-page outcome paper via Blackboard after completing exercise. 3/4 (M): Midterm Exam MIDTERM EXAM 3/7 (Th): The Strategy of Negotiations Thomas Schelling An Essay on Bargaining. In The Strategy of Conflict. (BB) Fisher and Ury, Getting to Yes. Parts Fish Pond Lake Simulation with assigned partner. Turn in one-page outcome paper via Blackboard after completing exercise. 3/11-3/17: NO CLASS (Spring Break) 3/18 (M): Multinationals in the Global Economy (I) Gilpin, Chapter 11. Naomi Klein, No Logo. Paul Krugman, In Praise of Cheap Labor (BB) 3/21 (Th): Multinationals in the Global Economy (II) Hartman, Thom Unequal Protection. Selections (BB) Thomas Gladwin and Ingo Walter, "Monkeys in the Middle," Multinationals Under Fire (John Wiley and Sons, 1980), Chapter 7 (BB) Friedman, Milton The Social Responsibility of Business it to Increase its Profits (BB) 3/25 (M): Debating Globalization (I) Jeffrey Frankel, "The Globalization of the International Economy" (BB) Pankaj Ghemaway, "Why the World Isn t Flat" (BB)

7 3/28-4/2: NO CLASS (Easter Break) 4/4 (Th): Debating Globalization (II) Samuel Huntington, The Clash of Civilizations? (BB) Benjamin Barber, Jihad vs. McWorld (BB) Fareed Zakaria, Why do they hate us? (BB) 4/8 (M): Debating Globalization (III) Amy Chua, World on Fire. 4/11 (Th): Population Arguments (I) Malthus, Thomas An Essay on the Principle of Population. (BB) Clark, Gregory A Farewell to Alms: A Brief Economic History of the World, Chapter 1: "The Sixteen-Page Economic History of the World." (BB) 4/15 (M): Population Arguments (II) Diamond, Jared. Collapse. 4/18 (Th): 2008 Financial Crisis (I) QUIZ 2 Browse 10 Weeks of Financial Turmoil, New York Times: TIMELINE.html Andrews, Edmund. My Personal Credit Crisis, New York Times: (5 pages) Inside Job documentary to be viewed in class. 4/22 (M): 2008 Financial Crisis (II) Raghuram Rajan, Fault Lines (Introduction and Chapter 1). (BB) Jacoby, Jeff Frank's fingerprints are all over the financial fiasco, Boston Globe (op-ed): ngerprints_are_all_over_the_financial_fiasco/ (1 page) Federal Reserve Board The Subprime Crisis: Is Government Housing Policy to Blame? : (Skim)

8 4/25 (Th): After 2008 Paul Krugman, The Return of Depression Economics. 4/29 (M): The Future Alexander Wendt, Why a World State is Inevitable (BB) 5/2 (Th): LAST DAY OF CLASS Paper Due Final Exam Handed Out 5/10 (F): Final Exam Due via Blackboard Assignments Submission at 11:59pm Have a great summer!

9 Paper Topics 1) Topic #1: Select a WTO dispute settlement case of your choosing. Provide a brief legal history of the case i.e., describe the case s path through the WTO dispute settlement mechanism and where it stands now and summarize the positions of the relevant parties to the case. Was the WTO effective at resolving the conflict? What do the events surrounding the case tell us about theories of IPE? 2) Topic #2: What, in your view, should the relationship between social responsibility and corporations be? Are corporations responsible to anyone other than their shareholders? Why or why not? What does your answer tell us about the Financial Crisis of 2008, if anything? 3) Topic #3: There are both advantages and disadvantages entailed in applying economic analysis i.e., rational choice theory and tools to international relations. Discuss one or more advantages and one or more disadvantages that you find potentially important. The advantages/disadvantages may be empirical, theoretical, practical, or whatever you choose; however, they must be general (though not necessarily inherent) advantages/disadvantages of rational choice in the realm of international relations rather than discussions of specific works that employ rational choice. In the end, do the advantages outweigh the disadvantages?