PSC 328
INTERNATIONAL POLITICAL ECONOMY
SRING 2004
T-R 9:30pm-10:50am Dr. Erick
Duchesne
10 Capen Hall Park Hall 415
Office Hours:
Tuesday 1:00pm-3:00pm, Phone: 645-2251 ext. 415
and Wednesday 10:00am ‑ Noon. duchesne@acsu.buffalo.edu
COURSE DESCRIPTION
It is hard to imagine a more interesting time to
study the international economic system.
We live in an era of rapid political and economic change; the eventual
outcome of this roller coaster ride is far from clear. Changes such as the relative decline of the
United States, the creation of the North American Free Trade Area (NAFTA); the
rise of China and Japan; the inauguration of the World Trade Organization
(WTO); the collapse of the Soviet Union; the transitions from Communism and
autocracy to capitalism and democracy; the emergence of the Newly
Industrializing Countries (NICs); and the performance of the stock market will
have a profound impact on your life. It
will influence the price of the next car you buy, the range of jobs available
to you after graduation, your ability to invest in stocks, and your ability to
reap profits from your next invention.
IPE is about the struggle for power and wealth within the international system. It focuses on two essential questions: (1) how do states, which desire to maximize their wealth, link themselves to the international system? and (2) how do states use this new wealth to order the international system in a way that maximizes their ability to generate new wealth? As we shall see, the struggle for power and wealth does not imply a situation of pure conflict between states in the system. In many cases, states share similar interests. In these cases, the challenge involves organizing collectively in an anarchical system. In sum, the course is about conflict and cooperation between states in the international system. As the outline of weekly subjects and readings in the syllabus indicates, we will discuss conflict and cooperation in a wide variety of issue areas, including among others, international trade, exchange rates, balance of payments, economic development, globalization, and trade strategies.
The course has
four goals. First, the course will
introduce you to a wide range of abstract theories of international political
economy. Second, the course will give
you a general overview of the history of the international system. The historical examination will allow us to
evaluate the utility of alternative theories.
Third, the course will expose students to a variety of problems
confronting specific countries and the global community. Fourth, students will
have the opportunity to discuss and sharpen their opinions on the most
important contemporary international economic issues.
READINGS
There are only three books
assigned to this class:
COHN, Theodore H, 2003, Global
Political Economy, 2nd ed., New York, Longman.
* The above
constitutes our main text. It covers
the majority of the theoretical and historical issues covered during the
semester.
KLEIN, Naomi, 2002, Fences
and Windows: Dispatches from the Front Lines of the Globalization Debate,
Picador USA.
* Naomi Klein
was declared the “most influential person under the age of thirty-five in the
world” by the Times of London. Her previous book, No Logo,
quickly became a bestseller and was translated in twenty-three languages. Klein
is at the forefront of a younger generation that casts doubt on the benefits of
globalization. Fences and Windows brings together two years of
commentary written by Klein at demonstrations and summits around the world.
ROBERTS, Russell, 2001, The
Choice: A Fable of Free Trade and Protectionism, Upper Saddle River, NJ,
Prentice Hall.
* From the
jacket of the book: “A novel on the global economy? Russell Roberts breaks all
the rules in this provocative and whimsical look at the key international
economic issues facing America and American business. The Choice stars
the ghost of David Richardo, a nineteenth-century economist. To get his wings he must persuade the CEO of
an American television manufacturing company that imports are good for America,
even if they destroy the domestic television industry.” This novel does a
splendid job explaining, without much economic jargon, some of the most
important theoretical aspects on international economics. We will cover and
discuss The Choice during the first half of the semester.
I will also post articles on the web site covering current issues in the world of International Political Economy. You will be able to access these articles through the class web page.
Examinations will cover
material from ALL required readings (including short articles). Lectures will complement, and NOT reproduce,
the materials from the readings. Missing several classes and focusing on
readings is therefore a recipe for disaster.
WEB PAGE
The course web page will be
a central element of the class. The web
page will contain the class syllabus, lecture overheads, assignments, midterm
and final review sheets, additional readings, student contact information,
links to sites relating to international relations, and other useful
information. The page's address is: http://pluto.fss.buffalo.edu/classes/psc/duchesne/psc328/index.html.
COURSE REQUIREMENTS
2
“midterm” examinations 70% (40%, 30%)
Current
event quizzes, exercises, and class participation 30%
The midterm exams will be
weighted in the following way: Your best score on the two exams will be worth
40% of your final grade, and your second best 30% This weighted scale has the
advantage of helping student who may have had a “false” start after the first
examination. There is no final exam scheduled for this class and midterm exam
is NOT cumulative. The tentative dates of the exams are indicated below. The format of each examination will be
discussed in class and you will receive a study guide a week prior to each
examination. In order to prepare for the
exams you are strongly encouraged to attend class and do all the readings.
Questions will purport to class material and readings, even if material in the
readings was not covered in class.
GRADING SCALE
Let's imagine that Sven receives the following
scores:
Attendance
etc.: 85%
First
Exam: 70%
Second
Exam: 80%
His
grade is calculated the following way:
25.5
(i.e., 85 x .3 for attendance, current event quizzes, and exercises) + 32
(i.e., 80 x .4 for his score on his best midterm exam) + 21 (i.e., 75 x .25 for
his score on his second best exam) for a total of 78.5%. According to the following
scale, he would then receive a grade of B- for the class:
90%
to 100% = A
87%
to 89.9% = A-
84%
to 86.9% = B+
80%
to 83.9% = B
76%
to 79.9% = B-
72%
to 75.9% = C+
68%
to 71.9% = C
64% to
67.9% = C-
60%
to 63.9% = D+
50%
to 59.9% = D
<
50% = F
You should be aware that
this represents a “worst case” scenario. For instance, it means that Sven
cannot receive a lower grade than a B-, but chances are good that he
will receive a higher grade than a B- if he finishes with 78.5%.
Very often, according to the performance of a specific class (or it can be that
exams are especially difficult during a specific semester), the grading scale
is pushed down such that, for instance, a student might need an 85%, not a 90%
in order to receive an A for the class. However, in no cases will a student
need more than 90% to get an A. Keep
that in mind during the semester. In the past, students have been pleasantly
surprised when they received their final report card. I also understand that sometimes, because of special
circumstances, you do not perform as well on an exam as you normally do. If it
happens, come to talk to me immediately to discuss your situation; do not wait
until the semester has almost ended. If
you wait until the semester has ended, I am afraid there’s nothing I can do to
help you.
MAKE-UP EXAMS AND EXTRA CREDIT POLICY
Make-up exams will be given only to students with
medical or personal emergencies (for instance, death in the family). If an emergency arises, you will need to
contact me before the exam. I will be
strict on this policy. If you fail to communicate with me (in person, via
e-mail or voice mail) prior to the exam, you will receive a grade of “0” for
the particular examination. The make-up exam will likely consist of a 20 pages
take-home, which you’ll need to return a within three days after you receive
the questions.
You
should be aware that you have the right to ask for a make-up exam if you
have three or more exams on a given day.
If you choose the make-up option in my class you will need to give me a
proof that you have three exams on that day, at least a week prior to
the regularly scheduled examination. In
order to demonstrate proof that you have three exams on the same day, I require
a letter on Department’s letterhead from two of your professors indicating that
they are giving an exam on the same date as mine and that they
have refused to allow you the opportunity to take a make-up examination. I will
be very strict on this policy.
There
are no make-ups for the quizzes and exercises.
I will not, under any circumstances, give extra credits. If you run into specific difficulties during the semester, you
need to discuss the problem with me. We
will try, together, to find a suitable solution, whenever possible. I
HAVE NEVER CHANGED A GRADE ONCE THE SEMESTER IS OVER AND IT IS NOT MY INTENTION
TO START DOING IT. Please consider
this fact in your decision to keep this class on your schedule.
If you
are one of those students to whom some “unfortunate” events always occur and
have difficulty with deadlines and showing up for examinations, you are strongly encouraged to select another
class.
QUIZZES, EXERCISES, CLASS PARTICIPATION, AND DISCUSSION
You are
expected to attend class regularly and take notes. A large segment of the material for the exams is taken from
lecture. I will use material for
lecture that is not covered in the readings.
If you miss class, it is your responsibility to get the lecture notes
from a classmate. It will be a good
idea to come and discuss the class material you have missed, once you acquired
the notes from one of your classmates. I will not, under any circumstances, give my lecture notes to students. Furthermore, outstanding class participation
might bump you up one third of a full grade (example: from B to B+).
Starting
in the second week of class, I will circulate an attendance sheet on Tuesdays.
You will receive one point for your attendance. On Thursdays, I will give you a
current event quiz. Taking the quiz
will serve as proof that you attended class that day and you will receive your
attendance credit. My current event quiz questions will be taken from the
international section of the New York Times. You can keep up with international events in any manner you
choose to, but I strongly suggest that you subscribe to the free New
York Times email service. Go to http://www.nyt.com/ and sign up for this
service. You will then receive an email each morning from the NYT.
The second hour on Thursdays will be dedicated to class discussion. I
will let you know ahead of time what our topic of discussion will be. I will normally give you some short articles
to read in preparation for the class discussions. Usually, there will be a short assignment associated with the
discussions. It is a good way for you to reflect about the topic of our
Thursday discussion.
TOPICS/READINGS
There are no dates scheduled for each separate
lecture, but I will keep you updated when we move from one lecture to the next.
Only required readings from the Cohn textbook are listed below.
I expect you to be done reading Roberts’ novel by
the first examination date. It will be examination material. When reading each
chapter of this book, keep in mind the following concepts and theories, which
will be highlighted during lectures: Chapter 1 (Classical Liberalism), Chapter
2 (Protectionism and Business Cycle Theory), Chapter 3 (Comparative Advantage),
Chapter 4 (Relative versus Absolute Gains and Absolute Advantage), Chapter 5
(Drucker’s Perspective on the Future of Trade), Chapter 6 (Protectionism, Trade
and Tariffs), Chapter 7 (Protectionism, Voluntary Export Restraints and Orderly
Marketing Agreements), Chapter 8 (Exchange Rates), Chapter 9 (Reasons for
Protectionism, especially Managed/Strategic Trade), Chapter 10 (Fair Trade
versus Free Trade, Comparative Advantage, and Capital Accounts), Chapter 11
(Dumping, Subsidies, and Countervailing Duties), Chapter 12 (Environmental
Standards and Development), Chapter 13 (Autarky, Specialization, and Comparative
Advantage).
In contrast, the second examination will include
some questions regarding Klein’s book.
Important Dates:
First Class Meeting: Tuesday
January 13
Last day to drop course without financial penalty: Friday
January 16
Last day to "drop/add" course: Friday January 23
Course "resign" period begins: Saturday
January 24
Last day to "resign" course: Friday
March 5
Spring Recess: Monday March 12–Friday March 19
Second Midterm Examination: Thursday April 22
1) Introduction: Syllabus, course description
2) What is International Political Economy (IPE)?
Readings: Cohn,. Chapter 1; pp. 1-23.
3) Trade and Protectionism
Readings: Cohn, Part II; pp. 67-145.
4) International Economic Institutions
Readings: Cohn, Chapters 2, 8, and 9; pp. 25-65, 225-317.
5) Domestic Politics and Trade
Readings: None. (Use this “free” time to read more of
Klein’s book)
6) American Trade Policy
Readings: None. (Use this “free”
time to read more of Klein’s book)
7) International Finance
Readings: Cohn, Chapter 6; pp. 149-186.
8) Economic Development,
International Debt, and Foreign Aid (Tentative, if time permits)
Readings: Cohn, Chapter 11; pp.
371-414.
9) Putting it All Together: Globalization and the Future of Trade
Readings: Cohn, Part IV; pp.
415-438.