MN216: The Global Economy 2011/2012
Course Outline
Lecturer
Dr. Diego Vazquez
E-mail: D.A.Vazquez@rhul.ac.uk
Workshops:
Dr Diego Vazquez
Lectures Mondays, MLT 13.00–14.00
Workshops MB003 Mondays A 14.00-15, B 15.00-16.00, C 16.00-17.00. D 17.00-18.00,
Course Starts: January 16 th 2012
Workshops Start: January 23th 2012
Essay Submission: Thursday 22nd March
Essay topics will be introduced in the first workshop.
Brief Outline and Aims of the Course
The notion of ‘globalization’ is one of the most powerful ideas in the world today,
informing debates on politics, economics, development and society. However, this debate
is highly polarized and there is little consensus, even on what we mean by globalization
and for how long it has been in existence (if at all). This course aims not to provide a
definitive definition but instead to approach the subject by exploring the growth and
development of the international or global economy during the ‘long’ twentieth-century –
that is from the late nineteenth-century to the present. This historical perspective allows
us a more realistic view on many of the ‘myths’ and arguments surrounding
globalization. Thus, the course will provide an overview of the growth and development
of the global economy during the twentieth-century. In order to develop an understanding
of these processes the course examine the forces shaping the global economy and the
institutions to which it has given rise, from the World Trade Organization to the
multinational enterprise, Understanding will be further aided by the introduction of
relevant theoretical perspectives (economic, historical, management, geopolitical).
Attention will be given to the role of Foreign Direct Investment as a driving force in the
integration of developing countries into the globalisation process, although the
consequences of globalisation in relation to the environment, social inequalities and
poverty will be also examined and other measures of welfare studied. At the end of the
course, students should be in a position to appreciate the genuine magnitude and
significance of global economic forces and processes for national economies, industries
and firms.
Learning Outcomes
By the end of the course you should be able to:
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Outline changes in the structure of the global economy during the twentieth
century, including changes in economic leadership and patterns of international
and regional economic integration
Assess the Challenges and Opportunities arising from Globalisation
Situate the growth and development of the global economy in the twentieth
century in historical perspective
Demonstrate knowledge of changes in global trade and investment patterns in the
twentieth-century
Explain the evolution, role and influence of key institutions of the global
economy (including the International Monetary Fund, The World Bank, The
World Trade Organization and regional organizations such as the European
Union)
Trace and explain the growth, development and role of the Multinational
Enterprises during the twentieth-century
Explain the origins and influence of the period of ‘crisis’ that seem sometimes to
engulf the international economy
Evaluate the impact of Globalisation on developing countries and explain NorthSouth flows of Labour, Capital and Knowledge
Assess competing claims for and against the existence of ‘globalization’
This half-unit course is taught in the Spring Term. There will be ten lectures and eight
workshops. The lectures will introduce core themes, data and materials. Seminars, based
on set readings will provide an opportunity to explore in greater depth the primary themes
and debates, often by focusing on relevant case-studies. It is expected that students will
complete the set readings before each workshop and will be ready and prepared to
contribute fully to the discussion.
Assessment
Assessment is by one course work essay (30%) and a two-hour written examination
(70%). The exam paper will be unseen. Advice on exam preparation will be given in an
exam revision lecture on November 23. The questions for the course work essay will be
introduced in January during the first workshop. Please aim for approximately 3,000
words. Advice on essay preparation and writing will be given in the workshops. You can
hand in your essay early but the absolute deadline is 22nd of March 2012. You should
hand in ONE copy of essay to the Management School Reception by 12 noon at the
latest. Full regulations and guidance on essay preparation and submission are given in the
School of Management Student handbook. Each essay should be stapled in the top lefthand corner and any binding should be as simple as possible. You are strongly advised
to keep a copy of your essay.
Lecture Schedule
16th January: Lecture 1: 13-14 hours, Lecture 2: 14-15 hours. NO
WORKSHOPS.
LECTURE 1: 13-14hs
Introduction: Economic Growth and the Global Economy
This lecture introduces the course, explains what is required and expected, and provides
an overview of the globalization debate, basic definitions and trends.
LECTURE 2: 14-15 hs
Globalization, Sustainability and Innovation
This lecture analyses globalization in the context of sustainable development and
provides a framework for sustainable and responsible FDI in developing countries. What
is the impact of globalization on the environment, who are the winners and losers in the
globalization Process? What is the role of innovation? Does Globalization have a future?
23rd January: Lecture 3: 13-14hs. Workshop 1: A 14.00-15, B 15.0016.00, C 16.00-17.00. D 17.00-18.00
LECTURE 3:
Institutions: the supranational institutions
Here we turn to the institutional underpinnings of the global economy and consider
attempts to ‘govern’ it at the supranational level; from the Gold Standard and other
exchange rate mechanisms to the IMF, the World Bank and the WTO.
30th January: Lecture 4: 13-14hs. Workshop 2: A 14.00-15, B 15.0016.00, C 16.00-17.00. D 17.00-18.00
LECTURE 4:
Institutions: national and regional institutions
What does globalization mean to national governments? Here we consider responses at
both the national level, including government policy to investment, and the regional
level, taking in regional trade blocs such as the EU.
6th February: lecture 5: 13-14 hs. Workshop 3 A 14.00-15, B 15.0016.00, C 16.00-17.00. D 17.00-18.00
LECTURE 5 :
The Asian Miracle
The second half of the twentieth saw ‘miraculous’ economic growth and transformation
across large part of East and South-east Asia, beginning in Japan and now in China. This
lecture will analyse in particular the so-called ‘Asian Miracle’, consider the causes of this
process and its significance for the global economy
13th February: lecture 6: 13-14 hs. Workshop 4 A 14.00-15, B 15.0016.00, C 16.00-17.00. D 17.00-18.00
LECTURE 6 : Crises and the Global Economy
Throughout its history the global economy appears to have been wracked by periodic
crises, from the Latin American Debt crisis of the late 1970s, through the East Asian
crisis in 1997 to the recent sub-prime mortgages crisis. This lecture considers the causes
and consequences of such crises
Monday 20 of February: READING WEEK. NO LECTURES and NO
WORKSHOPS.
27th February: lecture 7: 13-14 hs. Workshop 5 A 14.00-15, B 15.0016.00, C 16.00-17.00. D 17.00-18.00
LECTURE 7: The Multinational Enterprise: role and impact
This lecture considers the role and influence of the MNE in the global economy. What is
their impact on host and home economies? Are they an aid to economic development?
Who Control MNEs?
5th March : lecture 8: 13-14 hs. Workshop 6 A 14.00-15, B 15.00-16.00, C
16.00-17.00. D 17.00-18.00
LECTURE 8:12th March
Multinational Enterprises: Governance and Ethics.
Governing globalization is becoming an increasingly complex problem. This lecture
introduces some themes likely to dominate future debates; including what is business
ethics and the protection of intellectual property rights
12th March : lecture 9: 13-14 hs. Workshop 7 A 14.00-15, B 15.00-16.00,
C 16.00-17.00. D 17.00-18.00
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LECTURE 9:19th March
Multinational Enterprise: challenges and strategies
The Multinational Enterprise (MNE) has become one of the key players in the global
economy. This lecture will analyse MNEs organisational structures and map their growth
and development during the twentieth-century.
19th March : lecture 10: 13-14 hs. Workshop 8 A 14.00-15, B 15.0016.00, C 16.00-17.00. D 17.00-18.00
LECTURE 10:
Globalization and Foreign Investment
This lecture completes to lay the groundwork by describing the factors influencing
foreign investment and examining patterns of flows of international investment during
the twentieth century.
Workshops.
Workshop 1:
Workshop 2:
Workshop 3:
Workshop 4:
Workshop 5:
Workshop 6:
Worskhop 7:
Workshop 8:
Globalization, Myth or Reality?
Is globalization unsustainable?
The case for the World Bank
Fading States?.
The Asian Miracle
Global Financial crisis: The Argentinean Crisis 2001
MNEs: Giants with clay feet?
Pharmaceuticals and Property Rights.
Readings for the workshops are included in the Reading Packages 1 to 3. Below are
indicated the Workshop topic and readings required
WS1: Globalization, Myth or Reality?
Here we will discuss how we might get at a definition of ‘globalization’ and what is new
about the concept.
Readings: ( Readings 1 and 2 in Reading Package 1)
Hirst, P. and Thompson, G ( 2002) ‘Introduction: Globalization – A Necessary Myth?’, in
Globalization in Question , pp 1-18, Cambridge: Polity Press.
(Reference as Hirst, P and Thompson, G (2002), Globalization in Question, Cambridge:
Polity Press)
‘Defining Globalization’ Chapter 2 in Scholte, J.A, ( 2007) Globalization a Critical
Introduction, pp 53-89
(Reference as Scholte, J.A ( 2007), Globalization a Critical Introduction, London:
Palgrave)
WS2; Is globalization unsustainable?
In this workshop we will consider the case for and against globalization in terms of its
contribution to global sustainable development.
Readings:
Mandatory: ‘What now’, Chapter 1 in Lloyd, C ( 2009) ‘ What on Earth Happened : the
Complete Story of the Planet. Life and People, from the Big Bang Theory to the Present
( Last reading in Reading Package 3) Reference as Lloyd, C (2009) ‘What on Earth
Happened: the Complete Story of the Planet. Life and People, from the Big Bang Theory
to the Present, London: Bloomsbury)
Recommended: ‘The Developing Economies and Globalization’. Chapter 5 in P. Hirst
and G. Thompson, Globalization in Question (Cambridge, Polity, 2002), pp. 1–18 (
Second Reading in Reading Package 3)
WS3::The case for the World Bank
The World Bank is one of the most controversial actors in the global economy. In this
workshop we will consider the case for and against.
Readings:
K. Sarwar Lateef, ‘The World Bank: its First Half Century’ in Goddard et al.
International Political Economy (London, 1996).
Bruce Rich, ‘World Bank: 50 Years in Enough’, in Goddard et al. International Political
Economy.
WS4: Fading States?:
This workshop will require students working in groups.
Each group will analyse the role of the states in two aspects:
a) As attractor of FDI: Students should analyse with one case example, how the five
factors influencing FDI can be applied to decide the potential of a country to attract FDI.
Readings: Student should be versed on the 5 factors framework and bring the
information (newspaper articles, web pages, books) they judge relevant to assess if a
country is a good choice for FDI.
b) States as collaborators. Case study on the political dimensions to trade and investment
analysising how nation states through collaboration can strengthen their influence over
MNEs activities.
Readings:
‘Boeing versus Airbus: Trade in the 1990s’, in Charles Hill, International Business
(London, 2004)
‘Globalization, Governance and the Nation State’, Chapter 1 in P. Hirst and G.
Thompson, Globalization in Question (Cambridge, Polity, 2002), pp. 1–18. (Starting with
the section Governance and the world Economy)
Attendance to this workshop implies that a brief report with both aspects developed ought
the submitted by each group at the end of the workshop,
WS5: An Asian Miracle?
This workshop will explore the micro-level foundations of the so-called Asian economic
miracle of the late twentieth century and analyse the relation between the ‘miracle’ and
state economic policies.
Readings:
Mandatory: ‘Introduction’ in The World Bank, the East Asian Miracle (First
Reading in Reading package 3)
Warning: This is a very long reading, there will only be time for a fast brush-up during
the workshop before analysing questions
Recommended: ‘State Economic Policies’, Chapter 6 in Dicken P. ( 2005) Global Shift:
Mapping the Changing Contours of the World Economy (London, Paul Chapman, pp
181-191
Recommended: ‘The Developing Economies and Globalization’. Chapter 5 in P. Hirst
and G. Thompson, Globalization in Question (Cambridge, Polity, 2002), pp. 1–18 (
Second Reading in Reading Package 3)
WS6: The World in Crisis.
This workshop will examine global economic crises through the example of the
Argentinean Crisis, Asian Crisis and subprime mortgage crises. A documentary about the
Argentinean Financial crisis will be showed and further analysed in groups and compared
to other crisis ( i.e Asian Crisis and sub-prime mortgage crisis)
Students will be asked to compare with other crisis, therefore you ought to read before
the workshop information related to the East Asia , Subprime Mortgage or Internet
bubble Crises
Readings
‘The East Asia Crisis: How IMF Policies brought the World to the Verge of a Global
Meltdown’, in Stiglitz, J. Globalization and its Discontents, pp 89-132: (Reading
Package 3)
or ‘The People’s Panic’ in Lewis, M ( 2008) Panic, The story of modern Financial
Insanity, pp 309-10; 353-354, 313-329 ( Reading Package 3 )
WS7: A Law into Themselves?
This workshop discuss the relative power of MNEs compared to states in the Global
Economy
Readings:
‘Let Them eat Cake’, Chapter 3 in Noreena Hertz, Global Capitalism and the Death of
Democracy (London, Arrow, 2002), pp. 49–79
‘Giants with Clay Feet: Why Companies Don’t Run the World’, Chapter 5 in Phillipe
Legrain, Open World: The Truth about Globalisation (London, Abacus, 2003), pp. 132–
150
WS8: Intellectual Property Rights and the Pharmaceutical Industry
This workshop will consider how the gains from globalization are to be distributed
through consideration of the controversies surrounding drug patents in recent years.
Readings:
‘Patently Wrong: How Global Patent Laws Harm the Poor and the Sick’, Chapter 10 in
Legrain Open World, pp. 254–269. ( Reading Package 3)
23th November 2009:
No Workshop
Recommended Reading for Lecture 10:
‘What Now!’ Chapter 1 in Lloyd, C. What on Earth Happened: the complete story of the
planet, life and people from the Big-Bang to the Present, pp 1-18.
Recommended Textbooks
The recommended textbook for this course are:
Dicken, P. Global Shift (2007): Mapping the Changing Contours of the World
Economy, London,: Paul Chapman,
Stigliz, J. ( 2010) Freefall: Free Markets and The Sinking of the Global Economy
(2002, 2003, 2004 and 2005 editions of Global Shift are equally appropriate for the
purpose of this course).
If you cannot find any of the above
Hill, C. ( 2010), Global Business Today, London, McGraw Hill (but also 2009, 2008 and
2007 editions)
Some of the lectures will require readings of:
Stiglitz, J ( 2002) Globalization and its Discontents, London : Penguin
Jones, G ( 1994) The Evolution of International Business (London: Routledge
Stiglitz, J.(2007) Making Globalization Work: The Next Steps to Global Justice, London:
Penguin, .
However, a number of other books are likely to prove extremely useful. These include:
Globalization and Global Economy
Peet, R ( 2008) The Geography of Power: the making of global economic policy, Oxford:
Oxford University Press.
Wolf, M. (2004) Why Globalisation Works, New Haven: Yale University Press.
Hirst, P. and Thompson, G. ( 2002) Globalization in Question, Cambridge: Polity
Hocking, B and McGuire, S (eds.), Trade Politics (London, Routledge, 1999)
Kenwood, A and Lougheed, A The Growth of the International Economy 1820–2000:
An Introductory Text (London, Routledge, 1999)
Supranational institutions
Peet, R ( 2008) The Geography of Power: the making of global economic policy, Oxford:
Oxford University Press, 2008)
Peet, R ( 2003) Unholy Trinity, The IMF, World Bank and WTO, London: Zed Books,
Role of The State
Weiss,L. Ed (2003) States in the Global Economy, Bringing Domestic Institutions Back
In; Cambridge: CUP,
Hirst, P. and Thompson, G. ( 2002) Globalization in Question, Cambridge: Polity J.
Dunning, P and Lundin, S. (2008) , Multinational Enterprise and the Global Economy,
London: Addison-Wesley
Sustainable Development
Baker, S ( 2006) Sustainable Development, London, Routledge, Chapters 2, 3 and 9
Stiglitz, J.(2007) Making Globalization Work: The Next Steps to Global Justice, London:
Penguin Chudnovsky, D and López, A (1999) “Globalization and Developing Countries:
Foreign Direct Investment and Growth and Sustainable Human Development” Paper
prepared for the UNCTAD/UNDP Global Programme on "Globalization, Liberalization
and Sustainable Development
Financial Crises
Cooper, G (2008) ‘ The Origin of Financial Crises: Central banks, credit bubbles and the
efficient market fallacy’
Thirkell-White, B ( 2005) The IMF and the Politics of Financial Globalization: From the
Asian Crisis to a New International Financial Architecture? Basingstoke, Palgrave
Lewis, M (2008), ‘Panic, The story of Modern Financial Insanity’ London, Penguin
Ethics
Hertz, N ( 2002) The Silent Takeover: Global Capitalism and the Death of Democracy,
London: Arrow,
Stiglitz, J.(2007) Making Globalization Work: The Next Steps to Global Justice, London:
Penguin
Multinationals
Bartlett, C; Ghoshal, S. and Birkinshaw, J. ( 2003) , Transnational Management: Texts,
Cases and Readings in Cross-Border Management London, Irwin/McGraw Hill
Dunning, P and Lundin, S. (2008), Multinational Enterprise and the Global Economy,
London: Addison-Wesley
Hirst, P. and Thompson, G. ( 2002) Globalization in Question, Cambridge: Polity J.
FDI
Moran, T, Graham, EM & Blomström, M. (2005), Does Foreign Direct Investment
Promote Development?
Hirst, P. and Thompson, G. ( 2002) Globalization in Question, Cambridge: Polity J.
Of course, any search under the keyword ‘globalization’ will generate a plethora of
references. Reports from international institutions such as the IMF, World Bank or
UNCTAD would provide reliable data.
Of particular interest are
“Globalization: Threat or Opportunity” International Monetary Fund Brief (2002)
www.imf.org/external/np/exr/ib/2000
Pieper, U and Taylor. L (1998) ‘The Revival of the Neoliberal Creed; The IMF, The World
Bank and Inequality in a globalised economy’, CEPA working papers, Series N4,
http:/www.newschool.edu/cepa
and
The OECD Guidelines for Multinational Enterprises (Paris, OECD, 2001),
http:/www.oecd.org/pdfM00004000/M00004775
Selected Web links on Globalisation:
1. BBC-Globalisation: Information on transnational corporations and cultural
globalisation from the BBC
2. Alternative Information and Development Centre: a South African NGO with
extensive archives in globalization
3. Club of Rome: Information and resources on several global issues
4. Economic Policy Institute: Economic issues of trade and globalization
5. Foreign Policy in Focus: US responsibility as a global leader and partner
6. Globalization Guide: Provides both the ‘pro’ and ‘anti’ globalization perspective
7. The Globalization Website
8. The Globalization Research Centre of Hawaii: Academic Research
9. International Centre for Trade and Sustainable Development: Focus on issues of
development and the environment on the context of globalization
10. International Forum on Globalization: Alliance of 60 leading activists, scholars,
economists, researchers and writers to stimulate new thinking in response to the
global economy
11. Polity Press: the site of leading globalization scholars D. Held and A Mc Grew,
provides an outstanding list of globalization links
12. Project Syndicate: Online resource of over 170 international newspapers in over
90 countries.
13. Third World Network: Economic and trade policies, debates around WTO and
important issues on the global economy.
14. World Policy Institute: On line journal that addresses different aspects of
globalization
15. Yale Global Online: current events and debates about globalization