INTS 721 International Political Economy of Business Environments
Lauder Program
May & Fall 2012
Professor Mauro F. Guillén
202 L-FH / 573-6267 / guillen@wharton.upenn.edu
PURPOSE OF THE COURSE
This course deals with the ways in which economic, political, social and cultural
institutions come together to shape policymaking and the environment of the business
firm. The emphasis is on the cross-national diversity of institutional arrangements, the
various types of business strategies that emerge as a result of them, and the consequences
of policymaking.
The goal is to provide a sophisticated understanding of the key arguments, theories,
debates, controversies, and empirical findings in the social science literature on
comparative institutions, especially in the fields of economics, political science, and
sociology. The class will also prepare students to undertake their Global Knowledge Lab
team projects and to write their Global Knowledge Lab individual papers.
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REQUIREMENTS
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Class attendance is required.
Class participation (30%).
Team summer GKL article (10%). First draft due at the end of August, and second
draft at the end of September.
Two problem sets (5% each). Due as indicated on the syllabus.
Short memos on the New Global Careers series (10%).
Final take-home exam (40%).
Please note that the problem sets, the short memos, and the final exam are individual
requirements. No communication with anybody else is permitted.
A Note on Class Participation
Each student will be graded based upon his or her contribution to class discussion.
Effective participation is accomplished by focused comments or questions that develop
insights that are not immediately discernible from the cases or readings, and demonstrate
mastery of reading and case materials. We especially encourage class participation that
applies conceptual frameworks to case materials and that enriches the learning experience
of the class. We expect students both to attend class and to be prepared to participate in
each and every discussion. Class participation includes three components: (a) class
attendance; (b) frequency of class participation; and (c) quality of class participation.
READING MATERIALS
Book: Mauro F. Guillén and Emilio Ontiveros, Global Turning Points: Understanding
the Challlenges of Business in the 21st Century (Cambridge: Cambridge University
Press, 2012). ***This book will be available in the fall at the Penn Bookstore***
Articles available on Canvas: “Syllabus & Readings.”
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1. Introduction to International Political Economy
[Tue 5/8]
Mauro F. Guillén and Emilio Ontiveros, “Welcome to the Twenty-First Century.”
Chapter 1 in Global Turning Points (Cambridge: Cambridge University Press, 2012).
Mauro F. Guillén and Emilio Ontiveros, “The New Demography: Ageing, Migration, and
Obesity.” Chapter 4 in Global Turning Points (Cambridge: Cambridge University
Press, 2012).
Lake, David A. 2007. “International Political Economy.” Handbook of Political Science.
Oxford: Oxford University Press, pp. 757-777.
Behrman, J.R. 2002. “Economics of Development.” International Encyclopedia of the
Social & Behavioral Sciences, pp. 3566-3574.
Hershberg, E. 2002. “Development: Socioeconomic Aspects.” International
Encyclopedia of the Social & Behavioral Sciences, pp. 3592-3597.
***Discussion of Culture Quest.
***Discussion of GKL article and research project.
2. The Open Macroeconomy: Trade, Investment, and Financial Flows
[Thu 5/10]
Mauro F. Guillén and Emilio Ontiveros, “A Global Economy Out of Balance.” Chapter 2
in Global Turning Points (Cambridge: Cambridge University Press, 2012).
Miller, Ken, “Coping With China’s Financial Power: Beijing’s Financial Foreign Policy.”
Foreign Affairs (July-August 2010).
Bill Powell, “It’s China’s World.” Fortune (October 8, 2009).
Video: China Investment Corporation (CBS 60 Minutes). To be shown in class.
***Problem Set #1 to be made available in class. Due at the beginning of class #4.
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3. The Diffusion & Adoption of Market Reforms
[Fri 5/11]
Read:
Rodrik, Dani. 2006. “Goodbye Washington Consensus, Hello Washington Confusion?”
Journal of Economic Literature (December):973-987.
And read three of the following:
Fourcade-Gourinchas, Marion and Sarah L. Babb. 2002. “The Rebirth of the Liberal
Creed: Paths to Neoliberalism in Four Countries.” American Journal of Sociology
108:533-579.
Nicholas Lemann, “The Anointed: Can a Former Radical Lead Brazil through its
Economic Boom?” The New Yorker (December 5, 2011).
Yousef, Tarik M. 2004. “Development, Growth, and Policy Reform in the Middle East
and North Africa since 1950.” Journal of Economic Perspectives 18:91-116.
Jack A. Goldstone, “Understanding the Revolutions of 2011: Weakness and Resilience in
Middle Eastern Autocracies.” Foreign Affairs (May-June 2011).
Barry Bosworth and Susan M. Collins, “Accounting for Growth: Comparing China and
India.” Journal of Economic Perspectives 22(1) (Winter 2008):45-66.
“India’s Economy: The Half-Finished Revolution.” The Economist (July 21st, 2011).
4. Privatization of State-Owned Enterprises
[Tue 5/21]
Read:
Megginson, William L and Jeffry M. Netter. 2001. “From State to Market: A survey of
empirical studies on privatization.” Journal of Economic Literature 39:321-389.
Skim:
Henisz, Witold J., Bennet A. Zelner, and Mauro F. Guillén. 2005. “Market-Oriented
Infrastructure Reforms, 1977-1999.” American Sociological Review 70(6)
(December):871-897.
And read one of the following:
Murillo, María Victoria. 2002. “Political Bias in Policy Convergence: Privatization
Choices in Latin America.” World Politics 54:462-493.
Amann, Edmund, and Werner Baer. 2005. “From the Developmental to the Regulatory
State: The Transformation of the Government’s Impact on the Brazilian Economy.”
Quarterly Review of Economics and Finance 45:421-431.
Kogut, Bruce, and Andrew Spicer. 2002. “Capital Market Development and Mass
Privatization are Logical Contradictions: Lessons from the Czech Republic and
Russia.” Industrial and Corporate Change 11(1):1-37.
Liu, Guy S., Pei Sun and Wing Thye Woo. 2006. “The Political Economy of ChineseStyle Privatization: Motives and Constraints.” World Development 34:2016-2033.
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5a. Business Groups
[Wed 5/23]
Amsden, Alice H., and Takashi Hikino. 1994. “Project Execution Capability,
Organizational Know-How and Conglomerate Corporate Growth in Late
Industrialization.” Industrial and Corporate Change 3(1):111-147.
Mark Granovetter, 1995. “Coase Revisited: Business Groups in the Modern Economy.”
Industrial and Corporate Change 4(1):93-130.
Guillén, Mauro F. 2000. “Business Groups in Emerging Economies: A Resource-Based
View.” Academy of Management Journal 43(3) (June):362-380.
5b. Comparative Patterns of Corporate Governance
[Wed 5/23]
La Porta, R., F. Lopez-de-Silanes, A. Shleifer, and R. W. Vishny. 1998. “Law and
finance.” Journal of Political Economy, 106(6):1113-1155.
6a. Discussion of Country Case Studies on Corporate Governance
[Fri 5/25]
Read two of the following:
O’Sullivan, Mary. 2003. “The Political Economy of Comparative Corporate Governance:
France and Germany Compared.” Review of International Political Economy 10
(2003):23-73.
Guillén, Mauro F., and Mary O’Sullivan. 2004. “The Changing International Corporate
Governance Landscape.” In Hubert Gatignon and John Kimberly, eds., WhartonINSEAD on Globalization. New York: Cambridge University Press, 2004, pp. 23-48.
Allen, Franklin, Rajesh Chakrabarti, Sankar De, Jun Qian, and Meijun Qian, “Law,
Institutions, and Finance in China and India.” In Emerging Giants: China and India in
the World Economy, ed. Barry J. Eichengreen, Poonam Gupta, and Rajiv Kumar, pp.
135–83. Oxford, U.K.: Oxford University Press, 2010.
6b. Institutions, Technical Elites, and Innovation
[Fri 5/25]
Ziegler, J. Nicholas. 1995. “Institutions, Elites, and Technological Change in France and
Germany.” World Politics 47(3) (April):341-372.
Kumaresan, Nageswaran, and Kumiko Miyazaki. 1999. “An Integrated Network
Approach to Systems of Innovation: The Case of Robotics in Japan.” Research Policy
28:563-585.
Saxenian, A. 2005. “From Brain Drain to Brain Circulation: Transnational Communities
and Regional Upgrading in India and China.” Studies in Comparative International
Development, 40:35-61.
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THE FOLLOWING SESSIONS WILL TAKE PLACE IN THE FALL
7. Entrepreneurship and Public Policy
September 6 & 11
Mauro F. Guillén and Emilio Ontiveros, “A Disparate World: Inequality and Poverty.”
Chapter 6 in Global Turning Points (Cambridge: Cambridge University Press, 2012).
Read section on gender.
Klapper, Leora, Raphael S. Amit, and Mauro F. Guillén. 2010. “Entrepreneurship and
Firm Formation across Countries.” In International Differences in Entrepreneurship,
edited by Josh Lerner and Antoinette Schoar. Chicago: University of Chicago Press,
and National Bureau of Economic Research, pp. 129-158.
Mauro F. Guillén, “Women Entrepreneurs and Economic Development.” Chapter 1 of
Women Entrepreneurs (2010).
Martha Debayle’s bbmundo: Birth and Evolution of a Business (2009).
Azza Fahmy: Egyptian Jewelry (2009).
8. Emerging-Market Multinationals
September 13 & 18
Mauro F. Guillén and Emilio Ontiveros, “The Rise of the Emerging-Market
Multinationals.” Chapter 3 in Global Turning Points (Cambridge: Cambridge
University Press, 2012).
Guillén, Mauro F. and Esteban García-Canal. 2009. “The American Model of the
Multinational Firm and the ‘New’ Multinationals from Emerging Economies.”
Academy of Management Perspectives 23(2) (May 2009):23-35.
Accenture. 2008. Emerging-Market Multinationals.
Howard W. French, “The Next Empire.” The Atlantic (May 2010).
Chuan Chen and Ryan J. Orr, “Chinese Contractors in Africa.” Journal of Construction
Engineering and Management (November 2009):1201-1210.
“China International Fund: The Queensway Syndicate and the Africa Trade.” The
Economist (August 13, 2011).
Video: Chinatown Africa. To be shown in class.
9. Trade Blocs and Monetary Unions
September 20 & 25
Andrew G. Brown, and Robert M. Stern. 2011. “Free Trade Agreements and the
Governance of the Global Trading System.” The World Economy 331-354.
Mansfield, Edward D., and Helen V. Milner, “The New Wave of Regionalism.”
International Organization 53(3) (Summer 1999):589-627.
***Problem Set #2 to be made available in class. Due in one week.
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10. The Institutions of Private Equity & Venture Capital
September 27
Lerner, Josh, and Antoinette Schoar. 2005. “Does Legal Enforcement affect Financial
Transactions? The Contractual Channel in Private Equity.” Quarterly Journal of
Economics 120 (1) (February):223-246.
Guler, Isin, and Anita McGahan. 2006. “Do Investors Manage U.S. Ventures more
Intensively than Ventures in other Parts of the World?” SSRN Working Paper
913042.
Guest Speakers: Part I
[Questions to be answered will be distributed ahead of time]
October 2: René Kern, General Atlantic
October 4: Rob Latoff, McKinsey
October 9: TBA
October 11: Raúl Fernandes, entrepreneur
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11. Comparative Energy Policies
October 16 & 25
No class on October 18 (Wharton exams)
No class on October 23 (Fall Break)
Read:
Mauro F. Guillén and Emilio Ontiveros, “The Quest for Sustainability.” Chapter 7 in
Global Turning Points (Cambridge: Cambridge University Press, 2012).
Globalization TrendLab. 2012. Sustainability: New Perspectives and Opportunities.
Philadelphia, PA: The Lauder Institute and Knoweldge@Wharton.
And read two of the following:
Jacobsson, Staffan, and Volkmar Lauber. 2006. “The Politics and Policy of Energy
System Transformation: Explaining German Diffusion of Renewable Energy
Technology.” Energy Policy 34:256-276.
Chien, John Chung-Ling, and Noam Lior. 2011. “Concentrating Solar Thermal Power as
a Viable Alternative in China’s Electricity Supply.” Energy Policy 30:7622-7636.
Lema, Adrian, and Kristian Ruby. 2007. “Between fragmented authoritarianism and
policy coordination: Creating a Chinese market for wind energy.” Energy Policy,
35:3879-3890.
Goldemberg, José, Suani Teixeira Coelho, Patricia Guardabassi. 2008. “The sustainability
of ethanol production from sugarcane.” Energy Policy 36:2086-2097.
Kristinsson, Kari, and Rekha Rao. 2008. “Interactive Learning or Technology Transfer as
a Way to Catch-Up? Analysing the Wind Energy Industry in Denmark and India.”
Industry and Innovation 15:297-320.
Dinica, Valentina. 2008. “Initiating a sustained diffusion of wind power: The role of
public–private partnerships in Spain.” Energy Policy 36:3562-3571.
W.E. Alnaser and N.W. Alnaser. 2011. “The Status of Renewable Energy in the GCC
Countries.” Renewable and Sustainable Energy 15:3074-3098.
Guest Speakers: Part II
October 30: TBA
November 1: Fernando Rivas and Henry Groesbuch, JP Morgan
November 6: TBA
November 8: TBA
November 13: TBA
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12. The Political Economy of Bailouts
November 15 & 29
November 20: No class
November 22: Thanksgiving
November 27: No class.
Reich, Robert B. 1984-1985. “Bailout: A Comparative Study in Law and Industrial
Structure.” Yale Journal on Regulation 2:163-224.
“Galletas Fontaneda and United Biscuits: Leadership in the Midst of a Crisis.” Case 16,
The Wharton School and IE Business School (2008).
13. The Rise and Fall of Global Powers
December 4
Mauro F. Guillén and Emilio Ontiveros, “From Dictatorship to Democracy and Failed
States.” Chapter 5 in Global Turning Points (Cambridge: Cambridge University
Press, 2012).
Mauro F. Guillén and Emilio Ontiveros, “The Global Powers of the Twenty-First
Century.” Chapter 8 in Global Turning Points (Cambridge: Cambridge University
Press, 2012).
Mauro F. Guillén and Emilio Ontiveros, “Coping with Uncertainty and Complexity.”
Chapter 9 in Global Turning Points (Cambridge: Cambridge University Press, 2012).
Ferguson, Niall, “Complexity and Collapse.” Foreign Affairs (March-April 2010).
Globalization TrendLab. 2011. Global Risk: New Perspectives and Opportunities.
Philadelphia, PA: The Lauder Institute and Knoweldge@Wharton.
Ian Bremmer and Nouriel Roubini, “A G-Zero World: The New Economic Club Will
Produce Conflict, Not Cooperation.” Foreign Affairs (March-April 2011).
14. Discussion of GKL Projects and of Final Take-Home Exam
December 6