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2014/2015  BA-BHAAI1027U  Trade, Globalization and Policy

English Title
Trade, Globalization and Policy

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Course period Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Course instructor - Dr. Vinod Jain, Hult University/India-US World Affairs Institute
    Patricia Plackett - MPP
Main academic disciplines
  • Globalization, International Business, markets and studies
  • International Political Economy
  • International Politics
Last updated on 20-05-2014
Learning objectives
At the end of the course the student should be able to:
  • Have a good understanding of globalization as an historical process that has increasingly blurred the boundaries between economics and politics on the one hand and national and international politics on the other.
  • Appreciate the perspectives of globalizers and anti-globalizers, and related policy issues at national and multilateral levels.
  • Appreciate the roles of states, markets, and other actors in globalization policy.
  • Encourage a problem-solving approach to the policy issues arising from globalization, especially related to trade and economic development.
  • Engage with a key policy issue (and country) of interest to them and write a policy paper on dealing with the economic, political, international, administrative, and/or legal consequences of globalization.
Course prerequisites
No formal academic prerequisites
Prerequisites for registering for the exam
Number of mandatory activities: 1
Compulsory assignments (assessed approved/not approved)
Mandatory Mid-term Assignment: A policy paper on what a specific developing country (to be selected by the student) should do to improve their performance on the Millennium Development Goals.
Examination
Home Assignment:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual
Size of written product Max. 10 pages
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer Term
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure
This course is designed as an introduction to the contested topic of “globalization” and related issues. The term has been used to describe a series of economic, social, and cultural processes that involve greater integration and interaction among states, institutions, communities, and individuals on an international scale. The term has also been used as an ideological lightening-rod, to either justify certain policies, like “free trade”, or to condemn them. Some analysts present globalization as a fact, others as an on-going process, still others as an analytically empty term. The purpose of this course is not to resolve the disputes surrounding globalization, but to provide you with the tools necessary for you to construct your own interpretations of what globalization is, what it means, and what policies might help enhance its positive benefits at the level of nation states and regions.
 
It will introduce students to the analysis of globalization and its impacts on national policy making in areas such as international trade, investment, economic relations between nations, and economic development. Specifically, the course will cover the following four themes: 
  1. An overview of globalization – what it is, what it looks like in an historical context, its drivers and consequences, and the perspectives of developing vs. developed nations towards globalization and how they changed in recent decades. We will explore the policy debates surrounding globalization, especially those highlighted by Nobel Laureate Joseph Stiglitz (Globalization and Its Discontents) and his Columbia University colleague Jagdish Bhagwati (In Defense of Globalization). 
     
  2. An exploration of the theories and the political economy of international trade, focusing on issues such as the patterns of trade observed in the world economy, why certain countries specialize in producing and exporting certain goods and not others, trade as a zero-sum or a positive-sum game, and the most effective trade policies available to nation states for raising their general level of economic development.  We will also discuss hot policy issues such as dumping, outsourcing and offshoring, and the global financial crisis of 2008-2010.
     
  3. The global trading system of the 19th and 20th centuries; global and regional economic integration; and the role of the World Trade Organization (WTO) in creating “a level playing field” in international trade, and helping to resolve trade disputes between nations. The role of property rights, as a part of WTO’s TRIPS agreement, in promoting economic development and growth. Regional economic integration – free trade agreements.
     
  4. Policy prescriptions for the reform of the global financial institutions, trade agreements, and intellectual property laws, to make them better able to respond to the growing disparity between the richest and poorest countries.
In addition to the final Home Assignment, the course has both a Preliminary Assignment and a Mid-term Assignment: Preliminary Assignment: A ungraded multiple-choice quiz focusing on some early materials from the course. Midterm Assignment: A policy paper on what a specific developing country (to be selected by the student) should do to improve their performance on the Millennium Development Goals.


Class Schedule
ClassTopic
Class 1Introduction to the course; introduction to globalization, its drivers and consequences; key debates; Globalization Quiz (ungraded)
Hill Ch 1.
The World Bank, Multipolarity: The New Global Economy, Washington, D.C., Overview pp. 1-10.
Class 2International trade theories; patterns of world trade; country specialization; rationale for free trade
Hill Ch 5.
Paul Krugman, “What undergrads need to know about trade?”, American Economic Review, May 1993.
Class 3Trade policy; recent trade disputes brought before the World Trade Organization Hill Ch 6.
Razeen, Sally, “It’s time for a 21st century trade policy”, Wall Street Journal, May 28, 2013.
Due:Preliminary Assignment
Class 4Economic development; Millennium Development Goals; economic development and poverty reduction programs
Hill Ch 1.
IMF, “Globalization and inequality”, 2007.
Joseph P. Joyce, “Globalization and inequality among nations.”
The World Bank, The MDGs After the Crisis, Global Monitoring Report, 2010, Washington, D.C., 2010, Chapter 4.
Michael Spence, “Globalization and unemployment: The downside of integrating markets”, Foreign Affairs, July/August 2011.
Class 5Dumping, anti-dumping policies, outsourcing and offshoring; policy responses from developed countries
Hill Ch 6.
Alan Blinder, “Offshoring: The next industrial revolution?”, Foreign Affairs, March/April 2006.
Alan Blinder, “Free trade is good, but offshoring rattles me”, Washington Post, May 6, 2007.
Jagdish Bhagwati, “The outsourcing bogeyman”, Project Syndicate, August 23, 2011.
Vinod Jain, “Five myths of offshoring”, 2013.
Due: Mandatory Mid-term Assignment
Class 6Regional economic integration; free trade agreements, e.g., European Union and NAFTA
Hill Ch 8
Class 7Financial globalization; international monetary system; global financial institutions
Hill Ch 7.
McKinsey Global Institute, “Financial globalization: Retreat or reset?” March, 2013, Executive Summary.
Class 8POINT: What’s wrong with globalization?
Stiglitz (2003), Globalization and Its Discontents, selected chapters.
Class 9COUNTER-POINT: What’s right with globalization?
Bhagwati (2007),In Defense of Globalization, selected chapters.
Class 10Where does globalization go from here? Policy perspectives.
Parag Khanna, “The Future of Globalization”, Chatham House Talk.
Stiglitz (2007), Making Globalization Work, selected chapters.
Bhagwati (2007),In Defense of Globalization, Chs 15-17.
Class 11Comprehensive review; summary and wrap-up
Bhagwati (2007),In Defense of Globalization, Afterword
 
Note: Additional readings will be assigned.
Teaching methods
The course will consist of lectures and class discussion of specific policy issues.
Further Information
Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 3 in order to 'jump-start' the learning process.
Expected literature
Required Books:

Jagdish Bhagwati, In Defense of Globalization
Oxford University Press, 2007. ISBN-10: 0195330935 or ISBN-13: 978-0195330939.

Charles W.L. Hill, Global Business Today.               
McGraw-Hill/Irwin; 8th edition, January 16, 2013. ISBN: 9781259011788  
    
Joseph E. Stiglitz, Globalization and Its Discontents                                                   
W. W. Norton & Company, April 17, 2003. ISBN: 9780393324396

Joseph E. Stiglitz, Making Globalization Work                                  
W. W. Norton & Company, September 17, 2007. ISBN: 978-0-393-33028-1

Other Readings:

Even though these are most comprehensive and excellent books on globalization, trade, and policy issues to be covered in the course, a series of articles and reports will be assigned to supplement this material; these are shown in the class schedule below and available on LEARN. Students will also be expected to visit a variety of websites and view relevant Youtube videos.
Last updated on 20-05-2014