Required Texts

All readings in this course are from the following three texts.

Frieden, Jeffry A., and David A. Lake, eds. International Political Economy: Perspectives on Global Power and Wealth. 4th ed. Belmont, CA: Wadsworth, 1999. ISBN: 9780312189693.

Oatley, Thomas. International Political Economy: Interests and Institutions in the Global Economy. 2nd ed. New York, NY: Pearson Longman, 2005. ISBN: 9780321355669.

Stiglitz, Joseph E. Globalization and Its Discontents. New York, NY: W.W. Norton, 2003. ISBN: 9780393324396.

Readings by Session

Analytical perspectives
1-2 Introduction: Markets and politics

Oatley, chapter 1, pp. 1-16.

Frieden and Lake

Introduction, pp. 1-16.

North, Douglass. “Institutions and Economic Growth: A Historical Introduction.” pp. 47-59.

Strange, Susan. “States, Firms, and Diplomacy.” pp. 60-68.

International trade
3-4 Overview of the multilateral trade system

Oatley, chapters 2 and 3, pp. 17-67.

Frieden and Lake

Krasner, Stephen. “State Power and the Structure of International Trade.” pp. 19-36.

Kindleberger, Charles. “The Rise of Free Trade in Western Europe.” pp. 73-89.

Lake, David A. “British and American Hegemony Compared: Lessons for the Current Era of Decline.” pp. 127-140.

5-6 Trade policy: Analytical perspectives

Oatley, chapters 4 and 5, pp. 68-110.

Frieden and Lake

Gourevitch, Peter. “International Trade, Domestic Coalitions, and Liberty: Comparative Responses to the Crisis of 1873-1896.” pp. 90-108.

Eichengreen, Barry. “The Political Economy of the Smoot-Hawley Tariff.” pp. 37-46.

Coughlin, Cletus C., K. Alec Chrystal, and Geoffrey E. Wood. “Protectionist Trade Policies: A Survey of Theory, Evidence, and Rationale.” pp. 303-317.

7-8 Trade policy: Empirical studies

Frieden and Lake

Rogowski, Ron. “Commerce and Coalitions: How Trade Affects Domestic Political Alignments.” pp. 318-326.

Alt, James E., and Michael Gilligan. “The Political Economy of Trading States: Factor Specificity, Collective Action Problems, and Domestic Political Institutions.” pp. 327-342.

Freeman, Richard B. “Are Your Wages Set in Beijing?” pp. 343-352.

Mansfield, Edward D., and Marc L. Busch. “The Political Economy of Nontariff Barriers: A Cross-national Analysis.” pp. 353-365.

Cox, Ronald W. “Explaining Business Support for Regional Trade Agreements.” pp. 366-376.

Re-read pp. 19-46.

9 Review for exam (no readings)
10 Trade and development Oatley, chapters 6 and 7, pp. 111-163.
11 In-class examination (no readings)
Money and finance
12-13 Foreign direct investment and the multinational corporation

Oatley, chapters 8 and 9, pp. 164-213.

Frieden and Lake

Section overview, pp. 141-144.

Caves, Richard. “The Multinational Enterprise as an Economic Organization.” pp. 145-155.

Tarzi, Shah. “Third World Governments and Multinational Corporations: Dynamics of Host Bargaining Power.” pp. 156-166.

Fieldhouse, David. “‘A New Imperial System’? The Role of the Multinational Corporations Reconsidered.” pp. 167-179.

14 The international monetary system

Oatley, chapters 10 and 11, pp. 214-258.

Frieden and Lake

Section overview, pp. 193-197.

Broz, Lawrence. “The Domestic Politics of International Monetary Order: The Gold Standard.” pp. 199-219.

15-16 Exchange rate politics

Oatley, Chapters 12 and 13, pp. 259-306.

Frieden and Lake

Eichengreen, Barry. “Hegemonic Stability Theories of the International Monetary System.” pp. 220-244.

Cohen, Benjamin J. “The Triad and the Unholy Trinity: Problems of International Monetary Cooperation.” pp. 245-256.

Goodman, John, and Louis Pauly. “The Obsolescence of Capital Controls? Economic Management in an Age of Global Markets.” pp. 280-298.

Pollard, Patricia. “The Creation of the Euro and the Role of the Dollar in International Markets.” Federal Reserve Bank of St. Louis, Review 83 (September/October 2001): 17-36.

17-18 International financial institutions Stiglitz, Globalization and Its Discontents, chapters 1, 2, and 3, pp. 3-88.
19-20 International finance and development

Oatley, chapters 14 and 15, pp. 307-357.

Frieden and Lake

Haggard, Stephan. “Inflation and Stabilization.” pp. 417-430.

21 Discussion (no readings)
22-23 Economies in transition

Stiglitz, chapter 7, pp. 180-194.

Frieden and Lake

Section overview, pp. 377-381.

Stiglitz, Joseph E., and Lyn Squire. “International Development: Is it Possible?” pp. 383-391.

Broad, Robin, John Cavanagh, and Walden Bellow. “Development: The Market is Not Enough.” pp. 392-404.

The globalization debate
24-25 Positive and negative externalities of globalization

Oatley, chapter 16, pp. 358-383.

Stiglitz, chapter 9, pp. 214-252.

Frieden and Lake

Williamson, Jeffry A. “Globalization and Inequality, Past and Present.” pp. 405-416.

Section overview, pp. 431-432.

Butler, Alison. “Environmental Protection and Free Trade: Are They Mutually Exclusive?” pp. 433-445.

Cerny, Philip G. “Globalization and the Changing Logic of Collective Action.” pp. 446-460.

Rodrik, Dani. “Sense and Nonsense in the Globalization Debate.” pp. 461-470.


The illicit global economy


Wechsler, William F. “Follow the Money.” Foreign Affairs 80, no. 4 (July/August, 2001).

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