Course leader: Helge Hveem. Purpose ... globalisation. It shifts the focus from the traditional emphasis on trade politics ... The course will offer political economy theory and employ .... Copenhagen Business School, 15-16 Nov 2007. 35 pp.
MA Course STV 4284B Spring (March-April) 2008
Globalisation politics. International investments, production and trade Course leader: Helge Hveem
Purpose This is a new course. It takes a political economy approach to the politics of globalisation. It shifts the focus from the traditional emphasis on trade politics to one on foreign direct investments and transnational production networks. More specifically it will offer students a qualified insight into whether or how various political actors influence the complex and dynamic interrelationships between foreign direct investment, the establishment and location of transnational production, and changing structures of international transboundary trade in goods and services. Political actors are states (governments) and corporate management, but also trade unions, civil society organizations, multilateral institutions, and in some cases even individual unorganized agents. They seek to control strategic resources (knowledge, oil reserves); they bargain over the location of jobs and tasks (outsourcing etc); over the division of labour and distribution of value added in the networks; and the type of issues promoted under Global Compact and Corporate Social Responsibility agreements. The course will offer political economy theory and employ qualitative as well as quantitative methods. It offers an overview of trends and patterns at the global and regional levels, and some selected case studies including country and sector comparisons. It will inter alia compare original data on the transnational politics of Norwegian foreign investments with those of a few other countries. Lectures will be given by the course leader and by two or three other professors including a leading international author on the course subject.
Course aims The student will Work from a basic knowledge of International Political Economy to get a state-of-the-art insight into the issues covered Learn to approach theoretically and methodologically the complexity of social and political relationships that these most dynamic and arguably influential aspects of current economic globalization represent Become familiar with ‘real-world’ bargaining over decision-making processes and issues that arise within the politics of transnational production networks Learn how to consider normative and ethical aspects related to distributive issues Get ideas for eventually writing a master’s thesis in the field
Course plan Lectures held in Seminar room 847 (ES Building) Tuesdays and Thursdays from 6th March to 15th April. NB: All lectures from 10.15 to 12 except the one on 13th March which is from 14.15 to 16. Participants are expected to have read the assigned reading before the lecture. (As of 7 Dec ’07; minor revision out in January 2008.) Date
Lecturer
Themes
Literature (see Reading List) Schwartz ch. 2 ; Hymer; Vernon
1
06.03
Helge Hveem
2
11.03
Helge Hveem
Introduction. The Classics: Location vs. monopoly theories, division of labour vs. unequal exchange From classical to Strange; Dicken, ch. 1; contemporary theories: Ruggie; van Tulder chs. 1 an overview 2; Falkner
3
4
13.03 Rob van NB: At Tulder 14.15 Easter Break ---25.03 Helge Hveem
5
27.03
Helge Hveem
6
01.04
Helge Hveem
7
03.04
8
08.04
9
10.04
Dag Harald Claes Carl Henrik Knutsen Helge Hveem
10 15.04
Helge Hveem
States, corporations and globalisation: the analytical perspective ------------------
Van Tulder chs. 3 - 5; Dicken ch. 4;
Foreign direct investment patterns and the global production structure The ‘new’ bargain: transnational production systems and multiple bargains Knowledge as ‘soft’ power: the new strategic advantage? The international petroleum industry: the state prevails Norwegian FDI and political systems in host countries Globalisation, ethics and distributive bargains: CSR, GRI, EITI, and Global Compact etc. Summing up. Global governance, research challenges. Evaluation and critique of course.
UNCTAD 2007; van Tulder ch. 5; Feenstra; Bernard, Jensen and Schott; Lawton and Michaels Van Tulder, chs 6-7; Rogowski; Dicken ch. 6 and 8; Gritsch; Falkner
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Narula; Lall; Sell
Claes; Mommer; UNCTAD 2007 Hveem, Knutsen and Rygh, 2008a and 2008b; Hummels et al Van Tulder, chs. 8-10; Sell; Lall; Falkner; Ruggie
Keohane and Nye; Gritsch; Schwartz ch. 13
Reading list Bernard, Andrew B., J. Bradford Jensen and Peter K. Schott (2007) Importers, Exporters and Multinationals: A Portrait of Firms in the US that Trade Goods. Paper (to be published in Journal of Economic Literature). 35 pp Claes, Dag Harald 2003. “Globalization and State Oil Companies: The Case of Statoil” in The Journal of Energy and Development. 29(1): 43-64. 21p. Dicken, Peter (2007) Global Shift. Mapping the Changing Countours of the World Economy. London, SAGE. Chapt. 1, 4 , 6 and 8 138 pp Falkner, Robert, A Neo-Pluralist Perspective on Business Power in Global Environmental Governance. Paper presented at the GARNET Workshop, Copenhagen Business School, 15-16 Nov 2007 35 pp Feenstra, Robert C. (1998) “Integration and Trade and Disintegration of Production in the Global Economy”, Journal of Economic Perspectives 12 (4), pp. 31-50 20 pp Gritsch, Maria (2005) ”The nation-state and economic globalization: soft geopolitics and increased state autonomy?” Review of International Political Economy, 12:1, February: 1-25 25 pp Hummels, David, Jun Ishii, and Kei-Mu Yi (2001) “The nature and growth of vertical specialization in world trade”, Journal of International Economics, no. 54, pp. 75-96 22 pp Hveem, Helge, Carl Henrik Knutsen and Asmund Rygh (2008a) The Latecomer Investor. Patterns of outward Norwegian Foreign Direct Investments. Paper, 20 pp Hveem, H. C.H. Knutsen and A. Rygh (2008b) Blue-eyed Investors? Norwegian Foreign Direct Investments and Political Systems in Host Countries. Paper. 39 pp
Hymer, Stephen (1971) "The Multinational Corporation and the Law of Uneven Development", in Jaqdish W. Bhagwati (ed.) Economics and World Order. New York, World Law Fund 28 pp Keohane, Robert O. and Joseph N. Nye (2000) “Introduction”, in J.N. Nye and J.D. Donahue (eds.) Governance in a Globalizing World. Washington, DC.: Brookings Institution Press, pp. 1 - 39 39 pp Lall, Sanjay (2005) “Rethinking Industrial Strategy: The Role of the State in the Face of Globalization”, in Kevin P. Callagher (ed.) Putting Development First. London: Zed Books, pp. 33 - 68 35 pp Lawton, Thomas C. and Kevin P. Michaels (2000) “The Evolving Global Production Structure: Implications for International Political Economy”, in T. C. Lawton, J. N. Rosenau, and A. C. Verdun (eds.) Strange Power. Shaping the parameters of international relations and international political economy. Aldershot: Ashgate. 16 pp Mommer, Bernard 2002. Chapter 3: “Public Governance of Mineral Resources: Fundamentals” in Global Oil and the Nation State. Oxford: Oxford University Press. 28 pp. Narula, Rajneesh (2003) Globalization and Technology. Interdependence, Innovation Systems and Industrial Policy. Cambridge: Polity Press, ch. 7, pp. 184 - 210 25 pp Rogowski, Ronald (1989) Commerce and Coalitions. How Trade Affects Domestic Political Alignments. Princeton, Princeton University Press, chapters 1 and 7. 21 pp Ruggie, John G. (2004) “Reconstituting the Global Public Domain - Issues, Actors, and Practices”, European Journal of International Relations, vol. 10 (4):499-531 32 pp Schwartz, Herman (1994) States versus Markets. History, Geography, and the Development of the International Political Economy. New York, St. Martin’s Press. Chapt. 2, Section Intro 199-204, chapt. 13 and 14. 65 pp. Sell, Susan K. (2003) Private Power, Public Law. The Globalization of Intellectual Property Rights. Cambr.: Cambridge University Press, ch. 7 26 pp
Strange, Susan (1988) States and Markets. London: Pinter, ch. 2
20 pp
van Tulder, Rob with Alex van der Zwart (2007) International Business-Society Management. London, Routledge. Chapt. 1 - 10. 198 pp. UNCTAD (2007) World Investment Report. Geneva: UN; chapter VI 30 pp Vernon, Raymond (1966) “International Investments and International Trade in the Product Cycle”, Quarterly Journal of Economics, 80 (2): 190-207 17 pp Total
935 pp
Support sources Part III in van Tulder 2007, rest of chapters 11 - 13, case studies chs. 14-18 and final chapters 19 and 20 UNCTAD World Investment Report 2005 UNCTAD World Investment Report 2007 (rest of report) The report has a special section on mineral and resource industries UNCTAD Trade and Development Report 2007 Contains a special issue on regional cooperation; all UNCTAD reports can be accessed at and/or downloaded from www.unctad.org Information on relevant books and articles other than those on the obligatory reading list will be given in the respective thematic sessions. Websites: www.wto.org - the World Trade Organization’s homepage www.ustr.gov - the Special Trade Representative of the US President www.meti.jp - the site of the Ministry of Economic and Trade, Japan www.yaleglobal.org - an informative source of short scientific and press articles
