Course Description Professor Joanna Moss Office: HSS 144; Office Hrs. Monday 3:00-4:00, & by apt. Tel: 415-338-7516 Email: jgmoss@sfsu.edu Website: http://online.sfsu.edu/jgmoss Economics/International Relations 635.01 The Economics of Globalization BH 338; Monday 4:00 6:45 p.m. This course explores the economic debate surrounding the process of globalization. It examines the historic and current economic causes and consequences of market integration with respect primarily to domestic labor markets, international trade, the multinationalization of production, the integration of financial markets and the role of international institutions in the developed and developing world. Learning objectives The goal of this course is for students to develop a means of critical analysis and understanding of the current globalization process through utilization of the tools of economic theory, economic methods of thinking and the acquisition of knowledge of economic, political and social history. Reading Textbooks: Jeffry A. Frieden, Global Capitalism, W.W. Norton, 2006 Textbooks: Robert J. Carbaugh, International Economics, South-Western, Cengage Learning 2016 Throughout the semester, articles and other materials will be identified in class and available on the Moss website http://online.sfsu.edu/jgmoss Course Requirements 1. EXAMS - There will be 3 exams. The exams will be extensive essay and problem solving examinations in which material from the readings and lectures will be covered. Each student must take all three exams to complete the requirements of the course. Exams will be based on readings and lectures. Lectures will present subject matter in the written materials and subject matter Economics/IR 635 Page 1
only presented in class. Class attendance is mandatory to be exposed to all of the required subject matter of the course. 2. CURRENT EVENT REVIEW - Each student will be required to research and review one current topic in international economics from newspapers, periodicals and journal articles in an oral and written form. Each presentation should utilize at least four current information sources. Class presentation dates will be assigned and a short (4-5 page) written summary of the articles will be turned in at that time. 3. READING RESPONSE PAPERS - Each week students will be required to write a 1-2 page reading response to a series of questions on the assigned readings and email it to the professor, at the latest, by midnight on Sunday of each week. Papers sent on the class day will not be counted. You are allowed to miss 2 responses. You will get a maximum of 2 points and a minimum of 0 for each response. Email response as file attachments (not links!) to the following email: global635@gmail.com. 4. Optional Student Papers - Each student will have the option of writing a 10 page paper. The material should be based on topics from class readings and additional source material readings - journal articles, books and periodicals. If students write a paper it will count as 5% of the grade, with Exam 3 counting as 21.7%.(see below) Paper topics, outlines, and the materials to be utilized must be approved by the instructor by November 2, 2018. Papers due December 17, 2018. 5. Grading The general requirements for the course are as follows: The final grade will be determined as follows: Exam 1 26.7% Exam 2 26.7% Exam 3 26.6% Current event review & class presentation 10.0% Reading response papers 10.0% Total 100% 6. Course Prerequisites This course is open to all upper division students. It is helpful (although not necessary) if students have some previous exposure to the principles of macro- and micro- economics. Students are expected to have the ability to follow the presentation of the basic theoretical concepts as well as graphic and algebraic expositions as they apply to basic economic concepts and to international economics. Economics/IR 635 Page 2
7. Exam Schedule and Class Meetings Exam 1 October 1, 2018 Exam 2 November 5, 2018 Exam 3 December 17, 2018 The class will meet during the scheduled meeting time during finals week. 8. Disability Access Students with disabilities who need reasonable accommodations are encouraged to contact the instructor. The Disability Programs and Resource Center (DPRC) is available to facilitate the reasonable accommodation process. The DPRC is located in the Student Service Building and can be reached by telephone (voice/415-338-2472, video phone/415-335-7210 or by email (dprc@sfsu.edu). 9. Student Disclosures of Sexual Violence SF State fosters a campus free of sexual violence including sexual harassment, domestic violence, stalking, and/or any form of sex or gender discrimination. If you disclose a personal experience as an SF State student, the course instructor is required to notify the Title IX Coordinator by completing the report form available at http://titleix.sfsu.edu, emailing vpsaem@sfsu.ed or calling 338-2032. 10. Partial Course Topic Outline I. Introduction What is globalization? What is the globalization debate about? Role of changing technology How do we measure globalization? What are the consequences of globalization? Using economic tools in analysis of historic and current issues II. Globalization from an Historic Perspective Golden Age of Globalization, 1840-1914 The late 19th century and the gold standard through First World War. Russian Revolution and the influence of Socialism Great Depression and collapse of world trading and financial systems Inward autarkic retreat from 1914-1945. Post WW II outward oriented economic regimes of OECD countries. Influences of the cold war and inward looking economic policies Shift towards outward liberalized economic regimes of 21st century Economics/IR 635 Page 3
How does market integration currently compare with that at the end of the last great era of internationalization at the end of the 19th century? Re-visited and re-define current situation to 2018. III. Economic and Financial Crises 2007-2009 What factors lead to the meltdown: Market focused thinking, housing market bubble, subprime lending practices, new financial instruments, lax oversight, weak regulation, fraud and deception.(and more) International transmission of the financial crisis role of the US dollar and the US balance of payments Tracing the progression of the crises from the financial market to the real economy, domestically and internationally Role of the Federal Reserve in crisis and recovery History of monetary theory and monetary policy US Financial history international and domestic financial events Integration of world capital markets Capital mobility and its consequences the Asian Crisis and others Economic recovery Monetary and Fiscal Policy Return of Keynesian economics, economics of the stimulus package Understanding economic bubbles Minsky s analysis of financial instability Financial instability hypothesis Regulation s role in the modern economy IV. Sovereign Debt and Economic Austerity What is sovereign debt? Sovereign debt crisis in Greece, Portugal and Ireland The Euro and the European sovereign debt problems What does default mean in general? What does default mean for the US dollar and its role as the key currency What has been the recent experience of austerity policies V. International Trade and Globalization Explaining international trade through international trade theory Absolute advantage, comparative advantage, factor price equalization, etc. Why do economists think that free trade is good for everybody? Protectionism winners and losers. International trade and the domestic labor market Trade, growth and developing countries Regional trade agreements How international trade has been affected by the economic crisis Economics/IR 635 Page 4
World Trade Organization History of the world trading system GATT and the WTO, what are the differences WTO and its management of world trade VI. Globalization and the Domestic & International Labor Markets How are domestic labor markets affected by globalization? Outsourcing and the domestic labor force. Who are the winners and losers in the domestic labor market and can or should we protect the losers? Has trade increased inequality and insecurity? The sweatshop debate Thinking in terms of a global labor force Linking international trade and domestic labor market conditions Economic crisis and labor markets VII. Reforming and Repairing the Global Economy Is there a viable alternative to the current international trade and investment framework? Changing the rules of the game regulatory reform Domestic and international safeguards Financial reform and regulation in the US and elsewhere - Can the current administration stop the globalization process? Student Learning Outcomes This course is designed to provide students with exposure to the phenomena of economic globalization both historically and currently. Part of curriculum also entails the development of economic theory from the mercantilists to the present day. In order to accomplish these goals, students are given extensive reading assignments and written assignments, exams as well as a required oral presentation. With this enhanced knowledge, students become better informed and capable of more sophisticated intellectual interchange. This is helpful not only for their own intellectual maturity but also is an asset in securing employment. Students make better job candidates when they have intellectual breadth, are well educated, well informed and articulate. Economics/IR 635 Page 5