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Globalization and Trade

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seth
10 diapositives · 548 Views · Aug 10, 2014

Globalization and Trade. Theories of IR: Power, interdependence, ideas. Today. News Monday: Globalization Theories of IR and trade Realism: Trade and national security Institutionalism: Trade and complex interdependence Constructivism: Trade and human rights. Globalization.

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  1. Globalization and Trade Theories of IR: Power, interdependence, ideas

  2. Today • News • Monday: Globalization • Theories of IR and trade • Realism: Trade and national security • Institutionalism: Trade and complex interdependence • Constructivism: Trade and human rights Hans Peter Schmitz

  3. Globalization 1.0: States/colonialism realism 2.0: Multinational corporations/institutions institutionalism 3.0: Individuals/ideas constructivism Does Friedman give us an accurate picture of world history? Hans Peter Schmitz

  4. What is behind ‘globalization’? Realism (power) • Power (United States hegemony) drives technological change Liberal Institutionalism (institutions) • Technological change drives cooperation; creates ‘complex interdependence’ Idealism/Identity (ideas) • Ideas drive technological change and power (Keynesianism, ‘Washington consensus’, etc.) Hans Peter Schmitz

  5. The realist story: power • After 1945: U.S. hegemonic decline • European economic growth • Vietnam • Demise of Bretton Woods and Oil crises (rise of OPEC) • After 1991: U.S. back on top? • Ronald Reagan: second Cold War • U.S. economic growth and technological change Hans Peter Schmitz

  6. The institutionalist story: trade • After 1945: interdependence/institutions • Information revolution---technology • Expansion of global trade: need for institutional cooperation (GATT>>>WTO) • After 1991: loss of control and institutional pathologies? • Loss of state autonomy and culture? Hans Peter Schmitz

  7. The constructivist story: ideas • After 1945: Economic nationalism/Keynesianism • Liberal economic policies • Alternatives to liberalism: Import substitution and socialism • After 1991: Washington consensus • Export orientation/free trade • Alternative to free trade: Sustainable development Hans Peter Schmitz

  8. Is free trade a good thing? Realism: NO. • Expanded trade creates dependencies and shrinks sovereignty. Sustained trade deficits adversely affect autarky and national security. • US hegemony (mercantilism) instead of free trade. Liberal Institutionalism: YES. • Free trade creates interdependence (peace among nations) and domestic wealth (democracy within nations). Hans Peter Schmitz

  9. Is free trade a good thing? Constructivism/Idealism/Identity:NO. • Trade primarily benefits rich nations and impoverishes everyone else. • Trade needs to be balanced against other goals (sustainable development and social policies). • Fair trade instead of (unfair) free trade. Hans Peter Schmitz

  10. Summary Realism: trade is a function of national security. Institutionalism: trade is a major independent force transforming global affairs. Constructivism/Idealism: • Focus on gap between rhetoric of free trade and practice of protecting domestic markets. • Focus on how free trade can lead to environmental degradation and a loss of local culture/identity. Hans Peter Schmitz