Spring 2012: Mondays, Wednesdays, and Fridays, 10:00-10:50 in Kauke 244


Professor: Dr. Matthew Krain

Office: Kauke 104; x2469


Office Hours: Monday 2-3, Wednesday 3-4, Friday 1:30-2:30 & by appointment




This course will introduce you to the study of international political economy (IPE), a sub-field of international relations. We will discuss how politics shapes international economic behavior and how the international economy in turn shapes domestic and international politics. These subjects are increasingly relevant as the world becomes "smaller" in a variety of ways. We will examine the complex relationships between politics and economics in the global system. More important, we will attempt to develop a way of thinking critically about how politics and economics interact that will help us explain the behavior of countries, institutions, firms, interest groups and individuals.



We will be using the following books in this class:


-      Spero, Joan E. and Jeffrey A. Hart. 2010. The Politics of International Economic Relations. Seventh Edition. New York: Thomson Wadsworth. ISBN: 978-0534602741


-       Stiglitz, Joseph. 2007. Making Globalization Work. New York: W. W. Norton. ISBN: 978-0393330281


-      American Political Science Association. 2006. Style Manual for Political Science. Washington, DC: American Political Science Association.


Supplementary readings are available on-line, via our class web page, at:, or will placed on electronic reserve through the library (, password = "ipe").


All readings MUST be completed by the class session for which they are assigned. They will be necessary background for lectures and discussion, and you will be held responsible for them, in class and on exams. Finally, as with any international relations class, you are expected to keep up with news around the world. This will require you to get your news from multiple reputable sources with substantial global coverage.



The grades will be assigned as follows:


15% = Exam #1     

25% = Exam #2     

30% = Papers (3 papers, 10% Each)     

10% = Assessment Quizzes (10 Quizzes, 1% each)

20% = Participation and Professionalism



There will be two exams during the semester. The first exam, on February 15th, 2012, will focus specifically on the first part of the semester. The second exam, from 9:00am to 12:00 noon on May 9th, 2012, will focus on primarily on the second section, but will include elements that are cumulative. Exams will be some combination of multiple choice, short answer, and essay questions. CHEATING WILL NOT BE TOLERATED, AND WILL RESULT IN AUTOMATIC FAILURE FOR THE COURSE!



You will be responsible for two policy papers over the course of the semester – one shorter (3-6 page) single-authored paper [PAPER #1] due on February 10th, 2012, and one longer (8-12 page) group project paper [PAPER #3] due on April 30th, 2012. NOTE: Each student co-author in the group project paper will receive the same grade for the group's research paper.[1] Policy papers will be associated with in-class sessions about a particular policy issue. Each paper is due at the beginning of the "think-tank" session with which it is associated.


Each policy brief should state the problem or situation, summarize the policy options, recommend some action be taken, and explain the reasons for the recommendation. When writing the policy paper you may want to think of yourself as an international economic policy advisor (or consultant) writing a memo to your boss (or client) that outlines the situation and what action should be taken to address that situation. A good policy brief is clear and concise, and demonstrates knowledge of the policy problem, intelligently discusses options available, and makes a persuasive case for which policy option is best. Further details will be distributed and/or discussed by the instructor in class.


Students will be the primary instigators of discussion and debate over these issues during the associated roundtable "think-tank" session. During the first "think tank" session, the instructor will act as moderator of a group discussion of policy options. During the second "think tank" session, each group will have about 5 minutes to present a summary of their recommendations, which will be followed by a group discussion and/or short questions and answer session about the presented plans.


Please note that any and all citations and bibliographic references should follow the style guidelines laid out in the American Political Science Review Style Manual (2006), available at:



In order to explore a particular subject connected to international political economy in more depth, students will also write a brief review of the academic literature on that subject.  This review should be an integrated review of three to four major and related works, possibly including relevant articles, book chapters from different volumes, or books. There should be some evidence of the existence of a major debate within the literature in your review – that is, at least one of the pieces reviewed should offer a different explanation of the phenomenon of interest than the others.


A literature review proposal must be submitted for approval by the instructor no later than February 24th, 2012. This proposal should provide a full citation for the books, book chapters or academic articles, a one-paragraph description of each scholarly work, and a photocopy of the book's table of contents or the first page of the articles with the abstract (i.e. you must have the material in hand). Failure to turn in a proposal on time will lead to an automatic one-letter grade deduction from the final paper.


The literature review paper itself is due on April 4th, 2012.  It should be a minimum of 5 pages in length (not counting bibliography). Be sure to address the following:

-     What are the main argument(s) presented? What theoretical assumptions are they derived from?

-    Critically evaluate the scholarly work; issues that you might address include: Are the arguments well presented and properly supported? Are you convinced by the author(s) that their arguments are correct?  Why? What are the strengths of the scholarly work? What are the shortcomings of the scholarly work?

-    Discuss the implications of this body of literature. Does this literature make a contribution to our understanding of the phenomenon under examination? What are the implications of this literature for theory or future research in this area?

-    Building out of your critique, in your opinion what should further literature in this subject area address in order to build our understanding in this area?


Please note that any and all citations and bibliographic references should follow the style guidelines laid out in the American Political Science Review Style Manual (2006), available at:



Throughout the course you will be required to log in to our class Woodle page ( and take a series of quizzes. Each quiz will contain equal numbers of substantive questions about the readings or class material (each of which you can get right or wrong) and objective self-assessment questions.  These quizzes are meant to aid you in assessing your own progress, and will give you an advance look at some possible exam questions. I will also use them to assess whether particular issues need to be addressed further in class, and to see whether particular pedagogical techniques are more or less successful. In other words, I will use them as a way to assess the class as a whole and the approaches to learning that we take. As such, you will not be graded on how well you do on the quizzes, but rather on whether or not you actually complete each of them in a timely manner. [NOTE: The quizzes are worth 10% of your class grade, or approximately 1% per quiz. Completing each quiz on time yields a score of 100 on 1% of your overall grade, while not completing it on time yields a 0 for that 1%.] I will also prompt you by email and in class to remind you to log in and complete each quiz. More details will be discussed by the instructor in class early on in the semester.



Participation is encouraged and required in class. Due to the short period of time we will have in which to cover a great deal of material, your input and feedback is essential to the smooth and efficient running of the class. So, be sure to have read the materials pertaining to that day's discussion BEFORE that class period! My hope is that the classroom will contain an atmosphere in which ideas and opinions will be welcomed and addressed.  Discussion may have to be curtailed in the interests of covering material.


In this class, however, you will be graded on more than just participation. You are beginning your life as both adults and social scientists, and as such you are expected to act in a professional manner. Therefore this component of your grade is a grade for your degree of professionalism. "Professionalism" includes participation, but also refers to factors such as attendance, promptness, courtesy, constructive contributions to class dialogue, respect for other class members' contributions, overall improvement, and other intangibles, to be evaluated and assigned at the discretion of the instructor. Please note that I do not often interrupt everyone's thought processes to stop distracting or rude behavior, but I do notice it and will factor it in accordingly. It should go without saying that such behavior includes side conversations not germane to the class, or accessing e-mail or texting during class.



Note #1: Please turn off cell phones and other electronic devices before class begins as a courtesy to others. If you bring a laptop computer or tablet to class, it should be used for note taking or examining class readings only. Please also refrain from recording any part of the course in any manner other than via written or typed class notes, unless explicitly approved by the instructor.


Note #2: Assignments are due at the beginning of class on the due date. Any missed assignment or unexcused exam absence is subject to an automatic failing grade for the course (in other words, you cannot pass the class unless you do all of the work!). Late written assignments will be graded down one full letter grade for each day late. A paper handed in five minutes after the deadline is considered a day late. If you anticipate missing an exam or a paper deadline, consult with the instructor as soon as possible.


Note #3: Students are encouraged to study together and assist one another in learning the material. It is assumed that you have done your own work, and that you conduct yourself according to the expectations laid out in the Wooster Ethic and the Code of Academic Integrity, as enumerated in the Scot's Key ( Students are reminded that they are obliged to understand, to uphold, and to comply with the Code of Academic Integrity and the Wooster Ethic at the College of Wooster. Students who have questions or concerns about these policies (after having read them again) should make an appointment to see me to discuss them; indeed, I welcome this discussion and encourage students to see me in advance of any assignment about which they have doubts or questions. PLEASE NOTE THAT ANY VIOLATION OF THE WOOSTER ETHIC AND/OR THE CODE OF ACADEMIC INTEGRITY MEANS THE STUDENT'S IMMEDIATE FAILURE IN THE COURSE, AS WELL AS POSSIBLE SUBSEQUENT ACADEMIC DISCIPLINARY ACTION.


Note #4: Students are encouraged to discuss assignments with me during office hours. However, students seeking to change their grade on an assignment or essay portion of an exam should be advised that I reserve the right to alter your grade in either direction (i.e.- if new problems are found during the re-grade the grade would go down).


Note #5: I am happy to assist you in any way, but cannot do so retroactively. Thus, it is your responsibility to inform me ahead of time about factors that are likely to interfere with your performance in the class. Measures for students with disabilities, non-native writers of English and other special issues will be taken in compliance with the college's policies.






I. Introduction to International Political Economy

1/16, 1/18: What is International Political Economy (IPE)? What Is Globalization?

-       Spero and Hart, ch 11 (427-432)

-       Stiglitz, ch. 1

-       Pomeranz, Kenneth and Stephen Topik. 2006. "Epilogue: The World Economy in the Twenty-First Century" in The World That Trade Created. Second Edition. New York: M. E. Sharpe. pp. 255-266. [E-Reserve]


1/20: How Did We Get Here? The Evolution of Today's International Political Economy

-       Spero and Hart, ch 1

-       Pomeranz, Kenneth and Stephen Topik. 2006. "When Asia Was the World Economy" in The World That Trade Created. Second Edition. New York: M. E. Sharpe. pp. 16-18 [E-Reserve]

-       Lake, David, "British and American Hegemony Compared: Lessons for the Current Era of Decline", in J. Frieden & D. Lake, eds. 2000. International Political Economy: Perspectives on Global Power and Wealth. Fourth Ed. NY: St. Martin's Press. pp.127-139. [E-Reserve]


1/23: How do Theorists Think About IPE? Competing Dominant Perspectives in IPE 

-       Fallows, James. 1993. "How the World Works." Atlantic Monthly. Dec. 1993. [E-Reserve] or 

-       Surowiecki, James. 2011. "A Waste of Energy?" The New Yorker. October 10, 2011, p.42. [E-Reserve]

-       Asmundson, Irena. 2010. "Back to Basics: Supply and Demand" Finance & Development, 47, 2: 48-49.


1/25: When is Cooperation and/or Conflict Rational? Game Theory as Conceptual Tool

-       McCain. Roger. 2010. "What is Game Theory?" & "The Prisoners' Dilemma" Excerpts from Game Theory: A Non-Technical Introduction to the Analysis of Strategy. South-Western College Publishers.

-       READ & PLAY: Shor, Mike. 2006. "Repeated Prisoner's Dilemma."


II. International Trade and the Global Political Economy

1/27: The Global Free Trade Regime                                             

-       Spero and Hart, ch 3 (pp. 72-86; 98-115)

-       McDonald, Brad. 2009. "Back to Basics: Why Countries Trade" Finance & Development, 46, 4: 48-49. 

-       World Trade Organization. 2007. "The Basics" (Chapter 1) in Understanding the WTO. Geneva: World Trade Organization. pp. 9-21.


1/30, 2/1: Domestic Politics and Free Trade

-       Gourevitch, Peter A. 1977. "International Trade, Domestic Coalitions, and Liberty: Comparative Responses to the Crisis of 1873-1896." Journal of Interdisciplinary History, 8, 2: 281-313.

-       Robinson, James D. III. 2011. "Getting to Yes on Trade." The International Economy 24, 3: 53. 

-       Aaronson, Susan Ariel. 2011. "The New Politics of American Trade" The International Economy. 24, 1: 56-57.

-       Rogowski, Ronald, "Commerce and Coalitions: How Trade Affects Domestic Political Alignments", in Frieden & Lake, International Political Economy. pp. 318-326. [E-Reserve]


2/3: Other Effects of Free Trade                                         

-       Stiglitz, ch. 3

-       Mosley, Layna. 2011. "Free Trade Can Lift Labor Standards Abroad," New York Times. October 27, 2011.

-       Elliott, Kimberly Ann and Richard B. Freeman. 2003. "Globalization and Labor Standards in Action," in Can Labor Standards Improve Under Globalization? 111-126 (Ch. 6) Washington, DC: Institute for International Economics.


2/6: Protectionist Policies

-       Spero and Hart, ch 3 (pp. 86-92)

-       Coughlin, Cletus, Alec Chrystal, and Geoffrey Wood. 1988. "Protectionist Trade Policies: A Survey of Theory, Evidence and Rationale." Federal Reserve Bank of St. Louis Review. 12-29.

-       Office of Foreign Assets Control. 2011. Cuba: What You Need To Know About the U.S. Embargo. United States Department of the Treasury.


2/8: Economic Statecraft: Constructive Engagement and Economic Sanctions

-       Li, Yitan and A. Cooper Drury. 2004. "Threatening Sanctions When Engagement Would Be More Effective: Attaining Better Human Rights in China." International Studies Perspectives 5, 4: 378-394.

-       Blanchard, Jean-Marc F. and Norrin M. Ripsman,. 2008. "A Political Theory of Economic Statecraft." Foreign Policy Analysis 4, 4: 371-398.


2/10: CASE: Sanctions versus Constructive Engagement in Burma

> NOTE: Paper #1 (Burma Policy Paper) due February 10th, 2012 (at beginning of class)



-       Tolley, Jr., Howard. 2002. "Sanctions or Engagement? SLORC and Myanmar." Teaching Human Rights On-Line.

-       Imle, John. 1996. "Constructive Engagement in Myanmar." Testimony submitted to the U.S Senate Banking Committee on S. 1511. May 22, 1996

-       Steinberg, David I. 2007. "Minimizing the Miasma in Myanmar." Foreign Policy In Focus, January 18, 2007.

-       Office of Foreign Assets Control. 2008. Burma: What You Need To Know About U.S. Sanctions Against Burma (Myanmar). United States Department of the Treasury.  

-       BBC. 2009. "Overview of Burma Sanctions." BBC News On-Line.

-       Kaufman, Stephen. 2009. "United States Will Directly Engage Burma, but Keep Sanctions." Bureau of International Information Programs, US Department of State. September 24, 2009.

-       Roughneen, Simon. 2011a. "Burma Sanctions Debate Intensifies" The Irrawaddy. March 9, 2011.

-       EarthRights International. 2011. "Major Chinese & Korean Companies Linked to Rights Abuses in Burma" March 29, 2011.

-       Schearf, David. 2011. "Burma Sanctions Debated After Change in Government" Voice of America. April 14, 2011.

-       Human Rights Watch. 2011. "Burma's Continuing Human Rights Challenges" November 3, 2011.

-       Roughneen, Simon. 2011b. "Burma's Vietnam Moment?" The Christian Science Monitor. December 1, 2011., Michele. 2012. "U.S. Keeps Pressure On Myanmar For Political Change" All Things Considered. National Public Radio. January 3, 2012.  


2/13: REVIEW for EXAM #1


2/15: EXAM #1           


2/17: Writing Literature Reviews

-       Knopf, Jeffrey W. 2006. "Doing a Literature Review." PS: Political Science and Politics 39, 1: 127-132.

-       Study and Learning Centre. 2011. "Writing the Literature Review." RMIT University.


III. International Finance and the Global Political Economy

2/20, 2/22: The International Monetary System

-       Spero and Hart, ch 2 (pp. 12-53)

-       Mathai, Koshy. 2010. "Back to Basics: What is Monetary Policy?" Finance & Development, 46, 3: 46-47.  

-       Horton, Mark and Asmaa El-Ganainy. 2009. "Back to Basics: What is Fiscal Policy" Finance & Development, 46, 2: 52-53.

-       Ghosh, Atish R. and Jonathan D. Ostry. 2009. "Choosing an Exchange Rate Regime" Finance & Development, 46, 4: 38-40.

-       Mastel, Greg. 2011. "Washington-Beijing Currency Friction." The International Economy 24, 1: 63-66.


>>> NOTE: Last Day to DROP a Course is February 24th, 2012>>>


2/24, 2/27: International Monetary (Mis)Management: A Cycle of Financial Crises

> NOTE: Paper #2 Proposal (Brief Literature Review) due February 24th, 2012 (beginning of class)

-       Spero and Hart, ch 2 (pp. 53-63); ch 6 (pp. 224-240)

-       Stiglitz, Joseph. 2003. "The East Asia Crisis" Ch. 4 (pp. 89-132) & "The IMF's Other Agenda" Ch. 8 (pp. 195-213) in Globalization and its Discontents. NY: W. W. Norton. [E-Reserve]

-       Sinn, Hans-Werner. 2008. "Why Banking Crises Happen." The International Economy 22, 2: 60-61.

-       Stiglitz, Joseph E. 2010. Freefall: America, Free Markets, and the Sinking of the World Economy. Selections from Chs 1 & 8. New York: W.W. Norton. Reprinted in P. Viotti and M. Kauppi. 2011. International Relations Theory, 5th Ed. Longman Publishers. [E-Reserve]


2/29: The Current Economic Crisis

-       Frieden, Jeffry. 1998. "The Euro: Who Wins? Who Loses?" Foreign Policy, 112 (September) 24-40.

-       Leonhardt, David. 2010. "In Greek Debt Crisis, Some See Parallels to U.S." New York Times, May 11, 2010.

-       Marsh, Bill. 2011. "It's All Connected: An Overview of the Euro Crisis" New York Times, October 23, 2011.

-       Rodrik, Dani. 2011. "Thinking the Unthinkable: The Eurozone May Not Be Viable" The International Economy. 24, 1: 44-45.

-       Davidson, Adam, Jacob Goldstein and Caitlin Kenney. 2011. "Europe's Financial Crisis, in Plain English" New York Times Magazine. December 4, 2011, pp. MM20-21.


3/2, 3/5: States, Multinational Corporations and the Developed World

-       Spero and Hart, ch 4

-       Cleeland, Nancy, Evelyn Iritani, and Tyler Marshall. 2003. "Scouring the Globe to Give Shoppers an $8.63 Polo Shirt." Los Angeles Times, November 24, 2003.


IV. Economic Development and the Global Political Economy: North-South Issues

3/7, 3/9: How the North and the South are Connected (I) [VIDEO: T-Shirt Travels]

-       Packer, George. 2002. "How Susie Bayer's T-Shirt Ended Up on Yusuf Mama's Back." New York Times Magazine. March 31, 2002. [E-Reserve]

-       Kenny, Charles. 2011. "Haiti Doesn't Need Your Old T-Shirt" Foreign Policy. November 10.


3/10 - 3/25: NO CLASS: SPRING BREAK – Classes Cancelled College-wide


3/26, 3/28: (Under)Development and the North-South System

-       Spero and Hart, ch 5

-       Viotti, Paul R. and Mark V. Kauppi. 2011. "Economic Structuralism: Global Capitalism and Postcolonialism", 185-221 (Chapter 4). International Relations Theory, 5th Ed. New York: Longman. [E-Reserve]


3/30, 4/2: How the North and the South are Connected (II) [VIDEO: Darwin's Nightmare]

-       Collier, Paul. 2007. "Falling Behind and Falling Apart" (Chapter 1) and "On Missing the Boat" (Chapter 6) in The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It. Oxford University Press. pp. 4-13 & pp. 79-96 [E-Reserve]


4/4: Globalization, Poverty and the North-South Divide

> NOTE: Paper #2 (Brief Literature Review) due April 4th, 2012 (at beginning of class)

-       Zoellick, Robert B. 2010. "The End of the Third World." The International Economy 24, 2: 40-43. 


4/6, 4/9: Financial Flows to Developing Countries: Foreign Direct Investment and MNC's

-       Spero and Hart, ch 8

-       Stiglitz, ch 7

-       Perlez, Jane and Lowell Bergman. 2005. "Tangled Strands in Fight over Peru Gold Mine." New York Times. October 25, 2005, p. A1. OR

-       Locke, Richard. 2003. "The Promise and Perils of Globalization: The Case of Nike." Aspen Institute.



-       United States Central Intelligence Agency. 2011. "Nicaragua." CIA World Factbook

-       World Bank. 2011. "Nicaragua at a Glance."

-       World Bank. 2011. "Nicaragua Country Brief.",,contentMDK:22255024~pagePK:1497618~piPK:217854~theSitePK:258689,00.html

-       World Bank. 2012. "Data: Nicaragua"


4/13: NO CLASS: Dr. Krain at Midwest Political Science Association (MPSA) Conference


4/16: Financial Flows to Developing Countries: Aid and Debt

-       Spero and Hart, ch 6 (pp. 212-224; 240-248)

-       Stiglitz, ch 8

-       Burnside, Craig and David Dollar. 1997. "Aid Spurs Growth - In a Sound Policy Environment." Finance & Development 34, 4: 4-7.

 4/18, 4/20: Development Strategies

-       Spero and Hart, ch 7

-       Stiglitz, ch 2

-       Galtung, Johan. 1974. "Technology and Dependence: The Internal Logic of Excessive Modernization in a Fisheries Project in Kerala." Ceres 7: 45-50. [E-Reserve]

-       Roubini, Nouriel. 2011. "The Instability of Inequality." Al Jazeera English. October 14.


4/23: Microcredit Lending

-       Woller, Gary M. and Warner Woodworth. 2001. "Microcredit as a Grass-Roots Policy for International Development," Policy Studies Journal, 29, 2: 267-283.

-       Dichter, Thomas. 2006. "Hype and Hope: The Worrisome State of the Microcredit Movement." The Microfinance Gateway.

-       Boudreaux, Karol C. and Tyler Cowen. 2008. "The Micromagic of Microcredit" The Wilson Quarterly 32, 1: 27-31.


4/25: Sustainable Development? Development and the Environment

-       Stiglitz, ch. 6

-       Ostrom, Elinor. 1990. "Reflections on the Commons" In Governing the Commons, 1-28 (Chapter 1). New York, NY: Cambridge University Press. [E-Reserve]


4/27: NO CLASS: Senior Research Symposium – Classes Cancelled College-wide


4/30: CASE: Choosing a Development Strategy for Nicaragua

> NOTE: Paper #3 (Nicaragua Policy Paper) due April 30th, 2012 (at beginning of class)


V. Globalization Revisited                                                                                                                   

5/2:  Re-examining the Political Economy of Globalization

-       Spero and Hart, ch 11 (432-438)

-       Stiglitz, ch 10 & "Afterward"


5/4: REVIEW for EXAM #2


5/9 (Wed.): FINAL EXAM: 9:00am – 12:00noon

[1]. "What if your coauthor doesn't carry his or her weight?" asks Gary King (2006: 120) in an article in PS [King, Gary. 2006. Publication, Publication. PS: Political Science and Politics, 39, 1: 119-125]. His very practical suggestion is as follows:


Deal with it somehow, and make your best individual effort even if it is asymmetric. You will have to deal with this when you graduate too. Your goal (and given task) is to make your paper as good as possible, and you have at your disposal your effort and whatever effort you can marshal from your coauthor. In most of the social sciences, credit is not divided among the coauthors: each coauthor gets almost full credit for the entire paper. As long as you're getting credit for what you're doing, it doesn't hurt you for someone else to have more credit than he or she deserves.