ࡱ> rtq#` "<bjbj .r3%lllllll$$$8$L%D48%:%"%%%&&&7777777$8hR;7l-&&--7ll%%7555-l%l%75-755ll5%% $$05780485><2><5><l5&(5m*4+&&&77Q5j&&&48----$d $llllll International Relations 324: Multinational Enterprises and World Politics Professor Surupa Gupta MW 3:30-4:50 in VKC 102 Office: VKC 303 Email:  HYPERLINK "mailto:surupagu@usc.edu" surupagu@usc.edu Phone: (213)740-2129 Office hours: M 1:30-2:30 W 2:00-3:00 and by appointment Course overview Traditional realist international relations theory recognizes states as the only actors in international relations. Increasingly, however, IR theorists have recognized the role of a variety of non-state actors in shaping world politics. This course deals with one such actor, namely, multinational enterprises (MNEs). We shall examine the role of MNEs as actors in world politics. The questions we focus on in this class are as diverse as what defines and motivates an MNE to what impact it has on states and societies to how it is shaping and being shaped by globalization. We examine the relation between business and government as well as business and society and the interactions between domestic and international politics in this context. Course readings There is no textbook for this course. The following text on international political economy will be helpful in getting a background on the theoretical perspectives in the field and on the role of MNEs as global economic and political actors. It is available for purchase at the USC bookstore and is required reading. Theodore Cohn, Global Political Economy, Pearson Longman. In addition, we will read four case studies. The first two are available for purchase on-line from The Georgetown Institute for Study of Diplomacy at  HYPERLINK "http://www.guisd.org/" http://www.guisd.org/: Michael Clancy, Sweating the Swoosh: Nike, The Globalization of Sneakers, and the Question of Sweatshop Labor Tinaz Parvi and Thomas Rotnem, Out of India: Enron and the Politics of Economic Liberalization The following cases will be made available on blackboard: Bronwen Manby, Shell in Nigeria: Corporate Social Responsibility and the Ogoni Crisis Jennifer Kaye and Paul Argenti, Coca-Cola India Blackboard All other readings will be made available on blackboard. Readings may be added during the semester. Information related to the course will posted on blackboard, please check regularly. Grading/requirements Your grade in this class will be based on participation, assignments and exams in the following manner. Participation: This constitutes 20% of your final grade. Attendance and punctuality are necessary but not sufficient for fulfilling this requirement. You are expected to come to class having read the chapters/articles assigned and to engage regularly in class discussions and answer questions posed by the instructor. In addition, each one of you will write a one-page summary/response to the readings on four occasions during the semester. Active participation involves listening and responding, asking good questions, discussing issues of relevance and last but not the least, demonstrating knowledge of the readings. Perfect attendance without quality participation will not receive a participation grade above a C and great participation and irregular attendance will not secure a high grade either. Assignments: This makes up 20% of your final grade. Assignments include short, well-argued responses to questions posted on blackboard. There will be one assignment for every case study discussed in class. Examinations: The midterm is worth 30% and the final is worth 30% of your grade for this class. Exams will be designed to evaluate whether you have engaged in the class and the reading material, how well you can understand and synthesize different arguments and argue your own case on any given topic. The mid-term will combine short and essay questions while the final will have essay questions only. The final will be cumulative. Exams will not be rescheduled please take this into account when making travel arrangements and other plans during and at the end of the semester. The grading scale is as follows: A (93-100); A- (90-92); B+ (87-89); B (83-86); B- (80-82); C+ (77-79); C (73-76); C- (70-72); D+ (67-69); D (63-66); D- (60-62); F (<60). Policies Attendance: You will get most out of this course if you complete the assigned readings as well as attend and actively participate in class. Regular attendance is required and it is your responsibility to sign-in for every class meeting. If you have more than two absences during the semester, you will be marked down. Each unexcused absence beyond the first two will result in reduction of your participation grade by 10%. Only properly documented medical or other reasons (such as family emergencies) will be accepted as valid excuse for missing a class unless prior permission is obtained from the instructor. If you miss more than six classes, you fail the course. Late penalty: As a rule, there will be no make-up examinations. Late submission of papers will be penalized. The grade will be reduced by 5% for each day that the assignment is late. Class etiquette: You are expected to observe all rules of proper classroom conduct. It is expected that you will arrive in class on time and not leave class during the middle of the lecture/discussion. Please remember to turn your cell-phones to silent/vibrate before coming to class. Needless to say, you will not engage in private conversations during class. Any behavior (such as arriving late and so on) that is disruptive and shows disrespect to your fellow students and teacher will result in a lower participation grade. Academic integrity: Academic integrity is fundamental to the mission and the environment of a university. Academic dishonesty is considered a serious matter and will have serious consequences. While group work is encouraged in this class throughout the semester, collaboration in examinations and case responses is not. General principles of academic honesty as well as recommended sanctions when these are violated are to be found in SCampus please refer to it if you are unsure as to what defines academic honesty and what the consequences of dishonesty might be. You are welcome to speak to me about any doubts that you may have about the policy or specific questions that you have about how to cite works of others in your papers. All homework assignments must have a bibliography. Americans with Disabilities Act: Students requesting accommodations based on disability are required to register with Disability Services and Programs each semester. A letter of verification for approved accommodations can be obtained from DSP when adequate documentation is filed. Please be sure the letter is delivered to me as early in the semester as possible. DSP is open Monday-Friday 8:30-5:00. The office is in Student Union 301 and their phone number is 213-740-0776. Students must contact DSP early enough so that I am aware of the necessary accommodations prior to an exam. Class/Reading/Assignment Schedule August 27 Introduction, course overview and basic concepts August 29 Perspectives on international political economy Cohn, chapters 3-5 September 3 Labor Day no classes. September 5 Perspectives on international political economy Cohn, chapters 3-5 Defining and understanding MNEs September 10 History of MNEs Geoffrey Jones, Multinationals and Globalization Samuel Palmisano, The Globally Integrated Enterprise Foreign Affairs, May-June 2006 September 12 Definition of MNEs Cohn, chapter 10 Richard Caves, The Multinational Enterprise as an Economic Organization. John Stopford, Multinational corporations, Foreign Policy,Winter 1998. September 17 Why become multinational? James R. Markusen, The Boundaries of Multinational Enterprises and the Theory of International Trade, Journal of Economic Perspectives, (Spring 1995), 169-89. Klaus Meyer, Perspectives on Multinational Enterprises in Emerging Economies, Journal of International Business Studies, (July 2004), 259-76. The Economist, Hungry Tiger, Dancing Elephant, April 4 2007 Cohn, chapter 10 September 19 Growth and new trends in MNE UNCTAD, World Investment Report 2006, chapters 1-3. Alan Rugman and Alain Verbeke, A Perspective on Regional and Global Strategies of Multinational Enterprises, Journal of International Business Studies (January 2004), 3-18. MNEs and the State September 24 Perspectives on MNE-State interactions Shah M. Tarzi, Third World Governments and Multinational Corporations: Dynamics of Hosts Bargaining Power Stephen Kobrin, Testing the bargaining hypothesis in the manufacturing sector in developing countries, International Organization, (Autumn 1987), 609-38. September 26 Ravi Ramamurti, The Obsolescing Bargaining Model, Journal of International Business Studies, (March 2001), 23-39. Michael Minor, The Demise of Expropriation as an Instrument of LDC Policy, Journal of International Business Studies, (1994), 177-88. October 1 Case: Out of India: Enron and the Politics of Economic Liberalization Case response due in class. October 3 Political institutions and regimes Quan Li and Adam Resnick, Reversal of Fortunes: Democracy, Property Rights and Foreign Direct Investment Inflows in Developing Countries, International Organization, (Winter 2003), 175-211. Nathan M. Jensen,  HYPERLINK "http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=167232" Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment. International Organization (Summer 2003), 587-616 October 8 Political institutions and regimes Withold Henisz, The Institutional Environment for Multinational Investment, Journal of Law, Economics and Organization (2000), 334-64. Thomas Brewer, Government Policies, Market Imperfections, and Foreign Direct Investment, Journal of International Business Studies (1993), 101-20. October 10 International investment agreements UNCTAD, World Investment Report 2003, chapter 3 Tim Bthe and Helen V. Milner, The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through Trade Agreements? Frederick M. Abbott, NAFTA and the Legalization of World Politics: A Case Study, International Organization, (Summer 2000), 519-47. October 15 Why does China get more FDI than India? Kevin H. Zhang, What Attracts Foreign Multinational Corporations to China? Contemporary Economic Policy (July 2001), 336-346. Bajpai, Nirupam and Nandita Dasgupta , Multinational Companies and Foreign Direct Investment in China and India (2004). Surveys on India and China from The Economist. October 17 Midterm Impact of FDI on states and societies October 22 FDI and Development Theodore Moran, Foreign Direct Investment and Development, chapters 1,4,8,9 Michael Santoro, Should LDCs Love MNCs? Foreign Policy, Jan 2002: 94-95. Cohn, chapter 11. October 24 FDI and Development Joseph Grieco, Between Dependency and Autonomy: Indias Experience with the International Computer Industry, International Organization, 36 (Summer 1982): 609-32. Gordon H. Hanson, Should Countries Promote Foreign Direct Investment? G-24 Discussion Paper Series No. 9, 2001. Quan Li and Rafael Reuveny, Economic Openness, Democracy and Income Inequality: An Empirical Analysis, Comparative Political Studies, 36(5): 575-601. October 29 Race to the Bottom: Labor Dani Rodrik, Has Globalization Gone Too Far?, chapters 1-3 Alan Tonelsen, The Global Workforce Explosion Daniel W. Drezner, The Outsourcing Bogeyman Foreign Affairs, May-June 2004 October 31 Case: Sweating the Swoosh: Nike, The Globalization of Sneakers, and the Question of Sweatshop Labor Case response due in class. November 5 The race to the bottom: Environment Hakan Nordstrom and Scott Vaughan, Trade and Environment, chapters 4 and 5 November 7 Case: Coca-Cola India Case response due in class. November 12 Impact on culture: McDonalds or a larger menu? Tyler Cowen, Should national culture matter? November 14 James L. Watson, Chinas Big Mac Attack, Foreign Affairs, May June 2000 Heather Tyrrell, Bollywood versus Hollywood : battle of the dream factories, 1999. November 19 Impact on national security Kenneth F. Scheve and Matthew J. Slaughter, A New Deal for Globalization, Foreign Affairs, July-August 2007 Edward M. Graham and David M. Marchick, US National Security and Foreign Direct Investment, chapters 1 and 4. November 21 Is state power diminishing? Stephen Kobrin, Sovereignty@Bay: Globalization, Multinational Enterprise and teh International Political System Governance issues November 26 Corporate social responsibility Amnesty International, Human Rights, Trade and Investment Matters (2006). David Henderson, The Case Against Corporate Social Responsibility Mary Robinson, Beyond Good Intentions: Corporate Citizenship For A New Century November 28 Case: Shell in Nigeria Case response due in class. December 3 Governing FDI Stephen Kobrin, The MAI and the Clash of Globalizations, Foreign Policy, Fall 1998 David L. Levy and Aseem Prakash, Bargains Old and New: Multinational Corporations in Global Governance, Business and Politics, (August 2003), 131-50. 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