International Trade Relations                                            William T. Archey

ITRN 603.001                                                                        Office (202-682-9110)

Monday 7:05 – 9:35 p.m.

Arl-Old #253

 

 

COURSE OUTLINE

Spring 2001

 

Required Readings:

·        The Work of Nations (An outstanding conceptualization of the fact that the marketplace is the world, and corporations in particular, have altered themselves to accommodate this reality. Many of the ideas go back to Peter Drucker and “The New Realities,” although Reich has described the trends, especially the knowledge worker, in a more lucid way.  It is also surprisingly a spirited defense of the free flow of foreign investment.  This book also lays out many of the ideas which undergird the phenomenon of globalization and many of the ideas propagated in The Lexus and the Olive Tree.)  

Author:  Robert Reich

Publisher:  Knopf (Available in Paperback)

 

·        Trading Places (One of my students in a recent course evaluation said that we should get rid of Trading Places and get something more up to date regarding Japan.  I respectfully disagree.  Trading Places still remains the definitive book in understanding how the Keiretsu system in Japan actually works and how the so called private sector and public sector in Japan collaborate.  While the publication date of the original Trading Places is some years ago, the analysis of how the system works remains true today and, indeed, despite globalization, despite entrepreneurial innovations in many other parts of the world, Japan has not fundamentally changed its system – the Prestowitz analysis still holds true.)

Author:  Clyde Prestowitz

Publisher:  Basic Books (Available in Paperback)

 

·        Embracing Defeat – Japan in the Wake of World War II  (If you want to understand what has been delineated by Prestowitz, and if you are intellectually curious as to why Japan is what it is today, then this is a must-read book.  Contrary to the conventional wisdom that Japan and the Japanese system has its roots in the Samurai tradition and other ancient customs, this book convincingly explains that much of the modern Japan is attributable to the time    between the surrender of Japan in 1945 and the end of the occupation by U.S. military troops in the early 1950s.  This is a fascinating read by an historian with genuine expertise on Japan, and the book fills a very important void in terms of Western understanding of Japan.)

Author:  John W. Dower

Publisher:  Norton & Company/The New Press (Available in Paperback)

 

·        The Lexus and the Olive Tree (A best seller by the Foreign Affairs columnist for The New York Times.  It is all about globalization, which Friedman says is the integration of capital, technology, and information across national borders and is so intense a phenomenon sovereign borders are becoming less and less important.  He further notes that globalization is creating a single global market and that globalization has fundamentally replaced the relationships based on a Cold War with relationships based on economics and trade.)

Author:  Thomas L. Friedman

Publisher:  Farrar, Straus and Giroux (Available in Paperback at Anchor Books)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What is This Course About?

 

It is pretty straight forward as the title of the course suggests.  We will examine the U.S. relationship with other countries and trading blocks and we will look at how those relationships have changed over the last 5-10 years and how they may change dramatically yet again as a result of the concept of globalization and the increasing dominance of the American high-technology sector.  During the semester we will deal with the following issues and questions:

 

1.      What is this phenomenon that is called globalization?  Is it really fundamentally altering not just trade relations but how trade is conducted and are trade relations becoming more a function of the private sector than the collaboration of governments.

 

2.      What is the importance of trade policy promulgated and agreed to by government entities during an era when more and more trade is outside the boundaries and control of a given nation state.

 

3.      Why is it trade policy appears to be less important during periods of domestic prosperity.

 

4.      U.S. trade laws and trade agreements – what is the impact of these on relationships with our trading partners and competitors.

 

5.      The World Trade Organization – will it fulfill the expectations of its architects that it will make the world safer for free trade or has globalization already made it irrelevant.

 

6.      What are the current commonalties and frictions with U.S. trade relationships with Europe, with Japan, with Asia in general and to some degree with Latin America.

 

7.      Is the United States becoming more isolationist and even protectionist.  What are the consequences of these attitudes in terms of our trade relationships with the world.

 

8.      How does the United States comeback in the field of high technology alter trade relations and to some large degree even formal trade policy.

 

9.      What is the near-term future of trade relations between the United States and its partners and even between or among its competitors.

 

 

 

 

 

 

 

 

WEEK #1 – January 22

Changing Trends in Trade Relations – An Overview of the Themes Noted Above

 

WEEK #2 – January 29

The era of the knowledge worker and how it is changing trade and trade relations.

Required Reading:  The Work of Nations (You should have read the entire book.)

 

WEEK #3 – February 5

The Work of Nations

·        A look at Reich’s conceptualization of the new world of trade relations and a kind of a peek at the concept of globalization.

 

WEEK #4 – February 12

Globalization

·        We have looked at the intellectual underpinnings or antecedents of this phenomenon.  Now let’s look at this phenomenon itself.  We will also look at a case study of globalization e.g. the American high-tech industry.

Required Reading:  The Lexus and the Olive Tree

 

WEEK #5 – February 19

Globalization (Continued)

·        This week I will be posing the question to you, “what countries or trading relations with the United States have been the most affected by globalization either positive or negative.”

 

WEEK #6 – February 26

U.S. Relations with Europe

Guest Lecturer:  Dr. W. Kendall Myers, Former Director of European and Canadian Affairs, National Foreign Affairs Training Center, U.S. Department of State

 

WEEK #7 – March 5

Spring Break

 

WEEK #8 – March 12

U.S. Relations with Europe

Guest Lecturer:  Bruce Stokes, Senior Trade Analyst for the Council on Foreign Relations, and Trade Editor of The National Journal

 

WEEK #9 – March 19

Mid-Term Exam

 

 

 

 

 

 

 

 

 

WEEK #10 – March 26

China, the Colossus of the 21st Century?

·        Has China displaced Japan as the Untied States’ most important trading partner?  If it hasn’t yet, will it in the very near future?  If by the time of this class China has joined the WTO, will they comply with international trading rules?  Despite record levels of trade investments, particularly American, is China’s policy some time early in the 21st century to say thank you for training our workers, thank you for transferring technology, we will take it from here, goodbye?

Guest Lecturer:  Tim Bennett, Senior Vice President International, AeA

 

WEEK #11 – April 2

U.S./Japan

·        Has the United States won?  Why is it that only eight or nine years ago there was a palpable fear that Japan is taking over the economic world, but this fear seems to have either disappeared or has greatly diminished.  Has Japan seen the light?  What are the historical reasons for the current structure of the Japan economic system? Are the Japanese so wedded to that system that they can safely ignore the trends of globalization that we discussed earlier? 

Required Reading:  Embracing Defeat and Trading Places

 

WEEK #12 – April 9

U.S./Japan (Continued)

Required Reading:  Embracing Defeat and Trading Places

Guest Lecturer:  To Be Determined

 

WEEK #13 – April 16

The developing world and specifically Latin America

·        Will the developing world be left out of the technology revolution or will the technology revolution allow these countries to jump start their economies and become major players on the world economic stage?

 

WEEK #14 – April 23

A retrospective on the semester

·        What have you learned?  What is still on your mind?  How does all of this affect your own perspectives in understanding trade policy and trade relations?

 

WEEK #15 – April 30

Final Exam