Internal Assessment carries 40% weightage and would comprise assignments in the tutorials

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Reynold Matthews
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1 Course No: PPM 143 Course title: Global Economic Environment, Policy and Governance Number of credits: Number of lectures: 8(8-0-0) Course coordinator: Prof. Rohit Mehtani Introduction The course encompasses an extensive debate on globalization and related issues, evolution of Brettonwoods institutions over the years and their relevance today, the experiences of the General Agreement on Tariffs and Trade and its metamorphosis into the World Trade Organization, regional trade blocs and the different levels of economic integration, macroeconomic challenges in an open economy, anatomy of a balance of payment crisis and the structural adjustment programmes, the question of governance of global financial markets, energy security and the green side of the political economy, the shifting paradigms of diplomacy, so on and so forth. Course Objectives The course is structured to provide a well rounded view of the global economy with its characteristic interconnectedness and interdependence. In the wake of the global financial crisis and the turmoil that the world has been through, the importance of understanding the issues discussed in a course like this one can be felt like at no other time. Learning Objectives Global economic environment is a constantly changing landscape. The changes, especially, the pace at which they occur, make the process of keeping track of and analyzing this environment a challenging and demanding task. An expertise in being able to make sense of all that happens around us and to be able to knit together diverse issues is a must for global mangers and leaders. This course in Global Economic Environment, Policy and Governance will give necessary confidence to the participants to develop clear perspectives and an ability to make sound judgments and decisions. The participants will be able to engage in a meaningful dialogue with regard to the issues that are at the forefront and be able to look at the wider picture. Evaluation procedure Internal Assessment: 40% End Term Exam: 60% Internal Assessment carries 40% weightage and would comprise assignments in the tutorials

2 End term exam would carry a weightage of 60%. This would be a comprehensive test of 3 hours duration. The test would cover the entire syllabus as covered in the class. There would be adequate choice given to the participants in attempting the questions. On the basis of these two evaluation components, students would be awarded a composite grade as per the standard grade pattern followed in the Institute. Details of course content and allotted time Topic Allotted time (hours) Lectures Tutorials Driving Forces of Globalization & the Emerging Patterns of Global Political Economy 4 The Pro-Globalist and the Anti-Globalist Divide The Impact of Globalization on the Different Components of the Value Chain of the Businesses & the Strategic Orientations of International Business 4 The Origin, Growth and Evolution of the Brettonwoods Institutions and the Contemporary Debate with Regard to their Role in the Global Economy (Specially in the Wake of the Crisis) The Foundations of the Multilateral Framework of International Trade & It s Evolution Over the Years (Interwar Years, the Years of GATT and the Coming Up of WTO) The World Trade Organization Today (The Doha Development Agenda & the Logjam) The Political Economy of the Trade Blocs and the Regional Economic Integration (Case: The Politics and Economics of the European Union) Analyzing Country s Record of External Transactions and Understanding the Implications of Current Account and Capital Account Convertability (Analyzing a BOP Crisis Export-led-Growth Strategy Model vis-à-vis the Import Substitution Model : The Lessons and the Learning

3 Gaining Insight into the Macroeconomic Scenario of a Country and Understanding the Nuances of Demand and Supply Side Interventions in the Economy/Challenges of the Public Finance (Understanding the Greek Problem and the Nature of the Bailout) The Financial Sector & the Global Turbulence The Political Economy of the Energy Security and the Environmental Issues Total 8 Modules Sessions I The course will be launched with a debate on globalization, discussion on the driving forces of globalization, gaining an insight into the different Political Ideologies and having a look at the emergent patterns of global political economy. Session II This particular session would dwell on the proglobalists and the antiglobalists divide so as to have proper understanding of how the two groups view the phenomena of globalization.. Session III This session, the third in the sequel, will conclude the globalization debate by venturing into the realms of value chain concept of the businesses with the objective of appreciating the impact of global forces on the different value chain components. The session shall also include a talk on the evolving patterns of strategic orientation of international business in the wake of challenges and opportunities to tap the global resources and markets. Session IV This session shall look at the post war development of multilateral institutions and debate on contemporary issues pertaining to the role of IMF and the World Bank in global economy. The talk would also include a critique on the structural adjustment programs. Official Web sites of The World Bank and the IMF Session V A look at the experiences of the inter war period is essential to understand the logic and rationale behind the basic principles on which GATT was founded. This particular session does just that. It will include a discussion on the evolution of GATT over the years right up to the expansion of agenda in the Uruguay Round. Session VI

4 This session, an extension of the earlier one, would look at the structure of WTO and throw light on the contemporary issues in the light of ongoing Doha Development Round. Official Web site of the World Trade Organization Session VII This session will be devoted to understanding the different levels of economic integration that can be attained by the countries coming together to form a trade bloc. This then would be related to the case of European Union to examine how did it evolve through these different levels and what challenges does it face today? Session VIII This session will develop an analytical skill for deriving information from the balance of payment records of a country and shall include a debate on contemporary issues related to convertability and foreign investments. Economic Survey, Session IX In continuation of the momentum build in the preceding session on balance of payment analysis, this session shall look at the issues pertaining to the nuances of trade policy, contrasting export-led growth strategy with the import-substitution model, and the challenges pertaining to the infrastructure for exports and import. Session X This session shall initiate a discussion on challenges of macroeconomic management and policy making in open economies and the implications for the businesses. The Sessions shall carry forward the discussion into the realms of fiscal & monetary policy interventions and over to the foundation of the neo-liberal thought. Economic Survey Session XI a This particular session is exclusively devoted to a discussion on the contemporary issues pertaining to the financial sector. There will be a thought provoking discussion on the banking sector, non-banking financial companies, insurance sector, capital markets and issues pertaining to corporate governance. Session XI b This session shall look at the concerns in the fast developing countries, like China and India, and equally shared by the developed world, regarding energy security to ensure that the pace of growth is not hampered for want of energy. The oil companies in these countries, largely in the public sector, are attempting to secure equity oil at the strategic

5 locations. The oil diplomacy has assumed strategic importance for fast growing economies like at no other time. The other important issue included in this session is the green side of the political economy and sharing a thought on global warming, sustainable development, trade & environment Required references The course by its very nature cannot rely on any single text. The course is wide in approach and draws upon the body of knowledge that is spread across a wide array of subject areas. The students are encouraged to tap different resources, to explore a variety of information avenues, to actively participate in class discussions and to keep a high level of awareness level with regard to business issues and international affairs. The Students may, however, find the following books to be useful as reference texts: John Daniels et al., International Business: Environments & Operations, 1 th ed. (Prentice Hall, 010) Charles W Hill, International Business: Competing in the Global Marketplace, 6 th ed. (McGrawHill, 009) Maurice Schiff & L. Alan Winters, Regional Integration and Development (The World Bank/Oxford: 003) Janet Morrison, The International Business Environment: Global and Local Market Places in a Changing World, nd ed. (Palgrave: 007) Joseph Stiglitz, Globalization and Its Discontents, (Penguin: 003) Thomas Friedman, The World is Flat: A Brief History of the Twenty First Century, (Allen Lane/Penguin : 005)

An introductory text. Fourth edition. A. G. Kenwood and A. L. Lougheed B3 55. London and New York

An introductory text. Fourth edition. A. G. Kenwood and A. L. Lougheed B3 55. London and New York An introductory text Fourth edition A. G. Kenwood and A. L. Lougheed B3 55 London and New York Contents Figures x Tables xii List of Abbreviations xiv Introduction 1 Parti The international economy, 1820-191