The course presents the European position in the global economy It reviews issues of international trade flows and capital flows between the European economies and the major partners. The course deals with the policies of the World Trade Organization and that of the IMF. It presents the foreign economic policy relations between Europe and the other major OECD states. It analysis the external economic policy issues of the European Union. The formation of economic competitiveness between the leading nations is an integral part of the program. The course illustrates the role of the multinational companies in spreading of capital, know-how and managerial skills in the world market. The course puts a special emphasis on the economic environment in the new EU member countries. It applies the instruments and methods of international economic policy. It helps understand the current trends of globalization and its effects on the European Union and on the European economy.
Prerequisites:
Studies in macroeconomics, international economics or in international relations.
Attendance policy:
• IES Vienna requires attendance at all class sessions, including field study excursions, internship meetings, scheduled rehearsals, and exams. Attendance will be monitored and unexcused absences will affect the student’s grade.
• Excused absences are permitted only when a student is ill, when class is held on a recognized religious holiday traditionally observed by the particular student, or in the case of a grave incident affecting family members.
• To be granted an excused absence the student must write an email in a timely manner stating the reason for the absence to their professor with a cc to Kent Canzoneri of Student Services (kcanzoneri@centers.iesabroad.org[3]) and Kendall Burgess, the Registrar (kburgess@centers.iesabroad.org[4]). In an emergency, the student may call Student Services or the Front Desk.
• This email must explain why they will be absent (and, if appropriate, how long they expect to be away).
• If they are unable to send an email (too sick, no computer) they may call the Student Assistant at
the front desk (512 2601 11) who will then write the email described above and send it to said parties plus a cc to the student.
Learning outcomes:
Students will get deep understanding of the recent trends in the global economy. They will become familiar with the policies of the World Trade Organization and of the IMF. They will understand the interconnection between the dominant international economic policy issues especially from the
standpoint of the European Union. They will study about the international economic position of the main European economies. Students will also gain insight on the economic environment in the new EU
member countries.
Method of presentation:
Lectures, seminars and open discussions (team work is encouraged).
Required work and form of assessment:
Midterm - take-home exam 30% final test - in class exam 40% class participation, assignments 15% policy paper (5 pages, 1.5 spaced, printed version) + presentation 15%
Policy paper: ‘Impact of the current global economic crisis on the European economies’. Choose one or several European economies and identify the effects of the financial-economic-social crisis. Analyze the special features of the crisis in the EU member countries. Discuss the government reactions. What is the reaction of the European Union to the crisis?
Each examination will consist of several essay questions. Students should learn the terms of various international economic issues being used in the readings and in the class lectures.
Students are expected to attend class regularly and to participate in discussions. Students must complete each reading assignment before class and come prepared to discuss the material. It is
important to attend the lectures and seminars. Readings will be discussed in the class.
content:
1. Globalization
Introduction. Meaning of globalization. Quantification. Driving forces and obstacles. Optional reactions. Globalization and Central-Eastern Europe. US role in the world economy. America and Europe. Reading:
• Martin Wolf (2005): Will Globalization Survive? Institute of International Economy, Washington
DC,US
2. Europe and the international trade
Multilateral trade liberalization: rounds of global trade talks. Role of the World Trade Organization. Challenges facing the WTO. Trade policy and human rights
Reading:
• Guy de Jonquieres (2008): After the Doha debacle, Chatham House, London, U.K.
3. Regional economic integration and trade policy
Trade policy issues. Advantages and drawbacks of the regional trading blocs. Enlargement and accession to the European Union. The Maastricht criteria. Nominal and real convergence. NAFTA,
Mercosur – free trade agreements.
Reading:
• A Modern Trade Policy For The European Union (2010), A Report to the New European Commission and Parliament from the EU Trade Policy Study Group, Brussels, Belgium
4. Globalization and the international monetary organizations
Functions of the International Monetary Fund. Current account convertibility and exchange rate stability. IMF operations in the emerging markets. International financial crisis. Contagion effects. The euro and the dollar.
Reading:
• Simon Tilford (2009): The euro at ten: Is its future secure? Centre for European Reform, London,UK
• The global monetary system. Beyond Bretton Woods 2 (2010): The Economist, November 4th
2010.London, UK
5. Economic integration through international capital flows. Role of the multinational enterprises
Motivations for foreign direct investment. Relationship between host countries and multinational firms: global trends. Economic impact of the foreign-owned companies on the Central-East European countries. Privatization in the western world and in Central-Eastern Europe. Mergers and acquisitions.
Reading:
• Stephen Thomsen (2008): European Multinationals: A Globalization Scorecard. Chatham House, London,UK
6. Macroeconomic performances: international competitiveness
Comparing competitiveness of national economies. Macroeconomic policy management of major OECDeconomies.
Reading:
• Paola Subachi, (2010): The role of the United States in the post-crisis economic order, Chatham
House, London,UK
• Philip Whyte (2010): Why Germany is not a model for the eurozone, Centre for European Reform, London,UK
7. Stabilization and liberalization policies of the emerging markets. The case of the Central and East European countries Transition to the market-type system. Transformation recession. Second transition crisis. Economic policy of the CEE countries. Current international competitiveness of the CEE economies.
Reading:
• As time goes by…Mixed showing after five years of EU eastern enlargement (2009) Deutsche Bank Research, Frankfurt, Germany
8. Economic challenges in China and in Russia.
Emerging market economies. Market developments in China and in Russia. Factors determining economic competitiveness. Relationship between the political and economic sectors.
Reading:
• Bobo Lo (2010): China and the global financial crisis. Centre for European Reform, London, UK
9. Labor markets, labor relations, social inequality, outsourcing Regulation and labor markets. Comparative labor relations: labor union models in the OECD-countries. Employment policy. Unemployment. Wage policy. Social transition. Problems of the social welfare system.
Reading:
• Andre Sapir (2005): Globalization & the reform of European social models. Bruegel Policy Brief, Brussels, Belgium
• John Williamson (2010): The Impact of the Financial Crisis on Development Thinking. Peterson
Institute for International Economics, Washington DC, US
10. International competitiveness. Europe in the global economy European competitiveness. Lisbon strategy. Current state of the European economies.
Reading:
• Paola Subacchi, Benedicta Marzinotto, Vanessa Rossi (2008): Exploiting Europe’s Strong Potential, Chatham House, London, UK
• Post-Lisbon Agenda. Looking to make Europe fit for the future (2009), Deutsche Bank Research,
Frankfurt, Germany
Required readings:
(List of readings may change)
Martin Wolf (2005): Will Globalization Survive? Institute of International Economy, Washington DC, US
Guy de Jonquieres (2008): After the Doha debacle, Chatham House, London, UK.
A Modern Trade Policy For The European Union. A Report to the New European Commission and Parliament from the EU Trade Policy Study Group, Brussels, 2010, Belgium
Simon Tilford (2009): The euro at ten: Is its future secure? Centre for European reform, London,UK The global monetary system. Beyond Bretton Woods 2 (2010): The Economist November 4th 2010.London, UK
Stephen Thomsen (2008): European Multinationals: A Globalization Scorecard. Chatham House, London, UK
Paola Subachi, (2010): The role of the United States in the post-crisis economic order, Chatham House, London, UK
Philip Whyte (2010): Why Germany is not a model for the eurozone, Centre for European Reform, London, UK
As time goes by…Mixed showing after five years of EU eastern enlargement (2009) Deutsche Bank Research, Frankfurt, Germany
Bobo Lo (2010): China and the global financial crisis. Centre for European Reform, London, UK
André Sapir (2005): Globalisation and the reform of European social models. Bruegel Policy Brief, Brussels, Belgium
John Williamson (2010): The Impact of the Financial Crisis on Development Thinking. Peterson Institute for International Economics, Washington DC, US
Post-Lisbon Agenda. Looking to make Europe fit for the future (2009), Deutsche Bank Research, Frankfurt, Germany
• Package of slides. It contains all the slides from the lectures.
Recommended readings:
Siebert Horst (2002) The World Economy, Second Edition, Routledge, London and New York. Recommended reading is available in the Institute’s library.
Brief Biography of Instructor:
Tamás Réti earned PH.D. in economics from the Corvinus University of Budapest. He is doctor of habilitatus in the field of economics. He was visiting professor at Bologna University and at Ohio State University. Also, he worked as a fellow at the Woodrow Wilson International Center for scholars in Washington DC. Since 1989 he has taught lectures and seminars at the Corvinus University of Budapest. His field of interest is the European economy in the global world and the economics of the central-east European countries. Among his more recent publications:’ From Eastern Bloc to EU: Organized Labor’s Struggle for Relevance’ Georgetown Journal of International Affairs, Edmund A. Walsh School of Foreign Service, 2007 Winter/Spring, and ’Visegrad Economies: Chances of Convergence’. Masaryk University, Brno, Czech Republic,Working paper 2005, ‘Romanian Economy and the Migration’ Kulgazdasag, 2009/7- 8. Hungarian. Budapest, Hungary
Europe in the Global Economy
The course presents the European position in the global economy It reviews issues of international trade flows and capital flows between the European economies and the major partners. The course deals with the policies of the World Trade Organization and that of the IMF. It presents the foreign economic policy relations between Europe and the other major OECD states. It analysis the external economic policy issues of the European Union. The formation of economic competitiveness between the leading nations is an integral part of the program. The course illustrates the role of the multinational companies in spreading of capital, know-how and managerial skills in the world market. The course puts a special emphasis on the economic environment in the new EU member countries. It applies the instruments and methods of international economic policy. It helps understand the current trends of globalization and its effects on the European Union and on the European economy.
Studies in macroeconomics, international economics or in international relations.
• IES Vienna requires attendance at all class sessions, including field study excursions, internship meetings, scheduled rehearsals, and exams. Attendance will be monitored and unexcused absences will affect the student’s grade.
• Excused absences are permitted only when a student is ill, when class is held on a recognized religious holiday traditionally observed by the particular student, or in the case of a grave incident affecting family members.
• To be granted an excused absence the student must write an email in a timely manner stating the reason for the absence to their professor with a cc to Kent Canzoneri of Student Services (kcanzoneri@centers.iesabroad.org [3]) and Kendall Burgess, the Registrar (kburgess@centers.iesabroad.org [4]). In an emergency, the student may call Student Services or the Front Desk.
• This email must explain why they will be absent (and, if appropriate, how long they expect to be away).
• If they are unable to send an email (too sick, no computer) they may call the Student Assistant at
the front desk (512 2601 11) who will then write the email described above and send it to said parties plus a cc to the student.
Students will get deep understanding of the recent trends in the global economy. They will become familiar with the policies of the World Trade Organization and of the IMF. They will understand the interconnection between the dominant international economic policy issues especially from the
standpoint of the European Union. They will study about the international economic position of the main European economies. Students will also gain insight on the economic environment in the new EU
member countries.
Lectures, seminars and open discussions (team work is encouraged).
Midterm - take-home exam 30% final test - in class exam 40% class participation, assignments 15% policy paper (5 pages, 1.5 spaced, printed version) + presentation 15%
Policy paper: ‘Impact of the current global economic crisis on the European economies’. Choose one or several European economies and identify the effects of the financial-economic-social crisis. Analyze the special features of the crisis in the EU member countries. Discuss the government reactions. What is the reaction of the European Union to the crisis?
Each examination will consist of several essay questions. Students should learn the terms of various international economic issues being used in the readings and in the class lectures.
Students are expected to attend class regularly and to participate in discussions. Students must complete each reading assignment before class and come prepared to discuss the material. It is
important to attend the lectures and seminars. Readings will be discussed in the class.
1. Globalization
Introduction. Meaning of globalization. Quantification. Driving forces and obstacles. Optional reactions. Globalization and Central-Eastern Europe. US role in the world economy. America and Europe. Reading:
• Martin Wolf (2005): Will Globalization Survive? Institute of International Economy, Washington
DC,US
2. Europe and the international trade
Multilateral trade liberalization: rounds of global trade talks. Role of the World Trade Organization. Challenges facing the WTO. Trade policy and human rights
Reading:
• Guy de Jonquieres (2008): After the Doha debacle, Chatham House, London, U.K.
3. Regional economic integration and trade policy
Trade policy issues. Advantages and drawbacks of the regional trading blocs. Enlargement and accession to the European Union. The Maastricht criteria. Nominal and real convergence. NAFTA,
Mercosur – free trade agreements.
Reading:
• A Modern Trade Policy For The European Union (2010), A Report to the New European Commission and Parliament from the EU Trade Policy Study Group, Brussels, Belgium
4. Globalization and the international monetary organizations
Functions of the International Monetary Fund. Current account convertibility and exchange rate stability. IMF operations in the emerging markets. International financial crisis. Contagion effects. The euro and the dollar.
Reading:
• Simon Tilford (2009): The euro at ten: Is its future secure? Centre for European Reform, London,UK
• The global monetary system. Beyond Bretton Woods 2 (2010): The Economist, November 4th
2010.London, UK
5. Economic integration through international capital flows. Role of the multinational enterprises
Motivations for foreign direct investment. Relationship between host countries and multinational firms: global trends. Economic impact of the foreign-owned companies on the Central-East European countries. Privatization in the western world and in Central-Eastern Europe. Mergers and acquisitions.
Reading:
• Stephen Thomsen (2008): European Multinationals: A Globalization Scorecard. Chatham House, London,UK
6. Macroeconomic performances: international competitiveness
Comparing competitiveness of national economies. Macroeconomic policy management of major OECDeconomies.
Reading:
• Paola Subachi, (2010): The role of the United States in the post-crisis economic order, Chatham
House, London,UK
• Philip Whyte (2010): Why Germany is not a model for the eurozone, Centre for European Reform, London,UK
7. Stabilization and liberalization policies of the emerging markets. The case of the Central and East European countries Transition to the market-type system. Transformation recession. Second transition crisis. Economic policy of the CEE countries. Current international competitiveness of the CEE economies.
Reading:
• As time goes by…Mixed showing after five years of EU eastern enlargement (2009) Deutsche Bank Research, Frankfurt, Germany
8. Economic challenges in China and in Russia.
Emerging market economies. Market developments in China and in Russia. Factors determining economic competitiveness. Relationship between the political and economic sectors.
Reading:
• Bobo Lo (2010): China and the global financial crisis. Centre for European Reform, London, UK
9. Labor markets, labor relations, social inequality, outsourcing Regulation and labor markets. Comparative labor relations: labor union models in the OECD-countries. Employment policy. Unemployment. Wage policy. Social transition. Problems of the social welfare system.
Reading:
• Andre Sapir (2005): Globalization & the reform of European social models. Bruegel Policy Brief, Brussels, Belgium
• John Williamson (2010): The Impact of the Financial Crisis on Development Thinking. Peterson
Institute for International Economics, Washington DC, US
10. International competitiveness. Europe in the global economy European competitiveness. Lisbon strategy. Current state of the European economies.
Reading:
• Paola Subacchi, Benedicta Marzinotto, Vanessa Rossi (2008): Exploiting Europe’s Strong Potential, Chatham House, London, UK
• Post-Lisbon Agenda. Looking to make Europe fit for the future (2009), Deutsche Bank Research,
Frankfurt, Germany
(List of readings may change)
Martin Wolf (2005): Will Globalization Survive? Institute of International Economy, Washington DC, US
Guy de Jonquieres (2008): After the Doha debacle, Chatham House, London, UK.
A Modern Trade Policy For The European Union. A Report to the New European Commission and Parliament from the EU Trade Policy Study Group, Brussels, 2010, Belgium
Simon Tilford (2009): The euro at ten: Is its future secure? Centre for European reform, London,UK The global monetary system. Beyond Bretton Woods 2 (2010): The Economist November 4th 2010.London, UK
Stephen Thomsen (2008): European Multinationals: A Globalization Scorecard. Chatham House, London, UK
Paola Subachi, (2010): The role of the United States in the post-crisis economic order, Chatham House, London, UK
Philip Whyte (2010): Why Germany is not a model for the eurozone, Centre for European Reform, London, UK
As time goes by…Mixed showing after five years of EU eastern enlargement (2009) Deutsche Bank Research, Frankfurt, Germany
Bobo Lo (2010): China and the global financial crisis. Centre for European Reform, London, UK
André Sapir (2005): Globalisation and the reform of European social models. Bruegel Policy Brief, Brussels, Belgium
John Williamson (2010): The Impact of the Financial Crisis on Development Thinking. Peterson Institute for International Economics, Washington DC, US
Paola Subacchi, Benedicta Marzinotto, Vanessa Rossi (2008): Exploiting Europe’s Strong Potential, Chatham House, London, UK
Post-Lisbon Agenda. Looking to make Europe fit for the future (2009), Deutsche Bank Research, Frankfurt, Germany
• Package of slides. It contains all the slides from the lectures.
Siebert Horst (2002) The World Economy, Second Edition, Routledge, London and New York. Recommended reading is available in the Institute’s library.
Tamás Réti earned PH.D. in economics from the Corvinus University of Budapest. He is doctor of habilitatus in the field of economics. He was visiting professor at Bologna University and at Ohio State University. Also, he worked as a fellow at the Woodrow Wilson International Center for scholars in Washington DC. Since 1989 he has taught lectures and seminars at the Corvinus University of Budapest. His field of interest is the European economy in the global world and the economics of the central-east European countries. Among his more recent publications:’ From Eastern Bloc to EU: Organized Labor’s Struggle for Relevance’ Georgetown Journal of International Affairs, Edmund A. Walsh School of Foreign Service, 2007 Winter/Spring, and ’Visegrad Economies: Chances of Convergence’. Masaryk University, Brno, Czech Republic,Working paper 2005, ‘Romanian Economy and the Migration’ Kulgazdasag, 2009/7- 8. Hungarian. Budapest, Hungary