2.23M

Category:

economics

Intro to international relations (class 9)

1.

PLS 150 INTRO TO INTERNATIONAL
RELATIONS
DR MAJA SAVEVSKA
Assistant Professor
Department of Political Science and International Relations
SSH | Nazarbayev University
Office: 8.502
Email: [email protected]
30-11-22
Intro to IR
Nur-Sultan, Kazakhstan

2.

Week Nine
Monday
Wednesday
Friday
• Current
Events (10
min)
• Lecture on
finance (40
min)
• Current
Events (10
min)
• Lecture on
finance (40
min)
• Current
Events (10
min)
• Kahoot (10
min)
• Lecture (10
min)
• Interactive
Activities

3.

Current Events

4.

Recap
What does the Heckscher-Ohlin theory predict
about trade? What will a country export most?
What are the two alternative approaches to
explaining trade preference formation?

5.

Issue Areas
Trade
Globalization of Production and FDI
Monetary Affairs
Development and Inequality

6.

Globalization
“Accelerating set of processes involving
flows that encompass ever greater number
of the world’s spaces and the lead to
increasing integration and interconnectivity
among those spaces” (Ritzer 2009:1).

7.

Foreign Investment
FDI
Portfolio
Sovereign Lending

8.

Foreign Investment
Foreign Direct Investment
Investment abroad
Managerial control

9.

10.

11.

12.

13.

Foreign Investment
Portfolio Investment
Stocks
Bonds
Loans
Securities

14.

Foreign Investment
Sovereign Lending
Loans to governments
Private investors
Public:
IMF
Bilateral
Concessional

15.

16.

Developing Countries
External Sources of Capital
Official flows (from Multilateral Development
Banks)
Commercial banks’ loans (portfolio investments)
FDI
Until the early 90s official flows were dominant
form of capital

17.

18.

19.

Current Events

20.

Foreign Investment
Why Invest?
Common interests:
Profit for investors
Access to finance for recipients

21.

Foreign Investment
Risks
Conflict of interests over distribution of benefits
Lending:
Repayment risks
Sovereign defaults
FDI:
Expropriation

22.

Foreign Investment: Lending
Debtor-Creditor Relationship
Solutions to information asymmetry problems:
International Organizations
BIS
IMF
World Bank

23.

Open Economy Politics (Lake)
Interests
Domestic Institutions
Interstate Bargaining

24.

Domestic Political Institutions
Regime
Electoral
Partisan
• Democracies
• Autocracies
• Majoritarian
• Proportional
representation
• Fractionalization
• Left-right
division

25.

Political Regime Types
Democratic
Democracies attract
more FDI
Authoritarian
Autocracies provide
better deals to MNCs

26.

International Investment Regime
Level of Institutionalization
Protection of investment under international
law
Absence of multilateral organization
BITs:
Example of measures:
Regulation of expropriation
Preference of local companies vs. foreign
Fair and equitable treatment of foreign investors

27.

International Investment Regime
Level of Enactment
Multilateral:
Trade-Related Investment Measures (TRIMS):
Applies only to investment measures related to trade
in goods:
Local content requirements
Trade balancing requirements
Bilateral Investment Treaties (BIT)
RTAs:
NAFTA – Chapter 11

28.

29.

Current Events

30.

Kahoot!

31.

Measures to Attract FDI
Locational Incentives
Tax breaks and holidays
Exemption from import duties
Grants
Subsidized loans
Examples:
Alabama incentive of $158 m to Honda
NC $242 incentive to Dell
SC $135 million incentive
to BMW
Alabama $253 million incentive to Mercedes