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  • Author: Dieter Ernst
  • Publication Date: 04-1997
  • Content Type: Working Paper
  • Institution: Berkeley Roundtable on the International Economy
  • Abstract: Far-reaching changes are currently occurring in the organization and location of the production of industrial goods and services, changes which are bound to have important implications for the welfare, the development potential, and the competitive position of different countries and regions. As competition cuts across national and sectoral boundaries and becomes increasingly global, firms everywhere are forced to shift from exports to international production. Today, dominance in a domestic market—even one as large as the U.S.—is no longer enough. Mutual raiding of established customer and supply bases has become an established business practice, with the result that firms are now forced to compete simultaneously in all major markets, notably in Europe, North America and Asia.
  • Topic: Globalization, Industrial Policy
  • Political Geography: Europe, Asia, North America
  • Author: Dieter Ernst
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Berkeley Roundtable on the International Economy
  • Abstract: The "China fever" that has raged through the Japanese industry over the last few years, has drastically changed the locational patterns of Japanese investment within East Asia. The share of China in the investment of Japanese electronics firms abroad has increased by leaps and bounds: from the measly 0.6% of 1990 ( the year after the Tianmen massacre), it has now reached almost 7%, catching up fast with the 7.7% share of ASEAN.
  • Topic: Industrial Policy, International Trade and Finance
  • Political Geography: Japan, China, Israel, East Asia, Asia
  • Author: Imtiaz Hussain
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: Conventionally viewing the state as a black box and focusing almost exclusively on its outward orientation, the Westphalia paradigm, I argue, has outlived its purpose, and may even be misleading when applied to the more porous and democratic state today. Rather than measure state viability in terms of power balances abroad, three constituent elements extracted from the Westphalia literature are used to evaluate internal state viability instead: the relationship between the nation and the state, the capacities of the state itself, and the state within a collectivity. Whereas the first is operationalized in terms of Buzan's four-fold typology, the second focuses on how two forms of internal divisions have been resolved—between city and country interests over policy-making, and between various classes in society through governmental income redistribution programs—while the third evaluates the propensity of the state to delegate loyalties to any supranational entity in the 1990s. Over 160 sovereign countries are pooled into 5 geographical regions for the analysis. The results strengthen the above argument, and generally portray the exceptionalism of West Europe: It is the global hub of established national states, even though there are more state nations worldwide whose historical emergence accented internal development over external security considerations; viable states, measured in terms of established democracies, urban preponderance over policy making, and welfare redistribution; and transferring loyalties beyond the state.
  • Topic: International Relations, Democratization, Development, Government
  • Political Geography: Europe, Maryland, Westphalia
  • Author: Miquel Ángel Valverde
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: This paper examines the theoretical discussion on interdependence, and its use for analyzing US-Mexican economic relations. It combines interdependence's premises with other perspectives on the position of North American economies in the global marketplace, arguing that NAFTA is an institutional response to these developments.
  • Topic: Economics, Globalization, International Trade and Finance
  • Political Geography: United States, North America, Mexico
  • Author: Miquel Ángel Valverde
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: In June 1990, President George Bush and Mexican President Carlos Salinas de Gortari announced their intention to begin negotiating a free trade agreement. Canada joined the negotiations the following August. The proposed North American Free Trade Agreement (NAFTA) provoked an intense lobbying campaign in the US Congress, in what became a major political battle for its congressional approval. Some economic interests would win, others would lose with NAFTA. Congress members were worried about the loss of American low-skilled jobs and environmental issues. Regional interests were voiced loudly in the House of Representatives. A loose coalition of interest groups, including the AFL-CIO, public interest groups, and environmental organizations, coordinated opposition to the agreement. On the pro-NAFTA side was an ad hoc group of corporations, labeled USA-NAFTA, which included the National Association of Manufacturers and the US Chamber of Commerce. The Mexican government mounted an extensive lobbying campaign in favor of the trade pact. After intense congressional lobbying, President Bush obtained fast-track negotiating authority for NAFTA. Negotiations concluded in August 1992, and the following December, Presidents Bush and Salinas, as well as Canada's Prime Minister Mulroney, signed the pact, Presidential candidate Bill Clinton, under intense pressure from key constituencies of the Democratic Party, supported NAFTA "in principle," but only if complementary agreements on labor and environmental issues were included. Once in the office, Clinton negotiated these "side agreements" with Mexico and Canada, but still, strong opposition to NAFTA continued. In order to win congressional votes needed for the pact's approval, President Clinton engaged in a series of political compromises or "side-payments" with legislators, being able to form a congressional bipartisan coalition that allowed NAFTA passage.
  • Topic: Economics, International Trade and Finance, Politics
  • Political Geography: United States, Canada, North America, Mexico
  • Author: Mark Aspinwall, Imtiaz Hussain
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: How autonomous is a state in today's highly interdependent international economy to pursue policies that diverge widely from the international norm? does the degree of autonomy vary for different domestic sectors? We adapt and apply Benjamin Cohen's unholy trinity model (1993), to a comparative assessment of how France responded to globalization over agriculture and shipping, focusing on three dimensions—investment, transaction costs, and government policy responses. Although France is reputed to possess a strong state machinery (Katzenstein, 1987; Wilson, 1987; Skocpol, 1985), our analysis raises qualifications. On the one hand, regardless of government policy intentions, we find irreversible forms of disinvestments in both sectors, though different in nature—geographic for shipping, and functional for agriculture; on the other, we also find continued dependence upon the state–for internal and endogenous, as well as external and exogenous, factors influence policy-making, the nature of these factors are different for the two sectors. We conclude by drawing implications of our findings for state-society relations and European integrations.
  • Topic: Agriculture, Globalization, International Trade and Finance
  • Political Geography: Europe, France
  • Author: Sofía Gallardo
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: The concern for the quality of the environment reached significant proportions in the 1960's and 1970's throughout North America and Europe as other new social movements were emerging. Unlike some of the others, environmentalism has endured as a vital and major social phenomenon, one that has reoriented human perceptions, attitudes, and behavior.
  • Topic: Environment, International Trade and Finance
  • Political Geography: Europe, Germany, North America
  • Author: Imtiaz Hussain
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: What factors made the attainment of a regional trading bloc a priority at the Summit of the Americas? Why was it so inclusive a gathering? What are the prospects and problems of an American Free Trade Association? How can regionalism in this part of the world be explained theoretically?
  • Topic: Development, International Trade and Finance, Regional Cooperation
  • Political Geography: America, North America
  • Author: Miguel Angel Valverde
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: The objective of this paper is to discuss some concepts and review relevant literature on interest groups in the United States, in order to provide a broad guide to the study of the topic. It aims to explore the main questions raised by their presence in the political arena as well as suggest some themes for future research.
  • Topic: International Relations, Economics, Politics
  • Political Geography: United States, America
  • Author: Imtiaz Hussain
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Centro de Investigación y Docencia Económicas
  • Abstract: Why do policy outcomes invariably fall short of expectations? Almost all studies of this puzzling topic over the last generation have revolved around a study of the limits of rational behavior. Although this literature is extraordinarily enriching, as society becomes more complex, the gap between policy intentions and outcomes seems to be widening, and constrained rational behavior appears to be accounting for increasingly less of that gap. Three incompatible policy areas today are environmentalism, free trade, and regionalism. This investigation undertakes a comparative analysis of the principles and key dimensions of those three policy areas, then transforms Benjamin Cohen's unholy monetary trinity into an unholy developmental trinity to offer a theoretical framework within which this incompatible policy-mix may be explained.
  • Topic: Foreign Policy, Economics, Environment, International Trade and Finance