Approaches and the Role of the Public in Foreign Economic Policy

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Lecture 3

• Approaches and the Role of the Public in Foreign
  Economic Policy

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Aims

• LEVELS OF ANALYSIS What do we have to think
  about to understand US policy?
• WHO ARE THE ACTORS?
• Key Question How and where is our foreign
  economic policy made?

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Main Themes

• what is the relative importance of the
  international vs. domestic spheres in explaining
  international economic events.
• Does the state matter or does society matter in
  explaining international relations?

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• External (or International)
• State or Society centered
• Evolution Two Level Games

Possible Foreign Policy
PossibleDomestic Policy
Foreign Policy Acceptable to Domestic Pop.
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• External approaches hold that
• States are a black box.we dont need to know
  anything about what goes on inside the state, and
  we dont really care. These theories look at the
  structure of the environment that states work in.
• These theories attempt to explain state policies
  by examining states position in the international
  system. This position, defines the opportunities
  and options of leaders. Their actions are taken
  regardless of their own preferences.
• States are considered to be unitary, and their
  internal politics do not affect what states
  actually do relative to other states.

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Basic Elements of IPEThe State in IR
International System Other States
Foreign Policy, Diplomacy
THE STATE
Domestic Policy
Domestic Interest Groups
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Two Level Games

• International( Level 1)- Deals struck here
• Domestic (Level 2)-must be ratified here

Possible Foreign Policy
PossibleDomestic Policy
Foreign Policy Acceptable to Domestic Pop.
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Three Basic Concepts to Understand POLITICS of
Foreign Policy Making

• rent seeking
• Interest group politics
• Statecraft- the institutional arrangements of
  government

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Benefits of Pork in Foreign Policy

• tariffs,
• quotas,
• and subsidies

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Obstacles to Excessive Rent-Seeking

• Democracy blatant rent seeking is more likely to
  be controversial in a democracy
• Laws against bribery and corruption.
• Competition- in a large country like the US, the
  typical industry has more competition. Thus it is
  less likely that one competitor can, through
  political influence, gain over its competitors.
  However, this doesnt mean that they cant get
  sector wide advantages.
• Antitrust laws- function to some extent as a
  limit on the advantages that can accrue to
  individual domestic firms. However, they dont
  outlaw collusive action to obtain government
  favors.

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Cartoon
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Important Actors in Interest Group Sphere

• Washington Offices of Corporations
• Trade Associations
• Public Relations Firms
• Law Firms
• Smaller Boutique Firms