Class 10

1.   PLS 150 intro to International relations dR Maja Savevska

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: maja.savevska@nu.edu.kz
03-12-25
Intro to IR
Astana, Kazakhstan

2. Week Ten

Tuesday
Thursday
• Current Events
(15min)
• Recap (5min)
• Lecture on foreign
investments (rest)
• Current Events
(10min)
• Kahoot (15min)
• Lecture on foreign
investments (35min)
• Interactive
activities (rest)

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

International Trade
International Finance: FDI
International 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.

14. Foreign Investment

Portfolio Investment
Stocks
Bonds
Loans
Securities

15. Foreign Investment

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

16.

17. 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

18.

19.

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. Agenda for Week Ten

Tuesday
Thursday
• Current events
(10 min)
• Lecture on FDI
• Q&A
• Current events
(10 min)
• Kahoot (10 min)
• Lecture on MNC
(30 min)
• Interactive
activities (rest)

23.

Current Events

24. Kahoot!

25. Discussion Board – October 31, 4pm

Due next Friday
Name an IO active in the domain of IPE
State its mission and function
Is this IO successful at resolving CAPs
Formatting requirements:
150-250 words
No need to file a document submission (just Moodle entry)
Grading rubric: pass/fail

26. Foreign Investment: Lending

Debtor-Creditor Relationship
Solutions to information asymmetry and time
inconsistency problems:
International Organizations
BIS
IMF
World Bank

27. Open Economy Politics (Lake)

Interests
Domestic Institutions
Interstate Bargaining

28. Regime Types and FDI Inflows

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

29. 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

30. 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

31.

32. International Investment Regime

Enforcement Mechanism
Investor-State Dispute Settlement mechanisms
Judicial review
Ex: International Centre for the Settlement of
Investment Disputes (part of World Bank Group)

33.

34. Q&A

Q&A
Dr Maja
Savevska
Thank you for your attention