International Trade

Information and Class Schedule (Fall, 1999)

September 5, 1999

Teacher

P. Gunning Office number: 1029; Phone: 1822

Office Hours: Saturday, Monday, Wednesday: 9:00 to 9:50; 2:00-4:00; Others by appointment

Course Description

International trade is the study of the causes and effects of trade that involves individuals of at least two different nations. This course shows why such trade occurs, how it effects different individuals, the methods that a government can use to control it, and how such controls are likely to effect different individuals. To study international trade, we use the common analytical tools of economics and some special new ones that are needed in order to deal with special problems. Among other things, the student can expect to learn about (1) comparative advantage, (2) the Heckscher-Ohlin model, (3) tariffs, (4) non-tariff trade restrictions, (5) economic integration, (6) foreign exchange markets, (7) the balance of payments, and (8) the international monetary system.

Grading and Examinations

Grading is based entirely on test performance. Each of the two exams during the semester counts 20% and the final exam counts 40%. No makeup exams unless the student has permission prior to the exam, except in extraordinary circumstances.

Class Presentation of Internet Investigation

Each student will be given the assignment of exploring some subject in International Trade and reporting his (her) findings to the class. This assignment is worth about 20% of the total grade. A list of possible topics will be distributed early during the semester.

Class Attendance

Class attendance is mandatory. If you are ill or have an emergency, you must inform the teacher. Failure to attend regularly will result in a lower curve on the final examination.

Class Materials

Krugman and Obstfeld: International Economics

Schedule

Week 1 Introduction (Chapter 1)

Week 2 Labor Productivity and Comparative Advantage (Chapter 2)

Week 3 Specific Factors and Income Distribution (Ch. 3)

Week 4 The Heckscher-Ohlin Theory (Ch. 4)

Week 5 The Standard Trade Model (Ch. 5)

Week 6 The Standard Trade Model (Ch. 5); First Exam (25%); Economies of Scale, etc. (Ch. 6)

Week 7 Economies of Scale, etc. (Ch. 6)

Week 8 International Factor Movements (Ch. 7)

Week 9 International Factor Movements (cont.); Instruments of Trade Policy (Ch. 8)

Week 10 Instruments of Trade Policy (Ch. 9)

Week 11 Political Economy of Trade Policy (Ch. 10)

Week 12 Political Economy of Trade Policy (Ch. 10); Second Exam (25%)

Week 13 Trade Policy in Developing Countries (Ch.. 11 -- class handouts))

Week 14 Trade Policy in Developing Countries (cont.)

Week 15 Trade in the Rentier Economy

Final Examination (50%)

Textbook: Krugman and Obstfeld: International Economics