Date TBA Credits 3 Course Title International Economics Course Number FI 50500

Transcription

1 Date TBA Credits 3 Course Title International Economics Course Number FI Pre-requisite (s) None Co-requisite (s) None Hours 45 Out of Class 90 Hours Place and Time of Class Meeting San Ignacio University 3905 NW 107 Avenue, Suite 301 Miami, FL Name and Contact Information of Instructor TBA Book required (San Ignacio University recognizes the use of the textbook in the classroom as part of the educational methodology and strategy applied in diverse materials. The textbook is part of the curriculum and is used to reach the student in an effective manner in the classroom. Every student is expected to acquire and use the textbook.) International Economics Author: Thomas Pugel Publisher: McGraw-Hill Education; 16th edition (January 16, 2015) ISBN-10: ISBN-13: Attendance Policy Classroom expectations for students Students are expected to attend all scheduled University classes for the courses that they are registered for and to achieve the goals set forth by each class instructor. Attendance is taken daily. Enrolled students are permitted no more than 2 free absences in one semester. Students missing 3-5 classes over the course of the semester will receive a one-letter grade deduction from their final course grade; missing more than 6 classes will result in failure of the course regardless of grade average. It is the student's responsibility to arrange to make up work missed because of an absence. 1 Page

2 Student Tardiness Policy A student is considered tardy/late if he/she comes to class 15 minutes late. With three tardies the student accumulates one full absence. If the student misses half of the class period, it is a full absence. When a student has more than 6 tardies, the instructor will contact the San Ignacio University Coordinator of Student Affairs and Academic Department and request an intervention session with the student. The goal of the intervention session is to develop and implement an intervention program to help students learn new ways to save and manage time. NOTE: Plagiarism is defined as the use, without proper acknowledgment, of the ideas, phrases, sentences, or larger units of discourse from another writer or speaker. Plagiarism includes the unauthorized copying of software and the violation of copyright laws. Students who commit plagiarism will obtain a grade of Failure on their exam or assignment. Course Description (must correspond exactly to Catalog description) The purpose of this class is to provide the students with the concepts that are essential for understanding international economics and its challenges. Among the topics studied we have: International trade theory, international trade policy, international resource movement, multinational corporations, exchange rate determination, the international monetary system, the income adjustment mechanism, and open economy macroeconomics. Learning Objectives At the end of the course the student will be able to: Discuss economics and the nation-state Analyze factor mobility Interpret different moneys Analyze production-possibility curve (ppc) Discuss increasing marginal costs Explain indifference curve Discuss whole chain of influence Explain the Stolper-Samuelson theorem Discuss the specialized-factor pattern Identify oligopoly pricing Discuss biased growth Analyze Rybczynski theorem Explain resource-using application procedures Discuss a voluntary export restraint (VER) Analyze product standards 2 Page

3 Recognize safeguard policy Discuss export subsidy Analyze host countries Discuss inherent disadvantages Explain firm-specific advantages Discuss intrafirm trade Identify fiscal policy with fixed exchange rates Explain effects of expanding the money supply Interpret internal shocks Recognize marginal propensity to import (m) Identify foreign-income repercussions Discuss fiscal policy with fixed exchange rates Explain effects of expanding the money supply Interpret internal shocks Recognize domestic monetary shocks Topical Outline and Schedule SPECIFIC OBJECTIVES TOPIC (S) WEEK 1 Describe the course. Discuss international economics Analyze U.S. exports of natural gas Identify Immigration Summarize China s exchange rate Discuss basic theory using demand and supply Analyze consumer surplus Discuss a national market with no trade Explain two national markets and the opening of trade Analyze one-dollar, one-vote metric Syllabus. Discuss Library Orientation Course, Instructor to verify completion, Discuss Final Class Project & Presentation, List of Topics. Explain Euro crisis Discuss economics and the nation-state Analyze factor mobility Interpret different moneys 3 Page

4 Evaluate supply Discuss producer surplus Recognize opportunity cost Identify free-trade equilibrium Discuss net national gains from trade Discussion of Syllabus. Group discussion: What would happen if the U.S. government permitted substantial amounts of ongoing U.S. exports? (page 2) Group discussion: Four Questions About Trade, p. 14, 1 to 4 Review the Syllabus Complete the Library Orientation Course. Instructor to verify completion. Homework: Assigned reading for class session. Read chapters 1 and 2, pages 1 to 30. Questions and Problems, p. 29 and 30, complete 1 to 14. Be prepared to discuss assignment in class. WEEK 2 SPECIFIC Discuss why everybody trades-comparative advantage OBJECTIVES Analyze Adam Smith s theory of absolute advantage Discuss Ricardo s theory of comparative advantage Explain Ricardo s constant costs and the production-possibility curve Discuss trade: factor availability and factor proportions are key Explain production with increasing marginal costs Summarize community indifference curves Discuss gains from trade Identify trade affects production and consumption TOPIC (S) Discuss absolute advantage Summarize principle of comparative advantage Discuss relative price Analyze production-possibility curve (ppc) Discuss increasing marginal costs Explain indifference curve Analyze community indifference curves Discuss demand and supply curves again Evaluate Heckscher-Ohlin (H-0) theory Group discussion: Case Study- Mercantilism, p. 33. Participate in a group forum: Focus on Labor- Absolute Advantage Does Matter, p. 40 and 41, 1 to 3. 4 Page

5 SPECIFIC OBJECTIVES TOPIC (S) SPECIFIC OBJECTIVES Homework: Assigned reading for class session. Read chapters 3 and 4, pages 31 t 65. Questions and Problems, p. 44 to 46, complete 1 to 12. Questions and Problems, p. 63 to 65, complete any 9 of 12. Be prepared to discuss assignment in class. WEEK 3 Discuss who gains and who loses within a country Analyze short-run effects of opening trade Discuss three implications of the H-0 theory Explain does Heckscher-Ohlin explain actual trade patterns Discuss shares of the world s factor endowments, Recognize international trade Identify what are the export-oriented and import-competing factors Discussion of student topic selection, library research, tentative bibliography Due: Project Topic Due: Tentative Bibliography Discuss short run Analyze long run, factors Discuss whole chain of influence Explain the Stolper-Samuelson theorem Discuss the specialized-factor pattern Explain factor-price equalization theorem Recognize factor endowments Group discussion: Case Study- The Leontief Paradox, p. 75. Participate in a group forum: Questions and Problems, p. 85, 1 and 2. Homework: Assigned reading for class session. Read chapter 5, pages 66 to 87. Questions and Problems, p. 85 to 87, complete 3 to 12. Be prepared to discuss assignment in class. WEEK 4 Discuss scale economies, imperfect competition and trade Analyze intra-industry trade Discuss the important of intra-industry trade Explain monopolistic competition and trade Discuss the market with no trade Identify opening to free trade Discuss economic growth Explain balanced versus biased growth Recognize changes in the country s willingness to trade Identify effects on the country s terms of trade 5 Page

6 TOPIC (S) TOPIC (S) CONT. Recognize openness to trade affects growth Discuss scale economies Analyze monopolistic competition Discuss internal scale economies Explain external scale economies Discuss gains from trade Identify oligopoly pricing Discuss biased growth Analyze Rybczynski theorem Recognize immiserizing growth Identify technology and trade Explain product cycle hypothesis Group discussion: Questions and Problems, p. 114 and 115, 1 and 2. Participate in a group forum: Questions and Problems, p. 114 and 115, 3 to 6. Group discussion: Case Study- The Dutch Disease and Deindustrialization, p Homework: Assigned reading for class session. Read chapters 6 and 7, pages 88 to 136. Questions and Problems, p. 134 to 136, complete 1 to 14. Questions and Problems, p. 115 and 116, complete any 9 of 15. Be prepared to discuss assignment in class. WEEK 5 SPECIFIC Discuss tariff, as the term is used in international trade OBJECTIVES Analyze the effect of a tariff on domestic producers Discuss tariff as government revenue Explain the net national loss from a tariff Recognize the terms-of-trade effect and a nationally optimal tariff Discuss the nationally optimal tariff TOPIC (S) Discuss specific tariff Summarize ad valorem (on the value) tariff Discuss producer surplus Explain consumer surplus Discuss the consumption effect Recognize the production effect Identify monopsony power Group discussion: Case Study- They Tax Exports, Too, p. 150 and 151. Participate in a group forum: Questions and Problems, p. 157, 1 to 4. 6 Page

7 Continue research and work on final project. Homework: Assigned reading for class session. Read chapter 8, pages 137 to 159. Questions and Problems, p. 158 and 159, complete 5 to 12. Be prepared to discuss assignment in class. SPECIFIC OBJECTIVES WEEK 6 EXAM I Discuss a nontariff barrier (NTB) Analyze major types of NTBs Discuss the import quota Explain quota versus tariff for a small country Discuss ways to allocate import licenses Explain quota versus tariff for a large country Discuss policies that limit imports Explain the ideal world of first best Recognize the realistic world of second best Identify government policies toward externalities Analyze promoting domestic production or employment Identify the dying industry argument and adjustment assistance TOPIC (S) Discuss import quota Analyze fixed favoritism Discuss import license auction Explain resource-using application procedures Discuss a voluntary export restraint (VER) Analyze product standards Discuss externalities or spillover effects Recognize the Specificity Rule Identify the infant industry argument Discuss beneficial role for government assistance Explain trade adjustment assistance Identify national pride Group discussion: Case Study- VERs: Two Examples, p. 176 and 177. Participate in a group forum: Questions and Problems, p. 189, 1 to 5. Homework: Assigned reading for class session. Read chapters 9 and 10, pages 160 to 221. Questions and Problems, p. 190 and 191, complete 6 to 13. Questions and Problems, p. 219 to 221, complete any 10 of 16. Be prepared to 7 Page

8 discuss assignment in class. WEEK 7 SPECIFIC Discuss dumping and normal value OBJECTIVES Analyze predatory dumping, cyclical dumping, seasonal dumping, persistent dumping, and price discrimination Identify reacting to dumping: what should a dumpee think Discuss actual antidumping policies Explain top 9 initiators of antidumping cases Discuss switching an importable product into an exportable product TOPIC (S) Discuss persistent dumping Analyze antidumping duty Recognize safeguard policy Discuss export subsidy Explain WTO rules on subsidies Discuss a countervailing duty Group discussion: Case Study- Antidumping in Action, p. 230 to 232. Participate in a group forum: Questions and Problems, p. 250, 1 to 4. Continue research and work on final project. Homework: Assigned reading for class session. Read chapter 11, pages 222 to 251. Questions and Problems, p. 250 and 251, complete 5 to 12. Be prepared to discuss assignment in class. WEEK 8 SPECIFIC Discuss types of economic blocs OBJECTIVES Analyze the basic theory of trade blocs; trade creation and trade diversion Discuss other possible gains from a trade bloc Evaluate the North American Free Trade Agreement (NAFTA): provisions and controversies Discuss trade and the environment Explain if free trade is anti-environment Apply the specificity rule again Recognize trade and domestic pollution TOPIC (S) Discuss trade blocs and trade embargoes Analyze common market Discuss economic union 8 Page

9 TOPIC (S) CONT. Explain trade creation and Trade diversion Discuss externality Recognize types of externalities Identify product-market prescriptions Analyze transborder pollution Group discussion: Case Study- Postwar Trade Integration in Europe, p. 260 and 261. Participate in a group forum: Questions and Problems, p. 306 and 307, 1 to 4. Continue research and work on final project. Homework: Assigned reading for class session. Read chapters 12 and 13, pages 252 to 308. Questions and Problems, p. 274, complete 5 to 12. Questions and Problems, p. 307 and 308, complete 5 to 12. Be prepared to discuss assignment in class. WEEK 9 SPECIFIC Discuss trade Policies for developing countries OBJECTIVES Analyze which trade policy for developing countries Discuss long-run price trends against primary producers Explain international cartels raising primary-product prices Discuss classic monopoly as an extreme model for cartels Recognize import-substituting industrialization (ISO) TOPIC (S) Discuss real growth rates, Analyze 1950s Raul Prebisch Discuss international cartels Interpret organization of petroleum exporting countries (OPEC) Discuss sagging demand Explain declining market share Group discussion: Case Study- Special Challenges of Transition, p. 314 and 315. Participate in a group forum: Questions and Problems, p. 331 and 332, 1 to 4. Homework: Assigned reading for class session. Read chapter 14, pages 309 to 333. Questions and Problems, p. 331 and 332, 5 to 12. Be prepared to discuss assignment in class. SPECIFIC OBJECTIVES WEEK 10 MIDTERM EXAM II Discuss multinationals and migration 9 Page

10 Analyze foreign direct investment Discuss multinational enterprises Summarize FDI: history and current patterns Discuss how migration affects labor markets Analyze payments among nations Interpret accounting principles Recognize a country s balance of payments Identify the macro meaning of the current account balance TOPIC (S) Discuss foreign affiliates Analyze host countries Discuss inherent disadvantages Explain firm-specific advantages Discuss intrafirm trade Analyze credit item / debit item Explain goods and services balance Recognize financial account balance Identify net foreign investment SPECIFIC OBJECTIVES SPECIFIC OBJECTIVES CONT. Group discussion: Case Study- CEMEX: A Model Multinational from an Unusual Place, p Participate in a group forum: Questions and Problems, p. 367, 1 to 4. Homework: Assigned reading for class session. Read chapters 15 and 16, pages 334 to 388. Questions and Problems, p. 367 to 369, complete any 10, from 5 to 19. Questions and Problems, p. 386 to 388, complete any 8 of 12. Be prepared to discuss assignment in class. WEEK 11 Discuss foreign exchange Market Analyze the basics of currency trading Discuss using the foreign exchange market Explain interbank foreign exchange trading Discuss demand and supply for foreign exchange Evaluate forward exchange and international financial investment Explain exchange-rate risk Analyze the market basics of forward foreign exchange Recognize hedging using forward foreign exchange Identify Speculating Using Forward Foreign Exchange TOPIC (S) Discuss exchange rate 10 Page

11 SPECIFIC OBJECTIVES Analyze spot exchange rate Discuss forward exchange rate Explain floating exchange-rate system Discuss fixed exchange-rate system Explain hedging Recognize speculating Identify forward foreign exchange contract Discuss covered interest arbitrage Analyze expected uncovered interest differential (EUD) Group discussion: Case Study- Brussels Sprouts a New Currency, p Participate in a group forum: Questions and Problems, p. 403, 1 to 4. Editing & Revision of Final Project. Homework: Assigned reading for class session. Read chapters 17 and 18, pages 389 to 432. Questions and Problems, p. 403 and 404, complete 5 to 12. Questions and Problems, p. 430 to 432, complete any 8 of 12. Be prepared to discuss assignment in class. WEEK 12 Discuss how exchange rates are determined Analyze asset market approach to exchange rates Discuss the role of interest rates Explain the effect of money supplies on an exchange rate Discuss government policies toward the foreign exchange market Explain two aspects: rate flexibility and restrictions on use Recognize floating exchange rate Identify Defending a Fixed Exchange Rate Summarize the gold standard era, TOPIC (S) Discuss purchasing power parity (PPP) Analyze law of one price Discuss absolute purchasing power parity Explain relative purchasing power parity Discuss exchange control Interpret capital controls Recognize special drawing right (SDR) Identify sterilized intervention 11 Page

12 Analyze the Bretton Woods era, Group discussion: Case Study- PPP from Time to Time, p Participate in a group forum: Questions and Problems, p. 461 and 462, 1 to 4. Homework: Assigned reading for class session. Read chapters 19 and 20, pages 433 to 501. Questions and Problems, p. 462 and 463, complete 5 to 16. Questions and Problems, p. 499 to 501, complete any 10 of 14. Be prepared to discuss assignment in class. WEEK 13 SPECIFIC Discuss international lending and financial crises OBJECTIVES Analyze gains and losses from well-behaved international lending Discuss taxes on international lending Explain international lending to developing countries Discuss waves of overlending and overborrowing Explain global financial and economic crisis Discuss how open macroeconomy works Analyze the performance of a national economy Recognize domestic production depends on aggregate demand Identify equilibrium GDP and spending multipliers TOPIC (S) Discuss nationally optimal tax Analyze the Debt crisis of 1982 Discuss the Mexican crisis, 1994^1995 Explain the Russian crisis, 1998 Discuss Argentina s crisis, Explain regulation and supervision of financial institutions Discuss internal and external balance Recognize marginal propensity to import (m) TOPIC (S) Identify foreign-income repercussions CONT. Summarize monetary policy Group discussion: Questions and Problems, p. 536, 1 to 4. Participate in a group forum: Questions and Problems, p 537, 5 to 8. Due: First Draft of Final Project. Homework: Assigned reading for class session. Read chapters 21 to 22, pages 502 to 564. Questions and Problems, p. 537 and 538, complete 9 to 12. Questions and Problems, p. 563 and 564, complete any 10 of 12. Be prepared to discuss assignment in class. WEEK 14 SPECIFIC Discuss internal and external balance with fixed exchange rates 12 Page

13 OBJECTIVES Analyze from the balance of payments to the money supply Discuss from the money supply back to the balance of payments Explain shocks to the economy Discuss international trade shocks Explain floating exchange rates and internal balance Analyze monetary policy with floating exchange rates Recognize fiscal policy with floating exchange rates Identify international macroeconomic policy coordination TOPIC (S) Discuss domestic assets Analyze international reserve assets (R) Discuss monetary base (MB) Explain sterilization Discuss fiscal policy with fixed exchange rates Explain effects of expanding the money supply Interpret internal shocks Recognize domestic monetary shocks Identify domestic spending shocks Group discussion: Questions and problems, p. 601, 1 to 4. Participate in a group forum: Questions and Problems, p. 601 and 602, 5 to 8. Homework: Assigned reading for class session. Read chapters 23 and 24, pages 565 to 627. Questions and Problems, p. 602, complete 9 to 12. Questions and Problems, p. 625 to 627, complete any 10 of 12. Be prepared. WEEK 15 SPECIFIC Discuss international economic and financial performance: exploring OBJECTIVES the issues that surround countries choices of policies toward the exchange rate Analyze key issues in the choice of exchange-rate policy Discuss effectiveness of government policies Explain differences in macroeconomic goals, priorities, and policies Discuss real effects of exchange-rate variability Identify the international fix monetary union Discuss European Monetary Union TOPIC (S) Discuss internal shocks and domestic monetary shock Analyze advantages of floating exchange rates Discuss fixed Exchange Rates Explain controlling inflation 13 Page

14 Discuss price discipline Explain a currency board Analyze European Central Bank (ECB) Group discussion: Questions and problems, p. 654, 1 to 5. Participate in a group forum: Questions and problems, p. 654, 6 to 10. Final Project. Final Presentation. Final Exam III. Homework: Assigned reading for class session. Read chapter 25, pages 628 to 654. Write a 500-word report on how International Economics will enhance your career or education. Explain which two or three chapters provided the most interest and learning. Instructional Methods In developing methodological strategies, it is best to discuss them between teachers and students in an environment of freedom and mutual agreement in order to ensure that the students make them their own and take responsibility for their execution and for attaining the goals of this course. The following strategies may be used in this class: 1. A review of the literature. 2. Check of the reading. 3. Analysis of assigned readings. 4. Group discussions. 14 Page

15 5. Individual and group discussions. 6. Preparation of reports. 7. Preparation of a didactic plan. 8. Carrying out a micro-class. Instructional Materials and References International Economics: Theory and Policy by Paul R. Krugman, Maurice Obstfeld, and Marc Melitz Publisher: Pearson; 10th edition (January 20, 2014) ISBN-10: ISBN-13: International Economics by Robert Carbaugh Publisher: South-Western College Pub; 15th edition (September 8, 2014) ISBN-10: ISBN-13: International Economics by Dennis Appleyard, and Alfred Field Publisher: McGraw-Hill Education; 9 edition (August 1, 2016) ISBN-10: X ISBN-13: Assessment Criteria and Methods of Evaluating Students % A 90 95% A % B % B 80 82% B % C % C 70 72% C % D % D % D- < 59% F Do not count on a curve! Generally, the grades A and B are considered passing grades. Grades "W" and "I" indicate that no grades were earned for the course. A "W" grade indicates that the student withdrew from the course. An 15 Page

16 "I" grade indicates that the student was passing the course, but failed to complete all the required course work. The instructor, in his/her discretion may grant an "I" grade instead of an "F", pending completion of the course work by the student within a specified time arranged by the instructor and told to the student. It is the student's responsibility to follow-up with the instructor to complete the course work. If the course work is not completed by the arranged time, the I grade becomes an F". Distribution of Grade Elements Homework: 15% Exams I, II, III: 30% Final Presentation: 30% Final Research Project: 25% Total: 100 % Date Syllabus Was Last Reviewed: STUDENT AGREEMENT Print Student s Name: Date: Course Number and Prefix: Instructor: Semester: Contact Information: Telephone Number: Cell Number: 16 Page

17 Student s I have received a copy of the syllabus for the above course. I understand and agree to abide by the terms of this syllabus. I also acknowledge receipt of the syllabus supplementary information. 17 Page