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JOHN CABOT UNIVERSITY

COURSE CODE: "EC 316-1"
COURSE NAME: "International Economics "
SEMESTER & YEAR: Spring 2019
SYLLABUS

INSTRUCTOR: Alessandro Antonelli
EMAIL: [email protected]
HOURS: MW 11:30-12:45 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: Junior Standing, EC 201, EC 202
OFFICE HOURS: By appointment

COURSE DESCRIPTION:
An introduction to international trade and finance. Analysis of the causes and consequences of international trade and investment. Major topics include international trade theory, international trade policy, exchange rates, open-economy macroeconomics, and international macroeconomic policy.
SUMMARY OF COURSE CONTENT:
- International Trade Theory.
- International Trade Policy.
- Exchange Rates and Open-Economy Macroeconomics.
- International Macroeconomic Policy.
- World Economic Outlook.
LEARNING OUTCOMES:
- Introduce students to an analytical framework that can be used for understanding current events in the field of international economics.
- Learn about sources of information related to the global economy.
- Ability to distinguish good economic arguments for international trade and international macroeconomic policy from those based on vested interests, narrow nationalism or ideology.
- Develop an awareness of the distributional consequences of globalization and economic policy and systemically apply a cost benefit analysis that is inclusive as well as identifies areas of uncertainty.
- Develop skills in the critical analysis and presentation of these arguments through careful study and through active class participation.
TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
International EconomicsKrugman, Obstfeld, MilizPearson Series in Economics0000133423646 (last or previous last editions)  
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1, Exam 2, Class Exercises, Class Presentation, Class ParticipationThe two exams (35% + 40%) will consist of essay-type questions, graphic analysis, as well as some problems that require quantitative analysis, in which the student is asked to explain and/or solve with accuracy and clarity issues of a particular topic covered by the syllabus. EXERCISES - Class exercises will be assigned by the professor (overall weight: 7.5%). PRESENTATION - Studenst should be prepared to offer an effective oral and written summary of a case assigned by the professor, and illustrate the key facts to the class, and to present their views regarding the possible questions (overall weight: 7.5%). CLASS PARTICIPATION - The class participation grade (10%) will reflect the students care in attending actively the class. Unjustified absences and unauthorized use of computers will negatively affect the class participation grade.35% + 40% + 7.5% + 7.5% + 10%
   

-ASSESSMENT CRITERIA:
A Work of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course.
B This is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
C This is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
D This level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
F This work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.

-ATTENDANCE REQUIREMENTS:
The University attendance policy is described in the catalogue. Persistent absence or tardiness usually precludes satisfactory performance in the course. Students are expected to arrive to class on time and are responsible for all material covered by the syllabus and/or discussed in class, whether or not they are actually present in class.
ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.

SCHEDULE

PART I, INTERNATIONAL TRADE THEORY 

Chapter 1: What Is International Economics About? 

Chapter 2: World Trade: An Overview

Chapter 3: Labor Productivity and Comparative Advantage: The Ricardian Model 

                 Boxes: 1) The Case of Babe Ruth; 2) The Losses from Nontrade; 3) Do Wages Reflect Productivity

Chapter 4/5: Specific Factors and Income Distribution 

                    Case Study: Wage Convergence in the Age of Mass Migration

                    Case Study: Foreign Workers: The Story of the GCC 

                    Resources and Trade: The Heckscher-Ohlin Model 

                    Case Study: North-South Trade and Income Inequality   


Chapter 7: External Economies of Scale 

                 Box: Holding the World Together 

                 Box: Tinseltown Economics 


Chapter 8: Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises 

                 Case study: The Emergence of the Turkish Automotive Industry

                 Case Study: Antidumping as Protectionism

                 Case Study: Patterns of Foreign Direct Investment Flows Around the World


PART II, INTERNATIONAL TRADE POLICY 


Chapter 9: The Instruments of Trade Policy 

                 Case Study: Europe's Common Agricultural Policy 

                 Case Study: An Import Quota in Practice: US Sugar 

                 Case Study: A Voluntary Export Restraint in Practice: Japanese Autos 

 Review Part 1 and Ch 9

Exercises, Part I + Ch 9 (compulsory, 7.5% weight)


Chapter 10: The Political Economy of Trade Policy 

                   Case Study: The Gains from 1992 

                   Box: Politicians for Sale: Evidence from the 1990s 

                   Box: Do Agricultural Subsidies Hurt the Third World? 

                   Case Study: Trade Diversion in South America 


Chapter 11: Trade Policy in Developing Countries 

                   Box: India's Boom 

                   Case Study: Mexico Abandons Import-Substituting Industrialization 


Chapter 12: Controversies in Trade Policy 

                   Case Study: Bare Feet, Hot Metal, and Globalization 

                   Case Study: The Shipbreakers of Alang 

Program review


Exam 1, Part I and Part II (Ch 1, 2, 3, 4, 5, 7, 8, 9, 10, 11; 35% weight)


PART III EXCHANGE RATES AND OPEN ECONOMY MACROECONOMICS 


Chapter 13: National Income Accounting and the Balance of Payments


                   Case Study: The Assets and Liabilities of World's Biggest Debt

Chapter 14: Exchange Rates and the Foreign Exchange Market

Chapter 15: Money, Interest Rates, and Exchange Rates

Chapter 16: Price Levels and the Exchange Rate in the Long Run 

                   Box: Some Meaty Evidence on the Law of One Price 

Chapter 17: Output and the Exchange Rate in the Short Run 


Chapter 18: Fixed Exchange Rates and Foreign Exchange Intervention 

                   Case Study: The Demand for International Reserves

PART IV, INTERNATIONAL MACROECONOMIC POLICY 


Chapter 19: International Monetary Systems: An Historical Overview 

                   Case Study: Transformation and Crisis in the World Economy 


Chapter 20: Optimum Currency Areas and the European Experience 

                    Box: The Euro 

                    Case Study: Is Europe an Optimum Currency Area? 

Chapter 21: Financial Globalization: Business cycles, Opportunity and Crisis  

                   Case Study: Moral Hazard 

                   Box: The Simple Algebra of Moral Hazard 

                   Case Study: When the World Almost Ended: Two Episodes of Market Turmoil


Chapter 22: Developing Countries: Growth, Crisis and Reform

                   Box: Why Have Developing Countries Accumulated Such High Levels of Int’l Reserves

                   Box: What Did Asia Do Right?

                   Case Study: East Asia: Success and Crisis

                   Case Study: The Lost Decade of Latin America Growth

                   Case Study: Financial Crisis: Mexico 1994-1995

                   Case Study: China’s Undervalued Currency

World Economic Outlook

Program review

Exam 2, Final, Part III and Part IV (Ch 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22; 40% weight), see JCU final exams schedule for date and time.