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COURSE NAME: "International Economics"
SEMESTER & YEAR: Summer Session I 2019

INSTRUCTOR: Lorenzo Ferrari
EMAIL: [email protected]
HOURS: MTWTH 3:40-5:30PM
PREREQUISITES: Prerequisites: Junior Standing, EC 201, EC 202

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.
This course provides a comprehensive over view of both international trade and finance. See the course outline for specific topics.  The course covers a large amount of material in a short time so students should read in advance and carefully prepare the exam preparation questions so as to focus attention to specific models and/or topics.  For every assigned chapter, students are responsible for any vocabulary and definitions as a check in addition to the more comprehensive exam preparation questions.
- 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.
Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
International Economics: Theory and PolicyKrugman, Obstfeld, MelitzPearson9780134519579  

Exam 1In-class essay exam and problem-solving.25%
Exam 2In-class essay exam and problem-solving.25%
Exam 3In-class essay exam and problem-solving.35%
In class discussion and participationStudents who miss more than 3 classes will receive a zero for this assessment. Students who attend, will be assessed on their preparation and participation to the course material which may include short presentations on pre-assigned questions.15%

AWork 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.
BThis 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.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis 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.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.


You cannot make-up a major exam (midterm or final) without the permission of the Dean’s Office. The Dean’s Office will grant such permission only when the absence was caused by a serious impediment, such as a documented illness, hospitalization or death in the immediate family (in which you must attend the funeral) or other situations of similar gravity. Absences due to other meaningful conflicts, such as job interviews, family celebrations, travel difficulties, student misunderstandings or personal convenience, will not be excused. Students who will be absent from a major exam must notify the Dean’s Office prior to that exam. Absences from class due to the observance of a religious holiday will normally be excused. Individual students who will have to miss class to observe a religious holiday should notify the instructor by the end of the Add/Drop period to make prior arrangements for making up any work that will be missed. The final exam period runs until Friday, June 28th. 

Students who miss two classes or less will have an opportunity to drop one low exam and replace its weight with two additional questions to be answered during the 4th (final) exam. Students who arrive after the role call will be counted as absent.
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.
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.


Week 1:  May 27 week

Chapter 2: World Trade: An Overview 

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

Chapter 4: Resources, Comparative Advantage and Income Distribution

Chapter 5: Resources and Trade: The Heckscher-Ohlin Model

Week 2:  June 3 week

Chapter 7: External Economics of Scale and International Location of Production

Chapter 9: The Instruments of Trade Policy

Thursday, June 6 Exam 1 - Chapters 1, 2, 3, 4, 5, 7, 9


Week 3: June 10 week

Chapter 10: The Political Economy of Trade

Chapter 11:  Trade Policy in Developing Countries 

Chapter 12: Controversies in Trade Policy

Chapter 13: National Income Accounting and the Balance of Payments

Week 4: June 17 week

Monday, June 17: Exam 2: Chapters  10, 11, 12, 13

Chapter 14: Exchange Rates and the Foreign Exchange Market: An Asset Approach

Chapter 15:  Money, Interest Rates, and Exchange Rates  - Review of the Money Market

Chapter 16:  Price Levels and the Exchange Rate in the Long Run - Purchasing Power Parity

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


Week 5:  June 24 week

Monday, June 24: Quick Test on the AA-DD Model in preparation of the final exam

Chapter 18: Fixed Exchange Rates and Foreign Exchange Intervention + Chapter 19: The Bretton Woods System

Chapter 21:  Optimum Currency Areas and the Euro

Friday, June 28: Exam 3: Chapters 14, 15, 16, 17, 18, 19, and 21.