JOHN CABOT UNIVERSITY COURSE CODE: "EC 316-1" COURSE NAME: "International Economics" SEMESTER & YEAR: Spring Semester 2013

SYLLABUS INSTRUCTOR: Westley John EMAIL: jowestley@johncabot,edu HOURS: MW 13:30-14:45 TOTAL NO. OF CONTACT HOURS: 45 CREDITS: 3 PREREQUISITES: Prerequisites: Junior Standing, EC 201, EC 202 OFFICE HOURS: 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: 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.

LEARNING OUTCOMES: 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.

TEXTBOOK: Book Title Author Publisher ISBN number Library Call Number Comments Format Local Bookstore Online Purchase International Economics: Theory and Policy, Ninth International Edition Paul Krugman, Maurice Obstfeld, Marc Melitz Pearson Higher Education 9780273754206

REQUIRED RESERVED READING: NONE RECOMMENDED RESERVED READING: Book Title Author Publisher ISBN number Library Call Number Comments Why Globalization Works Martin Wolf Yale University Press 0300102526 HF1359.W6534   In Defense of Globalization Jagdish Bhagwati Oxford University Press 0195170253 HF1359.B499   The Return of Depression Economics and the Crisis of 2008 Paul Krugman W W Norton 9780393071016     End This Depression Now Paul Krugman W W Norton 978-0393088779     The Price of Civilization Jeffrey D Sachs Random House 978-1-4000-6841-8

GRADING POLICY -ASSESSMENT METHODS: Assignment Guidelines Weight Exam 1 Exam 1 covers the material in chapters 1-10 and 12 in the text. 20% Exam 2 Exam 2 covers chapters 11, 13, 14 and 16 in the text. 20% Exam 3 Exam 3 covers chapters 17-18 in the text. 20% Class Participation Students may submit up to two 2-3 pages papers during each exam cycle. The assignments will be handed out after the first session in each exam cycle. The papers count as 1 point each. Active participation in class discussions will be awarded up to 2 points for the semester. 10% Final Exam The final exam will emphasize chapters 19-20 and 22 in the text, but is comprehensive. 30% -ASSESSMENT CRITERIA: 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. -ATTENDANCE REQUIREMENTS: 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.

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 1: INTERNATIONAL TRADE THEORY AND POLICY January 14: Chapter 1, Introduction (skim all), Chapter 2, World Trade: An Overview (skim all) January 16: Chapter 3, Labor Productivity and Comparative Advantage: The Ricardian Model (We will cover only the following sections: The Concept of Comparative Advantage, A One-Factor Economy; Trade in a One-Factor World, Comparative Advantage in Practice: The Case of Babe Ruth, The Losses from Nontrade; Misconceptions About Comparative Advantage; Do Wages Reflect Productivity? Empirical Evidence on the Ricardian Model  January 21: Chapter 3 (continued) January 23: Chapter 4, Specific Factors and Income Distribution The Political Economy of Trade: A Preliminary View; Case Study; Trade and Unemployment; Income Distribution and Trade Politics; International Labor Mobility; Case Study: Wage Convergence in the Age of Mass Migration; Case Study: Immigration and the US Economy January 28: Chapter 5, Resources and Trade: The Heckscher-Ohlin Model: Case Study: North-South Trade and Income Inequality; Chapter 6: The Standard Trade Model: Has the Growth of Newly Industrializing Countries Hurt Advanced Nations? and Chapter 7, External Economies of Scale and the International Location of Production: Economies of Scale and International Trade: An Overview; Economies of Scale and Market Structure; The Theory of External Economies; External Economies and International Trade; Holding the World Together; Tinseltown Economics; Interregional Trade and Economic Geography PART 2: INTERNATIONAL TRADE POLICY January 30: Chapter 8, Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises; Multinational and Outsourcing; Case Study: Patterns of Foreign Direct Investment Around the World; Outsourcing; Consequences of Multinationals and Foreign Outsourcing Chapter 9, The Instruments of Trade Policy (all sections) February 1 (makeup day for Monday, April 1): Chapter 9 (continued); Chapter 10, The Political Economy of Trade Policy (all sections) February 4: Chapter 10 (continued); Chapter 12: Controversies in Trade Policy; Globalization and Low-Wage Labor; Case Study: Bare Feet, Hot Metal, and Globalization; Globalization and the Environment February 6: EXAM 1 (Chapters 1-10, 12) February 11: Chapter 11, Trade Policy in Developing Countries (all sections) PART 3: EXCHANGE RATES AND OPEN ECONOMY MACROECONOMICS February 13: Chapter 11 (continued); Chapter 13, National Income Accounting and the Balance of Payments The National Income Accounts; National Income Accounting for an Open Economy; Case Study: Government Deficit Reduction May Not Increase the Current Account Surplus; Case Study: The Assets and Liabilities of the World’s Largest Debtor) February 18: Chapter 13 (continued) February 20: Chapter 14, Exchange Rates and the Foreign Exchange Market: An Asset Approach (all sections) February 25: Chapter 14 (continued)  February 27: Chapter 16, Price Levels and the Exchange Rate in the Long Run (The Law of One Price; Purchasing Power Parity; Empirical Evidence on PPP and the Law on One Price; Box: Some Meaty Evidence on the Law on One Price; Case Study: Why Price Levels Are Lower         in Poorer Countries  March 4: EXAM 2 (Chapters 11 and 13-15) March 6: Chapter 17, Output and the Exchange Rate in the Short Run (Determinants of Aggregate Demand in an Open Economy; The Equation of Aggregate Demand; How Output Is Determined in the Short Run; Output Market Equilibrium in the Short Run: The DD Schedule; Asset Market Equilibrium in the Short Run: The AA Schedule; Short-Run Equilibrium in an Open Economy: Putting the DD and AA Schedules Together; Temporary Changes in Monetary and Fiscal Policy  March 11: Chapter 17 (continued) March 13: Chapter 18, Fixed Exchange Rates and Foreign Exchange Intervention Why Study Fixed Exchange Rates? Central Bank Intervention and the Money Supply; Central Bank Balance Sheet and the Money Supply; How the Central Bank Fixes the Exchange Rate; Stabilization Policies with a Fixed Exchange Rate; Balance of Payment Crises and Capital Flight; Reserve Currencies in the World Monetary System; The Gold Standard; Case Study: The Demand for International Reserves   March 18: Chapter 18 (continued)  March 20: EXAM 3 (Chapters 17-18) SPRING BREAK PART 4: INTERNATIONAL MACROECONOMIC POLICY April 3: Chapter 19, International Monetary Systems, An Historical Overview (all sections) April 8: Chapter 20: Optimum Currency Areas and the European Experience (all sections) April 10: Chapter 20 (continued); April 15: Chapter 20 (continued)  April 17: Chapter 22, Developing Countries: Growth, Crisis and Reform (all sections) April 22: Chapter 22 (continued) April 24: Chapter 22 (continued) FINAL EXAM (Chapters 19-20, 22); see JCU schedule for date, time and place.