JCU Logo

JOHN CABOT UNIVERSITY

COURSE CODE: "EC 316-1"
COURSE NAME: "International Economics"
SEMESTER & YEAR: Spring 2014
SYLLABUS

INSTRUCTOR: Alessandro Antonelli
EMAIL: [email protected]
HOURS: MW 8:30 AM 9:45 AM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: Junior Standing, EC 201, EC 202
OFFICE HOURS: By appointment

COURSE DESCRIPTION:
This course aims to provide students with a wide overview to the main topics in international trade, open-economy macroeconomics and finance. It focuses on the analysis of concepts and methods of international economics and on illustrations with applications drawn from the real world. The study of concepts, theories, historic development and current events in the field is designed to allow students to strengthen their skills in critical thinking, and in assessing risks, threats, opportunities and impacts related to the international and the global economic environment.
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 a 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 NumberCommentsFormatLocal BookstoreOnline Purchase
International Economics (9th international edition, though other recent editions are fine)Paul Krugman, Maurice Obstfeld, Marc MelitzPearson Higher Education9780273754206     
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1, Exam 2, Class Presentation/Exercises, Class Participation 30% + 40% + 15% + 15%
 The two exams (30% + 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. Cases and/or class exercises (overall weight: 15%) will be assigned by the professor. Each student should be prepared to offer an effective oral and written summary of the case/exercise and the key facts to the class, and to present their views regarding the possible questions. The class participation grade (15%) will reflect the students care in attending the class, and her or his interventions during class. Unjustified absences will negatively affect the class participation grade.  
   

-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 

Ja 13                 Chapter 1: What Is International Economics About? 
Ja 15                 Chapter 2: World Trade: An Overview 
Ja 20                 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? 
Ja 22                 Chapter 4: Specific Factors and Income Distribution
                         Case Study: Wage Convergence in the Age of Mass Migration 
                         Case Study: Foreign Workers: The Story of the GCC 
Ja 27                 Resources and Trade: The Heckscher-Ohlin Model 
                         Case Study: North-South Trade and Income Inequality 
                         Chapter 6: The Standard Trade Model 
                         Case Study: Has the Growth of Newly Industrialized Countries Hurt Advanced Nations?  
Ja 29                 Chapter 7: External Economies of Scale 
                         Box: Holding the World Together 
                         Box: Tinseltown Economics 
Feb  3               Chapter 8: Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises 
                         Case Study: Antidumping as Protectionism 
                         Case Study: Patterns of Foreign Direct Investment Flows Around the World

Feb 5                Review

Feb 10              Exercises and problems, Part I (compulsory)

PART II, INTERNATIONAL TRADE POLICY 

Feb  12              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 
Feb  17              Chapter 10: The Political Economy of Trade Policy
                          Case Study: The Gains from 1992
                          Box: Politicians for Sale: Evidence from the 1990s
                          Box: Settling a Dispute-and Creating One
                          Case Study: The Salmon War
                          Box: Do Agricultural Subsidies Hurt the Third World? 
                          Case Study: Trade Diversion in South America 
Feb  19              Chapter 11: Trade Policy in Developing Countries
                          Box: India's Boom
                          Case Study: Mexico Abandons Import-Substituting Industrialization 
Feb 24               Chapter 12: Controversies in Trade Policy
                          Box: A Warning from Intel's Founder
                          Case Study: Bare Feet, Hot Metal, and Globalization 
                          Case Study: The Shipbreakers of Alang 

Feb  26               Program review

March   3           Exam 1, Part I and Part II (Ch 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12)

PART III EXCHANGE RATES AND OPEN ECONOMY MACROECONOMICS
 

March  5           Chapter 13: National Income Accounting and the Balance of Payments
                         Case Study: The Assets and Liabilities of World's Biggest Debtor
March  10         Chapter 14: Exchange Rates and the Foreign Exchange Market 
March  12         Chapter 15: Money, Interest Rates, and Exchange Rates
March  24         Chapter 16: Price Levels and the Exchange Rate in the Long Run 
                          Box: Some Meaty Evidence on the Law of One Price
                          Case Study: Why Price Levels Are Lower in Poorer Countries  
March  26          Chapter 17: Output and the Exchange Rate in the Short Run 
March  31          Chapter 18: Fixed Exchange Rates and Foreign Exchange Intervention 
                          Case Study: The Demand for International Reserves

PART IV, INTERNATIONAL MACROECONOMIC POLICY 

April 2               Chapter 19: International Monetary Systems: An Historical Overview 
                         Case Study: Transformation and Crisis in the World Economy 
April 4               Chapter 20: Optimum Currency Areas and the European Experience 
                          Box: The Euro 
                          Case Study: Is Europe an Optimum Currency Area? 
April 7               Chapter 21: Financial Globalization: Opportunity and Crisis Zone Debt Crisis of 2010 
                          Case Study: Moral Hazard
                          Box: The Simple Algebra of Moral Hazard 
                          Case Study: When the World Almost Ended: Two Episodes of Market Turmoil 
April 9               Chapter 22: Developing Countries: Growth, Crisis and Reform 
                          Box: Why Have Developing Countries Accumulated Such High Levels of Int’l Reserves 

April 14              Box: What Did Asia Do Right? 
                          Case Study: China’s Undervalued Currency

April 16             World Economic Outlook

April 23             Program review

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