Approved by Faculty Senate
Department or Program: Economics
Course Number: 404
Semester Hours: 3
Frequency of Offering: Once every other year.
Course Title: International Economics
Catalog Description: Comparative advantage and modern trade theories. The impact of international trade on income distribution and growth, barriers to trade, economic integration, contemporary international trade agreements, exchange rate determination and balance of payments adjustments.
This is an existing course previously approved by A2C2: Yes
This is a new course approval: No
University Studies Approval is requested in: Unity and Diversity: Global perspective.
Contact person: Alex Gallegos, (457-5469, firstname.lastname@example.org)
Attachments: A copy of a syllabus is attached. This is the syllabus that the faculty member that normally teaches this course uses. The parts of the course that address the outcomes for global perspectives are pointed out.
These courses must include requirements and learning activities that promote students' abilities to:
This course analyzes the impact of international trade on the well being of nations and groups of individuals within nations. Indeed, citizens of the world today share a common global future. The decision on the part of American companies to buy or sell in international markets affects no only their stockholders and workers but the owners and workers of other companies both foreign and American, not to mention consumers in different countries.
Students in this course learn to ascertain the benefits of free trade for all countries involved. As a learning activity, students can select a country and study its trade flows (imports and exports) during a certain period and determine the impact of trade on the different sectors of that country's economy and society.
The composition of trade, that is, the types goods and services a country buys or sells, is influenced by its physical environment, its economic dynamism, and its social and political institutions. It used to be that the physical environment was the main determinant of the composition of trade flows. That is no longer the case. As demonstrated by the case of Japan and, more recently, by the example of other Asian countries, trade is now heavily influenced by the dynamic nature of economies that are constantly introducing new products and new processes. Trade is also aided by appropriate social and political structures.
Students learn in this course to identify efficient trade patterns and to evaluate the cost of protectionism. As a learning activity they can quantify the impact of trade barriers such as tariffs, quotas, voluntary export restraints, etc. for different countries and periods of time.
One of the current issues is the distribution of economic power. The United States' position as the world's economic superpower seems threatened by the prospects of a unified Europe and an integrated league of Asian nations. Many countries, both developing and developed, are seeking some degree of economic integration. There may be some changes in the structure of economic power in the not so distant future.
International economics students learn to analyze economic integration both from a historical and from an analytical perspective. They are able to describe different types of economic blocs such as the European Union, the North American Free Trade Agreement, MERCOSUR, etc. They can also analyze the impact of these agreements on member countries and
on other countries that had economic relationships with individual counties that are no longer possible. As a learning activity they are asked to determine the reasons why some international economic agreements have been successful while many others have not.
Instructor's Phone Number
Instructor's e-mail address
W 10:00-12:00 & 2:00-5:00
H 10:00-12:00 & 3:00-4:00
And by appointment
Lindert & Pugel
Your International Economics course will consist of two parts: what is called the pure theory of international trade, and international finance. The first one deals with the flows of goods and services between nations and the second one with the financial aspects of the exchange of goods and services, i. e. with exchange rates, capital flows, and the balance of payments. If time permits, the last part of the term will be devoted to macroeconomics of the open economy.
5. Class participation
I expect a lot of interaction during the class period. Although if would be helpful for you to read the material in advance, class participation willnot emphasize that aspect. What I expect students to do is to follow the exposition/discussion, ask questions, provide answers, and bring up current events related to the topic under discussion. It will be to your advantage to actively participate in the learning process.
Student-faculty contact. I encourage student-faculty contact. I will meet individually with each of the teams formed to work on the project describe below and I am always willing to meet individually with students to provide explanations they may need or discuss any concerns they may have. Please take advantage of the office hours mentioned above or make appointments to see me. You can also call me or e-mail me.
Time on task. You should plan on devoting an average of six hours a week to this class. Other than attending the schedule class meetings, you will have to do:
Exams. There will be two exams, one for the trade part and one for the finance part. The open macroeconomics topic will be included in the second exam. The second exam will be the final exam and will not be cumulative.
Assignments. There will be two types: in-class and homework assignments. They both will be scored and incorporated in your final grade.
A project. A term paper will be required for this class. It will be a team project that will encourage cooperation with other students. See the guidelines below.
A journal. There will be some material assigned from The Wall Street Journal. This material will be included in your assignments, your exams, or both. Besides, you will have to keep a journal in which summaries of articles related to the value of the dollar, the yen and the mark, to trade and payments issues and to the European Community, will be entered. Your summeries should be typed and handed in every Monday, starting on January 15.
All this parts of the course will influence your final grade in the way indicated below. The
purpose of this grading scheme is to recognize and value the diverse talents and different ways of learning students have.
Makeups. There will be no makeups of any kind, except in unusual circumstances. Students requiesting a makeup wil be asked to clearly justify their absences. Late assignments will only be accepted "at a discount". Being absent from a particular class meeting is not an acceptable excuse to hand in assignments late. Assignments are due during the class period.
Feedback. You can expect prompt feedback. Your assignments will be scored and returned the next class meeting, as a general rule.
General expectations. This is a senior level course and I have high expectations of students that decide to enroll in it. I expect quality work in all the part of the course. No academic dishonesty will be tolerated. A zero grade will be assigned to that part of the course in which dishonesty is discovered.
Weights: Exam 1, 20%
Final Exam, 30%
Scale: 90 % and higher, A
59% and lower, F
This course includes requirements and learning activities that promote student's abilities to:
1. Trade theories: The global benefits of international trade (Chapters 2,3 & 6) (a, b)
- Early contributions
- Absolute advantage
- Comparative advantage
- Factor proportions
- Modern theories
2. Gains from trade (Chapter 4) (a, b)
2.1 Short and long run effects
2.2 The Stolper-Samuelson Theorem
2.3The Specialized Factor Pattern
2.4 The Factor-Price Equalization Theorem
2.5 Actual trade patterns
3. Growth and trade (Chapter 5) (b)
3.1 Balanced versus biased growth
- Willingness to trade
- Terms of trade
- Technology and comparative advantage in trade
- Tariffs (b)
- Non-tariff barriers (b)
- Arguments for and against protection (b)
- Export promotion (c )
- Trade blocs (d)
a) Regulations and national standards
b) Social aspects
- Trade and the Environment (b, c)
- Trade Policies for Developing and Transition Countries (b ,c)
- The impact of cultural differences
- Sweat shops
- The balance of payments (Chapter 15) (a, b)
- Credits and debits
- Partial accounts
- Overall account
- Macroeconomic meaning
- International investment position
- The foreign exchange market (Chapters 16-20) (a, b)
- Currency trading
- Demand and supply for foreign exchange
- Spot exchange market
- Forward exchange market
- Interest parity
- Exchange rate determination
- Government policies
- Macroeconomics for open economies (Chapter 21-24) (a, b)
PROJECT GUIDELINES (a, b, c)
d.1) Description of the issues you will deal with . 
d.2) Use of theoretical models .. 
d) Analysis of those points, i.e. a discussion of them that should include your teams
4. Suggested topics: