Department of Economics
Econ 190- International Trade
Fall 2017
Instructor: Min Min Thaw, Ph.D. Office: BNC 1019
Email: Office Phone: 916-278-4624
Office Hours: Monday and Wednesday 12:00 to 1:15 p.m.
Tuesday 11:45 to 1:15 p.m. or by appointment
Course Web Page: http://pearsonmylabandmastering.com/
Course Key: thaw47654
Class Time: Monday and Wednesday 1:30 to 2:45 p.m.
Alpine 138
Course Description: This course examines theories of trade, including Ricardian, Heckscher-Ohlin; and welfare implications of different trade policies, including tariffs, quotas, and voluntary export restraints; the political economy of trade policies; and the global trading arrangements. Prerequisite: Econ 001 A, Econ 001 B.
Learning Objectives: By the end of this course, students will be able to:
· Use economic tools to analyze a diversity of issues in international economy.
· Articulate the major determinants of the trade and pros and cons of free trade using economic theories and models.
· Discuss the reasons why trade is a politically contentious issue.
· Explain the concept of comparative advantage using the Ricardian model and the H-O models.
· Evaluate the costs and benefits of tariffs, quotas and other trade restrictions and their welfare implications.
· Describe and explain how the value of trade depends on the size of the economies, and
· .Evaluate pros and cons of international negotiations and trade agreements.
Textbook:
International Economics: Theory and Policy, 10th edition by Paul. R. Krugman, Maurice Obstfeld and Marc J. Melitz. (Prentice Hall)
You are required to register for this course through http://pearsonmylabandmastering.com/
Please see the last age of this syllabus for detailed instructions on how to register.
Exams: Each exam will consist of multiple choice questions, problems to be solved and short essay questions. No make up exams will be given unless there has been a major catastrophe and I have been notified in advance.
If you are sick, you need to provide me with a physician’s note that clearly states that you could not have taken a midterm or final on the date it was given. Merely being seen by a physician is not sufficient. Failure to provide a legitimate university excuse will result in a zero on the exam. Final exam is comprehensive. Grade of incomplete will not be given.
Grading: Citizenship and Group Discussion 05%
Homework Assignments 25%
Two Midterm Exams 40% (20% each)
Final Exam 30%
Letter Grades will be assigned as follows:
90-100% A
80-89% B
70-79% C
60-69% D
Below 60% F
Homework Assignments: Homework assignments will be completed online. I encourage you to have high-speed internet connection when doing homework assignments. Computer problems are NOT an excuse for missing assignments.
No late homework will be accepted. Due dates for all assignments will be posted on MyEconlLab online. Make sure to give yourself plenty of time to complete the assignments. International trade is a challenging subject, and thus, most students find the assignments challenging. However, your performance/grade in class is positively related to understanding and being able to solve the homework assignments.
I strongly encourage you to work through and analyze the assigned problems carefully as they will assist you in preparing for the exams. Make sure to seek out help from me or an economic tutor when you encounter problems. When answer keys are available after due date, please make sure to review them.
Class Policies: Regular attendance is expected. You are responsible for all work missed due to absences. Get the missed notes from a classmate as soon as possible following your absence to maintain a flow of materials.
Should you have reason to come to class late or to leave class early, please feel free to do so, but remember that all missed work is your responsibility. Please be courteous in entering and leaving a lecture and make all attempts not to disturb your classmates.
Academic honesty is expected. You are encouraged to work together and help each other in studying and working on homework. However, work submitted for grade must be that of an individual student. Academic dishonesty and plagiarism as described in the University policy may result in an “F” grade should there is an evidence of cheating in the exams or in homework assignments.
If you have a disability and require accommodations, you need to provide disability documentation to SSWD, Lassen Hall 1008, (916) 278-6955. Please discuss your
accommodation needs with me after class or during my office hours early in the semester.
Tentative Course Outline with Firmed Exam Dates
Week / Topic / Reading1: August 28 / Syllabus
Introduction / Chapter 1
2: September 3 / World Trade: Overview
The Gravity Model
The Changing Pattern of World Trade / Chapter 2
3: September 11 / Labor Productivity and Comparative Advantage: The Ricardian Model / Chapter 3
4: September 18 / Specific Factors and Income Distribution: Income Distribution and Gains from Trade / Chapter 4
5: September 25 / Midterm Review: September 27th
Midterm I: Monday, October 2nd / Exam I
6: October 2 / Resources and Trade: The Heckscher-Ohlin Model / Chapter 5
7: October 9 / The Standard Trade Model: Relative Demand and Supply Effects of a Tariff / Chapter 6
8: October 16 / External Economies of Scale and the International Location of Production / Chapter 7
9: October 23 / Firms in the Global Economy: Export Decision, Outsourcing, and Multinational Enterprises / Chapter 8
10: October 30 / Midterm Review: Wednesday, November 1st
Midterm II: Monday, November 6th / Exam II
11: November 6 / The Instruments of Trade Policy: Costs and Benefits of a Tariff / Chapter 9
12: November 13 / The Political Economy of Trade Policy / Chapter 10
13: November 20 / Trade Policy in Developing Countries / Chapter 11
14: November 27 / Chapter 11 (continued) and Chapter 12 / Chapters11 and 12
15: December 4 / Controversies in Trade Policy / Chapter 12
Review for Final Exam
December 6th
Final Exam: Monday, December 11th from 12:45 to 2:45 p.m.
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