International Economics I: International Trade Course Syllabus:

Course Syllabus:
International Economics I: International Trade
UVM EC 143/FALL 2013/RM 112 JEFFRDS/MWF 9:35-10:25
Prof: John F. Summa, PhD
Office: Old Mill, Rm. 229
Office Hours: MWF 10:40-11:40 (or by appointment)
Phone: (802) 846-7509 (c)
E-mail: [email protected]
Required Texts:* International Economics: A Heterodox Approach (M.E.
Sharpe, 2nd edition), Hendrik Van den Berg.
Recommended Text: Labor in the Global Economy, Alejandro Reuss (Dollars &
Sense).
Required Supplemental Readings: Additional readings will be handed out in
class, placed on reserve or posted at Blackboard throughout the semester to
supplement sections of the required textbook.
* The required text has been ordered by UVM's bookstore and should be
available by the start of classes. New and used editions are available
through a number of online book vendors, such as Amazon.com and
CampusBooks.com.
Course Objectives:
This course aims to provide students with a solid understanding of the
fundamentals of standard neoclassical trade theory, related models, and
policy extensions. Only a basic understanding of the principles of
economics is required.
Integrated with the study of conventional (neoclassical) theory will be
non-orthodox perspectives (heterodox), along with key policy implications
and alternative trade strategies. A strong emphasis is placed on examining
developing country problems and potential solutions outside of orthodox
thinking molds.
The overall objective is to develop broad interdisciplinary knowledge about
international economics, and particularly trade (and policies toward
trade). A heavy emphasis is placed on applied international economics and
empirical evaluation. Students will acquire fluency with key global
financial concepts and relationships, as well as conventional and
alternative models of international trade, economic development and related
policy issues.
Learning Methodology:
The approach in this class is lecture driven. Please read assigned textbook
section prior to the related lecture and take good notes during class.
Weekly Blackboard (Bb) homework assignments will reinforce the main ideas
presented during the lectures, which follow closely the required textbook.
In-class worksheets will occasionally be assigned to enhance understanding
of difficult technical aspects of international trade theory and policy.
News items, additionally, will be regularly introduced and discussed in
class to provide real-world dimensions to material covered in the textbook.
Course Outline:**
I. Introduction to International Economics
(Week 1: 8/26-8/30); pp. 1-24
A.
B.
C.
D.
The
The
The
How
Bigger Picture
Evolution of International Economic Integration
Field of International Economics
Economists Deal with Complexity
II. The Heterodox (Non-Orthodox) Approach to Economics Explained
(Week 2: 9/3-9/6); pp. 28-48
A.
B.
C.
D.
Holism and Economics
Economists and Complex Systems
The Common Themes of Heterodoxy
A Sociological Justification for Heterodoxy
III. Orthodox International Trade Theory: The Gospel of Free Trade
(Weeks 3-4: 9/9-9/20); pp. 53-78
A.
B.
C.
D.
E.
Mainstream Economic Analysis of International Trade
Do All Nations Gain from Trade?
International Trade and the Distribution of Income
Evaluating the Heckscher-Ohlin Model
Supply and Demand Analysis
IV. International Trade: Beyond the Neoclassical Perspective
(Weeks 5-6: 9/23-10/4); pp. 82-108
A.
B.
C.
D.
Transport and Transactions Costs
The Costs of Adjusting to Free Trade
International Trade, Income Inequality, and Welfare
Externalities and International Trade
V. International Trade: Imperfect Competition and Transnational
Corporations
(Weeks 7-8: 10/7-10/18); pp. 112-132
A.
B.
C.
D.
E.
Increasing Returns to Scale and International Trade
Foreign Direct Investment
Explaining the Growth of Transnational Corporations
Comparative Advantage and International Marketing
What Does the Growth of Transnational Corporations Really Mean?
VI. International Trade and Economic Development
(Weeks 9-10: 10/21-11/1); pp. 136-161
A.
B.
C.
D.
E.
The Growth of International Trade
The Solow Growth Model
Technology and Technological Progress
Joseph Schumpeter's Model of Creative Destruction
International Trade and Economic Development
VII. International Trade, Human Happiness, and Unequal Economic Development
(Week 11: 11/4-11/8); pp. 166-199
A.
B.
C.
D.
E.
Income Inequality
Is There an Optimal Level of Equality?
International Trade's Effect on the Distribution of Income
Transnational Corporations, Agglomeration, and the Spread of Technology
Trade and the World Distribution of Income: A Conclusion
VIII. Trade Policy: Tariffs, Quotas, and Other Trade Restrictions
(Week 12: 11/11-11/15); pp. 201-229
A.
B.
C.
D.
E.
The Use of Tariffs
Quotas and Their Effectiveness
Other Trade Barriers
Export Taxes and Subsidies
Antidumping Procedures, Surge Protection, and Sanctions
IX. The History of Trade Policy
(Week 13: 11/18-11/22); pp. 235-263
A.
B.
C.
D.
E.
G.
The Political Economy of International Trade
Trade Policy before the Twentieth Century
Destroying Trade during the Interwar Period
Trade Policy after World War II: GATT
The Uruguay and Doha Rounds
The Shift to Trade Blocs
(Week 14 - Thanksgiving Break, 11/25-11/29)
X. International Trade Policy: Conclusion and Holistic Perspective
(Week 15: 12/2-12/4); pp. 268-291
A.
B.
C.
D.
Mercantilism and the Colonial System
Import Substitution Industrialization
Mercantilism, Agglomeration, and the International Economy
Strategic Trade Policy
Grading Policy:
Class lectures will follow closely the required text. Students are
responsible for material found in the text (as outlined above) and all
material presented in lectures. Grades will be based on two mid-term exams
(25% each), a non-cumulative final exam (25%), and homework
assignments/quizzes (25%). Please note: All homework exercises need to be
answered at Blackboard (Bb). When doing the exercises at Bb, you may stop
and save your work and return at a later time. All weekly homework
assignments must be completed by Sunday at midnight. Any late Bb exercise
assignments will automatically receive a zero (one exception only). Each
exercise is allowed two attempts, which are averaged for the calculated
exercise grade. The lowest exercise grade will be dropped at the end of the
semester. Please see the instructor if you have any questions.
Final Exam: Monday, December 9, 2013, 1:30-4:15, Jeffords, Rm 112
Attendance Expectations:
You are acquired to attend every class and will be held responsible on
exams and homework for any material presented or discussed in class. Exams
will be based on readings/exercises and material presented in lectures. If
you miss a class, it is your responsibility to acquire the material
presented and assigned in that class. The professor may assign in-class
quizzes without notice.
Email Policy: The instructor cannot guarantee a timely response to e-mail
inquiries/communication in terms of any course requirement deadlines
(inside of 48 hours), although the instructor does try to respond to e-mail
inquiries as quickly as possible via Smart phone.
Electronic Devices:
No electronic devices are permitted during class time unless pre-arranged
with the professor, or when needed for lab work. Students who prefer to
type notes must show the lecture notes to the instructor when asked
periodically. UVM Code of Academic Integrity: Violations of the UVM's Code
of Academic Integrity are any acts which would have the effect of unfairly
promoting or enhancing one's academic standing within the entire community
of learners. Such acts are serious offenses and will not be tolerated. Any
suspected violations of the Code will be forwarded to the Center for
Student Ethics & Standards.
Go to http://www.uvm.edu/~uvmppg/ppg/student/acadintegrity.pdf to read the
Code of Academic Integrity.
UVM Diversity Statement:
The University of Vermont holds that diversity and academic excellence are
inseparable. An excellent university, particularly one that is a public
land grant, needs to actively seek to provide access to all students who
can excel at the institution, without respect to their backgrounds and
circumstances, including, among other differences, those of race, color,
gender, gender identity or expression, sexual orientation, national and
ethnic origin, socio-economic status, cultural and/or geographic
background, religious belief, age, and disability. There is, moreover, a
compelling national interest in a higher education sector rich in diversity
and opportunity, and a clear state interest in making the educational
benefits of this diversity and opportunity accessible to all.