Course Title:
|
Course Materials:
International Economics
Edition: 6th
Publisher: Pearson Education
Author: Krugman and Obstfeld
ISBN: 0-207-77037-7 *Note: Some Centers use the International 6th edition, where the ISBN is 0-321-11639-9 | |
Course Description:
| (Fulfills the international perspective requirement.) Prerequisite(s): ECON 201 and 203, or ECON 205. A description of international trade and an analysis of international transactions, exchange rates, and balance of payments. Policies of protection, devaluation, and exchange-rate stabilization and their consequences are also analyzed. Students may receive credit for only one of the following courses: BEHS 440, ECON 440, or ECON 441. | |
Course Goals/Objectives:
By the end of this course, you should be able to:
* Describe the patterns in international trade.
* Explain comparative advantage and why all countries can gain from international trade.
* Explain trade restrictions as well as the arguments justifying them and understand why they reduce imports, exports and consumption possibilities.
* Discuss how international trade is financed.
* Explain a country's balance of payments accounts.
* Describe how exchange rates are determined and the difference between fixed and flexible exchange rates.
* Explain the international impact of domestic monetary and fiscal policies.
* Discuss the importance of international policy coordination.
* Explain how the international capital markets affect the exchange rate and balance of payments of individual nations.
Cross Curricular Initiatives
In addition to these learning objectives, this course also concentrates on UMUC's cross-curriculum initiatives, detailed below, designed to help UMUC students build skills to enhance their careers and overall effectiveness in their employment.
Effective writing. There are numerous writing assignments throughout the semester. Those assignments are expected to reflect appropriate professional writing skills. That is, they will be evaluated on the basis of grammar, sentence structure, spelling, and overall sound writing principles. At least 10 percent of your grade on each writing assignment will be based on your proficiency in expressing yourself in writing.
Information literacy. You will be expected to demonstrate proficiency at research activity through the library and use of online sources.
Globalization. An important outcome of this course will be the realization that economic principles apply to global situations.
Computerization. The computer has virtually altered the way international economic research is conducted. This course will emphasize the increasing use of the computer in international economics.
Historical Perspective. This course will integrate the historical development of theory to provide the student with a context for current theories and practice.
Civic Responsibility. Ethical behavior and role of international economics in society will be explored in this course. | |
Course Introduction:
As a recent popular book put it, we now live in one world - ready or not. What happens in the United States influences other countries, and events abroad have repercussions in the United States. Trillions of dollars worth of goods and services - American computers, German machine tools, Japanese cars - are traded across international borders each year. A vastly larger volume of international transactions - trade in stocks, bonds and bank deposits - take place in the global economy at lightning speed.
International economics is of particular interest to students wishing to pursue careers in international business and/or international finance. It deals with international trade and international financial issues. First, both the composition of, and reasons for, international trade receive theoretical and empirical treatment. Included are arguments for and against free trade, as well as an examination of the current US commercial policies. Second, by analyzing a country's trade and capital accounts as well as foreign exchange markets and monetary/fiscal policies, an understanding of how that nation goes about balancing its finance is developed. Trade agreements, international monetary institutions, private institutions (commercial banks and multinational corporations), governments and their central banks - all of which play a role in international financial adjustment - are explored. The course includes such topics as comparative advantage, gains from trade, protectionism (tariffs and quotas), international trade patterns, international monetary arrangements, balance of payments, foreign exchange markets and international impact of domestic monetary and fiscal policies. The discussion of the above topics gives emphasis to a blend of theory, applications and policy analysis in a systematic and simple manner designed to present clearly the theoretical and practical core of modern international economics. | |
Grading Information and Criteria:
A = 90-100%
B = 80-89%
C = 70-79%
D = 60-69%
F below 60%
Midterm exam: 20%
Final exam: 30%
Written assignment: 20%
Weekly assignments: 10%
Participation: 20% | |
Other Information:
Any other information the instructor wishes to add. This might include:
* General expectations of students, such as hours per week students should expect to devote to the class
* Turnaround time for faculty to respond to email and return papers
* Unique class procedures or activities (such as cooperative learning exercises, panel presentations, case study methods, class journals or learning logs)
* Supplemental objectives (such as development of skills like teamwork, writing, oral presentation; integration of knowledge on focus topics)
* Optional activities such as study groups
This course is not a competition between you and me. The idea is not that I should put in front you material that is both obscure and difficult in the hope that I can fail as many of you as possible. With reasonable efforts on all our parts, mine included, you not only will learn a great deal more about international economics than you already know, but you will, I hope, have fun doing so, and emerge in at the end of the course with greatly increased knowledge and a grade that we can be both be proud of.
Midterm and final exams
The midterm exam covers the material from the start of the course until the day of the exam. The final exam covers the material covered from the midterm exam until the end of the course. Both exams consist of essay questions. I am looking for evidence that you have understood the material, and that you are capable of thinking critically about that information and applying the basic principles you have learnt. The essay questions are usually in the format of "Explain how..." or "Discuss..." or "What is (are)..." or "Why..." To the extent that clear, cogent explanations depend on language skills, your grammar and sentence skills will be taken into account.
The subject matter of economics is cumulative as chapter builds upon chapter. Study often and thoroughly. It is extremely difficult to catch up if you get behind.
Participation
Remember that there is a 20% component of the final course grade based on participation. I'd really like to see you working with your colleagues in the class rather than carrying out a dialogue with me. Simply listening to the conversations does not count as participation.
Assignments
Assignments are set on a weekly basis on the material covered the previous week. They usually consist of end-of-chapter review questions and numerical problems or assigned reading from a professional journal or newspaper. You don't have to write long essays. The sole purpose of assignments is to test your understanding on particular topics. Please be prompt in the submission of your assignments.
Submission of assignments
Please be prompt in the submission of your assignments. Taking into account that most of you are working, a grace period of 48 hours is allowed. No further extension will be given unless the delay is due to reasons beyond your control (hospitalization, illness). After the end of the grace period, you will lose 10 points per late date.
Your responsibility, when you think things are in danger of getting out of hand, is to keep me informed about what is going on, what the problem is, how long it is likely to interfere with your ability to concentrate on the course, and so on. I am certain that, in most cases, some sort of accommodation can be reached which will allow you to continue and, most importantly, to complete the course satisfactorily, but I must know what's going on. And I have to hear about such difficulties before any deadlines are reached, let alone exceeded. So contact me, let me know what the problem is, and we can work something out.
Whatever you do, please don't just drop out of sight. Anyone who fails to turn up over an extended period (say, a couple of weeks) without clearing the absence with me first and working out how to keep up with the class in the interim will be urged to withdraw. Since I, and I hope you, don't want this to happen, I repeat: It's up to you to keep in touch with me. | |
Project Descriptions:
| The written assignment will consist of a term paper of approximately 1000 words on a topic of your choice but, naturally, relevant to the course. In order to avoid delays you should discuss with me the topic you have chosen during the first two weeks of the course. The assignment is due the week prior to the end of the course. | |
Academic Policies:
Cases of plagiarism are handled consistent with current UMUC guidelines.
See the UMUC policies at the following URL:
http://www.umuc.edu/policy/ | |
Course Schedule:
Meeting 1
Personal introductions and course management issues
Introduction to international economics
Meeting 2
What is international economics about?
Labor productivity and comparative advantage
Read Chapters 1 & 2
Meeting 3
Specific factors and income distribution (omit appendix) Read Chapter 3
Assignment #1
Meeting 4
Resources and trade: the Hecksher-Ohlin Model (omit
appendix)
The Standard Trade Model (omit appendix)
Read Chapters 4 & 5
Assignment # 2
Meeting 5
International factor movements (omit appendix)
Read Chapter 7
Assignment # 3
Meeting 6
Instruments of trade policies (omit appendices I & II)
Political economy of trade policy
Read Chapters 8 & 9
Assignment # 4
Meeting 7
National income accounting and the balance of payments
Read Chapter 12
Assignment # 5
Meeting 8
Midterm Exam (Chapters 1, 2, 3, 4, 5, 7, 8, 9)
Assignment # 6
Meeting 9
Exchange rates and the foreign exchange market (omit
appendix)
Read Chapter 13
Meeting 10
Chapter 14 - Money, interest rates and exchange rates
Read Chapter 14
Meeting 11
Price levels and the exchange rate in the long run (omit
appendix)
Read Chapter 15
Assignment # 7
Meeting 12
Fixed exchange rates and foreign exchange intervention
(omit appendices I, II, III)
Read Chapter 17
Assignment # 8
Meeting 13
Macroeconomic policy and coordination under
floating exchange rates (omit appendix)
Optimum currency areas and the European experience (up to page 617)
Read Chapters 19 & 20
Assignment # 9
Meeting 14
Chapter 21 - The global capital market: Performance and
policy problems
Read Chapter 21
Assignment # 10
Meeting 15
Written Assignment Due
Final Exam Review
Meeting 16
Final Exam on Chapters 12 to 15, 17, & 19 to 21. | |
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