ECON 325 - International Economics

Spring 2007

 

Instructor: Osman Suliman

Office: 331 McComsey

Phone: 3558/3679

E-mail: osman.suliman@millersville.edu

Office Hours: Office Hours: M-F 2:00 - 3:00 PM and others by appointment.

 

REQUIRED TEXT: Pugel, Thomas.  International Economics, 13th ed.  McGraw-Hill Irwin, 2007.

 

RECOMMENDED TEXT: Study Guide.

 

INTRODUCTION AND OBJECTIVES: As long as nations exist, international economics will always need a separate body of analysis distinct from the rest of economics. The special nature of international economics makes its study fascinating and sometimes difficult. Current and future events are sure to keep reminding us of what is special about this field. Four recent events have help shaped International Economics.  They are:

- National borders coming and going.

- The trade block revolution.

- The immigrant fight.

- Gyrating exchange rates.

If you want to keep abreast of international economic developments, you should regularly read the business section of a major daily paper. The Wall Street Journal, the weekly magazine The Economist, and the London daily Financial Times, however, provide the most thorough coverage. They all offer students discounted subscription rates. Furthermore, they are a very valuable learning aid; you see the theories that you are going to study in live action.

 

At the end of your study of the main textbook, you should be able to understand all the current issues related to foreign trade and international finance, and to critically evaluate the debate around the policy options available to your country's government.

 

EXAMS AND POLICY: There will be three exams, several homework assignments and a case (see attached).  No make-up exams or incompletes will be allowed in this class unless a student has supported evidence of an urgent reason. Attendance is required.  Only documented excused absences are allowed.  More than three unexcused absences will decrease your final grade by half a letter grade.  The points for the exams and assignments are distributed as follows:

 

3 exams (100 points each)       300

Homework                                50

Case                                          50

Total                                        400

 

GRADING SYSTEM:

 

360-400      (90%) A

354-359      (88%) A-

340-353      (85%) B+

320-339      (80%) B

308-319      (77%) B-

280-307      (70%) C+

260-279      (65%) C

240-259      (60%) C-

220-239      (55%) D+

200-219      (50%) D

192-199      (48%) D-

0-191        F

 

TENTATIVE EXAM SCHEDULE:

 

Exam #1 February 1

Exam #2 March 1

Final Exam: May 7, 12:30-2:30

Case due April 19

 

Spring Break March 12-16

No classes on April 10, 11, May 3, and 4

 

TENTATIVE COURSE OUTLINE:

 

Chapter 2 The Basic Theory Using Demand and Supply

Chapter 3 Why Everybody Trades:  Comparative Advantage

Chapter 4 Trade:  Factor Availability and Factor Proportions Are Key

EXAM #1 – February 1

 

Chapter 5 Who Gains and Who Loses from Trade?

Chapter 6 Alternative Theories of Trade

Chapter 7 Growth and Trade

Chapter 8 Analysis of a Tariff

Chapter 9 Nontariff Barriers to Imports

EXAM #2 – March 1

 

Chapter 10 Arguments for and Against Protection

Chapter Pushing Exports

Chapter 12 Trade Blocs and Trade Blocks

Chapter 13 Trade and the Environment

Chapter 14 Trade Policies for Developing Countries

Chapter 15 Multinationals and Migration:  International Factor Movements

Chapter 16 Payments among Nations

Chapter 17 The Foreign Exchange Market

EXAM #3 – finals week

 

CASE (50 Points)

 

Select a foreign country and discuss their trade patterns and structure, including a discussion of the following concepts:

 

1. An overview of the state of the economy.

2. Comparative advantages and areas of specialization and why. What do they export and what do they import?

3. What percentage of their national income comes from trade?

4. The extent of protectionism or trade liberalization.

5. Explain why their exports and imports fluctuate. What are the implications of these fluctuations on their trade balances? Use spreadsheets to demonstrate graphically these fluctuations.

6. Discuss historical changes in their currency and possible reasons for that.

7. Put together the discussion of the relevant issues including the list above in a report form rather than fragmented answers to the different questions.

 

Possible sources:

 

1. International Financial Statistics (IFS) - IMF (On Reserve - Ganser Library (Use Computer 13) and at F&M Library)

2. Human Development Report: World Bank (On Reserve – Ganser Library)

3. ISI (CD ROM) - On Reserve in Ganser Library - Use Computer 13

4. Department of Commerce Reports (Reference - Ganser Library and homepage)

5. Economist, Wall Street Journal, etc.

 

CASE GRADING CRITERIA

 

                                                                                                Total Possible Points

 

1. Introduction: Statement of the problem to be discussed                    5

2. Critical review of related literature                                                   10

3. Use of graphical/algebraic expositions and economic concepts       15

4. Analysis of the results (data)                                                           15

5. Conclusion                                                                                        5

TOTAL                                                                                               50