Published Jan 08, 2023
ECON 231
This course explores international trade in goods and services, as well as the international exchange of financial assets. Economic theories will be examined, which help explain how international transactions affect the world's economies. Topics include the theory of comparative advantage and the gains from trade, tariff theory, concepts and measurement of balance of payments, exchange rate systems, and the international monetary system.
Prereq: ECON 101 or ECON 100/COMM 103; ECON 102
| - Explain the patterns of trade and their determinants. |
| - Understand the distributional consequences of international trade in goods. |
| - Explain the consequences of trade policy: tariffs, quotas, etc. |
| - Understand exchange rates, their definitions, and main determinants. |
Weekly schedule | Topic and Chapters |
| Week 1 | Topic: Course Introduction & World Trade: An Overview Chapters 1 & 2 |
| Week 2 | Topic: Labor Productivity and Comparative Advantage: The Ricardian Model. Chapter 3 |
| Week 3 | Topic: Labor Productivity and Comparative Advantage: The Ricardian Model / Specific Factors and Income Distribution. Chapter: 3 & 4 |
| Week 4 | Topic: Specific Factors and Income Distribution / Resources and Trade: The H-O Model. Chapter: 4 & 5 |
| Week 5 | Topic: The H-O Model / The Standard Trade Model. Chapter: 5 & 6 |
| Week 6 | Topic: The Standard Trade Model. Chapter: 6 |
| Week 7 | Topic: The Standard Trade Model / External Economies of Scale and International Location of Production. Chapter: 6 & 7 |
| Week 8 | Topic: Firms in Global Economy: Export Decisions, Outsourcing and Multinational Enterprises. Chapter: 8 |
| Week 9 | Topic: The Instruments of Trade Policy / The Political Economy of Trade Policy. Chapter: 9 & 10 |
| Week 10 | Topic: Exchange Rates and Foreign Exchange Market: An Asset Approach. Chapter: 14 |
| Week 11 | Topic: Exchange Rates and Foreign Exchange Market: An Asset Approach / Money, Interest Rates and Exchange Rates. Chapter: 14 & 15 |
| Week 12 | Topic: Money, Interest Rates and Exchange Rates. Chapter: 15 |
Krugman, R. Paul, Maurice Obstfeld & Marc J. Melitz: International Economics: Theory and Policy, 11thEdt., Pearson Wesley Publishers Limited, 2018.
https://console.pearson.com/enrollment/bcw0ia
Other References:
Feenstra, C. Robert & Alan M. Taylor, International Economics, 3rdEdt.,Worth Publishers, 2014.
Salvatore, Dominick, International Economics, 11thEdt., John Wiley & Sons, Inc, 2013
| Component | Value |
|---|---|
| Midterms | 40% |
| Quizzes | 20% |
| Final Exam | 40% |
| Midterm 1 | Thursday Feb 9, 2:30pm-3:50pm | 20% |
Midterm 2
Quiz 1 Quiz 2 Quiz 3 Quiz 4
| Thursday Mar 9, 2:30pm-3:50pm
Monday Jan 23 -Sunday Jan 29 Monday Feb 13 - Sunday Feb 19 Monday Mar 06 - Sunday Mar 12 Monday Mar 26 - Sunday Apr 02
| 20%
5% 5% 5% 5%
|
| ||
| Final exam (comprehensive) | (TBD) Online via LEARN | 40% |
No assignment screening will be used in this course.
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