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Introduction to International Economics Fall 2022
ECON 231

Published Aug 12, 2022

Class Schedule

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Instructor & TA (Teaching Assistant) Information

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Course Description

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

Learning Outcomes

By the end of this course students should be able to:
- 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.

Tentative Course Schedule

 

Weekly schedule

Topic and Chapters

  
Week 1

Topic: Course Introduction & World Trade: An Overview

Chapters 1 & 2

Week 2Topic: Labor Productivity and Comparative Advantage: The Ricardian Model. Chapter 3
Week 3Topic: Labor Productivity and Comparative Advantage: The Ricardian Model / Specific Factors and Income Distribution.  Chapter: 3 & 4
Week 4Topic: Specific Factors and Income Distribution / Resources and Trade: The H-O Model. Chapter: 4 & 5
Week 5Topic: The H-O Model / The Standard Trade Model. Chapter: 5 & 6
Week 6Topic: The Standard Trade Model. Chapter: 6
Week 7Topic: The Standard Trade Model / External Economies of Scale and International Location of Production. Chapter: 6 & 7
Week 8Topic: Firms in Global Economy: Export Decisions, Outsourcing and Multinational Enterprises. Chapter: 8
Week 9Topic: The Instruments of Trade Policy / The Political Economy of Trade Policy. Chapter: 9 & 10
Week 10Topic: Exchange Rates and Foreign Exchange Market: An Asset Approach. Chapter: 14
Week 11Topic: Exchange Rates and Foreign Exchange Market: An Asset Approach / Money, Interest Rates and Exchange Rates. Chapter: 14 & 15
Week 12Topic: Money, Interest Rates and Exchange Rates. Chapter: 15

 

Texts / Materials

No materials required.

Required Textbook:

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

 

Student Assessment

Component Value
Midterms 40%
Quizzes 20%
Final Exam 40%
Midterm 1Friday Oct 7, 11:30am-12:30pm

20%

Midterm 2 

 

Quiz 1

Quiz 2

Quiz 3

Quiz 4

 

Friday Nov 4, 11:30am-12:30pm

 

Monday Sep 26 -Sunday Sep 02

Monday Oct 17  - Sunday Oct 23

Monday Oct 31  - Sunday Nov 06

Monday Nov 21 - Sunday Nov 27

 

20%

 

5%

5%

5%

5%

 

  

 

Final exam (comprehensive) (TBD)  

40%

 

Assignment Screening

No assignment screening will be used in this course.

Administrative Policy

Mental Health Support

All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health support if they are needed.

On Campus

Due to COVID-19 and campus closures, services are available only online or by phone.

  • Counselling Services:  counselling.services@uwaterloo.ca / 519-888-4567 ext. 32655
  • MATES:  one-to-one peer support program offered by the Waterloo Undergraduate Student Association (WUSA) and Counselling Services

Off campus, 24/7

  • Good2Talk:  Free confidential help line for post-secondary students. Phone: 1-866-925-5454
  • Grand River Hospital: Emergency care for mental health crisis. Phone: 519-749-4300 ext. 6880
  • Here 24/7: Mental Health and Crisis Service Team. Phone: 1-844-437-3247
  • OK2BME: set of support services for lesbian, gay, bisexual, transgender or questioning teens in Waterloo.  Phone: 519-884-0000 extension 213

Full details can be found online on the Faculty of Arts website

Download UWaterloo and regional mental health resources (PDF)

Download the WatSafe app to your phone to quickly access mental health support information.

Territorial Acknowledgement

We acknowledge that we are living and working on the traditional territory of the Attawandaron (also known as Neutral), Anishinaabe and Haudenosaunee peoples. The University of Waterloo is situated on the Haldimand Tract, the land promised to the Six Nations that includes ten kilometres on each side of the Grand River.

For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to Acknowledging Traditional Territory.

Economics Department Deferred Final Exam Policy

All deferred Final Exam requests for economics courses are administered by the Economics Undergraduate Office. Please consult the Deferred Exam Policy at 

https://uwaterloo.ca/economics/undergraduate/resources-and-policies/deferred-final-exam-policy.

University Policy

Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]

Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.

Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.

Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.

Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.

Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.

It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.