syllabus

Econ 463
International Economics
Fall 2008

Dr. Paul Johnson
Rasmuson Hall 319A
(907) 786-4311
afprj@cbpp.uaa.alaska.edu (please use subject line: ECON 463)

Class information

Prerequisites: ECON 201 and ECON 202
Related classes:
International Finance BA 427

Course aims and outcomes

ECON 463 is an undergraduate course focusing on the study of international markets, institutions and policy.

The primary objective of this course is to help students obtain a better understanding of the international economic environment. This understanding will be aided by introducing students to theoretical tools that illuminate the workings of international markets, institutions and policies.

There will be a special emphasis on recent developments in the study of the simultaneous emergence of specialization and trade and the history of international economic theory.

Student learning outcomes

By the end of this course, you should be able to:

· Explain how international economics contributes to understanding of world events, world economic growth, and the international business environment.
· Apply comparative advantage models to solve analytical problems.
· Apply trade theories to solve analytical trade problems.
· Apply exchange rate theory to solve analytical problems in exchange-rate determination.
· Describe and explain the role of the major international trade organizations.
· Provide an in-depth overview of the major free trade agreements and common currency areas.
· Compare and discuss the major controversies in trade policy.



Approach to learning and teaching

Traditional lecturing will be used where necessary – to explain basic facts and concepts, to give current examples, and to make connections between the different course elements. However, much of the teaching will involve discussions or experiential activities.

Classroom experiments will be an important feature of this course. Current news articles and case studies will be assigned as class discussion readings in order for students to practice applying new knowledge to real world events.

Syllabus

Text Chapter and Topic
1. An Introduction to International Trade
2. Tools of Analysis for International Trade Models
3. The Classical Model of International Trade
4. The Heckscher-Ohlin Model
5. Tests of Trade Models: The Leontief Paradox and Its Aftermath
6. Tariffs
9. Preferential Trade Arrangements
10. International Trade and Economic Growth

Midterm exam (date TBA)

11. An Introduction to International Finance
12. The Balance of Payments
13. The Foreign-Exchange Market
14. Prices and Exchange Rates: Purchasing Power Parity
15. Exchange Rates, Interest Rates, and Interest Parity
17. Basic Theories of the Balance of Payments
18. Exchange Rate Theories
19. Alternative International Monetary Standards

Final Exam (Monday December 8th 1.00-3.45pm.)


Text and readings

The text is Husted and Melvin International Economics 7th Ed. Handouts and readings of current articles will be made available. Handout material is all examinable. (“Handout” may mean posted on the web, or handed out in hard copy).




Grading

Midterm exam 30
Final exam 40
Assignments (including lab report/s) 30
Total 100

Special consideration

Students with disabilities who need extra time/assistance with exams may apply to
Disability Support Services to arrange such assistance.

General conduct and behavior

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which disrupts or interferes with a class is not acceptable and students may be asked to leave the class.
Once students are in class they may not leave without specific prior approval. A student who just gets up and leaves a class which is still in session may receive an automatic one letter grade penalty.

Attendance

Your regular and punctual attendance at lectures and seminars is expected in this course.

Students who consistently miss scheduled classes may be subject to an “F” regardless of assignment and exam scores. You should take note of all announcements made in lectures. You will be deemed to have received this information regardless of your absence, except in the case of a written pre-approved absence.

Study commitment

Students will be expected to be current with all assigned readings, and to participate in all class discussion and activities. All assignments must be turned in on the assigned due dates, unless a written exemption has been obtained beforehand, which will be given only in exceptional circumstances.