Economics 3563 Instructor: W.L. Holmes
International Trade Phone: 215-204-8175 Fax: 215-204-0584
Section 1(MWF 1-1:50) E-mail:
Fall 2016 Homepage:
Office: 804 Ritter Annex;
Hours: MWF 10-10:50; 2-3:20
Disability Statement: This course is open to all students who meet the academic requirements for participation. Any student who has a need for accommodation based on the impact of a documented disability, including special accommodations for access to technology resources and electronic instructional materials required for the course, should contact me privately to discuss the specific situation by the end of the second week of classes or as soon as practical. If you have not done so already, please contact Disability Resources and Services (DRS) at 215-204-1280 in 100 Ritter Annex to learn more about the resources available to you. I/we will work with DRS to coordinate reasonable accommodations for all students with documented disabilities.
Statement on Academic Freedom:Freedom to teach and freedom to learn are inseparable facets of academic freedom. The University has adopted a policy on Student and Faculty Academic Rights and Responsibilities (Policy # 03.70.02) which can be accessed through the following link:
Prerequisites: Economic principles [Econ 1101 and 1102], basic algebra skills..
Text:Robert J. Carbaugh. International Economics. Cengage, 2013, 14th ed..SPECIAL ED. (Approximately half the price of the regular edition. First 9 chapters only; ISBN: 9781285916132) or REGULAR ED.(14th,ISBN: 9781133947721).Try Zavelle's (1520 N. Broad) or Barnes and Noble [GSC] for used copies of special or regular ed.)
Grading: 1. Grades will be based on the results of (hour) quizzes and the final exam. Class attendance is not required.However, it is the student's obligation to keep track of anything in the syllabus or discussed or handed out in class. There will be six (6) quizzes (starting Wednesday, September 14th, and every two class weeks after that) [Click here for the sample first quiz, and here for comments on my grading marks], and a cumulative final. The lowest quiz will be dropped and the remaining quiz grades will be averaged. If the final exam grade is higher than the average of quizzes, it will be the course grade. If it is lower, it will be averaged equally with the quiz average, and the weighted average will be used for the course grade.NOTE: THE FINAL COUNTS IN ANY CASE! Makeup of the final exam will require formal evidence of an illness or other emergency, and it is up to you to notify me before grades are turned in. The final exam will not be given early for any reason. (See the next page for the current final exam date.) Also note: if you decide to stop coming without formally withdrawing from the course (October 25th is the last day to do so), your gradewill be determined by the above procedure (usually it will be an F).
2.Optional: Relevant discussion of an article may be substituted for one quiz or for one question on the final exam. For details, clickhere.
Learning Objectives: 1. General: Increased ability to understand and use preciseabstract reasoning, particularly quantitative economic reasoning to explain what happens in the “real” world.
2. Specific: Understand the standard economic story aboutthe causes and effects of: trade (chs. 2-3); restrictions of trade (chs.4-5);industrial policy and world and regionaltrade agreements (chs. 6, 8);international factor movements (ch. 9);and globalization--including involvement ofemerging economies (section 5).
Readings:(14th ed.) (Note: Handouts available on my website or Bb are indicated in underlined bold below and in blue in the online syllabus (Which ison Bb or at: Just click where indicated.) Page numbers given are for the 14th edition, paper and hardbound.
1. Basic Tools: [See your microeconomic principles (Econ 1102) book if you do not understand the stuff when I go over it.If you do not have a principles book, there is a free copy of a Microeconomic Principles text at: Demand and Supply, (b) efficiency (if you can't find this specific topic, read the discussion on profit maximization and click here for a brief, more general, discussion), (c) production possibilities frontier (or schedule), and the basic two-good choice model (Handout).
2. The Theory of International Trade
a. Introduction (with a brief discussion of current macro events): ch. 1
b. Why countries trade: ch. 2, Gains fromTrade Story,Comparative Advantage Example, GTS Exercise
c. What countries trade: ch. 3.
3. Trade Policy
a. Tariffs: ch. 4[Omit pp. 109-111(Effective Rate of Protection); 127-31 The Optimum tariff…to Tariffs and the Poor.]
b. Nontariff trade barriers: ch. 5[Omit pp. 152-4 (Tariff Rate Quota…);156-8 (Domestic Content…);165-170 (Antidumping Regulations…); and 173-4 (Sea Transport…)]
c. Trade regulation and industrial policies: ch. 6 [Omit 204-219 ( Section 301…to Summary)], Protectionism and National Interest, Handout on Trade Agreement theory
d. Regional trading arrangements: ch. 8 [Omit 277-281 (Optimal Currency Areas,…to Nafta); and 287-291 (Is NAFTA… to Russia…)];
4. International Factor Movements and Multinational Enterprises: ch. 9,Handout onOLI
5. Globalization: Causes, Problems, and Solutions: Reread Ch. 1 and read Ch. 7 [Omit 233-247 (Stabilizing Primary-…to Economic Growth Strategies)].Globalization Discussion
Schedule of important events (subject to revision)
Event Date ChaptersSample exam
1. Quiz 1 (9/14)Basic Tools, Chs. 1 Sample 1
2. Quiz 2 (9/28) Ch.2 Sample 2
3. Quiz 3 (10/12) Ch. 3 Sample 3
4.Quiz 4 (10/26) Chs. 4&5Sample 4
5.Quiz 5(11/9) Chs. 6 &8Sample 5
6.Quiz 6(11/30) Ch . 9Sample 6
7. New Stuff (12/2-12/12) Sect. 5 readings
8. Review (12/12)All and Main Topics Handout
9. Final Exam Section 1 (MWF 1-1:50): Friday, December 16: 10:30-12:30
Rev: 09/21/2016