Economics 3563 Instructor: W.L. Holmes
International Trade Phone: 215-204-8175 Fax: 215-204-8173
Sections 1(1-1:50), 2(2-2:50), 3(5:30-8) E-mail:
Fall 2011 Homepage: http://astro.temple.edu/~pippin/
Office: 804 Ritter Annex;
Hours: MWF 10:10-12:50; W: 3:10-5:15
Prerequisites: Economic principles [Econ 1101and 1102], basic algebra skills. FSBM students must have completed the FSBM core first. If you have questions, contact Fox advising.
Text: W. Charles Sawyer and Richard L. Sprinkle. International Economics. PrenticeHall, 2009, 3rd ed.. Custom Version. . (First 11 chapters only of regular edition. Approximately half the price of the regular edition. ISBN: 9780558460844. This paperbound version is available at Barnes and Noble (B&N) and may be at Zavelle’s.)
(REGULAR ED. ISBN: 0136054692. Try Zavelle's (1520 N. Broad) or online for used copies of the full hardbound ed. An online copy is available at www.coursesmart.com. [1/2 price; no resale])
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 disability should contact the instructor privately to discuss the specific situation as soon as possible. Contact Disability Resources and Services in 100 Ritter Annex (215.204.1280) to coordinate reasonable accommodations for 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: http://policies.temple.edu/getdoc.asp?policy_no=03.70.02.
Grading: 1. Grades will be based on the results of quizzes and the final exam. Class attendance is not required; however, it is the student's obligation to keep track of anything 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 a quiz or 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 31st 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. I shall discuss this option later. For details, click here.
Learning Objectives: 1. General: increased ability to understand and use abstract reasoning, particularly quantitative economic reasoning.
2. Specific: understand the standard economic story about: the causes of trade (chs. 2-5); the causes and effects of international factor movements (ch. 6); the types, causes, and economic effects of restrictions on trade (chs.7-8); the differences in causes and effects between world trade agreements and regional agreements (chs. 9-10); and the causes and implications of globalization (section 5).
Readings: (3rd ed. paperbound ) (Note: All of the graphs available from S&S are on Blackboard (Bb). Handouts available on my website are indicated in underlined bold below and in blue in the online syllabus (on Bb or at: http://astro.temple.edu/~pippin/250book1.html. Just click where indicated. Also, if you are using the hardbound edition, the page numbers are slightly different from the ones below. Look for the section title instead.)
1. Basic Tools: [See your microeconomic principles [Econ 1102(52)] 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 the relevant chapters of a Microeconomic Principles text at FlatWorld Knowledge (http://www.flatworldstudents.com/course?cid=595811&bid=568078). Pick the “Read online” option if you do not want to pay and register. The main topics are: Demand and Supply, efficiency (click here for a brief, more general, discussion), production possibilities frontier (or transformation curve), 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: chs. 2 & 3 [omit pp. 57-65 (Advanced Analysis)]: Gains from Trade Story, Comparative Advantage Example
c. Trade model extensions and applications: chs. 4 [Omit pp. 82-84 (Specific Factors) and 92-94 (Appendix 4.1)] and 5 [Omit pp..101-103 (Intraindustry Trade in Differentiated Products—except for the definition of Differentiated Products).]
3. International Factor Movements and Multinational Corporations: ch. 6. Handout on OLI
4. Trade Policy
a. Tariffs: ch. 7 [Omit pp. 160-162 (Effective Rate of Protection).]
b. Other policies affecting trade: ch. 8 [Omit p. 193, The Gravity Model…]
c. Trade regulation and trade agreements: ch. 9 [Omit Appendix 9.1, Price Discrimination], Handout on Trade Agreement theory
d. Regional trading arrangements: ch. 10
5. Globalization: Causes, Problems, and Solutions: Globalization Discussion, Ch. 11 [only pp. 263-272, Economic Development Strategies] andother handouts (copyrighted materials available from Temple Library through TU Portal.)
Schedule of important dates (subject to revision)
Event Date Chapters Sample quiz
Quiz 1 (9/14) Basic Tools, Ch. 1 (Sample
Quiz 2 (9/28) 2 & 3 (Sample 2)
Quiz 3 (10/12) 4 & 5 (Sample 3)
Quiz 4 (10/26) 6 (Sample 4)
Quiz 5 (11/9) 7 & 8 (Sample 5)
Quiz 6 (Day:11/23 Night:11/30) 9 & 10 (Sample 6)
New Stuff: (Day:11/28-12/7 Night:11/30,12/7) Sect. 5 readings
Review (12/7) All & Main topics handout
9) Final Exam:a. Section 1 (MWF 1-1:50): Friday, December 16; 10:30-12:30
b. Section 2 (MWF 2-2:50): Monday, December 12; 1-3
c. Section 3 (W 5:30-8): Wednesday, December 14: 5:45-7:45