International Economics

University of Minnesota-Duluth Labovitz School of Business and Economics International Economics (Econ-4410) Spring 2010 ____________________________________________________________________

Venue: LSBE 165, Time: T/Th: 11:15-12:45 PM Instructor : Dr. Bedassa Tadesse Email : [email protected] Office : LSBE 330G Phone : 218-726-8365 Fax : 218-726-6509 Course page : http:// www.d.umn.edu/~btadesse/ Office Hours : MWF: 10-11:00 am and by appointment

Text Book (Required): © 2004 / Husted, Steven and Melvin, Michael. International Economics, 6th Edition, Boston, Addison Wesley Longman.

Study Guide (Recommended): © 2004 / Husted, Steven, and Melvin, Michael. Study Guide to Accompany International Economics, Sixth Edition Addison Wesley. Some of the topics covered in this course are often discussed in several national and local newspapers. Reading Wall Street Journal and your local news papers, such as Duluth News Tribune, is helpful. Course Description: This course is designed to give students a solid overview of the fundamental principles governing International Economics (the exchange of goods and service across national borders and the finances associated with the transaction of goods and services). The first half of the course is devoted to the discussion of international trade (trade theories, trade barriers, arguments for and against protectionism, instruments of trade policy and international trade agreements). The second half of the course is devoted to the discussion of international finance (the analysis of balance of payments, foreign exchange markets, and international monetary systems and arrangements). Course Objectives: the educational goal of this course is to provide students with detailed understanding of the real economic aspects of the global economy. At the completion of this course, students will be able to: (i) understand the importance of international trade in our daily lives; (ii) learn the basis of international trade; (iii) recognize the interrelationships between international trade and finance; (iii) interpret and critique the role of the government policy in international transaction of goods and services, (iv) have some mathematical and theoretical skills required to analyze problems in

international trade and finance, and thereby the ability to evaluate alternative policies.

Attendance and Participation Policy: i) Attendance Regular class attendance and active participation is expected from every student registered for the course. Extra credit points will be given for students that regularly attend the class and actively participate in class discussions.

ii)

Extra-credit No extra credit work will be assigned on an individual basis. However, if deemed appropriate, I reserve the right to give extra assignments for extra credit to the class as a whole.

iii)

Make-ups It is imperative that you attend all exams, quizzes and submit all assignments on their due dates. There will neither be make-ups nor substitutions for missed quizzes and assignments not turned in on their due dates. Unless and otherwise you provide me with certified documents (notes from doctors, police or court papers etc) that might be accepted at my discretion, your absence from any of the scheduled tests exams will not be excused. If accepted, all make-up tests will be ESSAY type.

iv) Assignments Assignments must be turned in as scheduled. Assignments can only be submitted at the end of the class on the day they are due. No assignment will be collected before or after the due date. Students will be given at least four days to work on answers for assignments. I expect text answers for assignments and the accompanying graphs to be neat and typed. v) Additional Course Materials In addition to the text book materials supplementary reading materials may be provided in class or posted on the course website. It is the responsibility of the student to be present in class and obtain the materials. Supplementary materials will not be made available for students missing a class without prior permission. IV) Special Need: If you are a student with disability and are in need of special assistance in the administration of tests, quizzes or class discussions, you should notify me your special need during the first week of the semester so that I make all possible arrangements to accommodate your needs. Exams, Assignments, Quizzes, and Grading Policy: Including the final exam there will be three separate tests. While the final exam accounts 30%, each of the remaining two tests will account for 20% of the final course grade. All assignments and quizzes together with bonus points for active participation and regular attendance will account for the remaining 30% of the final course grade.

Tentative Grading Scale (in %):

94-100 (A), 90-93(A-); 87-89(B+), 83-86 (B), 80-82(B-); 77-79(C+), 7376(C), 70-72 (C); 65-70(D+), 60-64(D); <60 (F)

Course Outline

Date Week 1/22)

-01

Readings/ Assignments/Exam s

Topic (1/18-

Week-02 (1/25-1/29) Week-03(2/1-2/5)

Introduction: • International Trade and Finance

Chapter-1

International Trade • Tools for analyzing international trade

•

The Classical theory of international trade

Week-04(2/8-9/12)

•

Week-05(2/15-2/19) Week-06(2/22-2/26)

•

The HO theory of international trade and Tests of Trade Models Barriers to International Trade

•

Barriers to Continued

International

Trade

Chapter-2 Chapter-3 Chapter-4 and 5 Chapter-6 Chapter-7 Test-1

Week-07(3/1-3/5) Week-08(3/8-3/12)

• •

Week-09(3/22-3/26)

•

Week-10(3/29-4/2) Week-11(4/5-4/9)

International Trade Arrangements International Trade Arrangements Continued Commercial Policy of the United States

International Finance • Balance of Payments • The Foreign Exchange Markets

Week-12(4/12-4/16)

•

Week-13(4/19- 4/23) Week-14(4/26-4/30)

•

Week-15(5/3-5/7)

•

•

International Prices and Exchange Rates Exchange Rates and Interest Rates Foreign Exchange risks and FDI The IMF and the World Bank

Chapter-9 Chapter-9 Chapter-8

Chapter-11 and 12 Chapter-13 Test-2 Chapter-14 Chapter-15 Chapter-16 Supplementary Materials

Test-3(Final Exam)** Monday, December 19/2010; Time: 8:00-9:55am; Venue: SBE-36) [** Subject to the Dean’s approval, it is possible that I may re-schedule the final exam to the last week of the class.]

Tips for Success: Never leave your concerns and questions in this course unaddressed. Feel free to visit my office and address your questions. Be forthcoming. Take initiatives to participate in class discussions. Even if it may not be my official office hours, as long as you have concerns and questions related to this course, you can always stop by my office and talk to me. I am there to help you.