1 University of Pittsburgh Department of Economics CRN: 18360 and 18361 Econ 0500: Intro to International Economics Syllabus Lecturer: Svitlana Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected]Class meets Tuesdays and Thursdays CRN 18360 2:30-3:45 pm CRN 18361 4:00-5:15 pm at 4900 Posvar Hall. Office hours Tuesdays 1:00 -2:30 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail. Out-of-classroom communication E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often. Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. Upon completion of this course students will be able to: • Compare alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how a foreign exchange market operates
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1
University of Pittsburgh Department of Economics
CRN: 18360 and 18361
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected] Class meets Tuesdays and Thursdays CRN 18360 2:30-3:45 pm CRN 18361 4:00-5:15 pm at 4900 Posvar Hall. Office hours Tuesdays 1:00 -2:30 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail.
Out-of-classroom communication
E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. Upon completion of this course students will be able to:
• Compare alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how a foreign exchange market operates
• Predict movements in the value of the U.S. dollar and other currencies in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Analyze international investment, banking, debt, and risk • Explain financial crises in emerging economies, their causes and
solutions At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options.
Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
The text is International Economics by Husted/Melvin, 8th ed., published by Pearson Education, copyright 2010, ISBN 978-0321-594563. You can also use:
• The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by Pearson Education, copyright 2010, 978-0321-613325
• Course website: www.aw-bc.com/husted_melvin • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• The Economist.com Edition, the Wall Street Journal Edition, and the Financial Times Edition.
It is your responsibility to read the text carefully and to do all homework assignments. I will reserve a Study Guide in the Hillman Library. Please feel free to use it while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited.
Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office (216 William Pitt Union, 412-624-7890) will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site.
Course Requirements Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. Exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. After each exam, I post answer keys, students scores, and exam statistics (i.e. class average, class highest, and class lowest scores) on the Courseweb. Assignments Homework assignments are on-line assignments available on the Courseweb (http://courseweb.pitt.edu), with the deadlines reported in the Course Calendar below. Assignments are not accessible after the date due. Please print and go over each assignment prior to the exams: you will find it very helpful. You are encouraged to study in groups. It will make your studies more productive and fun. If you work on the assignment in a team, please inform me about it.
Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Interpretation of plagiarism may be found in Appendix A of the School’s Handbook of Academic Policies and Procedures.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I take attendance simultaneously. There is no curving. Your course grade is computed with the following weights:
I compute student’s course grade by incorporating scores earned on exams, and homework assignments weighted as indicated above. A student fails the class if a so determined course score is below 60%. The rest are graded based on the following scale:
90-100 A range 80-89 B range 70-79 C range 60-69 D range
Course Calendar
Date Lecture
Jan 5 An Introduction to International Trade Jan 10 Jan 12
Tools of Analysis for International Trade Models
Jan 17 Jan 19
The Classic Model of International Trade
Jan 24 Jan 26
The Heckscher-Ohlin Model
Jan 31 Feb 2
Tests of Trade Models Alternative Theories
Feb 7 Feb 9
Assignment #1 (Ch 1-5) is due 2:30 pm. Ch1-5 Overview Exam # 1
Feb 14 Feb 16
Tariffs
Feb 21 Feb 23
Non-tariff Barriers
Feb 28 Mar 1
Commercial Policy Preferential Trade Arrangements
Spring Break
Mar 13 Mar 15
Preferential Trade Arrangements (cont) International Trade and Economic Growth
Mar 20 Mar 22
Assignment #2 (Ch 6-10) is due 2:30 pm. Overview of Ch 6-10 Exam #2
Mar 27 Mar 29
An Introduction to International Finance The Balance of Payment
Apr 3 Apr 5
The Foreign Exchange Market Presentation by a trader
Apr 10 Apr 12
Prices and Exchange Rates. Purchasing Power Parity Interest rates and Exchange Rates
5
Apr 17 Apr 19
Alternative International Money Standards. Overview Assignment #3 (Ch 11-15 and Ch 19) is due 2:30 pm Exam # 3
University of Pittsburgh Department of Economics
CRN 22755
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana V Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected] Class meets Mondays and Wednesdays 3:00 – 4:15 p.m. at Lawrence Hall 104. Office hours Mondays and Wednesdays 2:00-2:45 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail. Out-of-classroom communication E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, and keep it under the quota.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. Upon completion of this course students will be able to:
• Compare alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies in
response to changes in the world economy and macroeconomic policies • Compare the exchange rate regimes and international monetary standards • Analyze international investment, banking, debt, and risk • Explain financial crises in emerging economies, their causes and solutions
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options. Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required:
• International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868.
Recommended: • The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by
Pearson Education, copyright 2010, ISBN: 978-0321-613325 • Course website: www.aw-bc.com/husted_melvin • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• Trade and Globalization: An Introduction to Regional Trade Agreements by David Lynch, Rowman and Littefield Publishers, ISBN: 978-0-7425-6689-7.
The textbook is available in the bookstore and you should purchase it immediately. It is your responsibility to read the text carefully and to do all homework assignments. I have several earlier editions Study Guides in my office and can lend them to you. Please feel free to use them while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the time the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site.
Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. All exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary as soon as possible of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. Assignments All homework assignments are on-line assignments available on the Courseweb. Please make sure to print and go over each assignment prior to exam: you will find it very helpful. On average, you will have more than three weeks to complete a set of assignments. Do not postpone it to the date due. Late assignments are not accepted. You are encouraged to study in groups. It will make your studies productive and fun. If you work on a homework assignment in a group, please inform me about it. Each student is required to submit homework assignment on-line individually. Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Definition of plagiarism can be found on the University website. Help The material of the course is highly cumulative. If you do not understand something, please seek help immediately. You are welcome to come to my office and discuss problems you face with the material presented.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin. There will be no curving. Your course grade will be computed with the following weights:
After each exam, I will provide you with your score (posted on the Blackboard), and exam statistics (i.e. class average, class highest, and class lowest scores).
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The course letter grade will be determined as follows. After the final exam I will compute course scores incorporating scores earned on exams and group assignments weighted as indicated above. A student fails the class if a so determined course score is below 60. The rest will be graded based on the following scale:
90-100 A range 80-89 B range 70-79 C range 60-69 D range
Course Calendar* Week Date Lecture
Week 1 Aug 27 Aug 29
An Introduction to International Trade.
Week 2 Sept 3 Sept 5
Labor day (University closed) Tools of Analysis for International Trade Models
Week 3 Sept 10 Sept 12
The Classic Model of International Trade
Week 4 Sept 17 Sept 19
The Heckscher-Ohlin Model
Week 5 Sept 24 Sept 26
Empirical Tests of Trade Models Alternative Theories of IT
Week 6 Oct 1 Oct 3
Assignments Ch1-5 are due 3:00 pm. Ch1-5 overview Exam #1
Week 7 Oct 8 Oct 9 Oct 10
Fall Break (Monday classes meet Tuesday) Tariffs
Week 8 Oct 15 Oct 17
Non-tariff Barriers Arguments for Protection
Week 9 Oct 22 Oct 24
US Commercial Policy Preferential Trade Arrangements
Week 10 Oct 29 Oct 31
International Trade and Economic Growth
Week 11 Nov 5 Nov 7
Assignments Ch6-10 are due 3:00 pm. Ch 6-10 overview Exam #2
Week 12 Nov 12 Nov 14
The Balance of Payments Foreign Exchange Market
Week 12 Nov 19 Nov 21
International Monetary Systems Thanksgiving Recess
Week 13 Nov 26 Nov 28
Exchange Rates in a Short Run Exchange Rates in a Long Run
Week 14 Dec 3 Dec 5
Theories of the Current Account Assignments Ch11-16 are due 3:00 pm. IF section overview
Week of finals
Wed, Dec 12 8:00-9:50am Exam #3
* Any changes to the course calendar will be posted on the CourseWeb.
Spring 2013
Course Information
Economics 0500 - INTRODUCTION TO INTERNATIONAL ECONOMICS
Students should check CourseWeb regularly for announcements and material related to the class. E-mail is the best way to contact me. I am rarely in my office (I may reserve one of the conference rooms in the economics department to hold office hours). You may find me more easily in the Economics Graduate Lab (WWPH 4930) if you need to get ahold of me immediately. You may ask for individual meetings if my office hours are not convenient for you. If I am available, I will almost surely say yes. However, if you fail to arrive on time to a previously-scheduled meeting or fail to cancel within a reasonable (where I judge what is “reasonable”) amount of time, I reserve the right to refuse any future request for an individual meeting with you.
Text
Steven Husted and Michael Melvin, International Economics, 9th ed. Addison-Wesley Publishers, 2013 (cited below as "HM"). I have placed a copy of this book on reserve at Hillman Library. Please note that the second half of the ninth edition is radically different from earlier editions. Therefore, using old editions may be problematic for topics in international finance (the second part of the course).
Grading, homework, and exams
The following components will determine your final grade:
Homework (lowest-graded homework to be dropped) 30% First exam (anticipated date: 7 March 2013, but negotiable) 35% Second exam (final exam: date TBA) 35%
No late homework will be accepted under any circumstances. Assignments will be due at 11h00 on the date indicated. All homework assignments must be typed. If circumstances prevent you from being in class to hand in the homework by 11h00, send it to me in an email before 11h00 or give a hard copy to your friends to hand in at 11h00. I will drop the homework with the lowest grade when calculating your average homework score for your final grade. There are no make-up exams. If you can demonstrate with appropriate documentation that a serious event, such as hospitalization, prevented you from taking an exam, I will count the remaining exam for 70% of your grade. If you miss both exams, you will receive 0 points for both exams.
Each homework assignment (unless otherwise specified) will consist of a set of questions analyzing a selected portion of an article. Each exam will have 2 such sets of questions and selected portions of an article. Each homework assignment will be worth 20 points (unless otherwise specified). Each exam will be worth 40 points (unless otherwise specified). The first exam will cover sections 1-5 (see below) while the second/final exam will cover sections 6-9. That is to say, the final exam is not comprehensive. However, I may choose to include questions covering some material from the first half of the course in the final exam, though such questions will constitute a small portion of the total coverage. I would include such questions in the event that the overall performance on the midterm exam indicated that a large number of students did not understand certain key concepts in trade. If I include such questions, I will let you know a few weeks before the final exam and will provide more detail regarding what material you should revise.
To obtain full points on a homework assignment or an exam, a response must be clear and concise. There will often be limits on the length of your answers. Within these limits, the response must, where appropriate:
• apply theoretical concepts to a particular real-world example; • evaluate the text, to an appropriate depth, for the concepts covered in class; • support the evaluation with appropriate evidence and theory; • adhere to the rules of spelling, word usage, and grammar.
To emphasize the importance of the last point, I will deduct one point for every error of spelling, usage, or grammar found in your answers. If you make the exact same error twice, you will lose 2 points. This policy will apply to homework and to exams. Examples of statements that would reduce points include:
• “Where the level of unemployment is at determines…” • “There are a series of reasons to explain why…” • “The affect of a common currency on trade differs across currency unions.”
Students who can demonstrate that their native language is not English may bring a simple, bilingual dictionary (an actual book, not an electronic resource) to the exam. In that event, please arrive early so that I can verify that no unauthorized materials (e.g., copies of notes) are hidden in the pages of the dictionary.
Although students may consult with each other on the homework assignments, each student is responsible for submitting an original answer. If I discover two or more submitted assignments for a given homework that resemble each other substantially, I reserve the right to pursue the matter as a violation of the University’s policy on Academic Integrity.
The following table (starts on the next page) describes roughly how I intend to link scores on homework and exams to letter grades. I reserve the right to adjust the boundaries between one letter grade and another as circumstances dictate.
20 A+
19 A
18 A
17 A-
16 A-
15 B+
14 B+
13 B+
12 B
11 B
10 B-
9 C+
8 C
7 C-
6 D+
5 D
4 D-
3 F
2 F
1 F
Course Outline and Reading List
1. Introduction – HM Chapter 1 2. The Pure Theory of International Trade
a. Tools of Analysis – General Equilibrium for a Closed Economy – HM Chapter 2 (stop at the section titled National Supply and Demand and omit the Appendix)
b. Classical/Ricardian Model – HM Chapter 3 (omit Appendices) c. The Heckshcer-Ohlin Model – HM Chapter 4 (omit Appendices) d. The Leontief Paradox and Alternative Theories – HM Chapter 5
3. Tariffs and other barriers to trade a. Gains from Free Trade – HM Chapter 6 b. Introduction to tariffs – HM Chapter 6 c. Effects of a Tariff – HM Chapter 6 d. Export Tariffs – HM Chapter 6 e. Non-tariff barriers – HM Chapter 7 f. Arguments for protection – HM Chapters 6 & 7
4. U.S. Commercial Policy – HM Chapter 8 5. Customs Unions and Free Trade Areas – HM Chapter 9 6. Basics of International Finance
a. Balance of Payments (BOP) and BOP accounting – HM Chapter 11 b. The foreign exchange markets – HM Chapter 12
7. International Monetary Standards – HM Chapter 13 a. The Gold Standard and its collapse b. The Bretton Woods system c. Today’s system d. Choice of exchange rate regimes
8. Floating exchange rates a. Exchange rates in the short run – HM Chapter 14 b. Exchange rates in the long run – HM Chapter 15
9. Balance of Payments Adjustment a. BOP Equilibrium and Adjustment – HM Chapter 11
b. Devaluation – HM Chapter 16 c. Growth and the BOP – HM Chapter 17
Class rules
As you are all adults, I expect that you will act accordingly. In particular:
• Do not fall asleep in class. If you are tired, for whatever reason (late-night studying or late-night partying), do not come to class, but ask one of your classmates to provide you with notes from the lecture that you missed.
• Do not hold conversations with your classmates while I am talking. If you did not understand something that I said, feel free to raise your hand and ask me to repeat the information. I am happy to do so.
• If circumstances require that you arrive late or leave early, please do so with a minimum of fuss. That is to say, choose a seat in the classroom close to the door such that you do not have to cross in front of the entire class in order to enter or to leave.
• If you are bored out of your mind and cannot but help texting, reading a newspaper, or doing anything else similar, make sure I can’t figure out that you are not paying attention.
Academic Integrity
Students in this course will be expected to comply with the University of Pittsburgh's Policy on Academic Integrity. Any student suspected of violating this obligation for any reason during the semester will be required to participate in the procedural process, initiated at the instructor level, as outlined in the University Guidelines on Academic Integrity. This may include, but is not limited to, the confiscation of the examination of any individual suspected of violating University Policy. Furthermore, no student may bring any unauthorized materials to an exam, including dictionaries and programmable calculators.
Students with disabilities
If you have a disability that requires special testing accommodations or other classroom modifications, you need to notify both the instructor and Disability Resources and Services no later than the second week of the term. You may be asked to provide documentation of your disability to determine the appropriateness of accommodations. To notify Disability Resources and Services, call (412) 648-7890 (Voice or TTD) to schedule an appointment. The Disability Resources and Services office is located in 140 William Pitt Union on the Oakland campus.
Statement on Classroom Recording
To ensure the free and open discussion of ideas, students may not record classroom lectures, discussion and/or activities without the advance written permission of the instructor, and any such recording properly approved in advance can be used solely for the student’s own private use. Almost surely, if you ask to record a lecture because you sincerely believe that it will help you, I will give you permission, provided that you promise not to post the recording or distribute the recording by other means. I only ask that you follow the University policy and ask me in writing.
1
University of Pittsburgh Department of Economics
CRN: 17485 and 17486
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected] Class meets Tuesdays and Thursdays at 4900 Posvar Hall: CRN 17485 2:30-3:45pm CRN 17486 4:00-5:15 pm Office hours Tuesdays 1:00 -2:30 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail.
Out-of-classroom communication
E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. Upon completion of this course students will be able to:
• Compare alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how a foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies
in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Analyze international investment, banking, debt, and risk • Explain financial crises in emerging economies, their causes and
solutions At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options.
Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required text: International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868 (hardcopy, US edition). The e-version of the text is available through CourseSmart website, ISBN: 978-0-13-276954-9. Recommended sources:
• The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by Pearson Education, copyright 2010, 978-0321-613325
• Course website: www.aw-bc.com/husted_melvin • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• The Economist.com Edition, the Wall Street Journal Edition, and the Financial Times Edition.
It is your responsibility to read the text carefully and to do all homework assignments. I will reserve a Study Guide in the Hillman Library. Please feel free to use it while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities
Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office (216 William Pitt Union, 412-624-7890) will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site.
Course Requirements Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. Exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. After each exam, I post answer keys, students scores, and exam statistics (i.e. class average, class highest, and class lowest scores) on the Courseweb. Assignments Homework assignments are on-line assignments available on the Courseweb (http://courseweb.pitt.edu), with the deadlines reported in the Course Calendar below. Assignments are not accessible after the date due. Please print and go over each assignment prior to the exams: you will find it very helpful. You are encouraged to study in groups. It will make your studies more productive and fun. If you work on the assignment in a team, please inform me about it.
Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Interpretation of plagiarism may be found in Appendix A of the School’s Handbook of Academic Policies and Procedures.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I take attendance simultaneously. There is no curving. Your course grade is computed with the following weights:
I compute student’s course grade by incorporating scores earned on exams, and homework assignments weighted as indicated above. A student fails the class if a so determined course score is below 60%. The rest are graded based on the following scale:
Exam#1 Overview (Ch1-5) Assignment #1 (Ch 1-5) is due 2:30 pm. Exam # 1
Feb 19 Feb 21
Tariffs
Feb 26 Feb 28
Non-tariff Barriers
Mar 5 Mar 7
Commercial Policy Preferential Trade Arrangements
Spring Break
Mar 19 Mar 21
International Trade and Economic Growth
Mar 26 Mar 28
Exam#2 Overview (Ch 6-10) Assignment #2 (Ch 6-10) is due 2:30 pm. Exam #2
Apr 2 Apr 4
The Balance of Payment The Foreign Exchange Market
Apr 9 Apr 11
Alternative International Money Standards Interest Rates and Exchange Rates
Apr 16 Apr 18
Prices and Exchange Rates. Purchasing Power Parity. Exam#3 Overview Assignment #3 (Ch 11-15) is due 2:30 pm. Exam # 3
University of Pittsburgh
Department of Economics CRN 21611
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected] Class meets Mondays and Wednesdays 3:00 – 4:15 pm at the Cathedral of Learning 342. Office hours Mondays and Wednesdays 2:00-2:45 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail. Out-of-classroom communication E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, and keep it under the quota.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. 2/3 of the course is dedicated to international trade, and 1/3 – to international finance theories. Upon completion of this course students will be able to:
• Know alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies in
response to changes in the world economy and macroeconomic policies • Compare the exchange rate regimes and international monetary standards • Explain financial crises in emerging economies, their causes and solutions
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options.
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required:
• International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868.
Recommended: • The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by
Pearson Education, copyright 2010, ISBN: 978-0321-613325 • Course website: www.aw-bc.com/husted_melvin • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• Trade and Globalization: An Introduction to Regional Trade Agreements by David Lynch, Rowman and Littefield Publishers, ISBN: 978-0-7425-6689-7.
The textbook is available in the bookstore and you should purchase it immediately. It is your responsibility to read the text carefully and to do all homework assignments. I have several earlier editions Study Guides in my office and can lend them to you. Please feel free to use them while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site. Exams
Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. All exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary as soon as possible of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. Assignments All homework assignments are on-line assignments available on the Courseweb. Please make sure to print and go over each assignment prior to exam: you will find it very helpful. On average, you will have four weeks to complete a set of assignments. Do not postpone it to the date due. Late assignments are not accepted. You are encouraged to study in groups. It will make your studies productive and fun. If you work on a homework assignment in a group, please inform me about it. Each student is required to submit homework assignment on-line individually. Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Definition of plagiarism can be found on the University website. Help The material of the course is highly cumulative. If you do not understand something, please seek help immediately. You are welcome to come to my office and discuss problems you face with the material presented.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin. There will be no curving. Your course grade will be computed with the following weights:
After each exam, the students’ scores and exam statistics (i.e. class average, class highest, and class lowest scores) will be posted on the Courseweb. The course letter grade will be determined as follows. After the final exam I will compute course scores incorporating scores earned on exams and group assignments weighted as
4
indicated above. A student fails the class if a so determined course score is below 60. The rest will be graded based on the following scale:
90-100 A range 80-89 B range 70-79 C range 60-69 D range
Course Calendar* Week Date Lecture
Week 1 Aug 26 Aug 28
An Introduction to International Trade.
Week 2 Sept 2 Sept 4
Labor day (University closed) Tools of Analysis for International Trade Models
Week 3 Sept 9 Sept 11
The Classic Model of International Trade
Week 4 Sept 16 Sept 18
The Heckscher-Ohlin Model
Week 5 Sept 23 Sept 25
Empirical Tests of Trade Models Alternative Theories of IT
Week 6 Sept 30 Oct 2
Assignments Ch1-5 are due 3:00 pm. Ch1-5 overview Exam #1
Week 7 Oct 7 Oct 9
Tariffs
Week 8 Oct 14 Oct 15 Oct 16
Fall Break (Monday classes meet Tuesday) Non-tariff Barriers Arguments for Protection
Week 9 Oct 21 Oct 23
US Commercial Policy Preferential Trade Arrangements
Week 10 Oct 28 Oct 30
International Trade and Economic Growth
Week 11 Nov 4 Nov 6
Assignments Ch6-10 are due 3:00 pm. Ch 6-10 overview Exam #2
Week 12 Nov 11 Nov 13
The Balance of Payments Foreign Exchange Market
Week 12 Nov 18 Nov 20
International Monetary Systems
Week 13 Nov 25 Nov 27
Exchange Rates in a Short Run Thanksgiving Recess
Week 14 Dec 2 Dec 4
Exchange Rates in a Long Run Assignments Ch11-16 are due 3:00 pm. IF section overview
Week of finals
Tue, Dec 10 4:00 – 5:50pm Exam #3 Room - TBA
* Any changes to the course calendar will be posted on the CourseWeb.
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
Office: 4521 W. W. Posvar Hall Office Tel: 412-648-7039 E-mail: [email protected]
Office Hours: Monday & Wednesday 3:00pm–4:00pm (Or by appointment which must be scheduled at least a day in advance via e-mail.)
Prerequisites:
• Macroeconomic and Microeconomic Principles (Econ0100 and Econ0110) • Competence in Basic algebra and Geometry (and Introductory Calculus) Course Materials: 1. Slides and Practice Problem Sets (They will be available online at CourseWeb) CourseWeb: http://courseweb.pitt.edu/ 2. Required Text: “International Economics” by Husted/Melvin, 9th ed., published by Pearson Education, ISBN 978-0321783868. Suggested Reading: “Globalizing Capital: A History of the International Monetary System” by Barry Eichengreen, 2th ed., Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1. “The Dominance of the Dollar and Its Sustainability in the International Monetary System” by Tekin Kose (M.S. Thesis, METU 2008). Available at: http://etd.lib.metu.edu.tr/upload/12609605/index.pdf The Economist.com Edition, the Wall Street Journal Edition, and the Financial Times Edition. Levitt and Dubner, “Freakonomics [Revised and Expanded]: A Rogue Economist Explores the Hidden Side of Everything,” New York: HarperCollins Publishers, 2006. Course Objectives: This is an undergraduate course to introduce concepts of
International Trade and International Finance. The aim of this course is to introduce the student to the tools economists use to analyze the economic issues (such as trade, international factor movements, current account imbalances, exchange rate volatility) resulting from the interaction of a country with rest of the world in international markets. The nature and method of decision-making agents (i.e. consumers, producers, and governments) in international markets will be analyzed.
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
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After a successful finishing of the course, the student should be able to 1) Define and explain the basic concepts in International Economics; • Analyze and compare alternative theories of international trade • Evaluate the impacts, efficiency and validity of protectionist policies • Analyze the nation’s balance of payment • Understand how a foreign exchange market operates in response to changes in the world economy and macroeconomic policies • Compare different exchange rate regimes and international monetary standards • Analyze international investment, banking, debt, and risk • Understand financial crises in emerging economies, their causes and solutions 2) Analyze real-life international economic situations using the tools introduced in the
course. 3) Develop a better understanding of the role of International Economics in operation
of the global society. 4) Form an idea about the interaction of International Economics with other
disciplines such as (but not limited to) International Relations, Political Science, Sociology.
Course Requirements & Grading: Pop-Quizzes (6, Lowest grade to be dropped)……20x5=100 Term Project……………………………………….….............150 Exam 1….……………………………………………...............250 Exam 2……………………………………………………….......250 Exam 3………………………………………………….............250 Total……………………………………………….… ………….1000 EXAMS ARE CLOSED BOOK AND NON-CUMULATIVE: You may need a calculator. Exams consist of multiple choice problems. Quizzes may have any type of question.
Grading Scale: 900-1000 A Range 775-899 B Range 650-774 C Range 526-649 D Range < 525 F Your quiz, exam, and project grades will be posted on Courseweb. After your grades have been posted, you have 5 days to request a correction. Otherwise, your grade will remain unchanged.
Academic Integrity: Students are expected to adhere to the University’s Academic Integrity Policy in this class. For example, if you are caught cheating on any of the exams, you will receive a score of zero on that exam. For further details, refer to the Academic Integrity Code of the
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
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Special Considerations:
If you need special accommodations due to disability, please notify the instructor and the Office of Disability Resources and Services (DRS) no later than the end of the first week of the term. DRS is located at 216 William Pitt Union (412-648-7890). DRS are available for students who have or may request an accommodation for a disability (see
http://www.drs.pitt.edu/services.html for details).
Feedback: Please feel free to provide feedback so that I can improve on my teaching you.
This includes not only style (speed, clarity, presentation) but in particular content; e.g. if
you think that we are not doing enough exercises, examples or you think one topic was not
presented properly, etc. I am happy to receive and accommodate feedback. Feedback can
be provided verbally (after class time, during office hours) or written (email, note). Of
course, you should also tell about the things you like in the course so that we keep doing
them. Occasionally, I may ask you to write down an anonymous comment at the end of
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
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6 Sept 30
Oct 2
Non-tariff Barriers
EXAM 1-Class Time
Ch 7
7 Oct 7
Oct 9
Commercial Policy Preferential Trade Arrangements
Ch 8
Ch 9
8 Oct 14
Oct 15
Oct 16
Fall Break (Monday classes meet Tuesday)
International Trade and Economic Growth
The Balance of Payments
Ch 10
Ch11
9 Oct 21
Oct 23
The Foreign Exchange Market
Ch 12
10 Oct 28
Oct 30
Open Economy Macroeconomics Ch 17
11 Nov 4
Nov 6
EXAM 2-Class Time
Exchange Rates in the Short Run
Ch 14
12 Nov 11
Nov 13
Exchange Rates in the Long Run Ch 15
13 Nov 18
Nov 20
International Investment, Banking and Risk
Ch 18
14 Nov 25
Nov 27
International Monetary Systems
Thanksgiving Recess
Ch 13
15 Dec 2
Dec 4
Dec 6
Review Session
EXAM 3-Class Time
Project Submission Deadline
Dec 11 Grades Announced on Courseweb
Term Project Guidelines: In this project you will be using the tools and concepts of International Economics to analyze the data of a country.
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
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Due on December 6, Friday - 5.00 pm via email.
Late submissions are accepted with a discount on your grade until Dec 7, 11.59pm. Projects received between Dec 6, 5.01 pm-11.59 pm are graded out of 100 pts. Projects received between Dec 7, 12.00 pm-5.00 pm are graded out of 50 pts. Projects received between Dec 7, 5.01 pm-11.59 pm are graded out of 25 pts.. You can choose to work independently or as a team (with at most 2 members).
Choose a country (not the U.S.) to study.
Briefly describe your country in terms of geographical location, population, size of GDP, natural resources and per capita income.
You can use World Bank to choose your country and get the initial data.
http://data.worldbank.org/
Go to “World Development Indicators” data set of World Bank.
http://data.worldbank.org/indicator Find “Net barter terms of trade index (2000 = 100)” for your country in the latest 10 available years. Graph the data and interpret it. Is this country having improvements in TOT?
Indicate major exporting and importing sectors in your selected country. Discuss your finding by referring to comparative advantage theory. (You should cite valid data and/or academic article resources if you used any here).
Does your country have any tariff and quota system? Briefly describe and explain.
(You should cite valid resources if you used any here).
Go to “World Development Indicators” data set of World Bank.
Find “Current Account Balance (BoP, current US$)” data for your country in the latest 10 available years. Graph the data and interpret it. Is this country having surplus or deficit in current account?
Find “External debt stocks, total (DOD, current US$)” data for your country in the latest 10 available years. Compare data of your country with another country. Is your country has more external debt than the other one you selected? Graph the data and interpret the sharp changes in it, if there is any.
Find “Foreign direct investment, net inflows (BoP, current US$)” data for your country in the latest 10 available years. Compare data of your country with another country. Graph the data and interpret it. Is your country capable of attracting more FDI than the other country you selected?
What type of exchange rate regime is your country following? Fixed? Floating?
Managed Float? (You should cite valid resources if you used any here).
Find data (daily, monthly) for your country’s nominal exchange rate in terms of the U.S. dollar. Is your country’s currency appreciating or depreciating? If you use daily data, data for 30 days would be enough. If you use monthly data, data for 2 years (24 months) would be fine. You are free to use any resource to gather the data as long as you have valid references.
Before sending your project via email, check the followings: Your work should be in Microsoft Word format. This project, including references, should be at most 5000 words. (No other
restrictions on font, paragraphing, etc.). You should name your document as follows:
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
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FAQs and Answers:
If you have any questions, please check the below list first. Then, feel free to contact me with your further questions. 1. I have a time conflict and cannot make it to your office hour, what should I do if I want to ask questions outside the classroom? You can always talk to me after the classes. It is also fine for me to meet with you in an arranged appointment. Please email me for the intended date and time to meet. You can also email me with your questions, and I will get back to you as soon as possible. For any kind of difficulty you face with in the course process, it is your responsibility to contact me and it is my responsibility to help you. 2. What will be the format of the tests and quizzes? There will be multiple-choice exams. Multiple choices, true/false questions, and problems may appear in pop-quizzes. The exams are in closed-book format. 3. Are there any make-up tests? For the exams, you will be given a make-up exam only if you notify me prior to the exam and present a certificate from doctor indicating that you were physically unable to attend the exam. In order to schedule a makeup exam, you must submit the proof of your excuse together with the Missed Exam Form available at the end of this document. There will be only one make up exam which will be a comprehensive one and held during the finals week. 4. Are the exams comprehensive? The exams are not comprehensive, but since economics is an integrated discipline, to do well in the exams you should not forget the basic materials you have learned before. As we move on in the course, you will notice that chapters build up on the knowledge of earlier chapters. This means you need to seek help early if you need it. You are welcome to come to my office for theoretical material help. 6. If I have to miss a class when there is a pop-quiz, is there any way I can have a make up for it? No. There are no make up for pop-quizzes. 7. Are there any pre-requisite of this course? Although this is an introductory course, so there are special pre-requisites. You should
have knowledge of both Introductory Microeconomics and Introductory Macroeconomics.
Moreover, since we will be using graphs heavily in our course, competence in basic algebra
and geometry (graphing, linear equations and slopes of linear curves) would help. You may
need to use first order differentiation which is taught in Introductory Calculus classes.
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
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8. Can you tell me a bit about the format of your teaching? I will teach in accordance with the outline of the textbook, but may not follow it strictly. I will use PowerPoint slides and I may also teach in the more traditional way – using chalks and board when necessary. You are encouraged to stop me anytime if you have questions or anything is not making sense to you. 12. What is your attendance policy? I do not intend to set any attendance policy. It is in your benefit to attend all the lectures in order to do well in the course. If you miss class, you are responsible for all lecture material, handouts and announcements made. I would strongly recommend you attend the lectures. However, if you can manage the class work (homework, exams, etc.) without attending, there is no problem. Note that, in my previous classes, the students with high attendance rates got significantly higher grades than those who did not attend regularly. 13. Is there any cell-phone policy? Yes. When your phone rings or when you talk over the phone in class, you impose some externality on your classmates and me, and this creates inefficiency. So, there should be no talking over the phone while you are in the classroom. Set your phone to silent mode and if it rings (silently!), leave the room and come back when you are finished. Moreover, I do like everyone to feel comfortable in class while maintaining a learning environment. A set of rules will be compiled in class as follows:
Text messaging is NOT RECOMMENDED in class.
Using laptops are also NOT RECOMMENDED.
If you wish to ask a question during class, raise your hand and I will call on you.
Insightful comments, questions and class participation are appreciated, and maybe rewarded.
14. What should I do in order to get a good grade from this course?
You are strongly encouraged to read the textbook carefully and do all practice problem sets. It is the student’s responsibility to check the course’s website for course documents and email announcements. Here is a list of things TO DO:
Attend class regularly. Excessive absences tend to result in a low grade.
Expect to spend at some hours in preparing for this course.
Read the corresponding chapters before class.
Write down questions that come up while reading the chapters and discuss them with me during my office hours. By reviewing the material with others
much learning may be gained. Consider forming study groups with other class members.
Work through the practice problem sets and exercise in the book in preparation for the exams. You may use some online resources to solve more problems such as website of your textbook.
University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose
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Missed Exam Form
Fall Term 2141
Name ______________________________________________
Date of Missed Exam___________________________________
Reason for Request (please explain)
________illness
________family emergency
________other
Please attach the appropriate supporting documentation to this form
and submit it in person to Instructor Tekin Kose within 7 calendar
days of the scheduled exam.
Student’s signature Date
1
University of Pittsburgh Department of Economics
CRN: 25609 and 17032
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. TA: Zeynep Kabukcuoglu Office: 4703 Posvar Hall Office: Posvar 4923 Tel: 412-383-8155 Tel.: Fax: 412-648-1793 E-mail: [email protected] E-mail: [email protected] Class meets Tuesdays and Thursdays: CRN 25609 1:00-2:15 pm at CL216 CRN 17032 2:30-3:45 pm at CL363 Office hours Tuesdays 12:00 -1:00 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail.
Out-of-classroom communication
E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. Upon completion of this course students will be able to:
• Compare alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how a foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies
in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Analyze international investment, banking, debt, and risk • Explain financial crises in emerging economies, their causes and
solutions At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options.
Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required text: International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868 (hardcopy, US edition). The e-version of the text is available through CourseSmart website, ISBN: 978-0-13-276954-9. Recommended sources:
• The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by Pearson Education, copyright 2010, 978-0321-613325
• Course website: www.aw-bc.com/husted_melvin • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• The Economist.com Edition, the Wall Street Journal Edition, and the Financial Times Edition.
It is your responsibility to read the text carefully and to do all homework assignments. I will reserve a Study Guide in the Hillman Library. Please feel free to use it while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities
Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office (216 William Pitt Union, 412-624-7890) will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site.
Course Requirements Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. Exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. After each exam, I post answer keys, students scores, and exam statistics (i.e. class average, class highest, and class lowest scores) on the Courseweb. Assignments Homework assignments are on-line assignments available on the Courseweb (http://courseweb.pitt.edu), with the deadlines reported in the Course Calendar below. Assignments are not accessible after the date due. Please print and go over each assignment prior to the exams: you will find it very helpful. You are encouraged to study in groups. It will make your studies more productive and fun. If you work on the assignment in a team, please inform me about it.
Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Interpretation of plagiarism may be found in Appendix A of the School’s Handbook of Academic Policies and Procedures.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I take attendance simultaneously. There is no curving. Your course grade is computed with the following weights:
I compute student’s course grade by incorporating scores earned on exams, and homework assignments weighted as indicated above. A student fails the class if a so determined course score is below 60%. The rest are graded based on the following scale:
Exam#1 Overview (Ch1-5) Assignment #1 (Ch 1-5) is due 1:00pm. Exam # 1
Feb 18 Feb 20
Tariffs
Feb 25 Feb 27
Non-tariff Barriers
Mar 4 Mar 6
Commercial Policy Preferential Trade Arrangements
Spring Break
Mar 18 Mar 20
International Trade and Economic Growth
Mar 25 Mar 27
Exam#2 Overview (Ch 6-10) Assignment #2 (Ch 6-10) is due 1:00 pm. Please evaluate my teaching online with OMET survey! Exam #2
Apr 1 Apr 3
The Balance of Payment The Foreign Exchange Market
Apr 8 Apr 10
Alternative International Money Standards Interest Rates and Exchange Rates
Apr 15 Apr 17
Prices and Exchange Rates. Purchasing Power Parity. Exam#3 Overview Assignment #3 (Ch 11-15) is due 1:00 pm. Exam # 3
Econ 0500: Introduction to International Economics Summer 2014: M/W 8:30-11:45 WWPH 4716
Instructor: Ray Miller Office: Posvar 4923 Office Hours: M/W after class or by appointment Email: [email protected] Objective: This course introduces undergraduate students to the theory of International Economics and its application to the real world. 2/3 of the course is dedicated to international trade, and 1/3 – to international finance theories. Upon completion of this course students will be able to:
• Know alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies in response to
changes in the world economy and macroeconomic policies • Compare the exchange rate regimes and international monetary standards
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options. Text:
• Husted and Melvin, International Economics, Pearson Education, 9th edition, 2013. • Website: www.aw-bc.com/husted_melvin
Prerequisites:
• Principles of Microeconomics and Macroeconomics • Competence in basic algebra and geometry
Homework:
• Weekly homework assignments will be posted on CourseWeb and are due by Monday at 8:30 am. Late assignments will receive a zero.
Grading:
• Homework (25%), In-class Midterm Exam (35%), Final Exam (40%) • Attendance is required but not graded. Remember: missing classes will seriously
compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin.
University Policy: This class will adhere to the university’s Academic Integrity Policy. See the
University of Pittsburgh’s Undergraduate Bulletin or the Guidelines on Academic Integrity, Student and Faculty Obligations, and Hearing Procedures at www.pitt.edu/~provost/ai1.html for full details. The Office of Disability Resources and Services, 140 William Pitt Union (412)-624-7890 is available for students who have or may request an accommodation for a disability. If needed, please contact the office as early as possible in the term.
Tentative Course Schedule: Week Date Topic Reading
1 June 23 Intro to Int’l Trade / Tools of Analysis Ch. 1-2 1 June 25 Classic Model of Int’l Trade / Heckscher-Ohlin Model Ch. 3-4 2 June 30 Empirical Tests of Trade Models / Alt Theories of IT Ch. 5 2 July 2 Tariffs / Non-Tariff Barriers Ch. 6-7 3 July 7 Commercial Policy / Review Ch. 8 3 July 9 Midterm Exam 4 July 14 Preferential Trade Arrangements / IT and Growth Ch. 9-10 4 July 16 Balance of Payments / Foreign Exchange Market Ch. 11-12 5 July 21 Int’l Monetary Systems Ch. 13 5 July 23 Exchange Rates in Short Run / Long Run Ch. 14-15 6 July 28 Theories of Current Account / Review Ch. 16 6 July 30 Final Exam
University of Pittsburgh Department of Economics
CRN 10890 and 20720
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected] Class meets Tuesdays and Thursdays at Posvar Hall 4900:
Office hours Tuesdays and Thursdays 2:00-3:45 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail. Out-of-classroom communication E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, and keep it under the quota.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. 2/3 of the course is dedicated to international trade, and 1/3 – to international finance theories. Upon completion of this course students will be able to:
• Know alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies in
response to changes in the world economy and macroeconomic policies • Compare the exchange rate regimes and international monetary standards • Explain financial crises in emerging economies, their causes and solutions
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options. Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required:
• International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868.
Recommended: • The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by
Pearson Education, copyright 2010, ISBN: 978-0321-613325 • Course website: www.aw-bc.com/husted_melvin • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• Trade and Globalization: An Introduction to Regional Trade Agreements by David Lynch, Rowman and Littefield Publishers, ISBN: 978-0-7425-6689-7.
The textbook is available in the bookstore and you should purchase it immediately. It is your responsibility to read the text carefully and to do all homework assignments. I have several earlier editions Study Guides in my office and can lend them to you. Please feel free to use them while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site.
Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. All exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary as soon as possible of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. Assignments All homework assignments are on-line assignments available on the Courseweb. Please make sure to print and go over each assignment prior to exam: you will find it very helpful. On average, you will have four weeks to complete a set of assignments. Do not postpone it to the date due. Late assignments are not accepted. You are encouraged to study in groups. It will make your studies productive and fun. If you work on a homework assignment in a group, please inform me about it. Each student is required to submit homework assignment on-line individually. Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Definition of plagiarism can be found on the University website. Help The material of the course is highly cumulative. If you do not understand something, please seek help immediately. You are welcome to come to my office and discuss problems you face with the material presented.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin. There will be no curving. Your course grade will be computed with the following weights:
After each exam, the students’ scores and exam statistics (i.e. class average, class highest, and class lowest scores) will be posted on the Courseweb.
4
The course letter grade will be determined as follows. After the final exam I will compute course scores incorporating scores earned on exams and group assignments weighted as indicated above. A student fails the class if a so determined course score is below 60. The rest will be graded based on the following scale:
90-100 A range 80-89 B range 70-79 C range 60-69 D range
Course Calendar* Week Date Lecture
Week 1 Aug 26 Aug 28
An Introduction to International Trade.
Week 2 Sept 2 Sept 4
Tools of Analysis for International Trade Models
Week 3 Sept 9 Sept 11
The Classic Model of International Trade
Week 4 Sept 16 Sept 18
The Heckscher-Ohlin Model
Week 5 Sept 23 Sept 25
Empirical Tests of Trade Models Alternative Theories of IT
Week 6 Sept 30 Oct 2
Assignments Ch1-5 are due 11am. Ch1-5 overview Exam #1
Week 7 Oct 7 Oct 9
Tariffs
Week 8 Oct 14 Oct 16
No class Non-tariff Barriers
Week 9 Oct 21 Oct 23
Arguments for Protection US Commercial Policy
Week 10 Oct 28 Oct 30
Preferential Trade Arrangements International Trade and Economic Growth
Week 11 Nov 4 Nov 6
Assignments Ch6-10 are due 3:00 pm. Ch 6-10 overview Exam #2
Week 12 Nov 11 Nov 13
The Balance of Payments Foreign Exchange Market
Week 12 Nov 18 Nov 20
International Monetary Systems
Week 13 Nov 25 Nov 27
Exchange Rates in a Short Run Thanksgiving Recess
Week 14 Dec 2 Dec 4
Exchange Rates in a Long Run Assignments Ch11-16 are due 3:00 pm. IF section overview
Week of finals
Section 1 (CRN20720 ) - Exam#3 is Wed, Dec 10 10:00 – 11:50am Section 2 (CRN 10890)** - Exam#3 is Sat Dec 13 10:00-11:50am
* Any changes to the course calendar will be posted on the CourseWeb. ** I am working on the possibility to reschedule it. All updates will be posted.
Assignments: There will be a short assignment each week to be completed on the courseweb. The
assignments will be activated after lecture on Thursday and are due the following Wednesday.
Because I will post the answers to courseweb as soon as the duedate has passed, late assignments
will not be accepted.
Quizzes: There will be weekly short quizzes in class. The quiz may be on either Tuesday or
Thursday.
Tests and Exams: There will be three tests. The tests will consist of multiple choice and short
answer questions. They will not be cumulative except to the extent that the material is cumulative.
Tests will be during scheduled lecture times.
Life Happens: There are dozens of you in this class. The odds are that one (or more) of you will
break up with your significant other, catch a stomach virus, attend a funeral, or get stuck on the
Parkway because of an accident. Or any one of a number of other unexpected events may occur that
prevent you from completing your work on time. I understand, but, I don’t want to waste your time
or mine verifying your excuses. So, everyone gets one unexpected event per semester – I will count
only 10 of your 11 homework assignments and 10 of the quizzes. Makeup tests, however, will only
be given if you provide verification of illness from a healthcare provider.
Grading: Your grade will be computed as follows:
Assignments 20%
Test 1 30%
Test 2 20%
Test 3 20%
Quizzes 10%
And no, there is nothing else that you can do after a poor performance on an assessment to improve
your grade: no extra credits, no retakes.
Seeking help: The material in this course is highly cumulative. Therefore, if you don’t understand
something, seek help from me immediately!
Academic Integrity: Students are expected to abide by the University’s policy on academic
integrity. Students are expected to complete their homework assignments independently. Cheating
of any kind will result in a failing grade for the course.
Accommodations for students with disabilities: If you have a disability for which you are or may
be requesting an accommodation, you are encouraged to contact both your instructor and Disability
Resources and Services, 216 William Pitt Union, 412-648-7890 or 412-383-7355 (TTY) as early as
possible in the term.
ECON 0200 Spring 2015
Schedule
Date Topic Homework Reading
Jan 6 Lecture #1: Introduction – the world economy Chapter 1
Jan 8 Lecture #2: Global trade patterns
Jan 13 Lecture #3: Absolute and comparative advantage HW #1 due Chapter 2
Jan 15 Lecture #4: Gains from trade
Jan 20 Lecture #5: Classical model part I HW #2 due Chapter 3
Jan 22 Lecture #6: Classical model part II
Jan 27 Lecture #7: Heckscher-Ohlin model part I HW #3 due Chapter 4
Jan 29 Lecture #8: Heckscher-Ohlin model part II
Feb 3 Lecture #9: Tests of classical and H-O models HW #4 due Chapter 5
Feb 5 Lecture #10: other models of trade
Feb 10 Review HW #5 due
Feb 12 Test #1
Feb 17 Lecture #11: Tariffs part I Chapter 6
Feb 19 Lecture #12: Tariffs part II
Feb 24 Lecture #13: Non-tariff barriers HW #6 due Chapter 7
Feb 26 Lecture #14: Arguments for protection
Mar 3 Lecture #15: US Commercial Policy HW #7 due Chapter 8
Mar 5 Lecture #16: Preferential Trade Arrangements Chapter 9
Spring Break
Mar 17 Lecture #17: International Trade and Economic Growth HW #8 due Chapter 10
Mar 19 Review
Mar 24 Test #2
Mar 26 Lecture #18: Balance of Payments
Mar 31 Lecture #19: Foreign Exchange Markets HW #9 due Chapter 11
Apr 2 Lecture #20: International Monetary Systems Chapter 12
Apr 7 Lecture #21: Exchange Rates in the Short-Run HW #10 due Chapter 13
Apr 9 Lecture #22: Exchange Rates in the Long-Run Chapter 14
Apr 14 Review HW #11 due
Apr 16 Test #3
1
University of Pittsburgh Department of Economics
CRN 16701
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected] Class meets Tuesdays and Thursdays 2:30-3:45 pm at the CL G13. Office hours Mondays 3-5 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail.
Out-of-classroom communication
E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. Upon completion of this course students will be able to:
• Compare alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how a foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies
in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Analyze international investment, banking, debt, and risk • Explain financial crises in emerging economies, their causes and
solutions At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options.
Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required text: International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868 (hardcopy, US edition). The e-version of the text is available through CourseSmart website, ISBN: 978-0-13-276954-9. Recommended sources:
• The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by Pearson Education, copyright 2010, 978-0321-613325
• Course website: www.aw-bc.com/husted_melvin • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• The Economist.com Edition, the Wall Street Journal Edition, and the Financial Times Edition.
It is your responsibility to read the text carefully and to do all homework assignments. I will reserve a Study Guide in the Hillman Library. Please feel free to use it while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities
Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office (216 William Pitt Union, 412-624-7890) will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site.
Course Requirements Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. Exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. After each exam, I post answer keys, students scores, and exam statistics (i.e. class average, class highest, and class lowest scores) on the Courseweb. Assignments Homework assignments are on-line assignments available on the Courseweb (http://courseweb.pitt.edu), with the deadlines reported in the Course Calendar below. Assignments are not accessible after the date due. Please print and go over each assignment prior to the exams: you will find it very helpful. You are encouraged to study in groups. It will make your studies more productive and fun. If you work on the assignment in a team, please inform me about it.
Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Interpretation of plagiarism may be found in Appendix A of the School’s Handbook of Academic Policies and Procedures.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I take attendance simultaneously. There is no curving. Your course grade is computed with the following weights:
I compute student’s course grade by incorporating scores earned on exams, and homework assignments weighted as indicated above. A student fails the class if a so determined course score is below 60%. The rest are graded based on the following scale:
Exam#1 Overview (Ch1-5) Assignment #1 (Ch 1-5) is due 2:30pm. Exam # 1
Feb 17 Feb 29
Tariffs
Feb 24 Feb 26
Non-tariff Barriers
Mar 3 Mar 5
Commercial Policy Preferential Trade Arrangements
Spring Break
Mar 17 Mar 19
International Trade and Economic Growth
Mar 24 Mar 26
Exam#2 Overview (Ch 6-10) Assignment #2 (Ch 6-10) is due 2:30 pm. Exam #2 Please evaluate my teaching online with OMET survey!
Mar 31 Apr 2
The Balance of Payment The Foreign Exchange Market
Apr 7 Apr 9
Alternative International Money Standards Interest Rates and Exchange Rates
Apr 14 Apr 16
Prices and Exchange Rates. Purchasing Power Parity. Exam#3 Overview Assignment #3 (Ch 11-15) is due 2:30pm. Exam # 3
Department of Economics University of Pittsburgh
Pittsburgh, PA 15260
INTRODUCTION TO INTERNATIONAL ECONOMICS FALL 2015
Tuesdays & Thursdays 11:00 am – 12:15 pm 3415 Posvar Hall
Course Number: ECON 0500 - 27947 Instructor: Douglas Harding, MBA, MA Economics Office: 2214 Sennott Square (College of Business Administration) Email: [email protected] Office Hours: Tuesdays & Thursdays 3:00 – 6:00 PM and by appointment Required Text:
• International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868.
The textbook is available in the bookstore and you should purchase it immediately. It is your responsibility to read the text carefully and to do all homework assignments. Additional reading material will be posted in the Courseweb as we progress during the semester.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. 2/3 of the course is dedicated to international trade, and 1/3 – to international finance theories. Upon completion of this course students will be able to:
• Know alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies in
response to changes in the world economy and macroeconomic policies • Compare the exchange rate regimes and international monetary standards • Explain financial crises in emerging economies, their causes and solutions
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options. Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site. Tests Dates of the tests are contained in the detailed plan of the course below. Tests include multiple choice questions, and a problem solving section. All tests are not cumulative. I do not offer make-up tests, with one exception: if you notify me or the department secretary as soon as possible of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the test. Assignments All homework assignments and exercises are available on the Courseweb for discussion and submission in class. Please make sure to print and go over each assignment prior to exam: you will find it very helpful. On average, you will have four weeks to complete a set of assignments. Do not postpone it to the date due. Late assignments are not accepted. You are encouraged to study in groups. It will make your studies productive and fun. If you work on a homework assignment in a group, please inform me about it. Each student is required to submit homework assignment on-line individually. Team Term Project and Presentation The Project topic will be a country case study selected by the team members and approved by the instructor. Topics used in study should provide an understanding of the trade policies and economic & financial conditions of that country. The Term Project Paper should be 8-10 pages in length double spaced, excluding cover and reference pages. Please use 12-point sized and 1-inch margins. The country study should focus on an analysis of a trade issues and risks that affects business, involving original research and a well-developed analysis. The Project should also include an opinion of the economics of that country and whether you would invest or conduct business there, stating your reasons why or why not. Team grades are based on required format, completeness, organization, quality of research, quality of analysis, conclusions based on facts developed in the paper and original thinking.
3
Teams will be formed by mid semester, ideally with individuals that bring different strengths to a team. Teams will present their research report to class on due dates shown. More details of the Team Term Project will be posted in Courseweb. Presentations: The last two sessions will include PowerPoint presentations of the country study from all Teams and all individuals. These presentations should be an overview of the Team or the Individual’s conclusions and significant findings. Each presentation should be no more than 15 minutes in length depending upon class size and the number of presentations scheduled. Presentations will be required to meet the established time guidelines to enable all presentations to be completed within the allotted class time. Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Definition of plagiarism can be found on the University website. Help The material of the course is highly cumulative. If you do not understand something, please seek help immediately. You are welcome to come to my office and discuss problems you face with the material presented.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin. There will be no curving. Your course grade will be computed with the following weights:
• Homework assignments 25 percent • Test 1 25 percent • Test 2 25 percent • Team Term Project and Presentation 25 percent
The course letter grade will be determined as follows. After the final presentation I will compute course scores incorporating scores earned on tests, group assignments and the Team Term Project weighted as indicated above. A student fails the class if a so determined course score is below 60. The rest will be graded based on the following scale:
90-100 A range 80-89 B range 70-79 C range 60-69 D range
The instructor reserves the right to change and/or modify this syllabus at his/her discretion. There are no make-up tests unless there are extraordinary reasons and I am notified prior to the time of the test. There is NO EXTRA CREDIT!
4
Course Calendar*
Date Chapters Lecture Topic
Sep 1 Sep 3
Introduction Chp 1
Introduction to class / syllabus review An Introduction to International Trade
Sept 8 Sept 10
Chp 2 Tools of Analysis for International Trade Models (omit Appendix)
Sept 15 Sept 17
Chp 3 The Classic Model of International Trade (omit Appendices)
Sept 22 Sept 24
Chp 4 The Heckscher-Ohlin Model (omit Appendices)
Sept 29 Oct 1
Assignment 1: Ch 1-4 are due 11 am. Ch 1-4 overview Reading: Competitive Advantage of Nations by Michael Porter Test #1
Oct6 Oct 8
Chp 6 Tariffs
Oct 13 Oct 15
Chp 7 No class Non-tariff Barriers
Oct 20 Oct 22
Chp 8 US Commercial Policy
Oct 27 Oct 29
Chp 9 Chp 10
Preferential Trade Arrangements International Trade and Economic Growth
Nov 3 Nov 5
Assignment 2: Ch 6-10 are due 3 pm. Ch 6-10 overview Test #2
Nov 10 Nov 12
Chp 11 Chp 12
The Balance of Payments Foreign Exchange Market
Nov 17 Nov 19
Chp 13 International Monetary Systems
Nov 24 Nov 26
Chp 14 Exchange Rates in a Short Run Thanksgiving Recess
Dec 1 Dec 3
Chp 15 Chp 18
Exchange Rates in a Long Run International Banking, Debt & Risk
Dec 8 Dec 10
Team Term Project and Presentations (Day 1) Team Term Project and Presentations (Day 2)
Finals Week
No Final Test
* Any changes to the course calendar will be posted on the CourseWeb.
1
University of Pittsburgh Department of Economics
Fall 2015
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. TA: Jialin Hou Office: 4703 Posvar Hall Office: Posvar 4512 Tel: 412-383-8155 Tel.: 1-412-951-3292 Fax: 412-648-1793 E-mail: [email protected] E-mail: [email protected] Class meets Tuesdays and Thursdays at Posvar 4900: CRN 20096 2:30-3:45pm CRN 10861 4:00-5:15pm Office hours Should you have any questions, would like to clarify lecture material, or need help with homework assignments, please contact your TA. Jialin will offer you tutorial help during his office hours regularly during the semester. Jialin’s office hours in the Fall 2015 are: Mon/ Wed 3-5pm, Room 4514. I will hold office hours Tue/Thur 1-2:15 pm. Additional hours are available by appointment and must be scheduled at least a day in advance via e-mail.
Out-of-classroom communication
E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. 2/3 of the course is dedicated to international trade, and 1/3 – to international finance theories. Upon completion of this course students will be able to:
• Know alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements
• Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies
in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Explain financial crises in emerging economies, their causes and solutions
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options. Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required text International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868 (hardcopy, US edition). The e-version of the text is available through CourseSmart website, ISBN: 978-0-13-276954-9. Recommended sources
• The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by Pearson Education, copyright 2010, 978-0321-613325
• Course website: http://wps.prenhall.com/aw_husted_ie_9/ • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• Trade and Globalization: An Introduction to Regional Trade Agreements by David Lynch, Rowman and Littefield Publishers, ISBN: 978-0-7425-6689
It is your responsibility to read the text carefully and to do all homework assignments. I have several earlier editions Study Guides in my office and can lend them to you. Please feel free to use them while working on the homework assignments, or preparing for the tests.
Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site. Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. All exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary as soon as possible of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. Assignments All homework assignments are on-line assignments available on the Courseweb. Please make sure to print and go over each assignment prior to exam: you will find it very helpful. On average, you will have four weeks to complete a set of assignments. Do not postpone it to the date due. Late assignments are not accepted. You are encouraged to study in groups. It will make your studies productive and fun. If you work on a homework assignment in a group, please inform me about it. Each student is required to submit homework assignment on-line individually. Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Definition of plagiarism can be found on the University website.
4
Help The material of the course is highly cumulative. If you do not understand something, please seek help immediately. You are welcome to come to my office and discuss problems you face with the material presented.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin. There will be no curving. Your course grade will be computed with the following weights:
After each exam, I will post the students’ scores and exam statistics (i.e. class average, class highest, and class lowest scores) on the Courseweb. The course letter grade will be determined as follows. After the final exam I will compute course scores incorporating scores earned on exams and group assignments weighted as indicated above. A student fails the class if a so determined course score is below 60. The rest will be graded based on the following scale:
90-100 A range 80-89 B range 70-79 C range 60-69 D range
Course Calendar*
Week Date Lecture
Week 1 Sept 1 Sept 3
An Introduction to International Trade.
Week 2 Sept 8 Sept 10
Tools of Analysis for International Trade Models
Week 3 Sept 15 Sept 17
The Classic Model of International Trade
Week 4 Sept 22 Sept 24
The Heckscher-Ohlin Model
* Any changes to the course calendar will be announced in class and posted on the CourseWeb.
5
Week 5 Sept 29 Oct 1
Empirical Tests of Trade Models Alternative Theories of IT
Week 6 Oct 6 Oct 8
Review session: Ch1-5 Assignments Ch1-5 are due 2:30pm. Exam #1
Week 7 Oct 13 Oct 15
Tariffs
Week 8 Oct 20 Oct 22
No class- fall break Non-tariff Barriers
Week 9 Oct 27 Oct 29
Arguments for Protection US Commercial Policy
Week 10 Nov 3 Nov 5
Preferential Trade Arrangements International Trade and Economic Growth
Week 11 Nov 10 Nov 12
Review Session: Ch 6-10 Assignments Ch6-10 are due 2:30pm. Exam #2
While at home for the Thanksgiving break, please take a moment to fill in my teaching evaluation survey on-line. I care about the quality of teaching at our department, and will appreciate your ratings and feedback. Thank you! Week 13 Dec 1
Dec 3 International Monetary Systems Exchange Rates in a Short Run
Week 14 Dec 8 Dec 10
Exchange Rates in a Long Run Assignments Ch11-15 are due 2:30 pm. IF section review
Week of finals
Section 1 (CRN20096) - Mon Dec 14 12:00 – 1:50pm, Room TBA Section 2 (CRN10861) 1 - Sat Dec 19 12:00-1:50pm, Posvar 4900
1 This is the date of a final scheduled by the Registrar’s office. I will be glad to accommodate students from Section 2 and offer the final on Monday, December 14 together with Section 1. If you prefer the final on Saturday, please inform me of this before December 3. Thank you!
1
University of Pittsburgh Department of Economics
Fall 2015
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. TA: Jialin Hou Office: 4703 Posvar Hall Office: Posvar 4512 Tel: 412-383-8155 Tel.: 1-412-951-3292 Fax: 412-648-1793 E-mail: [email protected] E-mail: [email protected] Class meets Tuesdays and Thursdays at Posvar 4900: CRN 20096 2:30-3:45pm CRN 10861 4:00-5:15pm Office hours Should you have any questions, would like to clarify lecture material, or need help with homework assignments, please contact your TA. Jialin will offer you tutorial help during his office hours regularly during the semester. Jialin’s office hours in the Fall 2015 are: Mon/ Wed 3-5pm, Room 4514. I will hold office hours Tue/Thur 1-2:15 pm. Additional hours are available by appointment and must be scheduled at least a day in advance via e-mail.
Out-of-classroom communication
E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. 2/3 of the course is dedicated to international trade, and 1/3 – to international finance theories. Upon completion of this course students will be able to:
• Know alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements
• Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies
in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Explain financial crises in emerging economies, their causes and solutions
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options. Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required text International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868 (hardcopy, US edition). The e-version of the text is available through CourseSmart website, ISBN: 978-0-13-276954-9. Recommended sources
• The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by Pearson Education, copyright 2010, 978-0321-613325
• Course website: http://wps.prenhall.com/aw_husted_ie_9/ • Globalizing Capital: A History of the International Monetary System by Barry
Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• Trade and Globalization: An Introduction to Regional Trade Agreements by David Lynch, Rowman and Littefield Publishers, ISBN: 978-0-7425-6689
It is your responsibility to read the text carefully and to do all homework assignments. I have several earlier editions Study Guides in my office and can lend them to you. Please feel free to use them while working on the homework assignments, or preparing for the tests.
Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site. Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. All exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary as soon as possible of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. Assignments All homework assignments are on-line assignments available on the Courseweb. Please make sure to print and go over each assignment prior to exam: you will find it very helpful. On average, you will have four weeks to complete a set of assignments. Do not postpone it to the date due. Late assignments are not accepted. You are encouraged to study in groups. It will make your studies productive and fun. If you work on a homework assignment in a group, please inform me about it. Each student is required to submit homework assignment on-line individually. Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Definition of plagiarism can be found on the University website.
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Help The material of the course is highly cumulative. If you do not understand something, please seek help immediately. You are welcome to come to my office and discuss problems you face with the material presented.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin. There will be no curving. Your course grade will be computed with the following weights:
After each exam, I will post the students’ scores and exam statistics (i.e. class average, class highest, and class lowest scores) on the Courseweb. The course letter grade will be determined as follows. After the final exam I will compute course scores incorporating scores earned on exams and group assignments weighted as indicated above. A student fails the class if a so determined course score is below 60. The rest will be graded based on the following scale:
90-100 A range 80-89 B range 70-79 C range 60-69 D range
Course Calendar*
Week Date Lecture
Week 1 Sept 1 Sept 3
An Introduction to International Trade.
Week 2 Sept 8 Sept 10
Tools of Analysis for International Trade Models
Week 3 Sept 15 Sept 17
The Classic Model of International Trade
Week 4 Sept 22 Sept 24
The Heckscher-Ohlin Model
* Any changes to the course calendar will be announced in class and posted on the CourseWeb.
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Week 5 Sept 29 Oct 1
Empirical Tests of Trade Models Alternative Theories of IT
Week 6 Oct 6 Oct 8
Review session: Ch1-5 Assignments Ch1-5 are due 2:30pm. Exam #1
Week 7 Oct 13 Oct 15
Tariffs
Week 8 Oct 20 Oct 22
No class- fall break Non-tariff Barriers
Week 9 Oct 27 Oct 29
Arguments for Protection US Commercial Policy
Week 10 Nov 3 Nov 5
Preferential Trade Arrangements International Trade and Economic Growth
Week 11 Nov 10 Nov 12
Review Session: Ch 6-10 Assignments Ch6-10 are due 2:30pm. Exam #2
While at home for the Thanksgiving break, please take a moment to fill in my teaching evaluation survey on-line. I care about the quality of teaching at our department, and will appreciate your ratings and feedback. Thank you! Week 13 Dec 1
Dec 3 International Monetary Systems Exchange Rates in a Short Run
Week 14 Dec 8 Dec 10
Exchange Rates in a Long Run Assignments Ch11-15 are due 2:30 pm. IF section review
Week of finals
Section 1 (CRN20096) - Mon Dec 14 12:00 – 1:50pm, Room TBA Section 2 (CRN10861) 1 - Sat Dec 19 12:00-1:50pm, Posvar 4900
1 This is the date of a final scheduled by the Registrar’s office. I will be glad to accommodate students from Section 2 and offer the final on Monday, December 14 together with Section 1. If you prefer the final on Saturday, please inform me of this before December 3. Thank you!
Department of Economics University of Pittsburgh
Pittsburgh, PA 15260
INTRODUCTION TO INTERNATIONAL ECONOMICS Spring 2016
Tuesdays & Thursdays 11:00 am – 12:15 pm 105 Lawrence Hall
Course Number: ECON 0500 - 16410 Instructor: Douglas Harding, MBA, MA Economics Office: 2216 Sennott Square (College of Business Administration) Email: [email protected] Office Hours: Tuesdays & Thursdays 2:00 PM – 3:30 PM and by appointment Required Text:
• International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868.
The textbook is available in the bookstore and you should purchase it immediately. It is your responsibility to read the text carefully and to do all homework assignments. Additional reading material will be posted in the Courseweb as we progress during the semester.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. 2/3 of the course is dedicated to international trade, and 1/3 – to international finance theories. Upon completion of this course students will be able to:
• Know alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how the foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies in
response to changes in the world economy and macroeconomic policies • Compare the exchange rate regimes and international monetary standards • Explain financial crises in emerging economies, their causes and solutions
At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options. Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site. Tests Dates of the two tests are contained in the detailed plan of the course below. Tests include multiple choice questions, and a problem solving section. All tests are not cumulative. I do not offer make-up tests, with one exception: if you notify me or the department secretary as soon as possible of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the test. Assignments Two major assignments will be posted on the Courseweb for submission in class on due dates. Please make sure to print and go over each assignment prior to exam: you will find it very helpful. Do not postpone it to the date due. Late assignments are not accepted. In addition, review questions will be posted weekly for discussion in class. You are encouraged to study in groups. It will make your studies productive and fun. If you work on a homework assignment in a group, please inform me about it. Each student is required to submit homework assignment individually. Final Team Term Project and Presentation For this Project, your team will focus on macroeconomic analysis of the commercial policies, trade issues and economic risks of an Emerging country when trading with a Developed country, such as with the USA, Japan or the European Union. Your conclusion should be a Go/No-Go recommendation to trade with that Emerging Country, stating your reasons for that recommendation. (Depending on the country-pair, your team is to take a contrarian view, if trade already exists). Topics to be used in your study should provide a full understanding of the trade policies, economic issues & financial conditions of that country. More details to be posted in the Courseweb. Team grades are based on required format, completeness, organization, quality of research, quality of analysis, conclusions based on facts developed in the paper and original thinking. The country-pair study should involving original research and a well-developed analysis. The Term Project Paper should be 8-10 pages in length double spaced, excluding cover, appendix for charts and tables, and reference pages. Please use 12-point sized and 1-inch margins.
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Teams will be formed by mid semester, ideally with individuals that bring different strengths to a team. Teams will present their research report to class on due dates shown. Evaluations by your peers will determine your individual grade for the Team project. More details of the Team Term Project will be posted in the Courseweb. Presentations: The last two sessions will include PowerPoint presentations of the country study from all Teams and all individuals. These presentations should be an overview of the Team’s conclusions and significant findings. Each presentation should be no more than 10 minutes in length depending upon class size and the number of presentations scheduled. Presentations will be required to meet the established time guidelines to enable all presentations to be completed within the allotted class time. Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Definition of plagiarism can be found on the University website.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I will take the attendance simultaneously. Participation in problem solving during the class is a plus, and is the only extra credit offered if you end up on a grade margin. There will be no curving. Your course grade will be computed with the following weights:
• Homework assignments (2 x 25 points each) 50 points • Test 1 50 points • Test 2 50 points • Final Team Term Project and Presentation 50 points
Total 200 points
The course letter grade will be determined as follows. After the final presentation I will compute course scores incorporating scores earned on Tests, Assignments and the Team Term Project weighted as indicated above. A student fails the class if a so determined course score is below 60. The rest will be graded based on the following scale:
93%-100 A 77C%-79.9% C+ 90%-92.9% A- 70%-76.9% C 87%-89.9% B+ 60%-69.9% D 83%-86.9% B <60% F 80%-82.9% B-
The instructor reserves the right to change and/or modify this syllabus at his/her discretion. There are no make-up tests unless there are extraordinary reasons and I am notified prior to the time of the test. There is NO EXTRA CREDIT!
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Course Calendar*
Date Chapters Lecture Topic
Thu Jan 7
Introduction Chp 1
Introduction to class / syllabus review Introduction to International Trade
Tue Jan 12 Thu Jan 14
Chp 2 Tools of Analysis for International Trade Models (omit Appendix)
Tue Jan 19 Thu Jan 21
Chp 3 The Classic Model of International Trade (omit Appendices)
Tue Jan 26 Thu Jan 28
Chp 4 The Heckscher-Ohlin Model (omit Appendices)
Tue Feb 2 Thu Feb 4
Assignment 1: Ch 1-4 are due 11 am. Ch 1-4 overview Test #1
Tue Feb 9 Thu Feb 11
Chp 6 Tariffs
Tue Feb 16 Thu Feb 18
Chp 7 Non-tariff Barriers
Tue Feb 23 Thu Feb 25
Chp 8 US Commercial Policy
Tue Mar 1 Thu Mar 3
Chp 9 Chp 10
Preferential Trade Arrangements International Trade and Economic Growth
Mar 6 - 13 SPRING BREAK
Tue Mar 15 Thu Mar 17
Assignment 2: Ch 6-10 are due 3 pm. Ch 6-10 overview Test #2
Tue Mar 22 Thu Mar 24
Chp 11 Chp 12
The Balance of Payments Foreign Exchange Market
Tue Mar 29 Thu Mar 31
Chp 13 International Monetary Systems
Tue Apr 5 Thu Apr 7
Chp 14 Exchange Rates in a Short Run
Tue Apr 12 Thu Apr 14
Chp 15 Chp 18
Exchange Rates in a Long Run International Banking, Debt & Risk
Tue Apr 19 Thu Apr 21
Team Term Project and Presentations (Day 1) Team Term Project and Presentations (Day 2)
Tue Apr 26 Thu Apr 28
Finals Week
No Final Test
* Any changes to the course calendar will be posted on the CourseWeb.
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University of Pittsburgh Department of Economics
CRN 23656
Econ 0500: Intro to International Economics Syllabus
Lecturer: Svitlana Maksymenko, Ph.D. Office: 4703 Posvar Hall Tel: 412-383-8155 Fax: 412-648-1793 E-mail: [email protected] Class meets Tuesdays and Thursdays 1:00-2:15 pm at the CL 363. Office hours Mondays 3-5 pm. Additional hours are available by appointment and must be scheduled at least two days in advance via e-mail.
Out-of-classroom communication
E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ a CourseWeb (http://courseweb.pitt.edu) email option to report exam statistics and notify students about changes to the course calendar (if any). It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.
Course Objectives This course introduces undergraduate students to the theory of International Economics and its application to the real world. Upon completion of this course students will be able to:
• Compare alternative theories of international trade • Analyze and test international trade models • Evaluate the impact of tariffs and non-tariff barriers • Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements • Read and analyze the nation’s balance of payment • Understand how a foreign exchange market operates • Predict movements in the value of the U.S. dollar and other currencies
in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Analyze international investment, banking, debt, and risk • Explain financial crises in emerging economies, their causes and
solutions At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options.
Prerequisites
• Macroeconomic and Microeconomic Principles • Competence in basic algebra and geometry
Text and Instructional Support
Required text: International Economics by Husted/Melvin, 9th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868 (hardcopy, US edition). The e-version of the text is available through CourseSmart website, ISBN: 978-0-13-276954-9. Recommended sources:
• The 8th edition Study Guide by Eugenio Suarez to accompany the text, published by Pearson Education, copyright 2010, 978-0321-613325
• Course website: www.aw-bc.com/husted_melvin and the study guide website: http://wps.prenhall.com/aw_husted_ie_9/
• Globalizing Capital: A History of the International Monetary System by Barry Eichengreen, 2 ed, Princeton University Press, copyright 2008, ISBN 978-0-691-13937-1.
• The Economist.com Edition, the Wall Street Journal Edition, and the Financial Times Edition.
It is your responsibility to read the text carefully and to do all homework assignments. I will reserve a Study Guide in the Hillman Library. Please feel free to use it while working on the homework assignments, or preparing for the tests.
Class rules Your presence in the classroom is required. You must arrive and be at your seat before the class starts. Please don’t come to the class late. If you face an emergency, notify me as soon as possible by phone or e-mail. You can rewrite the lecture notes from your colleagues later or ask me for a copy. While in class, I will not allow students to make noise or otherwise distract their classmates. If you want to ask a question, raise your hand and I will call on you. The use of cellular phones, pagers, and other similar devices is prohibited. Students with disabilities
Any student with a need for special accommodation due to disability should inform me of this. The Disability Resources and Services Office (216 William Pitt Union, 412-624-7890) will coordinate the needed accommodations. Class cancellations Any class cancellations due to bad weather are determined by the university administration and are announced on the university web site.
Course Requirements Exams Dates of the exams are contained in the detailed plan of the course below. Exams include multiple choice questions, and a problem solving section. Exams are not cumulative. I do not offer make-up exams, with one exception: if you notify me or the department secretary of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam. After each exam, I post answer keys, students scores, and exam statistics (i.e. class average, class highest, and class lowest scores) on the Courseweb. Assignments Homework assignments are on-line assignments available on the Courseweb (http://courseweb.pitt.edu), with the deadlines reported in the Course Calendar below. Assignments are not accessible after the date due. Please print and go over each assignment prior to the exams: you will find it very helpful. You are encouraged to study in groups. It will make your studies more productive and fun. If you work on the assignment in a team, please inform me about it.
Academic Integrity Students in this course are expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation will be required to participate in the procedures outlined in the University Guidelines on Academic Integrity. Interpretation of plagiarism may be found in Appendix A of the School’s Handbook of Academic Policies and Procedures.
Grading
Attendance is required but not graded. Remember: missing classes will seriously compromise your performance in the course. I take attendance simultaneously. There is no curving. Your course grade is computed with the following weights:
• Exam 3 25 percent I compute student’s course grade by incorporating scores earned on exams, and homework assignments weighted as indicated above. A student fails the class if a so determined course score is below 60%. The rest are graded based on the following scale:
Jan 7 An Introduction to International Trade Jan 12 Jan 14
Tools of Analysis for International Trade Models
Jan 19 Jan 21
The Classic Model of International Trade
Jan 26 Jan 28
The Heckscher-Ohlin Model
Feb 2 Feb 4
Tests of Trade Models Alternative Theories
Feb 9 Feb 11
Exam#1 Overview (Ch1-5) Assignment #1 (Ch 1-5) is due 1:00pm. Exam # 1
Feb 16 Feb 18
Tariffs
Feb 23 Feb 25
Non-tariff Barriers
Mar 1 Mar 3
Commercial Policy Preferential Trade Arrangements
Spring Break
Mar 15 Mar 17
International Trade and Economic Growth
Mar 22 Mar 24
Exam#2 Overview (Ch 6-10) Assignment #2 (Ch 6-10) is due 1:00 pm. Exam #2
Mar 29 Mar 31
The Balance of Payment The Foreign Exchange Market
Apr 5 Apr 7
The Foreign Exchange Market (cont.) Alternative International Money Standards
Apr 12 Apr 14
Interest Rates and Exchange Rates Prices and Exchange Rates. Purchasing Power Parity.
Please take a moment to fill in my teaching evaluation survey on-line. I care about quality of teaching at our department and appreciate your comments in advance. Apr 19 Apr 21
Exam#3 Overview Assignment #3 (Ch 11-15) is due 1pm. Exam # 3