1 Economics 323 – A2
International Economics Fall 2018
Instructor: Li Zhou
Office: 9-09 Tory Building Email: [email protected] Phone: 780-492-4133
Office Hours: Tuesdays and Thursdays, 12:30 pm to 1:30 pm, or by appointment
Class time: Tuesdays and Thursdays, 2 pm to 3:20 pm Class room: SAB 436
Class website: https://eclass.srv.ualberta.ca/
Course Objectives
International Economics (ECON 323) provides a survey of international trade theories and policy issues.
The objective of the course is to help you develop an understanding of why countries trade, how the international trade and payments systems function, and how international factors impact the economy.
Analytical tools will be developed to allow you to critically evaluate public policy arguments and viewpoints appearing in the popular press.
Prerequisites and Restrictions
The prerequisites for this course are ECON 281 or consent of the Economics Department. The
prerequisite requirements will be enforced. Registration in the course will be cancelled for those lacking the prerequisites. This course is not open to students with credit in or enrolled in ECON 421 or ECON 422.
Textbook
The textbook for the course is:
Steven Husted and Michael Melvin (H&M), International Economics, 9th Edition.
Evaluation
Midterm exam 1: 25% (October 9th, 2018; in class) Midterm exam 2: 25% (November 8th, 2018; in class)
Final exam: 50% (December 14th, 2018; at 2:00 pm; location TBA on Bear Tracts)
The instructor will assign letter grades based on the distribution of “the (weighted) total points”, a weighted sum of points on the two midterms and the final exam. Both the class average and where a student stands on the distribution of “the (weighted) total points” will be considered.
2 Notes
1. There will be four assignments posted on the class website during the term. The assignments will not be graded. Answers for the assignment questions will be available at the class website approximately one week after the assignment is posted.
2. There will be no make-up exam for the midterm exams. If you miss a midterm exam due to an excused absence (medical reasons, etc.), you will have to notify the instructor within 48 hours of the midterm to transfer the weight of the midterm exam to the final exam. If you fail to notify the instructor within 48 hours, your midterm will be zero.
3. The second midterm does not cover the material tested in the first midterm. The final exam will be cumulative.
4. Sample exams will be provided.
5. You will not be graded on attendance but are responsible for the announcements made and material presented during lecture.
6. You are responsible for announcements and materials (readings, answer keys, and practice exam questions, etc.) posted on the course website.
7. You are allowed to use a laptop or a tablet to takes notes during the lecture. Please be aware that irrelevant materials on your screen can be a distraction to classmates around you. No other use of electronic devices is allowed during lecture time.
University Notices
• “Policy about course outlines can be found in the Evaluation Procedures and Grading System section of the University Calendar.”
• “The University of Alberta is committed to the highest standards of academic integrity and honesty.
Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize
themselves with the provisions of the Code of Student Behaviour (online at
www.governance.ualberta.ca) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.”
http://www.ualberta.ca/current-students/academic-resources/academic-integrity
• “Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).”
3 Course Outline
1. An Introduction to International Trade (H&M: chapter 1)
2. International Trade Theories
• Trade and Technology: The Ricardian Model (H&M: chapter 3)
• Trade and Resources: The Heckscher-Ohlin Model (H&M: chapter 4)
• Increasing Return to Scale and Monopolistic Competition (Slides on course website)
3. Trade Policies and Institutions
• Tariffs (H&M: chapter 6)
• Nontariff Barriers (H&M: chapter 7)
• Free Trade Areas and Customs Unions(H&M: chapter 9)
• International Trade Institutions (H&M: chapter 8)
4. International Finance
• An introduction to basic concepts (H&M: chapter 11)
• The Current Account and the Balance of Payments (H&M: chapter 12)
• The Foreign Exchange Market (H&M: chapter 13)
• Prices, the Exchange Rate and Purchasing Power Parity (H&M: chapter 14)
• Interest Rates, the Exchange Rate and Interest Rate Parity (H&M: chapter 15)
• International Monetary Arrangements (H&M: chapter 19)
