Economics 323 – B1 International Economics
Winter 2015
Instructor: Li Zhou
Office: 9-09 Tory Building Email: [email protected] Phone: 780-492-4133
Office Hours: Monday and Wednesday, 12:00 to 1:00 pm
Class time: Monday, Wednesday, and Friday, 11:00 to 11:50 am Class room: TB-38
Class website: https://eclass.srv.ualberta.ca/portal/
Course Objectives
International Economics (ECON 323) provides an intermediate undergraduate treatment of international economic issues. The objective of the course is to help you develop an understanding of 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, International Economics, 9th Edition.
Evaluation
Midterm exam 1: 25% (February 6, 2015, Monday, in class) Midterm exam 2: 25% (March 23, 2015, Monday, in class)
Final exam: 50% (As scheduled)
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.
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 handed out.
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. You will not be graded on attendance but are responsible for the announcements made and material presented during lecture.
5. You are responsible for announcements and materials (readings, answer keys, and practice exam questions, etc.) posted on the course website.
6. If you choose to use a laptop to takes notes during the lecture, you must sit in the back row. No other use of electronic devices is allowed during lecture time.
University Notices
“Policy about course outlines can be found in §23.4(2) of the University Calendar.” (GFC 29 SEP 2003).
“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.ualberta.ca/secretariat/appeals.htm) 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.”
(GFC 29 SEP 2003).
Recording of lectures is permitted only with the prior written consent of the professor or if recording is part of an approved accommodation plan.
Course Readings
1. An Introduction to International Trade
Husted and Melvin, An Introduction to International Trade, Chapter 1.
2. Trade and Technology: The Ricardian Model
Husted and Melvin, Tools of Analysis for International Trade Models, Chapter 2.
Husted and Melvin, The Gains from Free Trade, pages 147-150.
Husted and Melvin, The Classical Model of International Trade, Chapter 3 and Appendix 3.1.
3. Trade and Resources: The Heckscher-Ohlin Model
Husted and Melvin, The Heckscher-Ohlin Model, Chapter 4.
4. Increasing Return to Scale and Monopolistic Competition
Husted and Melvin, Increasing Returns and Imperfect Competition, pages 137-142.
5. International Trade and Trade Protection in a Single Industry: Partial Equilibrium Analysis
Husted and Melvin, The Gains from Free Trade: One More Time, pages 156-159.
Husted and Melvin, Chapter 6, Tariffs, except pages 147-149.
Husted and Melvin, Quotas, pages 180-187.
Husted and Melvin, Strategic Trade Policies, pages 208-212.
6. Nontariff Barriers to Trade
Husted and Melvin, Other Nontariff Barriers, pages 188-194.
7. Free Trade Areas and Customs Unions
Husted and Melvin, Preferential Trading Arrangements, Chapter 9.
8. International Trade Institutions
Husted and Melvin, Item 8.1, The GATT Agreement, pages 221-222.
Husted and Melvin, The Uruguay Round and the Creation of the WTO and The Doha Round, pages 224-231.
9. The Current Account and the Balance of Payments
Husted and Melvin, An Introduction to International Finance, Chapter 11.
Husted and Melvin, The Balance of Payments, Chapter 12.
10. Prices, the Exchange Rate and Purchasing Power Parity
Husted and Melvin, The Foreign-Exchange Market, Chapter 13.
Husted and Melvin, Prices and Exchange Rates: Purchasing Power Parity, Chapter 14.
11. Interest Rates, the Exchange Rate and Interest Rate Parity
Husted and Melvin, Exchange Rates, Interest Rates, and Interest Parity, Chapter 15.
Husted and Melvin, Foreign-Exchange Risk Premium, and Market Efficiency, pages 385-390.
12. International Monetary Arrangements
Husted and Melvin, Alternative International Monetary Standards, Chapter 19, except Target Zones.
