Econ 0500: Intro to International Economics Syllabus

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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

mailto:[email protected]

http://courseweb.pitt.edu/

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• 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.

http://www.aw-bc.com/husted_melvin

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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:

• On-line assignments 25 percent • Exam 1 25 percent


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• Exam 2 25 percent • 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:

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

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Apr 17 Apr 19

Alternative International Money Standards. Overview Assignment #3 (Ch 11-15 and Ch 19) is due 2:30 pm Exam # 3


CRN 22755


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.


• 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



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At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options. Prerequisites



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


• 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.


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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:

• Homework assignments 25 percent • Exam 1 25 percent • Exam 2 25 percent • Exam 3 25 percent

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:


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






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


US Commercial Policy Preferential Trade Arrangements


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


International Monetary Systems Thanksgiving Recess


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

Instructor: Gregory (Greg) Whitten

Office: 4516 W.W. Posvar Hall

Office Hours: Wednesday 13h00 – 15h30

Phone: 412-648-2305

E-Mail: [email protected] or [email protected]

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.

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CRN: 17485 and 17486


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.




• 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



2




Prerequisites



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:






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


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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.



Grading


• On-line assignments 25 percent • Exam 1 25 percent • Exam 2 25 percent • Exam 3 25 percent


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90-100 A-, A, A+ 80-89 B-, B, B+ 70-79 C-, C, C+ 60-69 D-, D, D+

Course Calendar

Date Lecture

Jan 8 Jan 10

An Introduction to International Trade

Jan 15 Jan 17


Jan 22 Jan 24


Jan 29 Jan 31


Feb 5 Feb 7


Feb 12 Feb 14

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


Spring Break

Mar 19 Mar 21


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


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.



2

Prerequisites



Required:







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


3

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



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:






Labor day (University closed) Tools of Analysis for International Trade Models







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


US Commercial Policy Preferential Trade Arrangements



Week 11 Nov 4 Nov 6





International Monetary Systems


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


University of Pittsburgh Fall 2013 Econ 0500 (CLS #10998) Tekin Kose

1

ECON 0500

INTRODUCTION TO INTERNATIONAL ECONOMICS Term 2141

Time: Monday & Wednesday 4:30 pm – 5:45 pm Location: 342 Cathedral of Learning

Instructor: 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.


http://etd.lib.metu.edu.tr/upload/12609605/index.pdf


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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: http://www.pitt.edu/~provost/ai1.html

http://www.pitt.edu/~provost/ai1.html


3

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

class for feedback.

Tentative Course Outline:

Week Date Topics

Lecture numbers and book chapter numbers may

not coincide!

Readings

1 Aug 26

Aug 28

Introduction to Class



Ch 1&2

2 Sept 2

Sept 4

Labor day (University closed)


Ch 3

3 Sept 9

Sept 11

The Heckscher-Ohlin Model Ch 4

4 Sept 16

Sept 18

Tests of Trade Models: Alternative Theories Ch 5

5 Sept 23

Sept 25

Tariffs Ch 6

http://www.drs.pitt.edu/services.html


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6 Sept 30

Oct 2

Non-tariff Barriers

EXAM 1-Class Time

Ch 7

7 Oct 7

Oct 9


Ch 8

Ch 9

8 Oct 14

Oct 15

Oct 16

Fall Break (Monday classes meet Tuesday)


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


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.


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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:

SurnameName1_(SurnameName2)_Econ0500_Fall2013_TermProject

http://data.worldbank.org/

http://data.worldbank.org/indicator


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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.


7

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.


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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


CRN: 25609 and 17032


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.








2




Prerequisites











3




Grading




4


90-100 A-, A, A+ 80-89 B-, B, B+ 70-79 C-, C, C+ 60-69 D-, D, D+

Course Calendar

Date Lecture

Jan 7 Jan 9


Jan 14 Jan 16


Jan 21 Jan 23


Jan 28 Jan 30


Feb 4 Feb 6


Feb 11 Feb 13

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


Spring Break

Mar 18 Mar 20


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


Apr 8 Apr 10


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


CRN 10890 and 20720


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:

Section 1 (CRN 20720) 11:00 – 12:15pm Section 2 (CRN 10890) 4:00-5:15pm.

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.






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At the end of the course, students should be able to analyze current international trade issues, and critically evaluate policy options. Prerequisites



Required:







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.


3

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



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:














Assignments Ch1-5 are due 11am. Ch1-5 overview Exam #1

Week 7 Oct 7 Oct 9

Tariffs


No class Non-tariff Barriers


Arguments for Protection US Commercial Policy


Preferential Trade Arrangements International Trade and Economic Growth

Week 11 Nov 4 Nov 6







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.

ECONOMICS 0500

Introduction to International Economics

Spring 2015

Instructor: Katherine Willey Wolfe

E-mail: [email protected]

Office: 4702 Posvar Hall

Mailbox: 4700 Posvar Hall

Office Hours: Tuesday 9:30 – 2:00

Prerequisites: Econ 0100 and Econ 0110.

Course Objective: This course introduces the basic theories of international economics and provides students with an

overview of the current international economic situation. Upon completion of this course students will be able to:

Understand alternative theories of international trade

Analyze and test international trade models

Evaluate the impact of tariffs and non-tariff barriers to trade

Identify the validity and efficiency of protectionist policies

Estimate the impact of preferential trade arrangements

Read and analyze a 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 exchange rate regimes and international monetary standards

Explain financial crises in emerging economies, their causes and solutions

Textbook:

Required:

International Economics by Husted/Melvin, 9th ed., published by Pearson

Education, copyright 2013, ISBN 978-0321-783868.

Other readings available on-line linked from the courseweb.

Recommended:

The 8th edition Study Guide by Eugenio Suarez to accompany the text, published

by Pearson Education, copyright 2010, ISBN: 978-0321-613325

Textbook website: www.aw-bc.com/husted_melvin

Courseweb: This course will use the University’s Courseweb system: http://courseweb.pitt.edu.

Students who are registered for the course can access their grades on-line. Any communication

regarding changes in the schedule or revisions to the syllabus will sent via courseweb’s email list to

your University email account. If you use another email account, arrange to have your University

email forwarded.



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


CRN 16701


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.








2




Prerequisites











3




Grading




4


90-100 A-, A, A+ 80-89 B-, B, B+ 70-79 C-, C, C+ 60-69 D-, D, D+

Course Calendar

Date Lecture

Jan 6 Jan 8


Jan 13 Jan 15


Jan 20 Jan 22


Jan 27 Jan 29


Feb 3 Feb 5


Feb 10 Feb 12


Feb 17 Feb 29

Tariffs

Feb 24 Feb 26

Non-tariff Barriers

Mar 3 Mar 5


Spring Break

Mar 17 Mar 19


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


Apr 7 Apr 9


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:


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.







2

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


• 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:


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


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


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


1


Fall 2015


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.




• 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




2

• 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



• Explain financial crises in emerging economies, their causes and solutions




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


• Course website: http://wps.prenhall.com/aw_husted_ie_9/ • Globalizing Capital: A History of the International Monetary System by Barry


• 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.

Class rules

http://wps.prenhall.com/aw_husted_ie_9/

3

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



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:


Course Calendar*

Week Date Lecture









* Any changes to the course calendar will be announced in class and posted on the CourseWeb.

5



Week 6 Oct 6 Oct 8

Review session: Ch1-5 Assignments Ch1-5 are due 2:30pm. Exam #1


Tariffs


No class- fall break Non-tariff Barriers



Week 10 Nov 3 Nov 5



Review Session: Ch 6-10 Assignments Ch6-10 are due 2:30pm. Exam #2




Foreign Exchange Market (cont) Thanksgiving Recess

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


Fall 2015


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.




• 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




2

• 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



• Explain financial crises in emerging economies, their causes and solutions




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


• Course website: http://wps.prenhall.com/aw_husted_ie_9/ • Globalizing Capital: A History of the International Monetary System by Barry


• 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.

Class rules


3

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



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:


Course Calendar*

Week Date Lecture









* Any changes to the course calendar will be announced in class and posted on the CourseWeb.

5



Week 6 Oct 6 Oct 8

Review session: Ch1-5 Assignments Ch1-5 are due 2:30pm. Exam #1


Tariffs


No class- fall break Non-tariff Barriers



Week 10 Nov 3 Nov 5



Review Session: Ch 6-10 Assignments Ch6-10 are due 2:30pm. Exam #2




Foreign Exchange Market (cont) Thanksgiving Recess

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:


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.







2

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.

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. 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


• 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!

4

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)


Chp 3 The Classic Model of International Trade (omit Appendices)


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


Chp 7 Non-tariff Barriers


Chp 8 US Commercial Policy

Tue Mar 1 Thu Mar 3

Chp 9 Chp 10


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


Chp 11 Chp 12



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


Team Term Project and Presentations (Day 1) Team Term Project and Presentations (Day 2)


Finals Week

No Final Test


1


CRN 23656


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.








2




Prerequisites





• 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.






3




Grading


• On-line assignments 25 percent • Exam 1 25 percent • Exam 2 25 percent


4

• 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:

90-100 A-, A, A+ 80-89 B-, B, B+ 70-79 C-, C, C+ 60-69 D-, D, D+

Course Calendar

Date Lecture

Jan 7 An Introduction to International Trade Jan 12 Jan 14


Jan 19 Jan 21


Jan 26 Jan 28


Feb 2 Feb 4


Feb 9 Feb 11


Feb 16 Feb 18

Tariffs

Feb 23 Feb 25

Non-tariff Barriers

Mar 1 Mar 3


Spring Break

Mar 15 Mar 17


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


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

Documents

Econ 0500: Intro to International Economics Syllabus