Jim Whitney Economics 311
Email: whitney@oxy.edu
Home page: http://faculty.oxy.edu/whitney
Office: Fowler 213
Phone: X2750
Office hours:
    Monday: ____________
    Wednesday: ____________
    Friday: ____________

Economics 311: Fall 2007
INTERNATIONAL ECONOMICS
Course web address: http://faculty.oxy.edu/whitney/classes/ec311

    Welcome to Economics 311: In this course we will study the causes and consequences of international economic integration, addressing a number of related questions along the way, such as...
  • What is globalization?
  • How can high-paid US workers compete with cheap foreign labor?
  • Does globalization cause a race to the bottom for wages and working conditions?
  • Would the US be better off if it "sealed" its borders to additional immigrants?
  • Is free trade bad for the environment?
  • Do international organizations such as the WTO and the IMF do more harm than good?
  • What caused the global financial crisis that started in 2007 and what should be done about it?
  • Is the euro doomed?
    Throughout the course we will be concerned with the interrelationship between national and international markets. We will first examine how markets work in a global economy, focusing on international trade, labor migration, and foreign investment. We will then consider the role of government in a global economy, examining trade policy, efficient policymaking with global markets, the political economy of government policy making, macroeconomic stabilization policies, international policy coordination (including the World Trade Organization (WTO) and the International Monetary Fund (IMF)), and current policymaking issues.
    The fundamental goal of the course is to equip you with a toolkit that will enable you to
  • Apply the principle of comparative advantage to issues related to a country's wages, productivity, and the items the country exports and imports.
  • Account for the influence of factors of production, technology, and market structure on a country's trade pattern and trade gains.
  • Explain the theoretical expectations and empirical evidence regarding the impact of trade and factor integration on important aspects of well being such as jobs, the level and distribution of income, growth, and the environment.
  • Analyze the consequences of government policies such as tariffs, quotas, and subsidies, and recommend first-best policy choices to achieve various social objectives.
  • Calculate key values such as terms of trade, the welfare effects of trade and trade policies, nominal and effective rates of protection, international transactions balances, exchange rates, and rates of return on foreign investments.
  • Differentiate between the international flow of goods, services, factors of production and financial assets; internal and external balance; national and international debt; and internal and external shocks.
  • Contrast the impact of monetary and fiscal policies for countries with floating exchange rates versus countries with fixed exchange rates.
  • Assess the impact of efforts at international economic cooperation, including the World Trade Organization (WTO), the International Monetary Fund (IMF), free-trade agreements, and currency unions. 

The prerequisites for this course are Economics 101 and Economics 102.

    Readings and materials: Each of the following is required for the course:

    Additional course readings (Other) are available online and listed in the course schedule. For access to restricted course materials, enter:  
    Account name: _______________ 
    Password: _______________

    You should also read a daily news publication such as the Los Angeles Times, New York Times or Wall Street Journal to keep up with current events related to the international economy.

 

    Requirements: Your course grade will be distributed approximately as follows:

  Exams
Two equally weighted exams 52%
Two equally weighted short papers 36%
Problem sets, short assignments and participation 12%

Assignments: Assignment due dates will be listed in the course schedule as the term progresses. You must conscientiously complete all course assignments in order to pass the course. All short assignments must be turned in on time in order to receive credit for them. A late paper receives a penalty of 1/3 grade level per day. For example, a B+ paper one day late would receive a final grade of B. Weekends count two grade levels, so a B+ paper due Friday which is turned in on Monday would receive a final grade of B-. No papers will be accepted after the last scheduled day of final exams.
    Note1: Exam 1 is scheduled for Thursday, Mar.22, 5:00-7:00 PM. Please be sure to record this in your calendar. You must contact me by the end of the first full week of classes about any potential conflict that you might have so that we can make arrangements for you to take the exam before the scheduled exam time.
    Note2: Economics majors may use this course to satisfy the junior writing requirement, so let me know if you are interested.

Participation: Includes attendance as well as involvement in class activities such as worksheet exercises and discussions. Class time will include a variety of interactive and collaborative learning activities which are impossible to "make up" by borrowing notes from a classmate or doing the readings on your own. So attendance is a crucial part of your overall course performance. As a result, once you miss four class meetings, each additional unexcused absence will lower your course grade by 0.1 of a letter grade. So, for example, if you miss seven classes, a final grade of 3.0 (B) will be reduced to a 2.7 (B-). I don't anticipate that any of you will end up in this situation, but I do want you to realize the significance of the penalty at stake.

 

Co-curricular activities: If you participate in a co-curricular activity--such as athletics or performing arts--that you believe might cause a conflict with any aspect of the class, then you must ensure that I receive (1) a schedule of events and (2) a schedule of all time commitments related to your activity for a typical week. Three acceptable options include: (1) email me the schedules yourself, with a CC to your activity coach/instructor (2) have your activity coach/instructor email me the schedules; or (3) email me a link to posted online schedules. The deadline for this information is the end of the first full week of classes.

Learning disabilities: In cooperation with the Center for Academic Excellence (CAE), I am happy to make recommended accommodations for students with learning disabilities which might pertain to any course requirement. If this is relevant to your situation, please drop by to discuss it with me so we can work out the details.
    Please note that students with documented disabilities who are registered with Disability Services are required to present their accommodation verification card to the instructor at the beginning of each semester or as soon as possible thereafter. Students who experience significant physical or mental impairments can contact Disability Services at (323) 259-2969 to learn about available services and support.

Academic Honesty: Intellectual honesty is essential to the academic enterprise. Occidental College assumes that students and faculty will accept and respect the principle of academic honesty. Fundamental to academic honesty is a spirit of honor. A spirit of honor thrives when students challenge each other to attain the highest levels of scholarship and civility, report infractions, and participate in an academic disciplinary hearing if required. Examples of unacceptable conduct include cheating and plagiarism. While I don’t anticipate any difficulties, if this or similar misconduct occurs, it will be met with disciplinary action. Please see the student handbook for more details. Here is the link to the website which covers Occidental's policy on academic honesty: http://www.oxy.edu/student-handbook/academic-ethics/academic-ethics

  

 

Course schedule:
  Part 1. Markets and the global economy
Dates: August 30 - October 9
  I. The fundamentals of international trade
Dates: September 4 - September 13
Deadlines:     Thu, Sep.13: Problem Set 1 due
 
  II. A closer look at international trade
Dates: September 13 - September 27
Deadlines:     Thu, Sep.27: Problem Set 2 due
 
  III. International resource migration
Date: October 2 - October 4
  IV. Combined outcomes of markets and globalization
Date: October 4 - October 9
Deadlines:     Thu, Oct.11: Problem Set 3 due
    Thu, Oct.18: 5:00-7:30 PM F209: Exam 1 (bring a blue book)
 
  Part 2. Governments and the global economy
Dates: October 11-December 4
  I. The fundamentals of trade policy
Dates: October 11, 23
  II. Efficient policymaking with global markets
Dates: October 23-October 30
Deadlines:     Thu, Nov. 1: Problem Set 4 due
 
  III. The political economy of government policy making
Date: November 1
  IV. Macroeconomic stabilization policy
Dates: November 6 - November 27
Deadlines:     Tues, Nov.20: Problem Set 5 due
 
  IV. Macroeconomic stabilization policy (cont'd.)
Dates: November 6 - November 27
  V. International policy coordination
Dates: November 29 - December 4
Deadlines:     Tue, Dec.4: Problem Set 6 due
    Thu, Dec.6, 5 PM: Research paper due
    Fri, Dec.14, 8:30-11:30 Exam 2 (bring a blue book)