Economics 311:
International Economics
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Wednesday, May 30, 2012 |
| Daily schedule: | |||||||||||||||
| 1/23 | 1/30 | 2/6 | 2/13 | 2/20 | 2/27 | 3/5 | 3/12 | 3/19 | 3/26 | 4/2 | 4/9 | 4/23 | 4/23 | 4/30 | |
| Mon: | 1 | 4 | 7 | 10 | -- | 15 | 18 | -- | 21 | 24 | 27 | 30 | 33 | 36 | 39 |
| Wed: | 2 | 5 | 8 | 11 | 13 | 16 | 19 | -- | 22 | 25 | 28 | 31 | 34 | 37 | 40 |
| Fri: | 3 | 6 | 9 | 12 | 14 | 17 | 20 | -- | 23 | 26 | 29 | 32 | 35 | 38 | -- |
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| Day 1: Mon, 1/23/2012 | |
| Topic: | Administration |
| Readings: | Buy American--Why Not? (Los Angeles Times (2009)) |
| Handouts: | For class:
Syllabus Take home: Buy American--Why Not? (Los Angeles Times (2009)) - table 1 Country choice list Tip: Here are some sources that might provide you with some helpful information for choosing countries: CIA. The World Factbook U.S. State Department. Country background notes The Economist: Country Briefings |
| Due: | Tue, 1/24, 3:00pm, my Inbox in F211: Buy American--Why Not? (Los Angeles Times (2009)) - table 1 |
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| Day 2: Wed, 1/25/2012 | |
| Topic: | Introduction |
| Readings: | Text: Chapter 1 Bearak (2003). Why people still starve |
| Handouts: | For class:
Output,
population and trade (print landscape) Take home: Buy American--Why Not? - Part 2 |
| Due: | Country choice list -- top 5 choices |
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| Day 3: Fri 1/27/2012 | |
| Topic: | Introduction (finish) |
| Part 1 | Markets and the global economy |
| Topic: | I. The fundamentals of international trade |
| Readings: | Los Angeles Times (2007): In the rough; A diamond by any other name... |
| Handouts: | In class: U.S. imports and
employment (print landscape) Trade quotebook Take home: Problem set 1 |
| Due: | Buy American--Why Not? - Part 2 |
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| Day 4: Mon, 1/30/2012 | |
| Topic: | IA.
David Ricardo's trade according to comparative advantage IA1. Theory |
| Readings: | Text: Chapter 2 |
| Handouts: | In class:
Trade according to
comparative advantage Assigned Countries Teams: Round 1 Take home: The basic gains from trade |
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| Day 5: Wed, 2/1/2012 | |
| Topic: | IA. David Ricardo's trade according to comparative advantage IA2. Results |
| Readings: | Struggling Eritrea puts self-reliance before aid (Los Angeles Times (2007)) |
| Handouts: | Export shares |
| Due: | The basic gains from trade worksheet |
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| Day 6: Fri, 2/3/2012 | |
| Topic: | IA. David Ricardo's trade according to comparative advantage (finish) |
| Topic: | IB. Supply and demand (S&D) trade geometry |
| Readings: | Text: Chapter 3 (101-105) |
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| Day 7: Mon, 2/6/2012 | |
| Topic: | IB. Supply and demand (S&D) trade geometry (continued) |
| Handouts: |
Trade
for a small country: Domestic-market supply and demand geometry Trade for a small country: results Supply and demand geometry for the international market |
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| Day 8: Wed, 2/8/2012 | |
| Topic: | IB. Supply and demand (S&D) trade geometry (finish) |
| Handouts: | Supply and demand
trade geometry: Results Economic sanctions: the case of oil exports by Iran Economic sanctions: the case of oil exports by Iran: Results |
| Due: | Supply and demand geometry for the international market |
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| Day 9: Fri, 2/10/2012 | |
| Topic: |
II. A closer look at international trade A. Factor endowments and trade: the Heckscher-Ohlin (HO) trade model |
| Topic: | IIA1. The Heckscher-Ohlin (HO) theorem |
| Readings: | Text: Chapter 3 (69-74; 85-87) |
| Handouts: |
Exploring your
country: extra credit: task 1 Trade and wages quotebook |
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| Day 10: Mon, 2/13/2012 | |
| Topic: | IIA1. The Heckscher-Ohlin (HO) theorem (finish) |
| Topic: | IIA2. The Factor-Price Equalization theorem (FPE) |
| Readings: | Text: Chapters 3 (74-76); 5 (255-258) |
| Topic: | IIA3. The Stolper-Samuelson (SS) theorem |
| Readings: | Text: Chapter 3 (76-85) Smith (1998). Garment-textile boom brings wrenching change to Mexico Peterson and Iritani (1999). Labor issues create a divide as WTO set to meet Krugman (2000). Workers vs. Workers |
| Handouts: |
An example that sets
the stage for the Stolper-Samuelson theorem
Take home: Heckscher-Ohlin (HO) and Import Substitution Industrialization (ISI) -- complete for next class |
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| Day 11: Wed, 2/15/2012 | |
| Topic: | IIA3. The Stolper-Samuelson (SS) theorem (finish) |
| Topic: | IIA4. Real world applications |
| Handouts: | Japan's exports |
| Due: |
Problem Set 1 Heckscher-Ohlin (HO) and Import Substitution Industrialization (ISI) worksheet |
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| Day 12: Fri, 2/17/2012 | |
| Topic: | IIB. Technology and trade |
| Readings: | Text: Chapter 3 (93-98) Optional: Vernon (1966). International Investment and International Trade in the Product Cycle |
| Handouts: | Trade
quote-books revisited Problem Set 2 Trade under domestic monopoly conditions |
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| Mon, 2/20/2012: President's Day | |
| Day 13: Wed, 2/22/2012 | |
| Topic: | IIC. Market structure and trade |
| Readings: | Text: Chapter 3 (87-93) Akst (2003), The joy of thinking globally |
| Handouts: | Trade under domestic monopoly conditions: summary results |
| Due: |
Exploring your
country: extra credit: task 1 Trade under domestic monopoly conditions - try to complete your assigned price before class |
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| Day 14: Fri, 2/24/2012 | |
| Topic: | IIC. Market structure and trade (finish) |
| Topic: | III. International
factor migration A. International labor migration |
| Readings: |
Text: Chapter 9 (331-337) Borjas (1996). The new economics of immigration Watanabe (2006). Immigration Forum Gets Intense |
| Handouts: | International
labor migration International labor migration: Results Paper assignment #1 |
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| Day 15: Mon, 2/27/2012 | |
| Topic: | B. International investment |
| Readings: |
Text: Chapter 9 (309-331) Clement (2010). Awash in cash Puzzanghera and Hennessey (2012) Obama proposes cutting corporate tax rate to 28% from 35% |
| Handouts: |
Key
investment concepts Problem Set 3 Exploring your country: extra credit: task 2 |
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| Day 16: Wed, 2/29/2012 | |
| Topic: | IV. Overall results of markets and globalization |
| Topic: | IVA. Theoretical FAQs |
| Readings: | Krugman (1993). What Do Undergrads Need To Know About Trade? |
| Handouts: | Globalization and wages for unskilled labor (PL) |
| Due: | Problem Set 2 |
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| Day 17: Fri, 3/2/2012 | |
| Topic: | IVA. Theoretical FAQs (finish) |
| Topic: | IVB. Empirical FAQs |
| Readings: | Text: Chapter 7 (259-268) Dollar and Kraay (2001). Trade, Growth, and Poverty Rodrik (2000) Comments on “Trade, Growth, and Poverty,” by D. Dollar and A. Kraay Thompson (2012) Big Maconomics: How McDonald's Explains the World Bhagwati (2004). Poverty: Enhanced or Diminished? Oxfam (2000). Growth with equity is good for the poor Pinkovskiy and Sala-i-Martin (2009). Parametric Estimations of the World Distribution of Income Foroohar (2002). The Poor Speak Up Tonelson (2002). There's Only So Much That Foreign Trade Can Do Whitney (2006). Globalization and growth (Powerpoint) |
| Topic: | Q1: What has been the relationship between globalization and growth? |
| Handouts: | Late boomers: China and India |
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| Day 18: Mon, 3/5/2012 | |
| Topic: | IVB.
Empirical FAQs Q1: What has been the relationship between globalization and growth? (finish) |
| Handouts: |
Globalization in practice: Empirical findings from
large sample studies Globalization and growth: class sample (print in landscape) |
| Topic: | Q2: What has been the relationship between globalization and the level and distribution of income? |
| Handouts | Real wages in the U.S. (print as landscape) |
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| Day 19: Wed 3/7/2012 | |
| Topic: | Q2: What has been the relationship between globalization and the level and distribution of income? (finish) |
| Handouts |
Shoes,
trade and wages in South Korea (print in landscape) Dynamic effects of globalization: Labor markets over time Practice Exam 1 |
| End of material for Exam 1 | |
| Topic: | I.
The fundamentals of trade policy A. Trade restrictions |
| Readings: | Text: Chapter 4 (101-131); 5 (155-166; 178-183) |
| Handouts: | Trade policy analysis 1: tariffs |
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| Day 20: Fri, 3/9/2012 | |
| Topic: | IA. Trade restrictions (finish) |
| Handouts: | Teams: Round
2 The effective rate of protection Trade policy analysis 2: quotas |
| Due: | Problem Set 3 |
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| Mon, 3/12/2012 - Fri, 3/16/2012: Spring break | |
| Day 21: Mon, 3/19/2012 | |
| Topic: | IB. Trade promotion |
| Readings: | Text: Chapter 5 (166-178) Los Angeles Times (2007). Trade body rules against U.S. on cotton subsidies Swissinfo (2007). OECD calls for farming reform |
| Handouts: | Export subsidies |
| Topic: | II.
Efficient policymaking in global markets A. First-best policy making |
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| Day 22: Wed, 3/21/2012 | |
| Topic: | IIA. First-best policy making (finish) |
| Readings: | Lee and Hsu (2010). US presses China on clean tech |
| Handouts: |
First-best policy making (print in landscape) First-best policy making - Key (print in landscape) Problem Set 4 |
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| Day 23: Thu, 3/22/2012 | |
| To do: | Exam 1: 5:00-7:00pm, (bring a blue book) |
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| Friday, 3/23: Econ 311 does not meet. | |
| Day 24: Mon, 3/26/2012 | |
| Topics: | B. Trade and the environment |
| Readings: | (Questions to think
about) Taylor (1999). Is free trade good for the environment? Economist (2002) Local difficulties Smith (2000). Little by little, breathing easier in Mexico City Summers (1991). World Bank memo Lipman (2002) A dirty dilemma: The hazardous waste trade |
| Handouts: | Trade and the environment |
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| Day 25: Wed, 3/28/2012 | |
| Topic: | C.
Global market power and trade 1. Optimal trade restrictions |
| Readings: | Text: Chapter 4 (131-135); Chapter 3
(98-99); 6 (221-223); 7 (245-249) Flanigan (1999). Gaining Altitude... The Chicken Tax |
| Handouts: | Trade restrictions: the optimal tariff |
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| Day 26: Fri, 3/30/2012 | |
| Topic: | C2. Strategic trade behavior |
| Topic: | D. The WTO |
| Readings: | Text: 6 (195-215); 8 (271-286) |
| Handouts: | Exploring your country: extra credit: task 3 |
| Due: | Short paper #1 |
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| Day 27: Mon, 4/2/2012 | |
| Topic: | D. The WTO (finish) |
| Handouts: | The WTO |
| Readings: | Weintraub (1999). Nafta; a Politically Unpopular Success Story |
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| Day 28: Wed, 4/4/2012 | |
| Topic: | III. Open economy macroeconomics A. International transactions |
| Readings: | Text: Chapter 10 |
| Handouts: | International investment and transactions: the US |
| Due: | Problem Set 4 |
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| Day 29: Fri, 4/6/2012 | |
| Topic: |
B. Foreign exchange markets 1. Exchange rates |
| Readings: | Text: Chapters 11 (369-386) |
| Handouts: |
Current
exchange rates The real exchange rate (R) Problem set 5 Short paper #2 |
| Due: | International investment and transactions: the US - complete top table for class |
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| Day 30: Mon, 4/9/2012 | |
| Topics: | 1.
Exchange rates (finish) 2. Exchange rate arrangements |
| Text: Chapter 15 (461-452) | |
| Due: | Exploring your country: extra credit: task 3 |
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| Day 31: Wed, 4/11/2012 | |
| Topics: | 3. Exchange rate determination |
| Readings: | Text: Chapter 12 (405-410) |
| Topic: | a. The purchasing power approach to ER changes |
| Readings: | Text: Chapter 12 (410-415) |
| Handouts: | Purchasing power parity? Evidence from U.S. data |
| Topic: | b. The asset market approach to ER changes |
| Readings: | Text: Chapters 11 (387-397); 12 (415-421) |
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| Day 32: Fri, 4/13/2012 | |
| Topic: | B3b. The asset market approach to ER changes |
| Handouts: |
Comparing
domestic and foreign rates of return Paper checklist |
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| Day 33: Mon, 4/16/2012 | |
| Topic: | B3c. Combining PPP and the IPC |
| Handouts: |
Combining PPP and the IPC Class sample: Tariff rates |
| Topic: | C. Foreign sector geometry |
| Readings: | Optional: Mankiw (1992). text selections from Macroeconomics |
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| Day 34: Wed, 4/18/2012 | |
| Topic: | C. Foreign sector geometry (finish) |
| Handouts: |
Problem Set 6
Exploring your country: Extra credit #5 |
| Due: | Problem set 5 |
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| Day 35: Fri, 4/20/2012 | |
| Topic: | 3:30-4:45: Extra credit #4 |
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| Day 36: Mon, 4/23/2012 | |
| Topic: | D. Macroeconomic shocks and policies |
| Readings: | Text: Chapters 16 (495-502) |
| Topics: | 1. Internal shocks and policies |
| Readings: | Text: Chapters 15 (471-474); 12
(423-425); 14 (447-453); 16 (503-504) Baum (2007) When dollar falls, European exporters count their bruises Puzzanghera (2010). Bernanke, in Europe, defends Fed's latest effort to stimulate U.S. economy |
| Handouts: | Expansionary fiscal policy |
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| Day 37: Wed, 4/25/2012 | |
| Topic: | 1. Internal shocks and policies (finish) |
| Handouts: | Example of the J-Curve |
| Topic: | 2. Policy making with fixed exchange rates |
| Readings: | Text: Chapters 15 (462-471, 476-479); 16
(502-503 Reedy (2011) Emerging Nations Reject Capital Plan |
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| Day 38: Fri, 4/27/2012 | |
| Topic: | 2. Policy making with fixed exchange rates (finish) |
| Topic: | E. Applications and current issues |
| Handouts: | Open Economy Macroeconomics: Applications |
| Topic: | 1. Dutch disease at the macro level |
| Readings: | Strong forex inflows now hurting economy (2007) |
| 2. Responding to external shocks | |
| Readings: | Text: Chapter 15 (480-491) |
| Due: | Exploring your country: Extra credit #5 |
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| Day 39: Mon, 4/30/2012 | |
| 2. Responding to external shocks (finish) | |
| Handouts: | Capital flight due to loss of investor confidence: US versus Mexico |
| Topic: | 3. The financial crisis: a global perspective |
| Readings: | Text: Chapters 8 (286-305);
15 (492); 16 (506-510) Return to the Giant Pool of Money (Sep.25,2009) The Global Saving Glut and the U.S. Current Account Deficit (2005) |
| Handouts: | The global saving glut |
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| Day 40: Wed, 5/2/2012 | |
| Topic: | 3. The financial crisis: a global perspective (finish) |
| Topic: | 4. The Eurozone crisis |
| Handouts: |
The Eurozone crisis Practice Exam 2 |
| Due: |
Problem Set 6 Fri, 5/4, 4:00pm: Short paper #2 due Sat, May 12, 8:30-10:30 AM: Exam 2 (bring a blue book) |
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