1. Jan 5: International Economics Introduction and Overview
    1. Course Organization.
    2. Overview of the World Economy
      1. Elements of the World Economy
      2. Ways Countries Interact
        1. Trade
        2. Capital Flows
        3. Migration
      3. Policies that Affect Others
      4. Institutions
  2. Jan 10: Comparative Advantage and the Gains from Trade
    1. Why Countries Trade
      1. Price Differences
      2. Determinants of Prices
    2. If All Prices Too High
      1. Adjustment through exchange rate
      2. Implication for pattern of trade
    3. Ricardian Model of Trade
      1. Examples
        1. With Absolute Advantage
        2. With Comparative Advantage
      2. Lessons of the Ricardian Model
  3. Jan 12: Factor Proportions and Trade
    1. What Determines Comparative Advantage?
      1. Definition
      2. Sources
    2. The Factor Proportions Model
      1. Main Idea
      2. Intuition
      3. Supply and Demand
      4. Does the Theory Work?
    3. Effects of Trade
      1. Summary of Effects
        1. Changes in Production
        2. Factor Price Equalization
      2. Theoretical Illustration
  4. Jan. 19: The New Trade Theory
    1. Assumptions Changed by New Trade Theory
      1. Constant Returns to Scale
      2. Perfect Competition
      3. Homogeneous Products
    2. Implications of the New Trade Theory
      1. Intra-Industry Trade
      2. Possible Loss from Trade with Scale Economies
      3. New Sources of Gain from Trade
        1. Scale Economies
        2. Improved Competition
        3. Variety
    3. Rationales for Active Trade Policies
  5. Jan 24: Tariffs
    1. What Are They?
    2. Who Uses Them?
    3. Effects of Tariffs
      1. Small Country Case
      2. Large Country Case
      3. Size of the Effects
  6. Jan 26: Preferential Trading Arrangements
    1. What Are PTAs?
    2. Examples
      1. European Union (EU)
      2. North American Free Trade Agreement (NAFTA)
    3. Effects of PTAs
      1. Not the Same as Free Trade
        1. Trade Creation
        2. Trade Diversion
      2. Market Illustration
    4. NAFTA
      1. History
      2. Analysis Beforehand
      3. Evaluation Afterward
  7. Jan 31: Nontariff Barriers
    1. What Are NTBs?
    2. Main Types
      1. Quotas
      2. Voluntary Export Restraints (VERs)
      3. Government Procurement Regulations
      4. Customs Procedures
      5. Standards
      6. Local Content Requirements
      7. Unfair Trade Laws
    3. Effects of Quotas
      1. Equivalent to a Tariff
      2. Who Gets the Rents?
  8. Feb 2: U.S. Trade Policies and Institutions
    1. Parts of U.S. Government that Handle Trade
      1. We do NOT have Trade Ministry
      2. What We DO have
    2. Main Features of U.S. Trade Policies
      1. Tariffs, Quotas, VERs
      2. Escape Clause
      3. Unfair Trade Laws
      4. Trade Adjustment Assistance
      5. Fast Track
  9. Feb 7: World Trade Arrangements and the WTO
    1. International Organizations Related to Trade
      1. WTO
      2. OECD
      3. EU, NAFTA, etc.
      4. UN Organizations
    2. World Trade Organization
      1. History, as GATT
      2. GATT Rounds
      3. WTO Today
      4. Functions
  10. Feb 14: Migration
    1. Why People Migrate
    2. Why Wages Differ across Countries
      1. Endowments
      2. Technology
      3. Other
      4. Supply and Demand for Labor
    3. Effects of Migration
      1. On Payments to Factors
        1. Labor
        2. Other
      2. Other Effects
    4. Policies to Affect Migration
    5. The U.S. Experience
  11. Feb 16: Capital Movements and Multinationals
    1. Terminology
      1. FDI, DFI, MNEs, MNCs
      2. Real Versus Financial Capital
    2. Why Do Firms Invest Abroad?
      1. What Are Their Options?
      2. Necessary Conditions
      3. Reasons for Producing Abroad
        1. For Local Market
        2. For Export
    3. Who Gains and Who Loses?
      1. Effects that are Similar to Trade
      2. Effects that Differ from Trade
  12. Feb 23: The Balance of Trade and International Transactions
    1. What is the Balance of Trade?
    2. What Does the Balance of Trade Not Mean?
    3. International Transactions
      1. Current Account
      2. Capital Account
    4. What Does the Balance of Trade Really Mean?
      1. From Balance of Payments Accounting
      2. From National Income Accounting
  13. Mar 6: Exchange Rates
    1. In What Forms Are Exchange Rates Reported?
      1. Bilateral Nominal Rates
      2. Multilateral (Trade-Weighted) Rates
      3. Real Rates
      4. Forward Rates
    2. What Determines Exchange Rates?
      1. Markets
      2. Governments/Central Banks
    3. Theories of Exchange Rates
      1. Purchasing Power Parity
      2. Asset Theory
      3. Supply and Demand Model
  14. Mar 8: Pegging the Exchange Rate
    1. How It's Done
      1. Market Intervention
      2. Bands of Fluctuation
      3. Hybrids of Pegged and Floating
    2. Who Pegs?
    3. Mechanics of Intervention
      1. Reserves
      2. Money Supply
      3. Sterilization
    4. Effects of Pegging
  15. Mar 13: Macro Policies in International Context
    1. Recall How Macro Policies Work
      1. Aggregate Supply and Demand
      2. Monetary and Fiscal Policies
    2. How International Markets Change Policy Effectiveness
    3. Effects of Depreciation
      1. Through Goods Markets
      2. Through Asset Markets
    4. Policies under Peg and Float
      1. Monetary Policy
      2. Fiscal Policy
    5. Effects Across Countries
  16. Mar 15: Fixed Versus Floating Exchange Rates Details
    1. Both Systems Are Used
    2. What the "Experts" Recommend
    3. Pros and Cons of Floating
      1. Disruption When Rates Move
      2. Automatic Adjustment
      3. Monetary and Fiscal Policies
    4. Instability of Pegged Exchange Rates
    5. Speculation
    6. Alternatives
      1. Crawling Peg -- See Brazil
      2. Monetary Unification
      3. The Impossible Trinity
  17. Mar 20-22: International Monetary Arrangments from the Gold Standard On
    1. The Gold Standard
      1. Currencies Defined in Gold
      2. Automatic Adjustment
    2. The Inter-Ward Period
      1. Return to the Gold Standard
      2. Chaos of the 1930s
    3. The Bretton Woods System
      1. System of the IMF
      2. Problems of Bretton Woods
    4. The Era of Floating Rates
      1. How Rates Have Moved
      2. The Current System: None
  18. Mar 29 - Apr 3: European Monetary Unification
    1. What Is It?
    2. History of the EMU
    3. Convergence
      1. Why It Is Needed
      2. The Maastricht Criteria
      3. How Did They Do?
    4. Timetable for the EMU
    5. Pros and Cons of Unification
      1. Why Adjustment Will Be Hard
      2. Winners and Losers under EMU
    6. Effects on the U.S.
  19. Apr 5: International Policies for Economic Development
    1. The Issues
    2. Special Problems of Developing Countries
    3. Pros and Cons of Free Trade for LDCs
      1. Infant Industry Argument
      2. Other Objections to Free Trade
      3. Track Record of Import Substitution
    4. Pros and Cons of Free Capital Movements for LDCs
      1. Efficiency Gains
      2. Vulnerability to Crisis
      3. The Debt Crisis of the Early 80s
  20. Apr 10: Globalization
    1. Symptoms of Globalization
      1. Global Markets for Goods
      2. Global Markets for Capital
      3. Global Markets for Factors
      4. Fragmentation
      5. Non-traded Goods and Factors
    2. What Has Happened to Wages?
    3. Explanations of the Rising Skill Premium
      1. Labor Supply?
      2. Globalization
        1. Trade Liberalization
        2. Growth in Poor Countries
      3. Technology
  21. Apr 12: Labor Standards and Trade
    1. What Are They?
      1. Standards in the ILO
      2. Standards in US Trade Law
    2. Should Labor Standards Be Promoted?
      1. Of Course?
      2. Effects on Workers
    3. Should Standards Be Linked to Trade?
      1. Who Are For and Against?
      2. Pros and Cons of Linkage