THE UNIVERSITY OF MICHIGAN
Department of Economics

ECON 340
INTERNATIONAL ECONOMICS

SYLLABUS
Winter 2012, Alan Deardorff

Text Grades Exams Lectures Coursepacks Disabilities Contacts Readings

PURPOSE: Broad overview of international economics and the international economy

Prerequisites: Econ 101 and 102 - Principles of Microeconomics and Macroeconomics
Not Econ 401 or 402 - Intermediate micro and macro theory
Intended for: Students not concentrating in economics
Economics concentrators not ready to specialize in international economics (Economics concentrators may take this course and later take Econ 441 and 442.)
Content: Compared to most economics courses, this one has:
-Less emphasis on theory. You'll learn about theory, but you won't learn to use the tools of economic theory, other than supply and demand.
-More emphasis on the real world, viewed through the news and on the Internet.
-Less emphasis on problem sets. Homework assignments (Study Questions) will be optional and ungraded.
-Much more emphasis on reading.


TEXT


EXAMS AND GRADES


LECTURES

COURSEPACKS

STUDENTS WITH DISABILITIES

WHERE TO FIND ME


GSI



SCHEDULE OF LECTURES AND READINGS

Where to find them: Coursepack 1:
In course pack and on reserve (not on the web)
Coursepack 2: In course pack and on the web (from UM only, using your UM password) through JSTOR ("J" below), Proquest ("P"), Synergy ("S"), etc. or access through "Electronic Resources" at www.lib.umich.edu. Click on "Online"
Coursepack 3: Available on the web from anywhere.

Click on: Title for full citation to the reading
"Online" the reading itself
"CP" coursepack listing
"Qs questions on the reading

Date

Topic and Assigned Reading

Jan 4 Course Overview
Jan 9 Introduction to the International Economy
Gerber, Ch. 1. [15p]
Economics Focus, "Why the tail wags the dog" [2p] Online (P) | Qs
Center for Global Development, "Global Trade and Development" [4p] Online | Qs
Hufbauer and Grieco, "...Payoff from Globalization" [2p] Online | Qs
Eiras, "...Economic Freedom" [7p] Online | Qs
powell & Udayakumar, "Race, Poverty & Globalization" [6p] Online | Qs
Bhagwati, "Does the Free Market Corrode Moral Character?" [2p] Online | Qs
Jan 11 Institutions of the International Economy
Gerber, Ch. 2. [20 p]
Blustein, "The Doha Disaster" [2p] Online | Qs
Wenk, "Thoughts from WTO Ministerial" [2p] Online | Qs
IMF, "IMF at a Glance" [3p] Online | Qs
Optional:
Pilling, "Trans-Pacific Partnership" | Proquest
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           Martin Luther King Jr. Day: Jan 16
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Jan 18 Comparative Advantage and the Gains from Trade
Gerber, Ch. 3. (but omit pp. 46-51) [16p]
Deardorff, "...Comparative Advantage" [7p] Online | Qs
Deardorff and Stern, "What You Should Know..." Sec 2 (pp. 405-413) [9p] Online (S) | CP 2 | Qs
Brooks, "Don't Live Simply" [2p] Online | Qs
Other views:
Prestowitz, "The Losses of Trade" [2p] Online | Qs
Bivens, "Marketing Gains from Trade." [4p] Online | Qs
Jan 23 Modern Theories and Additional Effects of Trade
Gerber, Ch. 4, pp. 63-65 [4th: 60-62], 68-73 [4th: 65-70], and Ch. 5, pp. 93-98 [4th: 90-96] [13p]
Krugman, "Is Free Trade Passé?" [14p] Online (J) | CP 2 | Qs
Bivens, "Globalization and American Wages" [11p] Online | Qs
Jan 25 Tariffs
Gerber, Ch. 6, pp. 119-132 [4th: 116-127], and Ch. 7, pp. 140-145 [4th: 136-142] [17p]
Feenstra, "How Costly...", pp. 159-171,175-178 only. [16p] Online (J) | CP 2 | Qs
Schavey, "Catch-22 of U.S. Trade" [3p] Online | Qs
Jan 30 Nontariff Barriers

Gerber, Ch. 6, pp. 132-137 [4th: 128-133] [6p]
Lindsey and Ikenson, "Coming Home to Roost" Ex. Sum. [2p] Online | Qs
Hufbauer & Schott, "Buy American" [11 pp] Online | Qs

Feb 1 Reasons for Protection
Gerber, Ch. 7, pp. 146-150 [4th: 142-147] [5p]
Magee, "Why Are Trade Barriers So Low?" [6p] Online (Wiley) | Qs
Other views:
Mastel, "Keep Anti-Dumping Laws ..." [3p] Online | Qs
Kain, "Protectionism and National Security" [2p] Online | Qs
Feb 6 United States Trade Policies and Institutions
Gerber, Ch. 5, pp. 112-115 [4th: 108-112], and Ch. 7, pp. 151-155 [4th: 148-152] [10p]
Verrill, "...Trade Remedies..." [3p] Online | Qs
Palmer, "...Trade Promotion Authority..." [1p] Online | Qs
Glassman, "Illogical Special Trade Deals" [2p] Online | Qs
Roth, "Wage Insurance" [4p] Online | Qs
Feb 8 World Trade Arrangements and the WTO
Gerber, Ch. 2, pp. 20-23 (again) [4p]
Deardorff, "...Overview of the WTO" [38p] Online | Qs
Deardorff and Stern, "What You Should Know..." Sec 3 (pp. 413-421) [8p] Online (S) | CP 2 | Qs
Bouët and Laborde, "Cost of a Failed Doha Round" [8p] Online | Qs
Ikenson, "Weep Not for Doha" [8p] Online | Qs

Feb 13 International Migration of Labor
Gerber, Ch. 13, pp. 84-86 [4th: 320-322] [3p]
Deardorff, "Migration" [3p] Online | Qs
Roig-Franzia, "Immigration Bill's Defeat" [2p] Online | Qs
Stelzer, "Immigration: Hard Facts" [4p] Online | Qs
Borjas, "...Progress of Immigrants" [2p] Online | Qs
Skerry and Rockwell, "The Cost of a Tighter Border" [3p] Online | Qs
Economics Focus, "Drain or Gain?" [2p] Online (P) | Qs
Other Views (on whether to limit immigration):
Eldredge, "YES..." [4p] Online | or Online | Qs
Griswold, "NO..." [4p] Online | or Online | Qs
Feb 15 International Movements of Capital
Zupnick, "U.S. FDI Abroad" and "FDI in the US" [32p] CP 1 (Not online) | Qs
Lipsey, "Direct Investment..." [2p] Online | Qs
Feb 20 *** FIRST MIDTERM EXAM ***
Covers material through Feb 13 (International Migration of Labor)
Feb 22 The Balance of Trade and Other Measures of International Transactions
Gerber, Ch. 9 [28p]
Feldstein, "Address Imbalances" [3p] Online (P) | Qs
Karabell, "Global Imbalances Myth" [3p] Online (P) | Qs
Edwards, "Unsustainable Deficit" [2p] Online | Qs
Buffett, "...Selling the Nation..." [5p] Online | Qs
Makin, "...External Balances" [3p] Online | Qs
Other Views:
Scott, "Trade deficit with Mexico... " [1p] Online | Qs
Griswold, "Are Trade Deficits Good..." [6p] Online | Qs

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           Spring Break: Feb 27 - Mar 2
      ************************************************
Mar 5 Exchange Rates
Gerber, Ch. 10, pp. 209-227 [4th: 209-228] [20p]
Economist, "Beefed-up Burgernomics" [2p] Online (P) | Qs
Mar 7 Pegging the Exchange Rate
Gerber, Ch. 10, pp. 227-233 [4th: 228-235] [8p]
Levy, "We're Serious" [2p] Online | Qs
Ferguson, "Our Currency, Your Problem" [6p] Online | Qs
Mar 12 International Macroeconomics
Gerber, Ch. 11 [23p]
Elliott, "...Import Recession..." [2p] Online | Qs
Stiglitz, "America Has Little to Teach China" [2p] Online (P) | CP 2 | Qs
Mann and Plück, "When the Dollar Bill Comes Due" [2p] Online | Qs
Other views:
Perry, "Thank the Chinese Currency Manipulators" [3p] Online | Qs
Krugman, "Taking On China" [2p] Online | Qs
Mar 14 Fixed Versus Floating Exchange Rates
Gerber, Ch. 10, pp. 233-235 [4th: 235-239] [4p]
Makin, "Exchange Rate Stability..." [6p] Online | Qs
Frankel, "International Financial Architecture" [8p] Online+ Fig 3 | Qs
Buttonwood, "Forty years on" [2p] Online (p) | Qs
Mar 19 European Monetary Unification and the Euro
Gerber, Ch. 10, pp. 235-240 [4th: 239-244], and Ch. 14, pp. 348-353 [4th: 350-355] [12p]
Levin, A Guide to the Euro, pp. 41-51. [11p] CP 1 (Not online) | Qs
Solomon, "International Effects..." [7p] Online | Qs
Barber, "EU Reluctant to Discipline" [1p] Online (P) | Qs
Lachman, "Euro Will Unravel" [6p] Online | Qs
Forelle & Walker, "..Dithering at the Top..." [4p] Online (P) | Qs
Kulish, "No Fireworks for Euro..." [4p] Online (I) | Qs
Mar 21 Preferential Trading Arrangements and the NAFTA
Gerber, Ch. 13, and Ch. 14, pp. 331-347 [4th: 332-349] [44p]
USTR, "Trade Agreements" & "Free Trade Agreements" [2p] Online & Online | Qs
Williamson, "Sweeping New Deal on Trade" [5p] Online (Proquest) | Qs
Barfield, "Trans-Pacific Partnership" [7p] Online | Qs
Other views:
Faux, "Overhauling NAFTA" [2p] Online | Qs
Mar 26 *** SECOND MIDTERM EXAM ***
Covers Feb 15 (International Movements of Capital) through Mar 19 (European Monetary Unification and the Euro)
Mar 28 International Policies for Economic Development, Trade
Gerber, Ch. 15, pp. 362-371 [4th: 364-374], and Ch. 16 [36p]
Bailey, "Intangible Wealth" [2p] Online (P) | CP 2 | Qs
Copenhagen Consensus, "Outcome 2008" [6p] Online | Qs
Prusa, "...Antidumping" [2p] Online | Qs
FAO, "Cotton Subsidies..." [2p] Online | Qs
Baker, "WTO and the Poor" [2p] Online | Qs
Apr 2 International Policies for Economic Development, Financial
Gerber, Ch. 12 and Ch. 15, pp. 371-87 [4th: 375-91] [40p]
Crook, "A cruel sea of capital" [4p] Online (P) | CP 2 | Qs
Kharas, "Ten Years After the East Asian Crisis" [2p] Online | Qs
Forbes, "The Costs of Capital Controls..." [2p] Online | Qs
Krueger and Srinivasan, "Harsh Consequences of Forgiveness" [2p] Online (P) | Qs
Lerrick, "World Bank Lending" [2p] Online | Qs
Apr 4 International Business - Visitor: John W. Sweetland
Apr 9 International Policies for Economic Development, Aid
Economics Focus, "Gauging generosity" [4p] Online (P) | CP 2 | Qs
Schaefer, "American Generosity..." [3p] Online | Qs
Rice, "...Fight Global Poverty" [3p] Online | Qs
Roberts, "...Millennium Challenge Account" [5p] Online | Qs
Fraser Institute, "When Foreign Aid Doesn't" [4p] Online | Qs
Levinsohn and McMillan, "Does Food Aid Harm..." [2p] Online | Qs
Eberstadt & Adelman, "Foreign Aid: What Works and What Doesn't" [6p] Online | Qs
Apr 11 Outsourcing and Offshoring
Blinder, "Offshoring Rattles Me" [2p] Online | Qs
Brainard and Litan, " 'Offshoring' Service Jobs" [10p] Online | Qs
Amiti and Wei, "Offshoring Raises Productivity" [1p] Online | Qs
Mandel, "Real Cost of Offshoring" [3p] Online | Qs
Optional:
Friedman"Made in the World" | Infotrac
Apr 16 Environment, Labor Standards and Trade
Gerber, Ch. 8 [20p]
Krugman, "Climate, Trade, Obama" [2p] Online | Qs
Reuters, "China denounces carbon tariff" [1p] Online | Qs
Jones, "Should Environmentalists Support Free Trade?" [5p] Online | Qs
Purvis, "Greening U.S. Foreign Aid..." [8p] Online | Qs
Stern, "Labor Standards and Trade Agreements" pp. 1-14, 20-21 [16p] Online | Qs
Krugman, "In Praise of Cheap Labor" [3p] Online | Qs
Samida, "Working 9 to 9" [3p] Online | Qs
Wednesday,
Apr 25
*** FINAL EXAM *** (Cumulative, 8:00-10:00 AM)


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