| Text | Grades | Exams | Lectures | 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. |
Finally, you will also be expected to keep up with the current international economic news. For that purpose you should read regularly some news source with good coverage of international economic news. You do not necessarily have to subscribe to anything, although that may make it easier to keep up. Good sources of international economic news are:
If you wish to subscribe to any of these, you may do so online. There are many other good things to read, including the New York Times, but these do not have as much international economic news. I also post links to news items on my website.
We will devote part of one class each week to discussion of items in the news, and these items will also be included in a small way on exams. I will post particular news items on the course web site, which you should read for that purpose.
EXAMS AND GRADES
| Date | Time | Weight | |
|---|---|---|---|
| First midterm exam: | Thursday, February 21 | in class | 30% |
| Second midterm exam: | Thursday, March 28 | in class | 30% |
| Final exam: | Wednesday, May 1 | 8:00-10:00 AM | 40% |
LECTURES
Attendance at lectures is required, but only in the sense that I will say things in class that you'll need to know on exams, and not all of these will necessarily be in any of the readings or even in the PowerPoint slides. I would also like to think that if you pay attention to lectures, you will learn more, including things that I will not test you on. But if you don't care about that, and if you think you can earn whatever minimal grade you want without attending, I don't mind at all. This is a large enough class that you will not be missed. Indeed, other students in the class, and I as well, would prefer that you not attend than to have you here sleeping in your seat or leaving early because you're bored. And since I grade on a curve, other students can only benefit from your absence.
STUDENTS WITH DISABILITIES
| If you believe you need an accommodation for a disability, please let me know at your earliest convenience. Some aspects of this course may be modified to facilitate your participation and progress. As soon as you make me aware of your needs, we can work with the Office of Services for Students with Disabilities to help us determine appropriate accommodations. I will treat any information you provide as private and confidential. |
WHERE TO FIND ME
| Office: | Room 3314 Weill Hall (this building) |
| Phone: | 764-6817 |
| Office Hours: | Mondays & Wednesdays, 9:30-10:30 AM |
| (subject to change; check my homepage) | |
| E-mail: | alandear@umich.edu |
| Course Home Page: | http://www-personal.umich.edu/~alandear/courses/340/340.html
(Also accessible through UM CTools.) |
| Piazza Discussion Page: | https://piazza.com/umich/fall2012/econ340001w13/home
(Also accessible through UM CTools.) |
GSI
This course is lecture-only, and it does not have any section meetings. However, there will be a Graduate Student Instructor available, one of whose jobs will be to help students with the material. He or she will hold regular office hours, as follows:
GSI:
Yu Zhou
e-mail: zhouyu@umich.edu
office: 102 Lorch
hours:
Tuesdays, 10-11 AM
Fridays, 9-10 AM
SCHEDULE OF LECTURES AND READINGS
Click on:
Title
for
full citation to the reading
"Online"
the reading itself (via UM if labelled P=Proquest, J=JSTOR, etc.)
"Qs
questions on the reading
| Date | Topic and Assigned Reading
| ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 10 | Course Overview | ||||||||||||||||||||||||||||||||||
| Jan 15 | 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 powell & Udayakumar, "Race, Poverty & Globalization" [6p] Online | Qs Bhagwati, "Does the Free Market Corrode Moral Character?" [2p] Online | Qs | ||||||||||||||||||||||||||||||||||
| Jan 17 | Institutions of the International Economy Gerber, Ch. 2. [20 p] Wenk, "Thoughts from WTO Ministerial" [2p] Online | Qs IMF, "IMF at a Glance" [3p] Online | Qs Pilling, "Trans-Pacific Partnership" [4p] Online (P) | Qs Optional: Lamy, "Pascal Lamy on world trade: Is Doha dead?," Economist Online Video | ||||||||||||||||||||||||||||||||||
| Jan 22 | 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) | Qs Brooks, "Don't Live Simply" [2p] Online | Qs Dizikes, "Evidence for ... Comparative Advantage" [2p] Online | Qs Other views: Prestowitz, "The Losses of Trade" [2p] Online | Qs Bivens, "Marketing Gains from Trade." [4p] Online | Qs | ||||||||||||||||||||||||||||||||||
| Jan 24 | 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) | Qs Bivens, "Globalization and American Wages" [11p] Online | Qs | ||||||||||||||||||||||||||||||||||
| Jan 29 | 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) | Qs Schavey, "Catch-22 of U.S. Trade" [3p] Online | Qs | ||||||||||||||||||||||||||||||||||
| Jan 31 | Nontariff Barriers
Gerber, Ch. 6, pp. 132-137 [4th: 128-133] [6p] | ||||||||||||||||||||||||||||||||||
| Feb 5 | Reasons for Protection Gerber, Ch. 7, pp. 146-150 [4th: 142-147] [5p] Magee, "Why Are Trade Barriers So Low?" [6p] Online (W) | Qs Other views: Mastel, "Keep Anti-Dumping Laws ..." [3p] Online | Qs Kain, "Protectionism and National Security" [2p] Online | Qs | ||||||||||||||||||||||||||||||||||
| Feb 7 | 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 Kramer, "Russia Joining WTO" [4p] Online (P) | Qs | ||||||||||||||||||||||||||||||||||
| Feb 12 | 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) | Qs Bouët and Laborde, "Cost of a Failed Doha Round" [8p] Online | Qs Ikenson, "Weep Not for Doha" [8p] Online | Qs Optional: Rushford, "The WTO's 'Dangerous' Election," Online
| ||||||||||||||||||||||||||||||||||
| Feb 14 | International Migration of Labor Gerber, Ch. 4, pp. 84-86 [4th: 80-82] [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, "Immigration will double population" [4p] Online | Qs Griswold, "Higher Immigration, Lower Crime" [4p] Online | Qs | ||||||||||||||||||||||||||||||||||
| Feb 19 | International Movements of Capital Zupnick, "U.S. FDI Abroad" and "FDI in the US" [32p] Available in CTools under Resources | Qs Lipsey, "Direct Investment..." [2p] Online | Qs Optional: Shrimsley, "Starbucks makes a mochary of tax law," Online-FT | Proquest | ||||||||||||||||||||||||||||||||||
| Feb 21 | *** FIRST MIDTERM EXAM *** Covers material through Feb 14 (International Migration of Labor) Feb 26
| 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 Other Views: Scott, "Trade deficit with Mexico... " [1p] Online | Qs Griswold, "Are Trade Deficits Good..." [6p] Online | Qs
Feb 28
| Exchange Rates | Gerber, Ch. 10, pp. 209-227 [4th: 209-228] [20p] Economist, "Currency envy" [2p] Online (P) | Qs Economist, "Calories and currencies" [2p] Online (P) | Qs
************************************************ | Spring Break: Mar 4-8 ************************************************ Mar 12
| 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 Optional: Bradsher, "On China Currency, Hot Topic in Debate, Truth Is Nuanced," Online-NYT | Proquest Subramanian & Kessler, "China's currency rises in the US backyard," Online-FT | Proquest Mar 14
| International Macroeconomics | Gerber, Ch. 11 [23p] Elliott, "...Import Recession..." [2p] Online | Qs Stiglitz, "America Has Little to Teach China" [2p] Online (P) | 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 19
| 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 21
| 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] Available in CTools under Resources | 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 (P) | Qs Mar 26
| 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 (P) | Qs Barfield, "Trans-Pacific Partnership" [7p] Online | Qs Other views: Faux, "Overhauling NAFTA" [2p] Online | Qs Optional: Evenett and Stern, "The Transatlantic Trade Talks," Online Mar 28
| *** SECOND MIDTERM EXAM *** | Covers Feb 19 (International Movements of Capital) through Mar 21 (European Monetary Unification and the Euro) Apr 2
| 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) | 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 4
| 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) | 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 9
| International Policies for Economic Development, Aid | Economics Focus, "Gauging generosity" [4p] Online (P) | 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
| International Business - Visitor: John W. Sweetland | Apr 16
| 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 Friedman, "Made in the World" [3p] | Online (P) | Qs Economist, "Offshoring: Welcome home" [2p] | Online (P) | Qs Optional: Economist Special Report on Outsourcing and Offshoring 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 Apr 18
| 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 Optional: Bhagwati and Narlikar, "Don't Blame the Brands," Online Apr 23
| Review | Wednesday, | May 1 *** FINAL EXAM *** (Cumulative, 8:00-10:00 AM) |
|
| E-mail to: alandear@umich.edu | Return to: Econ 340 |
| Deardorff's Home Page |