THE UNIVERSITY OF MICHIGAN
Department of Economics

ECON 340
INTERNATIONAL ECONOMICS

SYLLABUS
Fall 2007, 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 much 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 Qs) 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) through JSTOR ("J" below), Ingenta ("I"), Proquest ("P") (use id=password="IPAUTO"), or Synergy ("S"), 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

Sep 5 Introduction
Gerber, Ch. 1. [14p]
Eiras, "...Economic Freedom" [7p] Online | Qs
Hufbauer and Grieco, "...Payoff from Globalization" [2p] Online | Qs
CGD, "Global Trade and Development" [4p] Online | Qs
Sep 10 Institutions of the International Economy
Gerber, Ch. 2. [18 p]
Blustein, "The Doha Disaster" [2p] Online | Qs
Bradford and Linn, "Global Economic Governance..." [8p] Online | Qs
Lachman, Desmond, "World Has Changed..." [2p] Online | Qs
Other views:
Global Exchange, "The Global Rulemakers" [2p] Online | Qs
Sep 12 Comparative Advantage and the Gains from Trade
Gerber, Ch. 3. (but omit pp. 44-49) [12p]
Deardorff, "...Comparative Advantage" [7p] Online | Qs
Deardorff and Stern, "What You Should Know..." Sec 2 (pp. 405-413) [9p] Online (S) | CP 2 | Qs | Working Paper Version
Other views:
Roberts, "Statement..." [4p] Online | Qs
Bivens, "Marketing Gains from Trade." [4p] Online | Qs
Sep 17 Modern Theories and Additional Effects of Trade
Gerber, Ch. 4, pp. 60-62 [3rd: 58-60], 65-70 [3rd: 63-67], and Ch. 5, pp. 90-96 [3rd: 84-90] [13p]
Krugman, "Is Free Trade Passé?" [14p] Online (J) | CP 2 | Qs
Sep 19 Tariffs
Gerber, Ch. 6, pp. 116-127 [3rd: 111-121], and Ch. 7, pp. 136-142 [3rd: 132-138] [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
Sep 24 Nontariff Barriers

Gerber, Ch. 6, pp. 128-133 [3rd: 121-129 (but starting on p. 119)] [9p]
Lindsey and Ikenson, "Coming Home to Roost" Ex. Sum. [2p] Online | Qs

Sep 26 Reasons for Protection
Gerber, Ch. 7, pp. 142-147 [3rd: 138-143] [6p]
Other views:
Mastel, "Keep Anti-Dumping Laws ..." [3p] Online | Qs
Oct 1 United States Trade Policies and Institutions
Gerber, Ch. 5, pp. 108-112 [3rd: 102-105], and Ch. 7, pp. 148-152 [3rd: 143-148] [10p]
Verrill, "...Trade Remedies..." [3p] Online | Qs
Schaefer, "...Extension of TPA" [2p] Online | Qs
Glassman, "Illogical Special Trade Deals" [2p] Online | Qs
Roth, "Wage Insurance" [4p] Online | Qs
Other views:
Prestowitz, "Globalization's Next Victim: Us" [8p] Online | Qs
Oct 3 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
McGillivray, Democratizing the WTO [15p] Online | Qs
Other views:
Lindsey, "WTO Bashers..." [4p] Online | Qs

Oct 8 International Migration of Labor
Gerber, Ch. 13, pp. 320-322 [3rd: 315-317] [3p]
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
Fraser Institute, "The Brain Drain... or Gain?" [4p] Online | Qs
Other Views (on whether to limit immigration):
Eldredge, "YES..." [4p] Online | Qs
Griswold, "NO..." [4p] Online | Qs
Oct 10 International Business - Visitor: John W. Sweetland


      ****************************
           Fall Study Break: Oct 15-16
      ****************************
Oct 17 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
Oct 22 *** FIRST MIDTERM EXAM ***
Covers material through Oct 8 (International Migration of Labor)
Oct 24 The Balance of Trade and Other Measures of International Transactions
Gerber, Ch. 9 [28p]
Scott, "Increases in Foreign Liabilities..." [3p] Online | Qs
Edwards, "Unsustainable Deficit" [2p] Online | Qs
Buffett, "...Selling the Nation..." [5p] Online | Qs
Makin, "...External Balances" [3p] Online | Qs
Other Views:
Griswold, "Are Trade Deficits Good..." [6p] Online | Qs

Oct 29 Exchange Rates
Gerber, Ch. 10, pp. 209-228 [3rd: 203-222] [20p]
Economist, "Sizzling" [2p] Online | Qs
Oct 31 Pegging the Exchange Rate
Gerber, Ch. 10, pp. 228-235 [3rd: 222-229] [8p]
Levy, "We're Serious" [2p] Online | Qs
Ferguson, "Our Currency, Your Problem" [6p] Online | Qs
Nov 5 International Macroeconomics
Gerber, Ch. 11 [23p]
Swagel, "Yuan Answers?" [3p] 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
Nov 7 Fixed Versus Floating Exchange Rates
Gerber, Ch. 10, pp. 235-239 [3rd: 229-233] [4p]
Makin, "Exchange Rate Stability..." [6p] Online | Qs
Frankel, "International Financial Architecture" [8p] Online+ Fig 3 | Qs
Brainard, "Oversight Reform Act of 2007" [1p] Online | Qs
Nov 12 European Monetary Unification and the Euro
Gerber, Ch. 10, pp. 239-244 [3rd: 233-237], and Ch. 14, pp. 350-355 [3rd: 343-349] [12p]
Levin, A Guide to the Euro, pp. 41-51. [11p] CP 1 (Not online) | Qs
Solomon, "International Effects..." [7p] Online | Qs
Lachman, "...Economic Fantasy" [3p] Online | Qs
Nov 14 Preferential Trading Arrangements and the NAFTA
Gerber, Ch. 13, and Ch. 14, pp. 332-349 [3rd: 326-343] [44p]
USTR, "Trade Delivers" [2p] Online | Qs
Barfield, "US-South Korea FTA" [2p] Online | Qs
Other views:
Faux, "NAFTA at 10" [4p] Online | Qs
Scott and Ratner, "NAFTA's Cautionary Tale" [10p] Online | Qs

Nov 19 International Policies for Economic Development, Trade
Gerber, Ch. 15, pp. 364-374 [3rd: 356-366], and Ch. 16 [36p]
Copenhagen Consensus, "A United Nations Perspective" [3p] Online | Qs
Prusa, "...Antidumping" [2p] Online | Qs
Eberstadt, "...Economic Freedom" [7p] Online | Qs
Esipisu, "Africa Urges Removal..." [2p] Online | Qs
FAO, "Cotton Subsidies..." [2p] Online | Qs
Baker, "WTO and the Poor" [2p] Online | Qs
      ************************************************
           Thanksgiving Break: Nov 22-23 (No class Nov 21)
      ************************************************
Nov 26 *** SECOND MIDTERM EXAM ***
Covers Oct 10 (International Movements of Capital) through Nov 14 (Preferential Trading Arrangements and the NAFTA)
Nov 28 International Policies for Economic Development, Financial
Gerber, Ch. 12 and Ch. 15, pp. 375-91 [3rd: 366-382] [40p]
Crook, "A cruel sea of capital" [4p] Online (Proquest) | Qs
Kharas, "Ten Years After the East Asian Crisis" [2p] Online | Qs
Forbes, "The Costs of Capital Controls..." [2p] Online | Qs
Hartwell, "The Case against Capital Controls..." Ex. Sum. only [1p] Online | Qs
Krueger and Srinivasan, "Harsh Consequences of Forgiveness" [9p] Online | Qs
Lerrick, "World Bank Lending" [2p] Online | Qs
Dec 3 International Policies for Economic Development, Aid
Economist, "Gauging generosity" [4p] Online (Proquest) | Qs
Rice, "...Fight Global Poverty" [3p] Online | Qs
Schaefer, "American Generosity..." [4p] Online | Qs
Schaefer, "...Millennium Challenge Account" [6p] Online | Qs
Fraser Institute, "When Foreign Aid Doesn't" [4p] Online | Qs
Easterly, "What Bono Doesn't Say" [2p] Online | Qs
Sachs, "Foreign Aid Skeptics" [2p] Online | Qs
Rajan and Subramanian, "No Evidence..." [2p] Online | Qs
Levinsohn and McMillan, "Does Food Aid Harm..." [2p] Online | Qs
Shah, "So What Now?" [2p] Online | Qs
Dec 5 Outsourcing and Offshoring
Bivens, "Offshoring" [15p] Online | Qs
Bhagwati et al., "Muddles..." Section VI only, pp. 30-37. [8p] 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
Dec 10 Environment, Labor Standards and Trade
Gerber, Ch. 8 [20p]
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" [10p] Online | Qs
Samida, "Working 9 to 9" [5p] Online | Qs
Bhagwati, "Foes of Free Trade" [2p] Online | Qs
Tuesday,
Dec 18
*** FINAL EXAM *** (Cumulative, 8:00-10:00 AM)


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