| 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. |
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: | Monday, February 20 | in class | 30% |
| Second midterm exam: | Monday, March 26 | in class | 30% |
| Final exam: | Wednesday, Apr 25 | 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.
COURSEPACKS
| Coursepack 1: |
Supplementary readings that are not on the
web. (Required)
|
| Coursepack 2: |
Supplementary readings that are on the
web, but that are only accessible from U of M computers (through JSTOR, Ingenta,
Proquest, etc.).
|
| Coursepack 3: |
Supplementary readings that are freely available on the
web, and that should be accessible from anywhere.
|
| Coursepack 4: |
A list of all supplementary readings together with a few
questions on each of them to help you study. (Also available on
course web page.)
|
| Coursepack 5: |
Exams from the last three times the course was taught, with answers. (Also available on the course
web page.)
|
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 (NE corner of Hill Street and State Street, home of the Gerald R. Ford School of Public Policy.) | |||
| Phone: | 764-6817 | |||
| ||||
| E-mail: | alandear@umich.edu | |||
| Course Home Page: | http://www-personal.umich.edu/~alandear/courses/340/340.html
(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 will hold regular office hours, as follows:
GSI:
Tong Yob Nam
e-mail: tynam@umich.edu
office: 114 Lorch
hours: Tuesdays 10:30-11:30 AM
Thursdays 1:00-2:00 PM
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
************************************************ Martin Luther King Jr. Day: Jan 16 ************************************************ 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] 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
************************************************ | 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) |
|
| E-mail to: alandear@umich.edu | Return to: Econ 340 |
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