| 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. |
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.
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, October 22 | in class | 30% |
| Second midterm exam: | Monday, November 26 | in class | 30% |
| Final exam: | Tuesday, Dec 18 | 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 , and if you think you can earn whatever minimal grade you want without attending, I don't mind at all. This is a large class, and you will not be missed. Indeed, other students in the class, and I as well, would prefer that you not attend than 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 (This is the new building, NE corner of Hill and State, 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. She will hold regular office hours, as follows:
GSI:
Jooyoun Park
e-mail: ejpark@umich.edu
office: 114 Lorch
hours: Mon 10-11 AM
Tue 4-5 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) 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] | ||||||||||||||||||||||||||||||
| 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) |
|
| E-mail to: alandear@umich.edu | Return to: Econ 340 |
| Deardorff's Home Page |