| Text | Grades | Exams | Contacts | Readings |
| PURPOSE: | This course deals with the theory of international trade. It explores the important theories that explain what countries trade and the extent to which they gain from trade. These theories include the theory of comparative advantage and the factor-proportions theory of trade, as well as more recent theoretical developments. The course also deals with the theory of trade policies, such as tariffs, quotas, and regional preferential trading arrangements.
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| Prerequisite: | Econ 401 - Intermediate Microeconomic Theory |
This course will concentrate on learning and using the economic models of international trade theory. Because of this there will be no assigned readings outside of the textbook, except possibly for an occasional handout. If you want to read more broadly on some of these topics, see the syllabus for my other course, Econ 340 International Economics, which you can find online at http://www.econ.lsa.umich.edu/~alandear/courses/340/340.html.
EXAMS AND GRADES
| Date | Time | Weight | |
|---|---|---|---|
| First midterm exam: | Wednesday, Jul 16 | in class | 30% |
| Second midterm exam: | Wednesday, July 30 | in class | 30% |
| Final exam: | Friday, August 15 | 10:30 AM - 12:30 PM | 40% |
WHERE TO FIND ME
| Office: | Lorch Hall, Room 458 |
| Phone: | 764-6817 |
| Office Hours (subject to change; check my homepage): | Mondays, 1-2 PM
Wednesdays, 3-4 PM |
| E-mail: | alandear@umich.edu |
| Course Home Page: | http://www.econ.lsa.umich.edu/~alandear/courses/441/441.html
(Also accessible through UM Course Tools.) |
| Extra hard copies of things handed out in class will be in a box on the floor outside my office. | |
| Date | Topic and Assigned Reading (Subject to revision as we go along.)
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|---|---|
| Jun 25 | Supply Markusen et al., Chs. 1-2.
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| Jun 27 | Demand and Equilibrium Markusen et al., Chs. 3-4.
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| Jun 30 | Gains from Trade Markusen et al., Ch. 5.
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| Jul 2 | The Ricardian Model Markusen et al., Chs. 6-7.
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| Jul 7 | The Lerner Diagram Deardorff, "Introduction to the Lerner Diagram," handout
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| Jul 9 | The Heckscher-Ohlin Model Markusen et al., Ch. 8 plus Appendix 3.
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| Jul 11 | The Two-Cone Heckscher-Ohlin Model Deardorff, "Introduction to Two-Cone HO Equilibrium," handout
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| Jul 14 | Specific Factors Markusen et al., Ch. 9.
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| Jul 16 | *** FIRST MIDTERM EXAM *** Covers material assigned through Jul 11 (Two-Cone HO)
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| Jul 18 | Government Policies Markusen et al., Ch. 10.
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| Jul 21 | Imperfect Competition Markusen et al., Ch. 11.
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| Jul 23 | Increasing Returns to Scale
Markusen et al., Ch. 12.
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| Jul 25 | Other Stories and Empirical Performance of the Models Markusen et al., Chs. 13-14.
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| Jul 28 | Tariffs Markusen et al., Ch. 15.
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| Jul 30 | *** SECOND MIDTERM EXAM *** Covers material from Jul 10 through Jul 25 (Empirical Performance of the Models)
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| Aug 1 | Nontariff Barriers Markusen et al., Ch. 16.
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| Aug 4 | Strategic Trade Policy Markusen et al., Ch. 17.
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| Aug 6 | Preferential Trading Arrangements Markusen et al., Ch. 18.
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| Aug 8 | Politics and Administered Protection Markusen et al., Ch. 19-20.
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| Aug 11 | Direct Foreign Investment and Multinational Firms Markusen et al., Ch. 22.
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| Aug 15 | *** FINAL EXAM *** (10:30 AM - 12:30 PM, Cumulative)
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| E-mail to: alandear@umich.edu | Return to: Econ 340 |
| Deardorff's Home Page |