Contacts | Class structure | Text | Podcasts | Questions | Requirements | Schedule | Policies | Readings |
CONTACTS
Alan Deardorff:
Office: Weill Hall, Room 3314 (But I may never be there, due to Covid-19)
Phone: 734-239-5914 (My cell, but I prefer you use email)
Office Hours:
Mondays and Thursdays 10-11 AM via Zoom
E-mail: alandear@umich.edu
Feel free to e-mail me with questions or to request a virtual meeting outside of my office hours.
Zoom Links: (for classes and office hours)
Class sessions:
https://umich.zoom.us/j/92509778371 Passcode = 541541
Office hours:
https://umich.zoom.us/j/93237591114 Passcode = 541541
Course Home Page:
http://www-personal.umich.edu/~alandear/courses/541/541.html
PURPOSE: | The aim of this course is to teach you a lot about the economics -- and a little about the institutions -- of international trade and trade policy. The course is companion to SPP 542, International Finance Policy, which deals with international macroeconomic topics such as the balance of trade and balance of payments, determination of exchange rates, and international macroeconomic policies. Each course also includes some bare essentials of the other course so that if you take only one of them, you won't be lost in the world economy.
The course is mainly about trade policy. You will learn what trade policies are, how they are used by the United States and other countries, and how their use is restricted by international agreements. More importantly you will learn how to use economic modeling to understand the effects of trade policies and to quantify these effects. Along the way you will also learn about the institutions of the world economy, especially those that have to do with trade. And you will learn a little bit about the economic theories of why nations trade, why economists argue that gain from trade, and why there are also losers from trade.
|
Prerequisite: | PubPol/Econ 555 or equivalent course in intermediate microeconomics |
Organization: | The course meets twice a week, Tuesdays and Thursdays, 8:30-9:50 AM, online via Zoom. |
Jackson, John H., The World Trading System: Law and Policy of International Economic Relations, Second Edition, MIT Press, 1997, isbn #0-262-60027-7, out of print (see below).
NOTE on the Krugman, Obstfeld, Melitz text:
The most recent edition, the 11th, came out in 2018. I list page numbers for it in the list below, plus pages from the previous 10th edition in its trade-only version, in case you find a copy of that instead. The trade-only version excludes the chapters on exchange rates and balance of payments, which I also assign, so I'll make those available on Canvas.
NOTE on the Jackson text:
There are also many additional readings that are required. All are available under Files/Resources/Readings on Canvas, and linked to on this syllabus. Many of the readings are also available free to the public on the web, through links included on this syllabus. A few readings are available through subscription sites, including ones subscribed to by U of M (e.g., JSTOR, Proquest). And a few are available only on Canvas.
Because of the speed with which issues evolve, readings selected in advance can never cover all of the latest developments. We will therefore spend time each week discussing recent news related to trade and trade policy. You should follow current issues of international trade policy by reading daily periodicals such as the Wall Street Journal, New York Times, or Financial Times or weekly publications such as Business Week, or The Economist. Student subscriptions to these publications are available at reduced prices. I also post links to relevant news items on my personal website. We will devote some time each week to discussing the news.
PODCASTS
For the last two years, the Peterson Institute for International Economics has provided weekly podcasts, Trade Talks, most of them featuring Soumaya Keynes of The Economist and PIIE scholar Chad Bown, discussing topics of international trade policy. I include links to a number of these at appropriate points in the syllabus marked Optional to View. I have not listened to all of them myself, but I've heard enough to know that they are valuable, if you can take the time to listen to them.
QUESTIONS ON READINGS
REQUIREMENTS
Requirements for the course consist of a series of problem sets that will not be graded, three graded short papers handed in during the term, graded weekly quizzes, and class participation.
The weights on each of these requirements in determining your grade will be as follows:
Problem Sets | 0%
Papers | 45% | (15% for each of three papers)
| Quizzes | 40% | (4% for each of your top ten)
| Class participation | 15%
| |
Quizzes | Due every Friday | 11:59 PM |
Paper #1 | Thursday, October 8 | 8:30 AM |
Paper #2 | Thursday, November 12 | 8:30 AM |
Paper #3 | Tuesday, December 8 | 8:30 AM |
WRITING ASSISTANCE
I will grade your papers on both content and presentation, which means you should take full advantage of the Ford School resources for helping you with your writing. See http://fordschool.umich.edu/writing-center/ for more information, including links to the websites for signing up for advising appointments. This assistance is available to all students in Ford School courses, such as this, whether or not you are enrolled in a Ford School program |
FORD SCHOOL POLICIES AND EXPECTATIONS
Ford School Public Health Protection Policy:
In order to participate in any in-person aspects of this course, such meeting with other students to study or working on your group papers, you must follow all safety measures mandated by the State of Michigan, the University of Michigan, and the Ford School. This includes maintaining physical distance of six feet from others and properly wearing a face covering at all times while on campus. In addition, it is expected that you will protect and enhance the health of everyone in the Ford School community by staying home and following self-isolation guidelines if you are experiencing any symptoms of COVID-19, have been exposed to someone with COVID-19, are awaiting a test result, or have engaged in a higher-exposure activity such a flying or attending an indoor social gathering of more than 10 people. If you are unable or unwilling to adhere to all prescribed safety measures, you will be accommodated through remote access to all aspects of this course. Additional information on public health safety measures is described in the Wolverine Culture of Care and the University's Face Covering Policy for COVID-19.
Inclusivity: Members of the Ford School community represent a rich variety of backgrounds and perspectives. We are committed to providing an atmosphere for learning that respects diversity. While working together to build this community we ask all members to:
Accommodations for Students with Disabilities: If you believe you need an accommodation for a disability, please let your instructor know at your earliest convenience. Some aspects of courses may be modified to facilitate your participation and progress. As soon as you make your instructor aware of your needs, they can work with the Services for Students with Disabilities (SSD) office to help determine appropriate academic accommodations. Any information you provide will be treated as private and confidential. Student Mental Health and Well-Being Resources: The University of Michigan is committed to advancing the mental health and wellbeing of its students. We acknowledge that a variety of issues, such as strained relationships, increased anxiety, alcohol/drug problems, and depression, directly impact students' academic performance. If you or someone you know is feeling overwhelmed, depressed, and/or in need of support, services are available. For help, contact Counseling and Psychological Services (CAPS) and/or University Health Service (UHS). For a listing of other mental health resources available on and off campus, visit: https://uhs.umich.edu/stressresources. Ford School Academic Expectations: Please see http://fordschool.umich.edu/academics/expectations for the Ford School's policies regarding the following, all of which will be followed in this course:
Technology in this class: Regarding technology, you will of course be using it for our class meetings, since they are all online. You are welcome to use whatever devices you find helpful during class, such as looking up current news and other information relevant to class discussion. Quizzes will be open book, and you will be welcome to use online resources (but not other students) to help you, subject to the quiz time limit. |
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0. |
Introduction to the Course (Class 0: Sep 1)
No readings for today. For all subsequent classes, you should read everything assigned before the class meets. | I've listed the numbers of pages for each reading and for each topic, so plan accordingly. Today: I will introduce myself and ask each of you to introduce yourselves, so plan to turn on your microphone and camera. Tell the class:
Following that I will present some background information about the international economy and trade.
|
Optional to View:
| Kudlow, "Don't blame Trump' for trade fights" YouTube (2:14) Oliver, "Trade" YouTube (21:13) I. |
Overview of the International Economy
|
A.1. |
The State of Play in International Trade and Trade Policy I: Trade Wars (Class 1: Sep 3) [50 pp + Opt 24]
Questions
|
Bown & Kolb, "Trade War Timeline" |
Online. [15 pp]
|
Williams & Hammond, "Escalating U.S. Tariffs: Timeline" |
Online. [5 pp]
|
Williams & Hammond, "Escalating U.S. Tariffs: Affected Trade" |
Online. [5 pp]
|
Section 232:
|
Mildner & Ross, "'American Cars First' – Uncertainty about Car Tariffs Persists" |
Online. [3 pp]
|
Palmer, "Supreme Court gives Trump a win on his steel tariffs" |
Online. [3 pp]
|
Will, "Tariff Man punishes the Canadian bullies" |
Canvas. [2 pp]
|
Optional to Read:
|
Bown, "Trump's steel and aluminum tariffs are cascading out of control" |
Online. [7 pp]
|
Optional to View:
|
Trade Talks #24, "The Trump Administration Views Trade as National Security Threat" 2/21/18 | Podcast [35:32 minutes]
|
Trade Talks #40, "Steel and Aluminum Tariffs: Trump versus Everyone" 6/2/18 | Podcast [19:22 minutes]
|
Trade Talks #87, "Trump Shifts His National Security Threats (Again)" 2/20/19 | Podcast [21:58 minutes]
|
Intellectual Property:
|
Trump, "Addressing China's Laws, Policies, Practices, and Actions" |
Online. [1 pp]
|
Optional to Read:
|
Hall and Tan, "William Barr thinks China is stealing American technology." |
Canvas. [3 pp]
|
Optional to View:
|
Trade Talks #33, "Trade and Investment Talks: China Wants America's Technology" 4/13/18 | Podcast [17:35 minutes]
|
China Tariffs:
|
BBC, "A quick guide to the US-China trade war" |
Online. [4 pp]
|
Deardorff, "Links to Trade-War Trade News" |
Online. [6 pp]
|
Swanson & Bradsher, "American and Chinese Officials Take Pulse on Trade Deal, Six Months In" |
Canvas. [2 pp]
|
Optional to Read:
|
Palumbo & da Costa, "Trade war: US-China trade battle in charts" |
Online. [5 pp]
|
Economist, "Chronicling Donald Trump’s trade war with China" |
Canvas. [2 pp]
|
Optional to View:
|
Trade Talks #96, "Trump's Next China Tariffs and Fears in the Global Economy" 8/16/19 | Podcast [21:25 minutes]
|
Digital Tax:
|
Tankersley, "U.S. Will Impose Tariffs on French Goods in Response to Tech Tax" |
Canvas. [1 pp]
|
Targeting Chinese Companies:
|
Economist, "No more quarter: America closes the last loophole in its hounding of Huawei" |
Canvas. [2 pp]
|
Hale & McMorrow, "China export restrictions pose new risk for TikTok sale in US" |
Canvas. [2 pp]
|
Optional to Read:
|
Davis & Strumpf, "Huawei Braces for Latest U.S. Hit, but Some Say Loopholes Remain" |
Canvas. [5 pp]
|
Leskin, "Trump's push to ban TikTok in the US, explained in 30 seconds" |
Online. [2 pp]
|
Optional to View:
|
Trade Talks #101, "Huawei, National Security, and the Trade War" 9/15/19 | Podcast [23:34 minutes]
|
Trade Talks #117, "Trump’s Import Tariffs Have Hurt US Exports" 1/8/20 | Podcast [21:32 minutes]
|
Trade Talks #118, "Ins and Outs of the US-China Phase-One Trade Deal" 1/18/20 | Podcast [44:58 minutes]
|
Trade Talks #132, "US-China Trade War: The Negotiators" 6/21/20 | Podcast [28:09 minutes]
|
A.2. |
The State of Play in International Trade and Trade Policy II: Other (Class 2: Sep 8) [57 pp + Opt 48 pp]
Questions
|
KOM: [21 pp]
| Ch. 1, "Introduction" Ch. 2, "World Trade: An Overview"
BREXIT:
|
Sandford and Gill, "Post-Brexit deadlock: Four areas threatening to scupper EU-UK deal on trade and future ties" |
Online [3 pp]
|
Murray, "Supply Lines" |
Canvas [2 pp]
|
Münchau, "The risk of a no-deal Brexit is rising, and that’s no bad thing" |
Canvas [3 pp]
|
Optional to Read:
|
Colchester, "Brexit Is Done: The U.K. Has Left the European Union" |
Canvas [5 pp]
|
Parker and Steer, "UK steps up plans to train 50,000 form fillers for post-Brexit trade" |
Canvas [2 pp]
|
Optional to View:
|
Trade Talks #100, "Sneaking Up on a No-Deal Brexit" 9/11/19 | Podcast [18:58 minutes]
|
PANDEMIC AND TRADE:
|
Deardorff, "Links to Virus-Related Trade News" |
Online. [3 pp]
|
Hannon, "Covid Crisis Drives Historic Drop in Global Trade" |
Canvas. [4 pp]
|
Baldwin and Evenett, "Introduction" to COVID-19 and Trade Policy pp. 1-9 |
Canvas. [9 pp]
|
Parker, "Canada, Australia, Chile, Brunei and Myanmar join NZ and Singapore in committing to keeping supply and trade links open" to |
Online. [2 pp]
|
Optional to Read:
|
Baldwin and Evenett, "Introduction" to COVID-19 and Trade Policy pp. 9-19 |
Canvas. [10 pp]
|
WTO, "Responding to the Covid-19 Pandemic with Open and Predictable Trade" to |
Online. [2 pp]
|
Optional to View:
|
Trade Talks #125, "Coronavirus and Trade Restrictions" 3/27/20 | Podcast [28:26 minutes]
|
Trade Talks #126, "COVID-19 and Trade: Stories from the Data" 3/27/20 | Podcast [25:11 minutes]
|
OTHER DISPUTES AND ACTIONS:
|
Brunsden & Williams, "Brussels warns new US tariff threat over Airbus will harm both sides" |
Canvas. [3 pp]
|
Michaels & Lombardi, "Airbus Looks to End Trade Dispute With U.S. by Forgoing Some Government Support" |
Canvas. [3 pp]
|
Rappeport, "U.S. Outlines Plans to Scrutinize Chinese and Other Foreign Investment" |
Canvas. [1 pp]
|
Hancock & Brunsden, "EU and China agree to protect regional food and drink" |
Canvas. [3 pp]
|
Optional to Read:
|
Parker, "Anger over US single malt whisky tariffs in aircraft subsidy dispute" |
Canvas. [2 pp]
|
Shepherd & Liu, "Guangzhou bans frozen meat imports over virus fears" |
Canvas. [3 pp]
|
BBC, "Trump dangles cash for US firms moving from China" |
Online. [2 pp]
|
Smyth et al., "Australia set to bar China dairy takeover as trade tensions rise" |
Canvas. [2 pp]
|
Hale, "Hong Kong to take action against US ‘Made in China’ label demand" |
Canvas. [2 pp]
|
Fleming & Williams, "EU agrees to eliminate tariffs on US lobster" |
Canvas. [3 pp]
|
Rappeport, "U.S. Cracks Down on Counterfeits in a Warning Shot to China" |
Canvas. [2 pp]
|
Paris, "Global Shipping Faces Troubling New Smuggling Questions" |
Canvas. [5 pp]
|
Williams, "Trump targets EU and China over US lobster tariffs" |
Canvas. [2 pp]
|
Swanson, "Trump Administration Blocks Chinese Acquisition of Hotel Software Company" |
Canvas. [1 p]
|
Yang & Shepherd, "Xinjiang forced labour reported in multinational supply chains" |
Canvas. [3 pp]
|
Economist, "Africa’s beef with America: Why African farmers struggle to export to the United States" |
Canvas. [2 pp]
|
Optional to View:
|
Trade Talks #92, "Japan and South Korea: Old Wounds, New Trade Fight" 7/15/19 | Podcast [19:56 minutes]
|
Trade Talks #76, "Fighting over Which Poor Countries Are Special" 3/11/19 | Podcast [22:30 minutes]
|
B. | Tariffs and Quotas (Classes 3, 4: Sep 10, 15) [34 pp + Opt 16 pp]
Questions
|
KOM: [12 pp]
| "Basic Tariff Analysis" "Costs and Benefits of a Tariff" 11th Ed.: Ch. 9, pp. 215-226 10th Ed. (trade only): Ch. 9, pp. 206-217, 220-224
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 1-12 |
Online [12 pp]
|
Lahart, "The Imperfect Science of How Much Tariffs Will Hurt". |
Canvas [2 pp]
|
Puko & Matthews, "Trump Eyes Tariffs as Tool to Tame Oil Glut". |
Canvas [4 pp]
|
Economist, "Vin-dictive: American drinkers of European wine face mounting tariff bills". |
Canvas [2 pp]
|
Toplensky, "Trump’s Tax on Champagne Will Cost U.S. Consumers". |
Canvas [2 pp]
|
Optional to Read:
|
Deardorff, "Analysis of Tariffs and Quotas" | Canvas [16 pp]
|
Optional to View:
|
Touillon-Ricci, "A 4,000-year old tale of trade and contraband" (7:54) (Tariffs are not new!)
|
Trade Talks #122, "Tariffs, Protests and Wine" 2/23/20 | Podcast [29:58 minutes]
|
Trade Talks #130, "So you want to design a tariff schedule…" 5/31/20 | Podcast [33:14 minutes]
|
C. |
Exchange Rates (Class 5: Sep 17) [26 pp] Questions
|
KOM: [11 pp]
| "Exchange Rates and International Transactions" "The Foreign Exchange Market" "BOX: Exchange Rates, Auto Prices, and Currency Wars" 11th Ed. Ch 14, pp. 350-360 Canvas (for those who have an older trade-only text)
Economist, "What comes after Bretton Woods II?" |
Canvas.
[3 pp]
|
Economist, "Patty power: How big is China’s economy? Let the Big Mac decide" |
Canvas.
[2 pp]
|
Fassihi, "With Inflation Ravaging Currency, Iran Is Changing Names and Numbers" |
Canvas.
[1 p]
|
Chilkoti, "Investors Bet Oil Crash Will Weaken Middle East Currency Pegs" |
Canvas.
[6 pp]
|
Lockett & Gross, "Trump threats to China over coronavirus pile pressure on renminbi" |
Canvas.
[3 pp]
|
Optional to View:
|
Trade Talks #95, "Is China a Currency Manipulator?" 8/9/19 | Podcast [22:33 minutes]
|
Trade Talks #104, "How to Hit Currency Manipulators and Fight the Strong Dollar" 12/19/19 | Podcast [29:01 minutes]
|
D. |
International Transactions and the Trade Balance (Class 6: Sep 22) [37 pp + Opt 35 pp]
Questions
|
KOM: [25 pp]
| "National Income Accounting and the Balance of Payments" 11th Ed. Ch 13 Canvas (for those who have an older trade-only text)
Garber, "International Transactions" |
Online [10 pp]
|
Obstfeld, "Targeting specific trade deficits is a game of whack-a-mole" |
Canvas [2 pp]
|
Optional to Read:
|
WTO, "Highlights of world trade," and "World trade developments" |
Canvas.
[21 pp]
|
~Scott & Mokhiber, "Growing China trade deficit cost 3.7 million American jobs" pp. 1-9 only |
Online [9 pp]
|
~Buffett, "America's Growing Trade Deficit Is Selling the Nation Out From Under Us" |
Online [5 pp]
|
Optional to View:
|
Trade Talks #98, "What's Wrong with Germany's Trade Surplus" 8/28/19 | Podcast [31:46 minutes]
|
E. |
Policies and Institutions: International (Classes 7, 8: Sep 24-29) [51 pp + Opt 66 pp]
Questions
|
KOM: [10 pp]
| "International Negotiations and Trade Policy" "BOX: Settling a Dispute -- And Creating One" "CASE STUDY: Testing the WTO's Metal" 11th Ed.: Ch. 10, pp. 260-269 10th Ed. (trade only): Ch. 10, pp. 252-262
Jackson, Ch. 1 pp. 1-11 Canvas [11 pp]
|
Jackson, Ch. 2 pp. 49-58 Canvas [10 pp]
|
Lighthizer, "How to Set World Trade Straight" |
Canvas [4 pp]
|
Amerjee, "The Multiparty Interim Appeal Arbitration Arrangement: will the US be missed?" |
Online [4 pp]
|
Economist, "How to Rescue the WTO" | Canvas. [12 pp]
|
NEEDED, Something on WTO leadership succession
|
Optional to Read:
|
Jackson, Ch. 2 pp. 31-49, 58-78 Canvas [31 pp]
|
Rodrik, "The WTO has become dysfunctional" |
Canvas [3 pp]
|
Schott, "Senator Hawley channels Trump in his attack on the World Trade Organization" |
Online.
[3 pp]
|
Schlesinger, "How China Swallowed the WTO" |
Canvas.
[12 pp]
|
Swanson, "Trump Presses World Trade Organization" | Canvas. [12 pp]
|
Politi & Findlay, "WTO rules that India violated global trade rules" |
Canvas [2 pp]
|
White & Song, "South Korea caves in to Trump over WTO developing nation status" |
Canvas [2 pp]
|
Harding, "WTO rules for Japan in anti-dumping case with South Korea" |
Canvas [1 p]
|
Optional to View:
|
Trade Talks #47, "WTO S.O.S. -- Save our System" 7/21/18 | Podcast [17:36 minutes]
|
Trade Talks #60, "America May Be Doing Away with WTO Dispute Settlement" 10/28/18 | Podcast [31:50 minutes]
|
Trade Talks #135, "All you need to know about the race to lead the WTO" 7/28/20 | Podcast [28:12 minutes]
|
F. |
Policies and Institutions: National, United States (Class 9: Oct 1) [43p]
Questions
|
Jackson, Ch. 3, pp. 79-100 Canvas [21 pp]
|
Verrill, "An Introduction To Trade Remedies Available Under U.S. Law" |
Canvas.
[3 pp]
|
USTR, 2020 Trade Policy Agenda, Introduction only |
Canvas.
[3 pp]
|
Fefer et al., "Section 232 Investigations: Overview and Issues for Congress," | Canvas [1 p]
|
Politi & Reed, "US to halt preferential treatment for $1.3bn of Thai goods" |
Canvas.
[2 pp]
|
Armour & Burton, "U.S. Advances Plan to Allow Imports of Some Drugs in Bid to Cut Prices" |
Canvas.
[4 pp]
|
Williams, "US begins national security probe of electrical grid imports" |
Canvas.
[2 pp]
|
Elis, "Grassley says he wants to rein in Trump tariff powers" |
Online.
[1 p]
|
Wise & Ferek, "Congress Wants to Ban Chinese Buses, Railcars in Defense Bill" |
Canvas.
[3 pp]
|
Rappeport & Rogers, "Trumpʼs Embrace of Sanctions Irks Allies and Prompts Efforts to Evade Measures" |
Canvas.
[3 pp]
|
G. |
Policies and Institutions: National, Other (Class 10: Oct 6) [33 pp]
Questions
|
European Union:
|
Jackson, Ch. 3, pp. 100-104 Canvas [5 pp]
|
EC, "The EU In Brief" | Online [2 pp]
|
EC DG-Trade, "Policy Making" | Online [2 pp]
| Economist, "The Trade War Within" | Canvas [3 pp]
|
Brunsden et al., "EU revokes some of Cambodia’s trade privileges over human rights violations" |
Canvas.
[3 pp]
|
Optional to Read:
|
Economist, "Charlemagne: The revenge of strategic yogurt" |
Canvas.
[5 pp]
|
Japan:
|
Jackson, Ch. 3, pp. 104-105 Canvas [1 p]
|
METI, "Trade Control" | Online [1 p]
|
WTO, "Trade Policy Review: Japan" | Online-PDF [5 pp]
|
China:
|
MOFCOM, "Mission" of the Ministry of Commerce, People's Republic of China |
Canvas.
[3 pp]
|
WTO, "Trade Policy Review: China" | Online [6 pp]
|
Optional to Read:
|
Xinhua, "The Facts and China's Position on China-US Trade Friction," Sep 2018 | Canvas
|
Bloomberg, "In Full: China’s White Paper on U.S. Economic and Trade Talks," Jun 2, 2019 | Online
|
|
II. | Trade Barriers
|
A. | Non-tariff Barriers (Class 11: Oct 8) [46 pp]
Questions
|
KOM: [10 pp]
| "Import Quotas: Theory" "Voluntary Export Restraints" "Local Content Requirements" "Other Trade Policy Instruments" 11th Ed.: Ch. 9, pp. 229-238 10th Ed. (trade only): Ch. 9, pp. 217-220, 224-227, 232-235
Jackson, Ch. 5, pp. 153-156 Canvas [3 pp]
|
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 12-16 |
Online [5 pp]
|
Feenstra, "How Costly Is Protectionism?" |
Online-JSTOR [20 pp]
|
Beattie, "Mind your TRQs: a Brexit lesson in global trade" |
Canvas.
[4 pp]
|
Economist, "Buying local is more expensive than it looks" |
Canvas.
[4 pp]
|
Optional to View:
|
Trade Talks #49, "Are Trump's Steel Quotas Worse than His Steel Tariffs?" 8/1/18 | Podcast [20:26 minutes]
|
B. | Export Policies (Class 12: Oct 13) [37 pp]
Questions
|
Laborde et al., "A Global Assessment of the Economic Effects of Export Taxes" | Canvas [17 pp after omissions]
|
Beckman et al., "The impacts of export taxes on agricultural trade" | Online [4 pp]
|
Gettleman et al., "India Isnʼt Letting a Single Onion Leave the Country" | Canvas [2 pp]
|
Economist, "Of cashews and cash: Mozambique’s nut factories have made a cracking comeback" | Canvas [2 pp]
|
Bruce-Lockhart, "Boom in global sand trade fuels fears over conservation" | Canvas [7 pp]
|
Uyen, "Vietnam Takes ‘Drastic Steps’ on Fraudulent Exports to U.S." | Canvas [2 pp]
|
Ryan, "Cocoa Cartel Is Less Bitter for Luxury Chocolate" | Canvas [3 pp]
|
C. | Multi-Market Analysis (Class 13: Oct 15) [7 pp]
Questions
|
Deardorff, "Trade Policy with Interacting Markets" | Online [7 pp]
|
D. | Why Countries Restrict Trade (Class 14: Oct 20) [46 pp + Opt 44 pp]
Questions
|
KOM: [14 pp]
| "The Case for Free Trade" "National Welfare Arguments against Free Trade" "Income Distribution and Trade Policy" "BOX: Politicians for Sale: Evidence from the 1990s" 11th Ed.: Ch. 10, pp. 246-259 10th Ed. (trade only): Ch. 10, pp. 236-252
Baldwin and Magee, "Is Trade Policy for Sale?" |
Online-Springer [22 pp]
|
Magee, "Why Are Trade Barriers So Low?" |
Online-Wiley [6 pp]
|
Beattie, "Can the EU’s carbon border tax work for farming?" |
Canvas.
[4 pp]
|
Optional to Read:
|
Deardorff and Stern, "Introduction" |
Canvas.
[19 pp]
|
Kazmin, "Delhi’s retaliatory strike at Chinese coffers threatens to backfire" |
Canvas.
[4 pp]
|
Schultz et al., "Pakistan Hits Back at India Over Kashmir Move, Targeting Bilateral Trade" |
Canvas.
[3 pp]
|
Song, "South Korea and Japan business leaders call for end to dispute" |
Canvas.
[2 pp]
|
Manson & Sevastopulo, "US bars arms exports to Hong Kong as it revokes special status" |
Canvas.
[3 pp]
|
Economist, "Barley barney and beef beef: China punishes Australia" |
Canvas.
[2 pp]
|
Brunsden & Mallet, "Paris and The Hague say EU must toughen enforcement of green trade" |
Canvas.
[3 pp]
|
Whoriskey, "U.S. weighs plan to block cocoa imports produced with child labor" |
Canvas.
[3 pp]
|
Mackrael & McNish, "Canada Meat Exports to China to Resume" |
Canvas.
[3 pp]
|
Zumbrun, "China Lifts 4-Year Ban on U.S. Chicken" |
Canvas.
[2 pp]
|
Optional to View:
|
Davidson, "U.S. Tariffs On Shoes" | Online [4 minutes]
|
Trade Talks #121, "Can Infant Industry Protection Work? Evidence from Napoleon" 2/12/20 | Podcast [24:09 minutes]
|
|
III. |
The Theory of International Specialization and Exchange
|
A. |
The Standard Trade Model (Classes 15, 16: Oct 22, Oct 27) [26 pp]
Questions
|
KOM: [22 pp]
| "The Standard Trade Model" Ch. 6 (any edition)
Bernhofen & Brown, "Evidence from nineteenth century Japan" | Online [4 pp]
|
B. |
Behind the Standard Trade Model: Comp. Adv., Inc. Dist. (Class 17: Oct 29) [51 pp]
Questions
|
KOM, on comparative advantage: [15 pp]
| "The Concept of Comparative Advantage" "A One-Factor Economy" "Trade in a One-Factor World" "BOX: The Case of Babe Ruth" "BOX: The Losses from Nontrade" "Misconceptions about Comparative Advantage" "BOX: Do Waves Reflect Productiity? 11th Ed.: Ch. 3, pp. 24-40 10th Ed. (trade only): Ch. 3, pp. 24-40 KOM, on effects of trade: [10 pp] "Effects of International Trade between Two-Factor Economies" "CASE STUDY: North-South Trade and Income Inequality" "Factor-Price Equalization" 11th Ed.: Ch. 5, pp. 97-102, 107-108 10th Ed. (trade only): Ch. 5, pp. 94-98, 102-103
Deardorff, "Intro to Comparative Advantage" | Online [7 pp]
|
Freeman, "Are Your Wages Set in Beijing?" |
Online-JSTOR [19 pp]
|
|
|
C. |
Scale Economies and Imperfect Competition (Class 18: Nov 5) [25 pp]
Questions
|
KOM: [25 pp]
| "External Economies of Scale and the International Location of Production" (Except "Interregional Trade and Economic Geography") "The Theory of Imperfect Competition" "Monopolistic Competition and Trade" 11th Ed.: Ch. 7, pp. 151-164; Ch. 8, pp. 170-180 10th Ed. (trade only): Ch. 7, pp. 145-156; Ch. 8, pp. 164-174
| IV. |
Uses and Abuses of Trade Policy
|
A. | Preferential Trading Arrangements (Class 19: Nov 10) [46 pp + Opt 12]
Questions
|
KOM: [7 pp]
| "The End of Trade Agreements?" "BOX: Do Agricultural Subsidies Hurt the Third World?" "Preferential Trading Agreements" "BOX: Free Trade Area Versus Customs Union" "BOX: Brexit" "CASE STUDY: Trade Diversion in South America" "The Trans-Pacific Partnership" 11th Ed.: Ch. 10, pp. 269-276 10th Ed. (trade only): Ch. 7, pp. 263-268
WTO, "Causes and Effects of PTAs" pp 94-109 |
Online [16 pp]
|
Posen, "The Errors of Conservatives Obscure the Case for Trade" |
Canvas.
[2 pp]
|
Deardorff and Sharma, "The Simple Analytics of Trade Creation and Diversion" |
Online [21 pp]
|
Optional to Read:
|
WTO, "Causes and Effects of PTAs" pp 109-120 |
Online [12 pp]
|
B. | FTAs and Other Trade Deals (Class 20: Nov 12) [54 pp + Opt 5]
Questions
|
USMCA & NAFTA:
|
Kirby, "USMCA, Trumps New NAFTA Deal, Explained in 500 Words" |
Online [2 pp]
|
Swanson and Tankersley, "Trump Just Signed the U.S.M.C.A. Here’s What’s in the New NAFTA" | Canvas. [2 pp]
|
Swanson, "As New NAFTA Takes Effect, Much Remains Undone" | Canvas. [5 pp]
|
Nakayama & Asayama, "Japanese carmakers opt to triple Mexican pay rather than move to US" |
Canvas [2 pp]
|
Optional to View:
|
Trade Talks #82, "How Big Is the USMCA? It's Uncertain" 4/27/19 | Podcast [29:17 minutes]
|
Trade Talks #113, "How and Why Congressional Democrats Tweaked the USMCA" 12/14/19 | Podcast [36:38 minutes]
|
Africa:
|
Elombi, "With tariffs gone, the work begins for African trade" | Canvas. [3 pp]
|
EU and other:
|
Mitchell, "Canada's farmers struggle to reap gains from EU free trade deal" | Canvas. [4 pp]
|
Gross and Harris, "Brazil's Amazon sugarcane plan sours prospects for EU-Mercosur trade deal" | Canvas. [3 pp]
|
Webber, "Mexico and EU finalise new free-trade agreement" | Canvas. [1 p]
|
Onishi, "Vietnam targets China manufacturers after EU trade green light" | Canvas. [4 pp]
|
China and other:
|
JapanTimes, "RCEP members to keep aiming for deal this year, with hopes India will rejoin" | Online. [1 p]
|
Optional to Read:
|
Fassihi & Myers, "Defying U.S., China and Iran Near Trade and Military Partnership" | Canvas. [5 p]
|
Harding et al. , "Asian trade deal set to be signed after years of negotiations" | Canvas. [3 p]
|
UK and other:
|
Edgington, "Brexit: What trade deals has the UK done so far?" | Canvas. [7 pp]
|
Parker, "UK trade deal with Japan stalls over blue cheese demands" | Canvas. [3 pp]
|
Payne et al., "UK and US face hurdles to deliver 'fast pace' trade pact" | Canvas. [3 pp]
|
WSJ, "Where Is the U.S.-U.K. Trade Deal?" | Canvas. [3 pp]
|
Optional to Read:
|
Parker & Brunsden, "Britain set to fall short in race to replace EU trade deals" | Canvas. [3 p]
|
US and other:
|
Taplin, "Obama Trade Policy Goes Back to the Future" | Canvas. [2 pp]
|
Bacchus, "Time for a US-Georgia free trade pact" | Canvas. [3 pp]
|
Swanson, "U.S. to Start Trade Talks With Kenya to Counter Chinaʼs Influence" | Canvas. [2 pp]
|
Wong, "Taiwan Seeks to Start Free-Trade Talks With U.S." | Canvas. [4 pp]
|
C. | Safeguards (Class 21: Nov 17) [44 pp]
Questions
|
Jackson, Ch. 7 Canvas [37 pp]
|
Schlesinger & Ailworth, "U.S. Imposes New Tariffs, Ramping Up 'America First' Trade Policy" |
Canvas. [4 pp]
|
Young, "These are the tariffs still impacting the U.S. solar industry" |
Online. [2 pp]
|
Shalal & Brice, "Trump announces adjustments to tariff quotas for washing machines" |
Online. [1 p]
|
Optional to Read:
|
USITC, "Understanding Safeguard Investigations" undated | Online
|
Optional to View:
|
Trade Talks #20, "Tariff Time! Washing Machines and Dirty Trade Policy" 1/26/18 | Podcast [21:31 minutes]
|
D. | Trade Adjustment Assistance (Class 22: Nov 19) [36 pp]
Questions
|
Brainard et al., "Insuring America's Workers" |
Online [8 pp]
|
~James, "Maladjusted" |
Online [13 pp]
|
Rosen, "Strengthening Trade Adjustment Assistance" |
Online [10 pp]
|
Lawrence, "A Numbers Argument for Renewing " |
Online [2 pp]
|
Beattie, "The flaws in trying to compensate globalisation's losers" |
Canvas.
[3 pp]
|
Optional to View:
|
Trade Talks #91, "Can Trade Adjustment Assistance Work?" 7/4/19 | Podcast [19:04 minutes]
|
E. | Dumping and Anti-Dumping Policy (Classes 23, 24: Dec 1, 3) [57 pp]
Questions
|
Jackson, Ch. 10 Canvas [33 pp]
|
Deardorff, "Economic Perspectives on Anti-Dumping Law" |
Online [15 pp]
|
~Jakob, "Lesser Duty Rule and Community Interest in Anti-dumping" |
Online-Springer [5 pp]
|
Morrison, "China's Status as a Nonmarket Economy (NME)" |
Online.
[2 pp]
|
Miles, "China pulls WTO suit over claim to be a market economy" |
Online.
[2 pp]
|
EC DG-Trade, "Anti-dumping" | Online [2 pp]
|
Optional to View:
|
Trade Talks #80, "Zeroing: The Biggest WTO Threat You've Never Heard Of" 4/9/19 | Podcast [22:14 minutes]
|
F. | Subsidies and Countervailing Duties (Class 25: Dec 8) [46 pp]
Questions
|
KOM: [11 pp]
| "Export Subsidies" "CASE STUDY: Europe's Common Agricultural Policy" "Sophisticated Arguments for Activist Trade Policy" "BOX: A Warning from Intel's Founder" "CASE STUDY: When the Chips Were Up" 11th Ed.: Ch. 9, pp. 226-229, Ch. 12 pp. 298-306 10th Ed. (trade only): Ch. 9, pp. 217-218, Ch. 12 pp. 293-296
Jackson, Ch. 11 Canvas [25 pp]
|
Mauldin, "In U.S. Trade Fight With Canada, the Border Watches, Warily" |
Canvas.
[3 pp]
|
Wall, "WTO Rules Washington State Support to Boeing Not a Prohibited Subsidy" |
Canvas.
[2 pp]
|
Smyth & Kazmin, "India faces WTO investigation over sugar subsidies" |
Canvas.
[2 pp]
|
Stearns, "EU Challenges China’s Trade Expansion With Landmark Tariff" |
Canvas.
[3 pp]
|
Optional to View:
|
Trade Talks #116, "Fish Subsidies. What’s the Catch?" 12/19/19 | Podcast [28:27 minutes]
| |