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/Econ 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 will also include the 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, and why they gain from trade.
Prerequisite:	PubPol/Econ 555 or equivalent course in intermediate microeconomics
Organization:	The course meets twice a week, Tuesdays and Thursdays, 8:30-10:00 AM, in room 1230 Weill.

TEXTs

The textbooks for the course are
Krugman, Paul R., Maurice Obstfeld, and Marc Melitz ("KOM" below), International Economics: Theory and Policy, 9th Edition, Addison Wesley, 2012, isbn-13 #978-0-13-801896-2; isbn-10 #0-13-801896-0. An 8th edition, without added co-author Melitz, can be used instead, although a few things may be missing that you'll need to find somehow from the new edition. Page numbers are given below for both.

Jackson, John H., The World Trading System: Law and Policy of International Economic Relations, Second Edition, MIT Press, 1997, isbn #0-262-60027-7.

There will also be a number of additional readings that are required. All are available under Resources on CTools. Most 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 CTools.

Because of the speed with which issues evolve, readings selected in advance can never cover all of the latest developments. We will therefore spend some 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.