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PreliminarySyllabusEcon340-InternationalEconomics

Summer2017

Dr.StefaniaScandizzoEmail:Scandizzo@econ.umd.edu

CourseDescriptionandObjectives:Attheendofthecoursestudentswill(1) increase their understanding of current international economic issues including free trade,protectionism, free trade areas, the role of the WTO, how exchange rates are determined and theinternationaltransmissionoffinancialcrises;and(2) developandapply theeconomic toolsnecessary to respondcritically to thewealthof informationandopinionstheyareexposedtointhemediaregardingvariousaspectsofinternationaleconomics.

The course is divided into three parts. There will be an exam on each part.

PART1:TheoryofInternationalTradeModule1:TheRicardianmodeloftradeModule2:ThefactorendowmentmodelsoftradeModule3:EconomiesofscaleandinternationaltradeLearningoutcomes:AttheendofPart1studentsshouldbeableto

• Distinguishabsoluteandcomparativeadvantageasabasisfortrade• Identifythegainsfromtrade• Usetrademodelstodeterminethepatternoftrade• Distinguish winners and losers from trade

PART 2: Trade PolicyModule 4: Instruments of trade policyModule 5: Protectionism vs. free tradeModule 6: International institutions and regional trade agreementsLearning outcomes:At the end of Part 2 studentsshould be able to

• Identifythedifferentwayscountrieslimittrade,andtheeffectsoftheseinstruments• Explainwhycountriesuseprotectionism• Presenttheargumentsforfreetradebeyondtheconventionalgainsfromtrade• Compareandgiveexamplesofthedifferentlevelsofintegrationfoundinregionaltrade

agreements• DescribetheimportanceandeffectsofNAFTAandoftheEuropeanUnion• AnalyzetheroleoftheWTOandGATTinfreetrade

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PART3:ExchangeratesandInternationalfinancialcrisesModule7:HowareexchangeratesdeterminedModule8:ExchangerateregimesModule9:BalanceofPaymentsModule10:InternationalfinancialcrisesLearningoutcomes:AttheendofPart3studentsshouldbeableto

• Defineexchangerates• Understandthemeaningandfunctionsoftheforeignexchangemarket• Identifythemainshortrun,mediumrunandlongrunforcesthathelpdetermineexchangerates• Defineinternationalfinancialcrisesanddescribethemainforcesbehindtheglobalfinancial

crisisof2007

Coursemeets:Online!

CourseExpectations: This course is an online, accelerated version of a course that is normally taughtduring a full semester.A regular summer session course usually meets twice a week for 3 hours over the6weeks, plus readings, studying and assignments. You should plan therefore on dedicating 2 - 3hours aday, 6 days a week, tothe course inorder tosucceed. Furthermore, it is very important that youdonotget behind since thecoursemoves at a rapid pace. You should log in to Canvas daily to keep up withmaterial and participate indiscussions andgroupactivites.As noted above, the course is roughly divided into thirds. All material for Part 1 of the course willbecome available the firstday ofclass. Exam 1 will coverthis material. The material for Part 2 (coveredin exam 2) will unlock on June 12th, 2017.The material for Part 3 (covered in Exam3) will unlock onJune24th, 2017.For each topic covered (corresponding to a module), you are expected to proceed in the followingmanner: First listen to my introduction, then read the relevant chapter of the textbookand watch/listento any supplementary material (video or lecture). Lecture notes areposted to guideyou. If there is agroup exercise, reach out to your fellowgroup members and get started so as to be able to submit in atimely manner. Once you feel you have mastered the module take the quiz. Pay attention to alldeadlines!

Office Hours: I will hold office hours through the chat function of Canvas, Tuesdays 6-7pm andThursdays5-6pm.

Prerequisites: Students are expected to have taken an Introductory Microeconomics andMacroeconomicscourse.

RequiredText:InternationalEconomics(6thedition),byGerber.Allreadingswillbefromthistextbook.

Communication:Therearevariouswaystocommunicatewithme:Email: Iwill checkmyemail daily, andwill advise studentswhen Iwill not be able to. Please includeECON340inthesubjectofyouremail.OnlineChat:Foronlineofficehoursinrealtime.

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Discussion board: If you have a question regarding course content, please it to the class discussionboard.Iwillridirectallcontentquestionsposedviaemailtotheclassdiscussionboard.Exams:Therewillbe3exams,oneoneachpart.Schedule: Exam1: WednesdayJune14th Exam2: MondayJune26th Exam3: FridayJuly7thGuidelinesfortheexamswillbepostedonline.Ingeneral,examswillbeavailableonlinefora24hourperiod,andonceyoubegintheexamyouwillhaveonehourtocompleteit.Exam1willcoverpart1,Exam2willcoverpart2,andExam3willcoverpart3.Quizzes: Online quizzes will be posted for each module. Independently of grading, working throughquizzes isveryusefulforkeepingupwithmaterialandmakingsureyouunderstandkeyconcepts. It isalsoaverygoodwaytoprepareforexams.Groupassessments:Throughoutthecoursewewilldo4groupexercises.Theobjectoftheseexerciseswill be towork together on coursematerial to reinforce concepts. To ensure all groupmembers areparticipatingyouwillberequiredtosubmitan individualversionofyourassignmentbeforethegroupassignmentissubmitted.Iwillonlygradethegroupsubmission,butyouwillonlyreceiveagradeifyouhavs submitted individually beforehand. After the second exercise Iwill decidewhether to remix thegroups.Youwillberesponsibleforthismaterialinexams.Thehighest3willgotowardsyourfinalgrade.Discussionboard:PeriodicallyIwillaskyoutoparticipateinaclassdiscussiononthecoursediscussionboard.Discussionsareawayforyoutoengagewithyourclassmatesonthecoursecontent.Inordertoget full credit for each discussion, you will need to post a thoughtful, well-written response to thequestion and respond to one of your classmate’s posts.More complete guidelines for the discussionboardwillbepostedonCanvas.Grading:Finalgradeswillbedeterminedasnotedbelow.+and–willbeused.Exam1 20% Exam2 20%Exam3 20%Groupwork 15%Quizzes 20%Discussionboard 5%TOTAL 100%Late and missed assignments: Accommodations for extensions for submission and exams will begranted only to those students whose excuse complies with University policy. These must be fullydocumentedanduniversityauthorized.

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Course Material: Please note that all my lectures and course materials, including power pointpresentations,tests,homeworks,exercises,andsimilarmaterials,areprotectedbycopyright.Youmaytake notes andmake copies of coursematerials for your own use. Youmay not andmay not allowothers to reproduceor distribute lecture notes and coursematerials publiclywhether or not a fee ischargedwithoutmyexpresswrittenconsent.SellingordistributingcoursematerialsisaviolationoftheCodeofStudentConduct.Personswhopubliclydistributeordisplayorhelpotherspubliclydistributeordisplaycopiesormodifiedcopiesofan instructor’scoursematerialsmaybeconsidered inviolationoftheUniversityCodeofStudentConduct,Part9(k).AcademicIntegrity:TheUniversityofMarylandhasanationallyrecognizedCodeofAcademicIntegrity,administeredby theStudentHonorCouncil.ThisCodesets standardsapplicable toallundergraduatestudents,andyouareresponsibleforupholdingthesestandardsasyoucompleteassignmentsandtakeexams in this course. Please make yourself aware of the consequences of cheating, fabrication,facilitation,andplagiarism.Formoreinformationseewww.studenthonorcouncil.umd.edu.IfIobservewhatIbelieveisaviolationoftheCodeofAcademicIntegrity,IwillreferanyandallstudentsinvolvedtotheStudentHonorCouncil.ThepoliciesdescribedabovecomplywithUniversityguidelines:studentsareencouragedtorefertotheUniversity’scourserelatedpolicywebsiteathttp://www.ugst.umd.edu/courserelatedpolicies.htmlforacomprehensivediscussionoftheirrightsandresponsibilities.

TentativeCourseschedule:

Week1(May30th–June3rd):IntroductionandComparativeAdvantage Groupexercise1 Quiz1Week2(June4th-10th)FactorendowmentsandEconomiesofScale Groupexercise2

Quiz2and3Week3(June11th–17th)EXAM1andTheinstrumentsoftradepolicy GroupExercise3

Quiz4and5Week4(June18th–24th)Theargumentsfor/againstprotectionismandregionaltradeagreements Quiz6and7Week5(June25th–July1st)EXAM2andExchangerates Groupexercise4

Quiz8and9Week6(July2nd–7th)GlobalfinancialcrisesandEXAM3 Quiz10