Extra credit opportunity : As announced in class below are the detail on the extra credit opportunity. Attendance will generate 4 points added to you total accumulated points for the course.
Canada’s Incredible Turnaround:
What the United States can learn from its northern neighbor
A lecture by Niels Veldhuis, President, The Fraser Institute
Tuesday December 2nd
3”30 PM Grise Hall 235
Niels Veldhuis is Fraser Institute President and one of Canada’s most-read private-sector economists. As an economist, Niels has written six books and more than 50 comprehensive studies on a wide range of economic topics including taxation, banking, productivity, investment, entrepreneurship, labour markets and government finances. His latest book The Canadian Century: Moving out of America’s Shadow is a national bestseller published by Key Porter in May 2010. Niels is in high demand for his opinions and perspectives on major economic and social issues, appearing regularly on radio and television programs across Canada and the United States. He has written more than 200 commentaries that have appeared in over 50 newspapers including the Globe and Mail, Wall Street Journal and the Economist. He also writes a bi-weekly column for the Financial Post. Niels is regularly asked to appear before committees of both the House of Commons and the Senate as an expert witness. He travels widely across North America, speaking to business groups, corporate gatherings, voluntary organizations and students. Niels holds a Bachelor degree in Business Administration and a Master Degree in Economics from Simon Fraser University. In 2010, he was named one of Vancouver’s Top 40 under 40 by Business in Vancouver and in 2011 led a discussion between former presidents Bill Clinton and George W. Bush at the Surrey Economic Forum.
INTERNATIONAL ECONOMICS (380) Fall, 2014
Econ 380-001 International Economics 4-6:45 pm Monday Grise Hall Room 434B,)
INSTRUCTOR: William Davis, Associate Professor of Economics
Department of Economics Grise Hall, 423
Office phone/voice mail. 502-745-3123
FAX 270-745-3190
e-mail bill.davis@wku.edu
Web page: http:/www.people.wku.edu/bill.davis
Office Hours Office Hours: 9am-11:45am, 1:40-4:00pm M or by Appointment
TEXT: . Robert Carbaugh Central Washington University 14th Edition http://www.cengage.com/search/productOverview.do?N=%2016&Ntk=P_Isbn13&Ntt=9781133947721
Dashboard. http://login.cengage.com/ssoinstructor/mydashboard.htm
Daily Reading of the Wall Street Journal
or The Economist or The Financial Times or UK Telegraph http://www.telegraph.co.uk/ is required. Additional readings and assignments will be
announced in class and/or posted on the course web page. See also the sources linked to the course web
page.
Course Objectives: Students will have an increased awareness and inventory of knowledge about the major global economic issues of the day and what
the economic sciences have to contribute to these issues. This course is focused on a survey of the major branches of study
in International Economics and Finance. Approximately one half of the course is devoted to various topics related to international trade
of goods and services with attention given to theoretical concepts, their evolution, and their relevence to contemporary issues.
The remainder of the course is devoted to concepts and applications that relate to contemporary international financial issues.
Fall 2014 Semester at a Glance https://www.wku.edu/registrar/academic_calendars/documents/fall_semester_glance.pdf
Fall Final Exam Schedule http://www.wku.edu/registrar/academic_calendars/documents/fall_final_schedule.pdf
Useful Links:
CIA World Fact Book https://www.cia.gov/index.html
Institute for International Economics
International Economics Study Center
Currency Converter
The Dismal Scientist
World Bank http://www.worldbank.org/
International Monetary Fund (IMF)
International Trade Commission Tariff Data Base
International Trade Commission
Cato Center for Trade Policies
Nobel Prize Winners in Economics
OECD (Organization for Economic Cooperation and Development)
Asian Currency Crisis Page
Economics Department Links
NCPA (National Center for Policy Analysis) International Issues
European Union Official Web Site
European Central Bank
International Trade Administration, U.S. Dept. of Commerce
Historical Documents
Economic Intuition Home Page
An Inquiry Into the Nature and Causes of the Wealth of Nations by Adam Smith
Index of Economic Freedom http://www.heritage.org/index/about
World Development Report
The Este Center Journal of Law and International Trade Policy
Steven Hanke Forbes Archives
2014 Index of Economic Freedom http://www.heritage.org/events/2014/01/2014-index-of-economic-freedom
Frazier Institute See also The Free World for country ratings.
Mancur Olson Institutional Economics Center (Univ of Maryland) See working papers and links.
Economic Journals on the Web
JSTOR (Online econ journal library)
Links to international cosponsoring organizations for the Frazier Institute Index of Economic Freedom
Gallileo on economic/social data sources by country
Fixing Argentina by Kurt Schuler, A Cato Paper, April 26, 2002. See also How to Dollarize Argentina Now by Steve H. Hanke
and Kurt Schuler, A Cato Paper, December 20, 2001, updated January 2, 2001.
Cato Institute Milton Friedman Liberty Prize
Remembering Peter Bauer See especially the comments by Thomas Sowell, Bruce Barlett, Paul Craig Roberts, and Amity
Shales
U.S. Farm Subsidies by county
United State International Trade Commission
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES-
Some Thoughts on the Problems of Democracy by Gordon Tullock from the Mercatus Center of George Mason University
Free Trade Center---Cato Institute
Wall Stree Journal Supplement of Oct. 14, 2002 on Global Economic Issues ( Must have password)
Argentina: A Manifesto for Economic Reform by Steven Hanke and Kurt Schuler Read also the articles from the 14 links provided at
Latin American Business Chronicle Excellent site for current information and analysis on Latin American Economies and issues.
Dollarization.org Many current sources on currency boards and dollarization
Global Policy Forum Many articles on international financial issues
2003 Heritage Index of Economic Freedom
Globalization and Decentralization by Geoffery Garrett and Jonathan Rodden (pdf file 23 pages)
Debate Between Robert Mundell and Milton Friedman on Flexible vs. Fixed Exchange Rates May, 2001
Asian Economic Crisis 1997-1999
U S Balance of Payments
University of Iowa Political Market
Trade sports betting site
Dallas FED Center on Latin American Economies
The Market Center Blog
The Adam Smith Institute-London
BEA Information on US International Debt Position
Legislator Enterprise Voting Record
U S China FX History http://www.federalreserve.gov/Releases/H10/Hist/dat00_ch.htm
Price of gold since 1968 http://en.wikipedia.org/wiki/File:Gold_Index.png
Ronald Coase on China as Capitalist Nation http://www.cato.org/policy-report/januaryfebruary-2013/how-china-became-capitalist
Interactive graph on effects of Fed Stimulus on U S http://online.wsj.com/article/SB10001424052702303360504577412262943913228.html?mod=WSJ_earnings_RightSecondHighlights
Commentary/analysis of the "anti-austerity" movement in EU http://online.wsj.com/article/SB10001424127887323528404578450831192298730.html?KEYWORDS=in+place+of+austerity
U S Tariff Schedule http://www.usitc.gov/tata/hts/index.htm
Big Mac Index http://www.economist.com/content/big-mac-index
Suggested Blogs1. Freakonomics
2. http://www.chicagoboyz.net/
3. http://www.econopundit.com/
4. http://marginalrevolution.com/
5. EconLog Blog
6. Adam Smith Blog
7. The Armchair Economist Steven Landsburg and others
Podcasts
Arnold Kling on Keynesian Fixation http://www.cato.org/multimedia/daily-podcast/erroneous-keynesian-fixation
Podcast on Edward Banfield's views on Economic Develoment http://mruniversity.com/courses/development-economics/edward-banfield
VIEW ANY FOUR OF DOUBLE STARRED VIDS---SUBMIT HARD COPY SUMMARY FOR EACH CHOSEN IN CLASS ON SEPT, 8
See also various chapters with embedded videos and podcast at the Marginal Revolution International Trade Site http://mruniversity.com/courses/international-trade
**Comparative Advantage I http://mruniversity.com/courses/development-economics/comparative-advantage
**Sources of Comparative Advantage http://mruniversity.com/courses/development-economics/sources-comparative-advantage
**Empirical Evidence on Economic Development and Trade http://mruniversity.com/courses/development-economics/development-and-trade-empirical-evidence
**Tariff History http://mruniversity.com/courses/development-economics/trade-and-tariff-history
**Trade and Poverty in India http://mruniversity.com/courses/development-economics/trade-and-poverty-india-0
**On "Fair Trade" http://mruniversity.com/courses/development-economics/does-%E2%80%9Cfair-trade%E2%80%9D-help
**Several vids on migration (Basic Facts about Migration· Wage Gains from Immigration· Remittances· Is there a Brain Drain?· Wage Effects in the U.S.· Internal Chinese Migration
**World Trade Organization http://mruniversity.com/courses/development-economics/world-trade-organization
** In defense of sweatshops; http://econlib.org/library/Columns/y2008/Powellsweatshops.html
Night views of N and S Korea http://www.paulnoll.com/Korea/History/Korean-night.html
How Ideas Trump Crises by Alex Tabarrok
Hans Rosling's 200 Countries, 200 Years http://www.youtube.com/watch?v=jbkSRLYSojo
An Economist Magazine guide to the European Economies http://www.economist.com/blogs/dailychart/2010/12/europes_economies
Freedom of the 50 States http://freedominthe50states.org/
Hanke article on current global economic conditions http://www.cato.org/publications/commentary/welcome-world-volatility
Old Tests/Quizes
Course Outline
I. Introduction C (Carbaugh) Chp. 1
A. International Economic Issues
B. Index of Openness--Trends and Implications
C. Trade and Economic Growth
D. Trade Patterns
II. International Trade: The Commodity Markets
C, Chps. 2,3 A. International trading patterns - a review of the theory
1. Why nations trade
2. The commodity composition of trade
3. Changes in trade patterns
a. Causes
b. Effects
B. Absolute and Comparative Advantage
C. Gains and Losses From Trade
D. Economic Growth and Trade
E. Alternative Theories of Trade
1.Hechscher-Ohlin Theory
2. The Leontief Paradox and New Theories of Trade
3. Product Life Cycles
F. Applications
III. International trade policy: theory and practice
C Chps., 6,7,8,9,10 Basic Analysisof a Tariff
, 1. Welfare effects of a tariff
2. Nominal vs. Effective Tariffs
3. Specific/Ad Valorem Tariffs
B. Nontariff Barriers to Imports
1. Quotas
2. VERs
3. Subsidies
4. Government Procurement Policies
5. Intellectual Property Issues
C. Arguments for and Against Trade Protection
1.Invalid
2. Valid
3. Infant Industry Arguments
4. The "Petition of the Candle Makers"
D. Exports Promotion Schemes
E. Trade Blocs and Economic Integration
1. The European Union
2. NAFTA
3. Preferential trading arrangements
4. International cartels
5. Welfare effects of commodity price stabilization
F. Trade Policies and Economic Development
1. Import Substitution
2. Strategic Trade Policy/ Industrial Policy
3. Trade Regulations
4. Country cases
G. The Political Economy of Trade
1. Agriculture and the Environment
2. "Globalization" issues
3. Factor mobility
4. Multinational enterprise
IV. International Trade: The Financial Markets
C , Chps. 11, A. The Principles of Balance of Payments Among Countries
12, 13,14,15, B. Foreign Exchange Markets
C. The Forward and Futures Markets
D. Long Term and Short Term Determinants of FX Rates
1. Purchasing Power Parity
2. Real vs. nominal exchange rate adjustments
3. The "Big Mac" index
4. The role of expectations and "overshooting"
5. FX forecasting
E. Government Policies Toward FX Markets
1. The Bretton Woods Era
2. Recent Currency Crises
3. Currency Boards
V. Open Economy Macroeconomics
A. Macroeconomic Disturbances in an Open Economy
C, Chps.16,17 B. Macroeconomic Adjustments in a Fixed Exchange Rate Environment
1. Some Lessons from Recent Examples: The NICS, Brazil, Turkey, Argentina
C. Macroeconomic Adjustments in a Flexible Exchange Rate Environment
D. Current Policy Issues
1. Real Exchange Rate Variability
2. The European Monetary System
3. "Strong" dollar/"Weak" dollar
VI. Special Topics/Current Events (addressed along the way)
A. International Currency Crises
B. International Lending and Debt
C. International Migration of Labor
D. Direct Foreign Investment and Multinational Corporations
New Readings Fall, 2014 Readings_F_14_1.htm
Additional readings 3 380_Readings_3.htm
Composition of Course Grade:
1. Mid-Term E 100 points
2. The best five of six 10 point quizes 50
3. 25 weekly posts on the class blackboard forum-two points each (details in class)
Recommended Sources: Wall Street Journal
The Economist Magazine
NY Times The Financial Times UK Telegraph http://www.telegraph.co.uk/
Anything from the The Library of Economics and LIberty
or any threaded disusssion from My Favorite Blogs or articles from
the "Readings" links 50
4. Term Paper
Initial topic proposal due Sept. 15 , draft due Oct. 27, final draft due Nov. 17 50
NOTE: 5 points per day will be
deducted from late papers/updates/deadlines
5. Class participation/Course engagement /readings (certain readings will
be required- details in class ) 75
6. Comprehensive final exam 150
Total available course points 475 points
Course grade: accumulated points (90%) 427.5 or more = A
(80%) 380-427 = B
(70%) 332.5-380 = C
(60%) 285-332 = D
Less than 285 = F
Make-up exams and quizes will be given only for excused absences.
Student Disability Services In compliance with university policy, students with disabilities who require academic and/or auxiliary accommodations for this course must contact the Office for Student Disability Services in Downing University Center, A-200. The phone number is 270 745 5004. Please DO NOT request accommodations directly from the professor or instructor without a letter of accommodation from the Office for Student Disability Services.
WKU Student Handbook on Academic Dishonesty Refresh your memory on the matter of academic dishonesty.
Sample Topics for Term Paper:
International Law on Intellectual Property Rights
Asian Currency Crisis of the Late 1990's (pick a country)
Currency Boards and Dollarization-Country Case Study
History of Trade Impediments by Product Category by Country (eg. history of trade protection for steel, autos, sugar, etc.)
International Environmental Issues
GATT/WTO Issues
Third world debt issues
Fixed vs Flexible Exchange rate regimes
Current tariff policies -U.S. or Other country(s)
Currency Crisis: Argentina, Brazil, Turkey, Asian tigers, Russia
Currency Crisis: IMF/World Bank--part of the problem or part of the solution?
International implications of "Fed" Monetary Policies
History/development of the Euro system--recent developments
Recent developments in U.S. commercial trade policies: Steel, Agriculture, others.
Recent EU/U.S. trade disputes: Steel, Agriculture, others.
The Microsoft Issue in Europe
Country study---historical or contemporary
Euro-zone--history, theory, current issues/problems
EU--history, theory, current issues/problems
Compare responses to the 07/08 financial crisis by Ireland vs Iceland vs....you pick
Course Threads (important issues, ideas that students should be well informed about at the end of the course.)
1.US Trade Deficit vs Current Account Deficit
2. The relationship between interstate trade, international trade, and economic development and
security.
3. “Globalization” What is it? Is it a “good thing” or a “bad thing”
4.Current trade issues
5. Is China “playing fair” by “fixing” its currency to the U S dallar?
6. Should China’s imports to the U S be restricted? If so, how should that be done?
7. What has been the major factors behind the recent weakening of the U S dollar?
What, if any thing, should be done to “strengthen” the dollar?
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