An intensive examination of modern theories of international commercial policy and the international trade system. Developments in trade theory, and restrictions of international trade are discussed.
The course will enable students to gain an understanding of how the international economy works and how economic theory can be used to understand issues of public policy, the impact of trade on economic development, and the impact of trade restrictions.
The course will mainly follow the textbook “International Economics: A Heterodox Approach” by Hendrik Van den Berg (3rd edition), 2017, Routledge. The required readings from this textbook are listed below.
You will find a study guide for the textbook here.
Sometimes it is helpful to have access to an alternative textbook that explains the material in a different way. For this purpose I recommend: Robert J. Carbaugh, International Economics (15th edition), 2014, Cengage.
An additional study guide for (only) the orthodox models that includes solved problems is:
Salvatore, Schaum’s Outline of International Economics, 4th Edition, 1995, McGrawHill.
Available from amazon and bookdepository
Students must read the corresponding chapters of the textbook before each session. Reading the economic and political press will also be helpful.
Class meets Mondays at 15:05 till 17:30.
Electronic devices, i.e. laptops, are discouraged from use during class sessions. See http://economicscience.net/content/laptop-use/ for the reasons.
Students need to have passed principles of microeconomics and principles of macroeconomics before enrolling in this course.
You can always contact me via email. For meetings in my office appointments can be arranged through the my webpage at: http://economicscience.net/content/book-appointment.
Updated information, links to the literature, additional materials, etc. can be found on my webpage as well.
|Class Participation and Quizzes||20%|
(Class) participation (at the level of an “A”) requires that you attend class regularly and always contribute to the discussion by raising thoughtful questions, analyzing relevant issues, building on other’s ideas, synthesizing across readings and discussions, expanding the class perspective, and appropriately challenging assumptions and perspectives. You help your fellow students. Contributing in the aforementioned ways only (“B”) sometimes, (“C”) rarely, or (“D”) never diminishes not only your own but your fellow students learning opportunities.
In case you were excused from the midterm exam, the make-up exam for the missed midterm will be administered with the final exam.
You are allowed to bring a dictionary and pocket calculator to all exams. For the final exam only, you are allowed to bring a single-sided page DIN A4 with hand-written notes.
A typical 3 credit course requires 150 hours of your time. The table below identifies how I expect those 150 hours will be allocated. While you do not receive direct marks for reading, reading will affect your class participation mark (your ability to participate in class discussions and activities) and your final exam mark. While some weeks have more readings than others, you should be able to read the required reading in an average of 2 hours per week.
|Class Time (3 hours / week)||45 hours|
|Reading (3 hours / week)||45 hours|
|Review and Homework (4 hours / week)||60 hours|
Topics and Reading Assignments
Week 1 (10.02.)
- Introduction to International Trade (Ch. 1)
The Economist, 6.2.2016, Trade in the balance
- The Heterodox Approach (Ch. 2)
Session 2 (17.02.)
International Trade Theory (Ch. 3)
The Economist, 6.8.2016, An inconvenient iota of truth
The Economist, 29.09.2016, Coming and going
The Economist, 1.10.2016, An open and shut case
Rodrik, D., 2008. Stolper-Samuelson for the real world.
Session 3 (24.02.)
International Trade: Beyond the Neoclassical Perspective (Ch. 4)
Autor, D.H., Dorn, D. and Hanson, G.H., 2016. The China shock: Learning from labor market adjustment to large changes in trade. Annual Review of Economics, 8(1).
The Economist, 29.09.2016, Down to earth
The Economist, 03.05.2018, Economists focus too little on what people really care about
Session 4 (02.03.)
Imperfect Competition & Transnational Corporations (Ch. 5)
The Economist, 29.09.2016, A lapse in concentration
The Economist, 13.02.2020, The new coronavirus could have a lasting impact on global supply chains
Session 5 (09.03.)
- International Trade & Economic Development (Ch. 6)
Session 6 (16.03.)
- International Trade, Human Happiness, and Unequal Economic Development (Ch. 7)
Session 7 (23.03.)
Session 8 (30.03.)
Session 9 (06.04.)
Tariffs, Quotas, and Trade Restrictions (Ch. 8)
The Economist, 1.10.2016, Hard bargain
The Economist, 29.9.2016, Needed but not wanted
The Economist, 13.2.2020, American drinkers of European wine face mounting tariff bills
Session 10 (20.04.)
History of Trade Policy (Ch. 9)
The Economist, 2.4.2016, Open Argument
The Economist, 2.4.2016, Trade, at what price?
Session 11 (27.04.)
International Trade Policy: A Holistic Perspective (Ch. 10)
Jacobs, J., 1985. Cities and the wealth of nations: Principles of economic life. Vintage.
Mintz, S.W., 1986. Sweetness and power: The place of sugar in modern history. Penguin.
The Economist, 1.10.2016, The reset button
Session 12 (04.05.)
Early Monetary History (Ch. 15) and The International Monetary System (Ch. 16)
Martin, F., 2014. Money: The unauthorized biography. Vintage.
Niall Ferguson, The Ascent of Money on youtube
The Economist, 27.08.2016, Two out of three ain’t bad
The Economist, 1.10.2016, The good, the bad and the ugly
Session 13 (11.05.)
- Immigration (Ch. 18)
- Immigration Policy (Ch. 19)
Session 14 (18.05.)
Session 15 (25.05.)
Topics and reading assignments are subject to changes.
You are allowed to hand in the solution to the problem sets jointly in groups of up to two students. Every member of the group should be able to explain their solution if asked to do so, otherwise no member of the group will be credited for the solution.
You will find the homework problems and other material for download in this pCloud folder. [Click Here!]
Upload you homework solutions to this pCloud folder [Click Here!] Please use PDF or plain text for your uploads. The submission deadline for each week’s homework is Monday at noon.
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