Download Course: ECON103 International Economics A

School of Economics
Academic Year 2014-15
Term 2
Course:
ECON103 International Economics A
Instructor Name
Email
Office
: Dr. Peter Wilson
: [email protected]
:5080 Adjunct Room
COURSE DESCRIPTION
This course is divided into two parts. The first part is concerned with commodity or goods
and services trade. Why do countries trade? Why do some countries export cars, and other
countries export hospital services? Why do countries protect their economies from foreign
competition? Should countries sign trade agreements with other countries? These are among
the questions we will discuss in the first half of this course.
The second half considers issues generally of a macroeconomic nature and focuses on
monetary/financial payments. Two of the most important prices affecting business decisions
are the foreign exchange rate and the rate of interest. Both of these are intimately related to
the balance of payments, particularly to capital and financial flows, and the foreign exchange
market. We will discuss how countries try to simultaneously maintain internal and external
balance and what influences their choice of foreign exchange rate regime. We will also
examine the evolution of the international monetary system and what form international
money should take. Should it be the US dollar or the RMB?
LEARNING OBJECTIVES
This course aims to equip business students with the basic knowledge and skill to analyze
international economic issues.
ASSESSMENT METHODS
Class Participation
Mid-term Test
: 10%
: 20%
Group Project
: 30%
Final Examination
Total
: 40%
: 100%
Please note that the midterm is closed book and the final examination is open book but no
laptops or tablets can be used.
GROUP PROJECTS
Depending on the size of each class, teams of 3-5 students will work on projects which will
involve power-point presentations and responding to questions in class. Details of the teams,
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project themes and deadlines for submission and timetable for presentation in class will be
given at the start of the course.
EXAMINATIONS
There will be a closed book Midterm Quiz during class after the first half of the course and a
two-hour open book (no computers, tablets etc.) written examination at the end of the course.
ACADEMIC INTEGRITY
All acts of academic dishonesty (including, but not limited to, plagiarism, cheating,
fabrication, facilitation of acts of academic dishonesty by others, unauthorized possession of
exam questions, or tampering with the academic work of other students) are serious offences.
All work presented in class must be the student’s own work. Any student caught violating
this policy may result in the student receiving zero marks for the component assessment or a
fail grade for the course. This policy applies to all works (whether oral or written) submitted
for the purposes of assessment.
Where in doubt, students are encouraged to consult the instructors of the course. Details on
the SMU Code of Academic Integrity may be accessed at
http://www.smuscd.org/resources.html.
CLASS TIMINGS
Classes are 3 hours per week. Each class will involve lecture material, open discussion and
depending on the timetable, the presentation of group projects and open critique. Learning is
a two-way dialogue instead of a one-way lecture. For that reason a high level of student
participation is expected in each class.
RECOMMENDED TEXT AND READINGS
Main
Robert J. Carbaugh, International Economics 14th Ed 2013, Cengage.
Recommended
Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics, Pearson, 9th
edition, 2010.
Useful Links
1. www.economist.com
2. www.iesingapore.com/
3. www.worldbank.org
4. www.wto.org
5. www.imf.org
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6. www.iie.com
7. www.oecd.org
8. www.nber.org
9. www.brookings.org
10. www.adb.org
For primary data, try the following:
(1) World Bank’s World Development Indicators online:
http://data.worldbank.org/indicator
(2) Penn World Tables
http://pwt.econ.upenn.edu/
For individual country descriptions, try the CIA World Fact Book
https://www.cia.gov/library/publications/the-world-factbook/index.html
For Singapore have a look at the bi-annual Monetary Authority of Singapore:
Macroeconomic Review
mas.gov.sg
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WEEKLY LESSON PLAN
Week Beginning
1
5 January
Topic
The international economy and globalization; classical
trade theory
2
12 January
Comparative advantage; the gains from trade
Chapters 2,3
3
19 January
Other trade theories
Chapters 2,3
4
26 January
Protection: tariffs; non-tariff barriers
Chapters 4,5
5
2 February
Trade and industrial policy: the protection debate;
international factor mobility
Chapters 6,9
6
9 February
Economic integration: customs union theory; bilateral
preferential trade arrangements
Chapter 8
7
16 February
MIDTERM QUIZ
8
23 February
Recess Week
9
2 March
10
9 March
11
16 March
12
23 March
13
30 March
14
6 April
Revision Week
15
13 April
Final Examinations Begin
The balance of payments: the balance of payments
accounts; global imbalances
The foreign exchange market: the market for foreign
currencies; the determination of exchange rates
Balance of payments adjustment: the balance of
payments as a policy problem; balance of payments
policies
Exchange rates and international money: the choice of
exchange rate regime; the choice of international money
The international monetary system: The Breton Woods
system; the present ‘non-system’.
* Main Text
4
Readings*
Chapters 1,2
Chapter 10
Chapters 11,12
Chapters 13, 14
16
Chapters 15,17
Chapter 17