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Welcome to
EC 382: International
Economics
By: Dr. Jacqueline Khorassani
Study Guide
Week One
(Note: You must go over these slides and complete every
task outlined here before Wednesday, September 5)
1. Study the Course Contract
available on line at
www.marietta.edu/~khorassj
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Click on Fall 2007 Courses
Click on EC 382
Click on Course Contract
– It is in Microsoft Word format
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Make sure you understand the contract
Ask me questions via an email to [email protected] or in class.
2. Study the textbook’s Preface
• Believe me it is not a waste of time to
read the Preface of a book
• Ask me Questions via an email or in
class.
3. Check out the textbook
resources at
www.prenhall.com/sawyer
Chapter 1: Make sure you understand
the following topics and can answer the
related questions. If not, ask me your
questions via an email or in class.
• Macro/Microeconomics
– How are they different from each other?
– What are some topics that are covered in macro/micro?
• International Economics
– What is it all about?
• GDP
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What does it measure?
Why do we measure GDP?
What are the components of GDP?
What is per capita GDP?
Chapter 1 continued
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What is the relationship between a nation’s
income and its exports? Imports?
Empirical Evidence: high income economies
import and export more than middle and low
income economies (Table 1.2)
What are the multinational corporations?
What is the difference between foreign
portfolio investment and foreign direct
investment?
What is the foreign exchange rate?
Chapter 2: Make sure you understand the
following topics and can answer the related
questions. If not, ask me your questions via an
email or in class.
• What are the similarities and the differences
between international and interregional trade?
• Make sure you understand Figure 2.1 and the
discussion that goes along with it
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What are the main points of this discussion?
Why do the two nations trade?
How does the trade affect the price in each country?
Is everyone better off?
What is the effect of trade
Chapter 2 continued
• Mercantilism (1700s)
– Why did they stress exports over imports?
– What does it mean when they say trade is a zero sum activity?
• Adam Smith (1723 (Scotland)-1790)
– What did he mean when he said that trade was not a zero sum
activity?
– What does absolute advantage mean?
• David Ricardo (1772(Netherlands)-1823)
– What was his major contribution?
– How is comparative advantage different from absolute
advantage?
– Can a nation have comparative advantage but absolute
disadvantage in production of good “A”? If so, how? If not, why
not?