2005-06
– Fall Semester
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International Economics Prof. G. Di
Bartolomeo |
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Instructor |
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Classroom |
V6 |
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News |
The course is
ended. |
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Course Description |
The aim of the course is to give
undergraduate student the necessary tools for understanding to growing international
interdependence of national economies. The subjects covered during each
lecture will be presented in both analytical and intuitive way. This will
make the course accessible also to students that have not yet completed a
first year course in Economics. A first part is devoted to the presentation
of the old and new theory of international trade and on the theory of
economic integration. The rest of the time will be spent on international
monetary economics. This second part will cover the following topics: the
foreign exchange markets and the theories of exchange rate determinations;
the balance of payments and the theories of its adjustment; macroeconomic
policies in open economies; and international monetary system and its
institutions. |
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Course Aims |
The main objective
of this course is to present a comprehensive, up-to-date, and clear
exposition of the theory and principles of international economics that are
essential for understanding, evaluating, and suggesting solutions to the
important international economic problems and issues facing the world and the
United States in particular. The general purpose of the course is to develop
key skills associated with: reading about and understanding complex
conceptual issues; following and understanding key empirical and theoretical
debates; demonstrating to write papers, and to participate in group
discussions. |
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Student
Learning Outcomes
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Students
completing the International Economics class should: 1) Grasp the importance
of the pure theory of international trade and its practical applications for
understanding mutually beneficial trade. 2) Determine the basis of
comparative advantage and examine the effect of international trade on the
earnings of factors of production. 3) Discriminate between the “production”
and “consumption” gains from free trade. 4) Identify the political economy of
protectionism and resulting policies. 5) Distinguish between a fixed and a
flexible exchange rate system. 6) Describe and analyze real world behavior in
response to the currency appreciation/depreciation of a nation. 7) Examine
and use monetary theories of exchange rate determination. 8) Define the
concept and repercussions of a deficit or surplus of the balance of payments.
9) Evaluate the process of balance of payments adjustment in various
international monetary systems. 10) Evaluate effects of macroeconomic
policies in different international monetary systems. 11) Understand the
foundations of the optimal currency areas and economic international
integration. Moreover, during the course, students will be stimulated (and
guided) to write a compulsory final paper based on personal research and to
discuss it with the instructor. |
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Assessment |
Attendance: Classes meet twice a week and attendance
is expected at all classes. Being late or absent without a valid motivation
will cause your grade to be lowered. After three unexcused absences you
will be withdrawal from the course. Course Requirements: It is strongly required that students read the book chapters
and references suggested for each topic before lectures. This will make
possible to realize interactive lectures stimulating discussions and
reflections. Please, notice that the book reading is compulsory since not all
the issues can be deeply described during the classes, which only have the
aim of giving the main guidelines to the students. Exams
will be held at mid-term and at the end of the term. A compulsory paper on a
topic to be decided is also requested. Preliminary discussions with the
instructor on the paper argument are recommended. Evaluation: The final grade will be based on the mid-term exam (30%), on regular
attendance, home-works, and participation (10%), on the research paper (30%),
on the final exam (30%). |
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Textbook and Reading List |
Salvatore, Dominick [SB], International Economics, MacMillan International Edition (last available edition). Other materials (journal articles,
official documents, etc.) will be distributed during the course. |
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Course outline |
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Mid-term paper possible
topics |
1.
The theory of the optimal currency area and the EU 2.
The effects of NAFTA 3.
Should South America adopt a common currency? 4.
International smuggling and the theory of the
international trade 5.
International trade and deindustrialization 6.
The political economy of tariffs: Lobbies and tariff
policies 7.
International trade and US inequality 8.
The economic theory of cartels: The case of the oil
shocks 9.
Attempts at economic integration among developing
countries 10.
Is the infant industry a valid argument for
protectionism? 11.
Disputes in the WTO and the EU position 12.
Multinationals and international trade 13.
Causes of the Argentine financial disaster. 14.
Dollarization: Giving up on
national currencies and adopting the dollar 15.
The benefits of a common currency: Why the Euro-zone
is such a good idea - or is it? 16.
Can productivity growth explain deviations from
Purchasing Power Parity? 17.
Fiscal Policy within the European Union 18.
Are Monetary Union, Customs Union, and Political
Union related? 19.
Regionalism, multilateralism, and the WTO 20.
Globalization vs. Economic Integration 21.
Why is the Euro so strong
and the Dollar so weak? 22.
Welfare effects of international labor migration 23.
The foreign debt problem in developing country 24.
The Peso problem 25.
IMF and international financial crisis 26.
The end of the Bretton
Woods system 27.
The World Bank and the development 28.
The East Asian miracle of growth and trade 29.
The debate over US immigration policy 30.
The debate over immigration in the EU 31.
The Eurocurrency market 32.
The 1992 Lira crisis 33.
The effects of the Asian crisis on the United States 34.
Globalization and the labor markets |
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