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Department of Economics

Fall 2023

Econ 500: Introduction to International Economics

Syllabus

Professor: Dr. Svitlana Maksymenko E-mail: [email protected] Office: Posvar 4709 Office hours:  Tuesdays 11am-12pm

Teaching assistant: Yonglin He E-mail: [email protected] Office: Posvar Office hours:

Class meets Tuesdays and Thursdays in the Lawrence Hall, room 207.

Section 1010: 1:00-2:15pm

Section 1020: 2:30- 3:45 pm

Office hours

Should you have any course-related questions or need help with homework assignments, exam preparations or group projects, please do not hesitate to visit me or my TA during our  office hours (info above). Additional hours are available by appointment and must be scheduled at least a day in advance via e-mail.

Out-of-classroom communication

E-mail is the preferred method of out-of-classroom communication. I will make every effort to answer all e-mails within 24 hours. I will employ Canvas email option to report exam statistics and notify students about changes in the course calendar (if any).  It is a student’s responsibility to check the university email account on a regular basis, keep it under quota, or use email forwarding in case an alternative email account is accessed more often.

Course Objectives

In this course, we will learn about the economic principles and policy options that shape relationships between countries and thus develop a perspective on the global economy that is more complex and informative than a simple win/loss game.  The course is divided into three sections:  International Finance, International Trade, and International Economic Issues.  The first section provides a macroeconomic perspective on international transactions.  The second section explores the microeconomic theory and implications of trade policy.  The final section uses the macro and micro analytical tools from the previous sections to assess several major topics facing the global economy, including trade agreements, economic development, refugees, foreign direct investment, and global financial crises.

Upon completion of this course students will be able to:

· Read and analyze the nation’s balance of payment

· Understand how a foreign exchange market operates

· Predict movements in the value of the U.S. dollar and other currencies in response to changes in the world economy and nations’ macroeconomic policies

· Compare the exchange rate regimes, international monetary standards, and policy effects

· Understand and compare alternative theories of international trade

· Analyze and test international trade models

· Evaluate the impact of tariffs and non-tariff barriers in small and large countries

· Identify the validity and efficiency of protectionist policies

· Estimate the impact of preferential trade arrangements

· Analyze international movement of factors of production

· Explain financial crises in emerging economies, their causes and solutions

At the end of the course, students should be able to analyze current international trade issues, and critically evaluate the policy options.

Prerequisites

· Macroeconomic and Microeconomic Principles

· Competence in basic algebra and geometry

Text and Instructional Support 

Required sources:

· International Economics by Husted/Melvin, 9^th ed., published by Pearson Education, copyright 2013, ISBN 978-0321-783868 (hardcopy, US edition). The e-version of the text is available through CourseSmart website, ISBN: 978-0-13-276954-9.

· Study guide website to accompany Husted/Melvin text: http://wps.prenhall.com/aw_husted_ie_9/

Additional required learning materials (lecture notes, readings, and videos), assignments, and exams will be available on the course website on Canvas.  Please note that course material includes content that is not covered entirely in the textbook, so your presence in the classroom is essential for your success.

Recommended sources:

· International Economics: Theory and Policy, by Steve Suranovic, George Washington University, Publisher: Saylor Foundation, 2012.  The free access to this text is provided by Open Textbook Library on-line and in PDF format:

https://open.umn.edu/opentextbooks/textbooks/international-economics-theory-and-policy

Flat World also offers a more user-friendly version of this textbook (with flashcards, study questions, and audible chapters) starting at $29.99:

http://students.flatworldknowledge.com/course/2594073

· The Marginal Revolution University website, International Finance and International Trade course content:

https://mru.org/international-trade

https://mru.org/international-finance

· International news can be followed by reading The Economist, the Wall Street Journal, and the Financial Times.

· International issues are well summarized by the Peterson Institute for International Economics: www.piie.com

Class rules

Student’s presence in the classroom is required. If you face an emergency, and cannot attend, please notify me as soon as possible by e-mail. Class will include a review of the required learning materials (see below), low stake in-class learning activities, and discussions.  Students are expected to have reviewed the learning materials before attending the class, which will provide an open discussion  of the material. If you face an emergency and cannot attend the class, you must request an extension or exemption  of the in-class learning activities at least 24 hours in advance,  or agree to forego it. These are very low stake and missing a few will not compromise your grade. If you want to ask a question, please raise your hand, and I will call on you.

Seeking Help

The material of the course is highly cumulative. If you do not understand something, please seek help immediately. You are welcome to visit my office and discuss the material you do not understand either during office hours or by appointment. I am always glad to work with you should you need course assistance.

Class cancellations

Any class cancellations due to bad weather or local emergency are determined by the university administration and are announced on the university web site.

Student Opinion of Teaching Surveys

Students in this class will be asked to complete a Student Opinion of Teaching Survey. Surveys will be sent via Pitt email and appear on your Canvas landing page during the last three weeks of class meeting days. Your responses are anonymous. Please take time to thoughtfully respond, your feedback is important to me. Read more about Student Opinion of Teaching Surveys at https://www.cidde.pitt.edu/omet/student-information

University Policies

1. Academic Integrity

Students in this course will be expected to comply with the University of Pittsburgh's Policy on Academic Integrity. The rules can be found on the University's Academic Integrity Policies site (Policy 02-03-02, http://www.bc.pitt.edu/policies/policy/02/02-03-02.html). Any student suspected of violating this policy for any reason during the semester will be required to participate in the procedural process, initiated at the instructor level, as outlined in the University Guidelines on Academic Integrity. This may include, but is not limited to, annulling the examination of any individual suspected of violating the University Policy, or failing the course. 

2. Disability Services

If you have a disability for which you are or may be requesting an accommodation, you are encouraged to contact both your instructor and Disability Resources and Services (DRS), 140 William Pitt Union, (412) 648-7890, [email protected], (412) 228- 5347 for P3 ASL users, as early as possible in the term. DRS will verify your disability and determine reasonable accommodations for this course.

3. Copyright Notice

Course materials may be protected by copyright. United States copyright law, 17 USC section 101, et seq., in addition to University policy and procedures, prohibits unauthorized duplication or retransmission of course materials. See Library of Congress Copyright Office and the University Copyright Policy.

4. Classroom Recording

To ensure the free and open discussion of ideas, students may not record classroom lectures, discussion and/or activities without the advance written permission of the instructor. Any such recording properly approved in advance can be used solely for the student’s own educational purposes.

Exams

Dates of the exams are contained in the detailed plan of the course below. Exams include conceptual multiple choice questions, and a problem-solving section. Exams are not cumulative. I do not offer make-up exams, with one exception: if a student notifies me of a serious reason (such as hospitalization) for missing an exam. This notification should be given prior to the exam, and a legit supporting paperwork will be required. After each exam, I post answer keys, students’ scores, and exam statistics (i.e. class average, class highest, and class lowest scores) in the Canvas.

Homework Assignments

Homework assignments are on-line assignments posted on the Pitt Canvas, with the deadlines reported in the Canvas course (every Tuesday at 1:00pm EST starting September 7). The answer keys  to questions will be available right after the due date, as such late assignments are not accepted. Please remember to save/print each assignment if you wish to go over past assignments prior to exam: you will find it very helpful. Students are encouraged to study in groups, however should submit each homework assignment individually.

Group Projects

There will be three group projects in this course focusing on applying the concepts, theories and models we learn in class to the real-world international economics issues. At the beginning of the semester, each group (consisting of 5 students) will select a country and will work on preparing three short reports about its nation’s international finance, international trade, and other international-related issues. The due dates of the first two reports are before each corresponding midterm. The third report might require a short group presentation in November/December, with the schedule to follow. Late reports are not accepted.

In-Class Learning Activities

Throughout the semester, the class sessions will include short, very low stake in-class learning activities to help students master the material and prepare for the exams.  Students will be able to work together and use their notes to complete the activities, but each student must submit an individual response for the record of attending.  If you are unable to attend a class session, you may complete the activity within the following 24 hours.  Extensions must be requested at least 24 hours before the scheduled class session, with a valid reason. You may also forego a few activities  - it will not compromise your grade,  due to their very low stake.

Grading 

Attendance is required but not graded. Remember: missing classes might seriously compromise your understanding of the material and your performance in the course. There is no curving. A course grade is computed with the following weights:

· On-line homework assignments 20 percent

· In-class active learning 5 percent

· Three group projects 15 percent

· Exam 1 20 percent

· Exam 2 20 percent

· Exam 3 20 percent

I compute student’s course grade by incorporating scores earned on all assessments weighted as indicated above. A student fails the class if a so determined course score is below 60. The rest are graded based on the following scale:

90-100   A-, A, and A+

80-89 B-, B, and B+

70-79 C-, C, and C+

60-69 D-, D, and D+

Course Calendar

Date	Topic	Suggested Readings (prior to class)
Aug 28   Aug 30	Introduction to the course. Introductory International Trade and Finance Issues and Terminology National Income and Balance of Payments	Husted Ch 1   Husted Ch11
Sept 5	Homework Assignment #1 (BOP) is due 1:00pm
Sept 5 Sept 7	Foreign Exchange Markets and Exchange Rates	Husted Ch12
Sept 12	Homework Assignment #2 (FEM) is due 1:00pm
Sept 12 Sept 14	Alternative Monetary Standards. Fixed Versus Floating Exchange Rates Regimes and Policies	Husted Ch13
Sept 19	Homework Assignment #3 (Fixed vs Floating) is due 1:00pm
Sept 19 Sept 21	International Finance Theories: Interest Rate Parity and Purchasing Power Parity	Husted Ch14 Husted Ch 15
Sept 26	Homework Assignment #4 (IRP and PPP) is due 1:00pm
Sept 26	Group Project #1: International Finance Country Report is due 1:00pm
Sept 26	Exam#1 overview
Sept 28	Exam#1: International Finance
Prior to International Trade Section of this course, please refresh your knowledge of the following: · concepts: production possibilities frontier, opportunity cost, relative price · skills: how to compute a slope of the line and a slope of a curve. (feel free to use any Microeconomics textbook and/or Husted Ch2 as a reference)
Oct 3 Oct 5	International Trade Models. Classical Model Heckscher-Ohlin Model	Husted Ch3 Husted Ch4
Oct 10	Homework Assignment #5 (Classical and HO Models) is due 1:00pm
Oct 10 Oct 12	Empirical Evidence. Leontief Paradox. Intra-Industry Trade and Imperfect Competition	Husted Ch5
Oct 17	Homework Assignment# 6 (Empirical Evidence and IIT) due 1:00pm
Oct 17 Oct 19	Trade Policy Instruments. Tariffs in a Small Open Economy Tariffs in a Large Country	Husted Ch6
Oct 24	Homework Assignment # 7 (Tariffs) due 1:00pm
Oct 24 Oct 26	Non-tariff barriers: quotas, subsidies and other NTBs	Husted Ch7
Oct 31	Homework Assignment #8 (NTBs) due 1:00pm
Oct 31 Nov 2	Arguments for Protection and Strategic Trade Policy	Husted Ch8
Nov 7	Homework Assignment #9 (Strategic Trade Policies) due 1:00pm
Nov 7	Group Project #2 – International Trade Country Report is due 1:00pm
Nov 7	Exam#2 Overview
Nov 9	Exam#2: International Trade
Nov 14 Nov 16	History of International Trade and Finance Relations Regional Trade Agreements. EU and NAFTA	Husted Ch 9
Nov 21 Nov 23	Thanksgiving Recess
Nov 28	Homework Assignment #10 (History and Regional Blocks) due 1:00pm
Nov 28 Nov 30	Trade and Economic Development	Husted Ch10
Dec 5	Homework assignment #11 (Trade and Development) due 1:00pm
Dec 5 Dec 7	International Factor Movements: Investments and Migration Exam#3 Overview	Husted Ch10
Dec 9	Homework assignments #12 (International Factor Movements) due 1:00pm
Dec 9	Group Project #3 – International Issues Country Report is due 1:00pm
Dec XX	Exam#3: International Issues  (room, date and time -TBA by the Registrar late November)

Please fill in the survey of my Teaching Evaluations on-line.  I care a lot about the quality of teaching at our Department. Your feedback will allow me to accommodate your learning preferences and to design more interesting course-related activities for the students in the future semesters. Thank you!