The subject matter of international economics includes all transactions that cross
national ... Text: International Economics, Ninth edition, Dominick Salvatore.
LAGUARDIA COMMUNITY COLLEGE Social Science Department SSE 105: International Economics Instructor: Soloman Kone, PhD Office: M 119D or Mail Box E 235 Phone/voice mail: 718- 482-6039 Hours: Thursdays, 3:30-5:30 PM or by appointment Email:
[email protected] Catalogue Description: This course will provide the students with the foundations of the theory and practice of international trade and finance necessary for understanding how international economic interactions influence the allocation of scarce resources both within and between nations. The subject matter of international economics includes all transactions that cross national boundaries, including trade in goods and services, capital and labor movements, and transactions in financial assets. Topics covered include: introduction to classical and modern international theories of trade; analysis of the economic effects of commercial policies like tariffs and quotas; economics of custom unions; international trade, growth and economic development; balance of payments, spot and forward foreign exchange markets and exchange rate systems; balance of payments problems and the adjustment mechanisms; flexible and fixed exchange rate systems; and international monetary systems. In addition, students will learn about the major issues in the economics of energy, pollution and the environment. Instructional Objectives: Introduce students to: 1. The theories of international trade. 2. The national policies, international organizations and agreements, and recent political events affecting international trade. 3. The international monetary relations. 4. The international macroeconomic policy and coordination issues. 4. The international economics and developing nations. 5. The economic growth issues: economics of energy, pollution and the environment. Performance Objectives: Upon completion of this course, students will be able: 01. To describe and explain the trend of U.S. international trade and investment. 02. To identify major U.S. exports, imports and trading partners. 03. To identify and evaluate current major international trade and financial initiatives and disputes involving the U.S. and its trading partners. 04. To apply the principle of comparative advantage to understand the direction of flow of products among regions and nations. 05. To evaluate the Ohlin factor proportions and intensity hypothesis of international trade. 06. To understand the Leontief paradox about the factor intensity of U.S. exports. 07. To discuss the economic effects of tariffs, quotas and other protective measures 08. To define the balance of payments, identify the major accounts, distinguish credit and debit transactions, and define balance of payments equilibrium, balance of payments deficit and balance of payments surplus. 09. To describe the spot and forward foreign exchange markets, and explain how they determine the spot and forward exchange rates. 10. To describe exchange rate regimes and explain how they cope with macroeconomic policies. 11. To identify the major innovation in international banking and finance during the last 30 years, and analyze their implications for production, employment, trade and finance. 12. To explain the international economics and economic growth issues such as energy, pollution, and environment.
Criteria and Evaluation: Grades will be based on: (1) attendance; (2) participation; (3) research paper [students investigate a problem of interest in the area of international economics], and (4) quizzes, homework, midterm, final exams. 1. Attendance: Students are expected to attend each class, as all absences must be accounted for. Please note that this requirement is considered so important that more than two (2) unexcused absences during the quarter will constitute a reduction of one’s grade by one full grade. Class discussions often illuminate materials in ways other than the textbook presentation and are often occasions where the major points of the course are related to one another. There will be no make-up exams unless a legitimate excuse is provided for the absence on the exam days. Please make sure to reach your instructor whenever there is a need before it is too late to intervene. In addition, students must take advantage of the tutorial service when available for this class. 2. Participation: In order to enhance the class learning experience, students are required to perform the weekly reading assignments and actively participate in discussions on the material. 3. Quizzes and Tests: During the quarter there will be a minimum of three in class tests and take home assignments on the topics and concepts (or discussion thereof). Final Examination: There will be a cumulative final exam covering the specified chapters and lectures. The format of each exam will consist of computation, essay and illustration. The exams, in the course of the quarter, will yield a total of five (5) grades. Final grade will be based on the weighted average of the five grades. The letter grades will be assigned on the basis of 95+ = A; 90-94 = A-; 86-89 = B+; 85 = B; 80-84 = B-; 76-79 = C+; 75 = C; 70-74 = C-; 66-69 = D+; 65 = D; 60-64 = D-; 59-0 = F Required Text: Dominick Salvatore (2006), International Economics, 9th edition, John Wiley & Sons, Inc.
COURSE OUTLINE INTERNATIONAL ECONOMICS Text: International Economics, Ninth edition, Dominick Salvatore Major Topics 01. Introduction to International Economics [Week 01] 02. Classical Trade Theory [Week 02] 03. Modern Trade Theory [Week 03] 04. Recent Contributions to Modern Trade Theory [Week 04] 05. Effects of Tariffs and Nontariff barriers [Week 05] 06. Offer Curves and Terms of Trade [Week 06] 07. Balance of Payments Accounting and Accounts [Week 07] 08. The Spot and Forward Foreign Exchange Markets and Exchange Rate Determination [Week 08] 09. Basic Theories of the Balance of Payments [Week 09] 10. Gross Domestic Product and the Balance of Trade [Week 09] 11. International Monetary System: Gold Standard, Fixed Exchange Rate, Floating Exchange Rate and Managed Exchange Rate [Week 10] 12. International Trade, Growth and Economic Development [Week 11] 13. Recent Innovations in International Banking and Finance [Week 12]
