ECON 204 - Introduction to
INTERNATIONAL ECONOMICS


Updated October 6, 2009

Econ 204 Course Schedule


INTRODUCTION:  THE INTERNATIONAL CONTEXT

I.     Methodology

        A.    The Topic: Economic Globalization, Integration and Liberalization
                Why are they occurring?  Is this good, bad, or a mixed bag? 
                Should it be managed? Can it be managed?

Read:        Measuring Globalization, Global Policy Forum
Globalization of the Economy, Global Policy Forum

B.    Analytical Framework:
       Political Economy, Development Economics, Neoclassical Economcs.

Read:         Ch.1 Economics, Institutions and Development: A Global
Perspective, pg. 3-15, Michael Todaro, Economic Development, 7th Ed.


INTERNATIONAL ECONOMIC DEVELOPMENT

II.      Economic Growth versus Economic Development
        A.    International Economics, Development Economics & Their Goals

Read:         Ch.1 Economics, Institutions and Development: A Global
Perspective, pg. 15-26, Michael Todaro, Economic Development, 7th Ed.

        B.    Measures of Performance & Comparative Trends

Read:       Ch. 2 Diverse Structures and Common Characteristics of 
               Developing Nations, pg. 49 - 64, Michael Todaro, Economic Development, 7th Ed.


III.    Comparative Development Experiences                   
        A.     Historically

        B.     Between Rich and Poor Nations

IV.    Theories of Economic Development

                Read:        Ch. 3 Theories of Development: A Comparative
Analysis, pg. 77-104, Michael Todaro, Economic Development, 7th Ed.


INTERNATIONAL TRADE
 
V.    Classical Free Trade Theory                           
        A.    Mercantilism
                Read:    Mercantilism,  The Concise Encyclopedia of Economics, Laura LaHaye


         B.    Adam Smith, The Theory of Absolute Advantage & Economic Liberalism

        C.    David Ricardo & The Theory of Comparative Advantage
Read:       Why Nations Trade, Adam Gonelli

The Economics of Free Trade, The Economist, Sept. 22, 1990

Comparative Advantage, The Concise Encyclopedia of Economics, Donald Boudreaux


VI.    Critiques of Free Trade Theory
        A.    Traditional Critiques
                1.    Traditional Protectionism: Economic Nationalism & Neo-Mercantilism
a.    Restrictions to trade:  Tariffs and Quotas
                        b.    Non-tariff restrictions
                        c.    National Security, Infant Industries, Import Substitution
                        d.    Export Orientation and Industrial Subsidies
                2.    Structuralism: Colonialism, Imperialism, Dependency, & Global Capitalism

        B.    Contemporary Critiques
                1.    New International Economics
                        a.    Externalities
                        b.    Market Imperfections
                2.    Strategic or Managed Trade   
                3.    Fair Trade
                        a.     Reciprocal Standards vs. Reciprocal Policies

Read:       Who Gains From Trade?, Mehrene Larudee
Confucianism as a Basis for Capitalism, Morishima Michio
A Statement Aganst Free Competition, Morozumi Yoshihiko
French distrust U.S. capitalism, William Pfaff
Global trade should answer to social and labor standards, William Pfaff
Nations find free markets a little too free, Robert Samuelson
Outsourcing Whose Job?, Bradley R. Schiller
Winners and Losers, John Cassidy, The New Yorker (2004)

VII.    International Free Trade, the WTO and FTAs

Read:       Ch. 1: The Promise of Global Institutions,  Globalization and Its Discontents,
                Joseph E. Stglitz, (2002)

Ch. 2: Broken Promises, Globalization and Its Discontents, Joseph E. Stglitz, (2002)

Ch. 3: Making Trade Fair, Making Globalization Work, Joseph E. Stiglitz, (2006)



INTERNATIONAL FINANCE

VIII.    The International Monetary System: the World Bank and IMF
        Exchange Rates                               
        A.    Fixed versus floating exchange rates
        B.    Strong versus weak currencies

        Monetary Policy
        A.    The role of interest rates and inflation
        B.    Managing national interest rates
        C.    International monetary policy coordination

IX.    International Finance
        A.    The Current World Financial Crisis (2008)
        B.    The role of Multinational Corporations   
        C.    Capital and Labor Mobility       

***This Outline is subject to change at the discretion of the instructor.***
 
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