I. COMPARATIVE STATUS OF TRADING NATIONS (2Weeks)

A. International and Development Economics & Their Goals

• Ch.1 Economics, Institutions and Development: A Global Perspective, Economic Development, 5^th Ed., Michael Todaro, Longman : pp.3-20.

B. Alternative Measures of Performance & Comparative Status: GDP & growth, HDI & sustainability,...measuring progress?

• Appendix 2.1: Social Indicators as Alternative Measures of Development: The Physical Quality of Life and The Human Development Indexes, Michael Todaro, op cit: pp.60-65.
• Why International Statistical Comparisons Don't Work, NYTimes, Sylvia Nasser
• Various graphs and data

C.Theories of Economic Development

• Ch. 3 Theories of Development: A Comparative Analysis, Michael Todaro, op cit: pp. 67-92.

D. Comparative Development. Experience

• Ch.4 Historic Growth and Contemporary Development: Lessons and Controversies, Michael Todaro, op cit: pp. 99-117.

  Case Studies presented in Lecture (Time Permitting):

  • U.S. - U.K.
  • U.S.S.R. - China
  • Mexico, Brazil, India, et al
  • Japan & the "Asian tigers"
  • Germany, France, et al

   

II. CLASSICAL FREE TRADE THEORY (1-2 Weeks) 

A. Mercantilism

B. Adam Smith & Absolute Advantage

 

 Adam Smith

C. David Ricardo & Comparative Advantage

David Ricardo

• Ch. 35 International Trade:..., Principles of Econ , WSBrown, West Pub, p.909-18
• Why Nations Trade , Gonelli
• The Economics of Free Trade, The Economist
• Petition of Candlemakers
• Tariffs Undermine Free Trade, George Will

 D. Free Trade and Development

• Ch.12 Trade Theory and Development Experience, Michael Todaro, op cit: Excerpts pp.407-440.

   

III. PROTECTIONISM (1/2 Week)

A. Tariffs, Quotas and Voluntary Export Restrictions (VERs)

B. Non-Tariff Barriers

Ch.35 Supply & Demand Analysis ...Ibid.: p.921-925,926-937

Who Gains From Trade?, Mehrene Larudee, Real World Macro, 11th Ed.

IV. TRADE POLICIES (1/2 Week)

A. Infant Industries & Import Substitution Industrialization

B. Export Orientation, Industrial & Strategic Trade Policies

Ch 37 The New International Economics, Ibid.: p.975-980

V. COMPARATIVE TRADE REGIMES (2Weeks)

A. The U.S. & the Free Market (aka "The Anglo-American Model")

Economic theory, reality clash, William Pfaff

Capitalism: Today's 'vision'...William Pfaff

B. Japan & Planning, Protection and Export Promotion (aka "The Asian Model")

What Is an Economy For?, James Fallows, The Atlantic Monthly

Confucianism as a Basis for Capitalism, Morishima Michio

A Statement Against Free Competition, Morozumi Yoshihiko

The "Human-Capital-ism" of the Japanese Firm as an Integrated System,

Hiroyuki Itami

Japanese Industrial Policy: International Repercussions, Kozo Yamamura

The Costs of Japanese Industrial Policy, Daniel I. Okimoto

C. Germany the Social Welfare (aka "The European Model")

Friedrich List

How the World Works, James Fallows, The Atlantic Monthly

Against All Odds, J.Branegan & B.vanVoort, Time Magazine

French distrust U.S. capitalism, William Pfaff

D. The U.S. and Strategic Trade Policy?

Strategic Trade Policy & Commercial Jet Aircraft, Robert Carbaugh

We Need a Strategic Trade Policy, Robert Reich

Making the Best of the Second Best, Laura D'Andrea Tyson

VI. TRADE LIBERALIZATION & INTERNATIONAL REGULATION

(1 Week)

A. Economic Integration & "Globalization"

Made in the U.S.A., Parade Magazine

'Buy American' movement misses point, The Associated Press

America's No.1 Car Exporter Is Japan?

Who Is Us?, Robert Reich

They Are Not Us, Laura Tyson

B. General Agreement on Trades and Tariffs (GATT) &World Trade Organization (WTO)

Ch 35 Focus On: GATT, Ibid.: p.926-7

More Trade Is Better than Free Trade

C. Environmental & Trade Regulation

VII. REGIONAL TRADING BLOCS (2 Weeks)

A. The European Union

Ch 37, Regional Integration, Ibid.: p.980-989

B. NAFTA

1. The View from Mexico

Can NAFTA Change Mexico?, Jorge Castaneda, Foreign Affairs, Sept. 1993.

Critical View of a NAFTA Including Mexico, Adolfo Aguilar Zinzer,

NAFTA as a Model of Development, Belous & Lemco, eds.

(National Planning Asso. 1993).

Mexico's Interests and the NAFTA, Jorge Bustamante, Ibid.

What Mexico (and the U.S.) Wants, John Kenneth Galbraith

2. The View from the U.S.

NAFTA: Review Of The Issues, Linda Aguilar

The Benefits of NAFTA..., Federal Reserve Bank of Dallas

Grasping the Benefits of NAFTA, Peter Morici

The NAFTA Illusion, Jeff Faux

The NAFTA Debate: Myths versus Facts, William A. Orme, Foreign Affairs,

V.72 no.5, Nov. 1993

The Uncomfortable Truth About NAFTA, Paul Krugman

VIII. LABOR & CAPITAL MOBILITY (Time Permitting)

A. Labor Migration

B. Migration of Technology, the Technology Life Cycle

C. The Role of Multi-National Corporations

IX. BALANCE OF PAYMENTS & EXCHANGE RATES (1 Lecture)

A. Current Account, Capital Account and Trade Deficits

B. Exchange Rates

Fixed vs. Floating

Target Zones

 

X. MONETARY POLICY (1 Lecture)

A. Interest Rates & Inflation

Ch 36, Ibid.

B. Managing National Interest Rates

Ch 37, Ibid.: p.989-993

C. International Monetary Co-ordination

Ch 36, Ibid.: p.940-969

 

XI. FINALE (1 Lecture)

Beyond Supply and Demand: The Framework of the Market Economy