Course Description

Course Name

International Trade in the Global Economy (in English)

Session: VSVS1121

Hours & Credits

45 Contact Hours

Prerequisites & Language Level

Taught In English

  • There is no language prerequisite for courses at this language level.

Overview

This course provides basic knowledge of relevant facts and concepts to help students understand the importance of international trade in the globalized world of the XXI century. We will focus on economic globalization, finance, trade and investment, intellectual property, information flows, and the Internet - its functioning and its consequences. The course will show how international law and institutions provide the indispensable framework to manage globalization. After the course, the student should be able to read and watch the news on current events regarding globalization and its main dimensions and issues, and have a good understanding of their legal underpinnings.

TEXT:
Required: Salvatore, Dominick, International Economics, Sixth Edition, 1998.
Recommended: Wall Street Journal.
Additional readings will be put on reserve at the library or handed out in class.

The take-home assignments will consist of problems sets that will be graded and several class assignments in the form of readings or problems to be done at home but that will not be handed in.
Students are allowed and encouraged to do their problem sets in groups of 2 to 3 members. Students that decide to work in groups will only hand in one problem set per group and all group members will receive the same grade for the assignment. Those students that wish to work in groups should form their groups and inform me about their members by February 2. Students are allowed to quit their groups at any point during the semester, but these students will not be able to join another group.

Class participation is strongly encouraged. Class participation is not only 5% of your grade but also decisions on borderline grades will take into consideration the class participation of the student during the term.

Although class attendance is not directly represented as part of your grade, if you are absent from class you will miss points from class assignments and class participation and this will be reflected in your grade.

There will be no make-up exams.

Problem sets are due at the beginning of the stated class period. Under no circumstances will problem sets be accepted late.
Cheating and plagiarism cannot be tolerated within the Trinity community. Any student who violates the regulations on academic integrity will be subject to the penalties described in Trinity University?s Student Handbook (pages 1 and 2).

GRADING SCALE:
Total Points Grade
950 - 1000 A
900-949 A-
870-899 B+
830-869 B
800-829 B-
770-799 C+
730-769 C
700-729 C-
650-699 D+
600-649 D
Less than 600 F

COURSE OUTLINE:

I. INTRODUCTION
Chapter 1, plus pp. 423-429.

II. THE CONCEPT OF COMPARATIVE ADVANTAGE AND EXTENSIONS OF THE BASIC MODEL
Chapters 2, 3 and 4.

III. THE BASIS OF COMPARATIVE ADVANTAGE
Chapters 5 and 6.
Gonzalez, J.G. and A. Velez, "Intra-Industry Trade Between the United States and the Major Latin American Countries: Measurement and Implications for Free Trade in the Americas," The International Trade Journal, Winter 1995, Vol. 9, No. 4, pp. 519-536.
World Bank, "A Changing International Division of Labor," in World Development Report 1995, Washington, DC: Oxford University Press, 1995, Chapter 8, pp. 54-60.

IV. BARRIERS TO TRADE: THE TARIFF
Chapter 8.
Newman, B., "The Greeks Have a Word for Banana But Lack Bananas," in J. Adams, ed., The Contemporary International Economy, A Reader, Second Edition, New York: St. Martin's Press, 1985.

V. BARRIERS TO TRADE: NON-TARIFF BARRIERS
Chapter 9 (pp. 257-278 and 292-293).
Gold, D.M., R.J. Ruffin, and G.L. Woodbridge, "The Theory and Practice of Free Trade," Economic Review, Federal Reserve Bank of Dallas, Fourth Quarter 1993, pp. 1-16.
Corden, W.M., "Does the Current Account Matter? The Old View and the New," in Frenkel, J.A., and M. Goldstein, eds., International Financial Policy: Essays in Honor of Jacques J. Polak, Washington, DC: International Monetary Fund, 1991, pp. 455-478.

VI. COMMERCIAL POLICY

A. U.S. Commercial Policy and GATT
Chapter 9 (pp. 278-287)
Stiglitz, J.E., "Dumping on Free Trade: The U.S. Import Trade Laws," Southern Economic Journal, 1997, Vol. 64, No. 2, pp. 402-424.

B. Economic Integration
Chapter 10.
Gould, D.M., "Has NAFTA Changed North American Trade?," Economic Review, Federal Reserve Bank of Dallas, First Quarter 1998, pp. 12-23.
Kamdar, N. and J. Gonzalez, "Quis, Quid, Ubi, Quibus Auxiliis, Cur, Quo Modo, Quando? The U.S. House of Representatives Votes on NAFTA and GATT," in K. Fatemi, ed., International Business in the New Millennium, Vol. II, Laredo, TX: Texas A&M International University, May 1997, pp. 435-449.

VII. TRADE PROBLEMS OF DEVELOPING COUNTRIES
Chapter 11.

VIII. FACTOR MOVEMENTS
Chapter 12.
Reich, R.B., "Who Is Us?," Harvard Business Review, January-February, 1990, pp. 53-64.

*Course content subject to change