California Polytechnic State University

Economics 404: International Trade Theory, Winter 2009

Professor Eric Fisher

Office: 03-444

Phone: 805-756-2964 

Email: efisher@calpoly.edu

Office Hours:  Wednesday 08:00 to 12:00

 

Textbook:  The textbook is Feenstra and Taylor’s International Economics, Worth Publishers, 2008.  You must subscribe to Aplia.  This online tool will keep track of your scores on homework assignments.

 

I am going to cover the material in this course at a deeper level than the text.  You should bookmark this web page and check for periodic class handouts that I will post in time.

 

Objective:  This course will provide you with an overview of the world economy.  It will focus on the microeconomic aspects of international economics.  Intermediate microeconomics is a pre-requisite, and I have designed this course for majors in economics. 

 

Business students who like to think logically and students in the hard or social sciences who want a rigorous course in undergraduate trade theory will enjoy this class.

 

Examinations:  There a midterm and a final.  The final is scheduled by the University for Tuesday 17 March from 13:10 to 16:00.

 

Grading:  There will be weekly problem sets, and they will be worth 30 points in total.  The midterm will be worth 27 points.  The final exam will be worth 37 points.   Attendance and class participation will be worth 6 points.  Here is a summary of the grading scheme: problem sets (30 points); midterm (27 points); final exam (37 points); and class participation and attendance (6 points).

 

The scores of all the students are available here.  Here is a histogram with the scores of all the students in the course.

 

Administrative Issues: The University Senate passed a resolution in 2008 that was designed to deal with the abuse of late course withdrawals at Cal Poly.  The Student Advising Center of the OCOB now enforces this policy strictly.  I will not sign drop forms for this course

I recognize that this course may be a little difficult for students with weak backgrounds in economics.  Because I am strict about enforcing the rules, I really respect a student who works hard to learn the material.  If you show me that you are trying in good faith to master this material, then you will have little need to worry about failing this class.

There will be no makeup exams. 

If I catch you cheating, I will fail you for the course and then pursue the fullest sanctions that the University allows.  I am much more concerned with your integrity than I am with your mastery of international economics.  The most important thing that we professors can teach you is to live honestly, work hard, and treat others with respect and dignity.   

 

Date

Lecture Topic

Reading

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6 January

World Trade: An Overview

 

Chapter 1

 

8 January

The Difference Between General Equilibrium and Partial Equilibrium

Handout 1

13 January

The Model of Pure Exchange

 

15 January

The Difference Between Absolute Advantage and Comparative Advantage

Chapter 2.1

20 January

Review of indifference curves and the technique of Lagrange

Chapter 2.2 and 2.3

22 January

Equilibrium in the International Economy

Chapter 2.4, and 2.5

27 January

The Specific Factors Model

Chapter 3.1 and 3.2

29 January

What are Economic Rents?

Chapter 3.3 and 3.4

 

3 February

The Heckscher-Ohlin Model

Chapter 4.1 and 4.2       

Handout 2

5 February

More on the Heckscher-Ohlin Model

Chapter 4.3 and 4.4

Practice Midterm

10 February

Midterm Examination

A Clever Mustang’s Sample Answers

12 February

Working with Input-output Models

17 February

Understanding the Factor Content of Trade

The Factor Content of Trade when Countries Have Different Technologies

19 February

Understanding the National Revenue Function

24 February

Deeper Insights into Rybczynski Matrices

The Structure of the American Economy

26 February

Migration of Labor

Chapter 5.1 and 5.2

3 March

Direct Investment

Chapter 5.3 and 5.4

5 March

Increasing Returns to Scale and Imperfect Competition

Chapter 6

10 March

Tariffs and Quotas

Chapter 8

12 March

Tariffs and Quotas Under Imperfect Competition

Chapter 9

17 March

The University has scheduled the

Final Exam from 13:10 to 16:00.

Final with Answers