ECON 310, International Economics
Spring 2019 | Doug Walker

TENTATIVE LECTURE OUTLINE & ASSIGNMENTS
** Everything on this page is subject to change. Exam dates and quizzes will be announced in class. Last updated: 3/14/19.

Topic Section Sawyer & Sprinkle, 2e.
(Order at Amazon)
Videos and Other Readings
The Choice Quiz (10 pts),
QUIZ DATE: Thurs., Jan. 31, 11.50-12.05
  Roberts, The Choice (entire book, 3rd ed.);
Roberts Review Questions
A. Review of supply & demand (Lecture)   Rotfeld, Libraries, Learning, and Dirty Sandals
B. Introduction to trade; specialization & productivity; voluntary exchanges; opportunity cost & PPFs (Lecture) Ch. 1, pp. 1-17  People are Awesome (Fast Workers Edition), evidence of specialization & productivty
C. Brief history of trade theory (mercantilism, Hume, Smith, and Ricardo) (Lecture) Ch. 2, pp. 20-37
Commanding Heights Quiz 1 (10 pts).
QUIZ DATE: 1/22, 1/29, 1/31 (daily, until we finish the first episode)
  Commanding Heights video, part 1
Get it here if you missed it in class. (Episode 1: The Battle of Ideas)
** Fear the Boom and Bust: rap battle ** (optional)
D. Ricardian 2-country, 2-good, 1-input model with constant costs; trade restrictions; consumers' and producers' surplus; benefits from trade (with exports or imports) (Lecture) Ch. 2, pp. 37-42
Ch. 6, pp. 134-139
Graph handout (for multiple topic sections)
Landsburg, The Iowa Car Crop;
Hazlitt, The Fetish of Full Employment
E. Ricardian model with increasing costs (Lecture) Ch. 2, pp. 42-49
F. International equilibrium; indifference curves, preferences, and autarky production points (Lecture) Appendix 2.1, pp. 54-59 Walker , Indifference curve explanation (see pp. 179-183)
* NY Times, "Is Anything Made in the USA Anymore?"
G. Factor endowment theory (Heckscher-Ohlin model) with identical/different preferences; factor price equalization; specific factors model; Leontief paradox (Lecture) Ch. 3, and appendix 3.1, pp. 60-79; 83-84 (ignore Fig. 3.4, p. 85) * Stiglitz, Fair Trade
H. Intraindustry trade (Brief Lecture) Ch. 4, pp. 86-104  
Commanding Heights Quiz 2 (10 pts).
QUIZ DATE: 3/5
 

Commanding Heights video, part 2
Get it here. (Episode 2: The Agony of Reform)

MIDTERM EXAM: THEORY, covers A-H.
EXAM DATE:  Thursday, March 7
I. "Competitiveness" vs. comparative advantage (Brief Lecture)
Krugman, Competitiveness, A Dangerous Obsession
Krugman, Proving My Point
J. Tariffs; PS and CS; net welfare effects of tariffs (small and large country models); arguments for tariffs (Lecture)   Ch. 6, pp. 134-144 and 146-151 Bastiat, The Petition;
Williams, Free Trade Versus Fair Trade
K. Politics of trade; outsourcing; sweatshops; immigration; social interests, producer and consumer interests (Lecture)  

Video: Stossel, Sweatshops; Boycotting;
Video: ABC This Week, Mankiw on outsourcing;
The Economist
, The Hollowing-Out Myth;
Krugman, In Praise of Cheap Labor;
Landsburg, An Outsourcing Fable;
Landsburg, Children at Work;
Landsburg, The New Racism;
Video: Landsburg, Defending his position in a 'hostile' interview;
*Fun* Video: Lou Dobbs, Economists are Idiots and Jackasses;
Union advertisement, Just Go Vote
Sowell, Immigration "Solutions"




M. Non-tariff distortions; transportation costs (Lecture) Ch. 7, pp. 155-174 Lee, Economic Protectionism
N. Trade policy overview; overall employment & job distribution effects of protection (Brief Lecture) Ch. 8, pp. 177-199

U.S. Intl Trade Comm. (Check tariff data for your favorite products.)
Waddington: World Trade Talks Collapse
Sowell, Manufacturing Confusion;
Video: Lou Dobbs, Trade debate with Reps.
Williams, Visible Beneficiaries versus Invisible Victims

O. Regional trade arrangements; "Brexit" (Lecture) Ch. 9, pp. 205-224  
P. International trade and economic growth (Brief Lecture) Ch. 10, pp. 229-253  
Q. National income accounting; balance of payments (Lecture) Ch. 11, pp. 255-275;  
Appendix, pp. 491-496

Jubak's Journal: The trade deficit's deep bite
Landsburg, My Barnes and Noble Trade Deficit
Williams, Trade Deficit Nonsense;
Stossel, Losing Sleep Over the Trade Deficit?
Krugman, The Illusion of Conflict in International Trade
  (see at least pp. 74-78, focus on S - I = X - M)
Video: Lou Dobbs, union workers, and deficits


R. Exchange rates (Lecture) Ch. 13, pp. 299-314  
S. Macroeconomic policy with floating exchange rates; J-curve (Lecture) Ch. 17, pp. 394-418   
Commanding Heights Quiz 3 (10 pts)
QUIZ DATE: TBA
 

Commanding Heights video, part 3
Get it here. (Episode 3: New Rules of the Game)

** Fight of the Century: rap battle part 2 **
(optional, but worth the time if you watched the first one)

T. Summing up (No Lecture)   Are We Tearing...Economic Tapestry?
Dallas Fed, The Fruits of Free Trade (pp. 3-24)
*New* Krugman, What do Undergrads Need to Know About Trade?

FINAL EXAM: POLICY, covers J-T, and some comprehensive material.
EXAM DATE: ** Tues., Apr. 30, 8:00-11:00
**