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: 4/18/19.

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 Video: Landsburg, Defending his position in a 'hostile' interview;
*Fun* Video: Lou Dobbs, Economists are Idiots and Jackasses;
Video: People are Awesome (Fast Workers Edition)
C. Brief history of trade theory (mercantilism, Hume, Smith, and Ricardo) (Lecture) Ch. 2, pp. 20-37
Commanding Heights Quiz (10 pts).
QUIZ DATE: 1/31		   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 (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; quotas (Lecture) Ch. 6, pp. 134-144 and 146-151
Ch. 7, pp. 155-174		 Bastiat, The Petition;
Williams, Free Trade Versus Fair Trade
U.S. Intl Trade Comm. (Check tariff data for your favorite products.)
K. Arguments in favor of protection (Lecture)
Lee, Economic Protectionism
Krugman, In Praise of Cheap Labor;
Landsburg, An Outsourcing Fable
Commanding Heights Quiz (10 pts)
QUIZ DATE: Tentatively, 4/4		  

Commanding Heights video, part 3
Get it here. (Episode 3: New Rules of the Game)
** Fight of the Century: rap battle part 2 **  (optional)
L. Trade policy overview; overall employment & job distribution effects of protection (Brief Lecture)

AIER: The Trade War: A One-Year Assessment
Sowell, Manufacturing Confusion
M. National income accounting; balance of payments (Lecture) Ch. 11, pp. 255-275;  
Appendix, pp. 491-496

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)

N. Exchange rates (Lecture) Ch. 13, pp. 299-314  
O. Macroeconomic policy with floating exchange rates; J-curve (Lecture) Ch. 17, pp. 394-418   
P. Current issues: Regional trade arrangements/NAFTA revision, "Brexit", Trump & trade
(Brief Lecture)		 Why did Brits vote for Brexit?
USMCA vs. NAFTA
Are We Tearing...Economic Tapestry?
Dallas Fed, The Fruits of Free Trade (pp. 3-24)
Krugman, What do Undergrads Need to Know About Trade?

FINAL EXAM: POLICY/INTL FINC, covers I-P, and some comprehensive material.
EXAM DATE: ** Tues., Apr. 30, 9:30-11:00 **