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‘For every problem, economists have an answer...Simple, neat and wrong’ H.L. Mencken

‘We up in Massachusetts do not want that duty upon molasses, we trade our fish for molasses, and if you shut out molasses you shut in fish....’ U.S. Congressional Debates (1790)

‘The produce of a country exchanges for the produce of other countries, at such values as are required in order that the whole of her exports may exactly pay for the whole of her imports...’J.S. Mill (1806-1873)

‘What then, has determined and will determine the value of the franc? First, the quantity, present and prospective, of the francs in circulation. Second, the amount of purchasing power which it suits the public to hold in that shape...’J.M. Keynes (1883-1946)

 ‘Rich men’s clubs take care of their own members and we are told to fend for ourselves...’Indira Gandhi

Well, I don’t give a (expletive deleted) about the lira...’R.M. Nixon

 I. Course Description:

 The transformation of the world to a global village is due to the growing interdependence among nations through increased international trade, investment and exchange of ideas. We primarily examine why countries trade, what they trade and exchange, study the gains from trade and then focus on the impact of trade and finance on the domestic economy. The objective of this course is to discuss (1) issues in international trade such as protectionist trade policies vs free trade, economic trade and impact on the environment, the political economy of trade, immigration problems, and policies such as export promotion and import substitution, etc.; (2) issues in international finance such as the balance of payment, the foreign exchange market, international investment and speculation, etc., and finally (3) current topics such as the role of GATT, NAFTA, EC, and US trade policies with the rest of the world! By combining theory with current events and policy debates, we will learn how to use international economics as a tool for understanding the global headlines of tomorrow!

 II. Textbooks:

International Economics, Appleyard & Field [3rd Edition,1998]

World Development Report, World Bank [1997]

*Students are encouraged to keep in touch with current events and various International Issues in the News. Reading of the New York Times, The Economist, and the Wall Street Journal should help!

 III. Course Requirements:

 Exams: During the course there will 2 exams, including the final exam. Each exam will concentrate on the material presented prior to the exam. In other words, they are not comprehensive. The exams will have short as well as some descriptive answer type questions. Some of the questions will be definitional in nature, while other analytical questions will require a fundamental understanding of the material discussed in class!

Homework/Class Participation: This involves coming to class, doing the readings, and engaging in class discussions by asking questions and trying to answer some! You will also be asked to turn in individual written Homework assignments during the semester. Remember to turn in your work!

Project/Group Work: You and your colleague must select a country and/or topic in Trade/Finance - you will write a research paper (analytical and/or empirical) approximately 5-10 pages long focusing on a specific international issue and also make a formal power point presentation of your paper in class. The topics could range from the role of Quotas, VERs and Tariffs in certain countries, exchange market, Foreign investment and role of Multinationals, Role of IMF and Debt crisis, Currency market and its impact, Environment and Trade, Oil and trade in Mexico, Nafta, European union, Asian crisis, Drug trade in Columbia, to South Africa and its emergence from Apartheid, etc! Another way to find topics is to study the cases/ inserts in your textbook! The main objective here is to present a summary of articles you have read pertaining to your topic (start early, and DO NOT just rely on Internet material), while clearly discussing your understanding of the economic aspect of argument - Use graphs and diagrams and descriptive statistics, wherever, possible to illustrate your argument. If you need data for a country, the Internet is a valuable source and I can help you with the topic and the country - further you can find data in the World Development Report, Human Development report, OECD Statistical data, International Financial Statistics, CIA World book, Yearbook of Labor Statistics, Penn World Tables, Government Finance Statistics Yearbook, Industrial Statistics Yearbook. You MUST start early to collect articles (takes a couple of weeks to get books and articles via ILL), and you MUST come and see me about it as the semester progresses - though this will be due towards the end of the semester and presentations will be made then....no LAST MINUTE work!!

Note: You will be given a group grade here, though I reserve the right to ask for a peer review. Here you must discuss and analyze together and each of you must contribute to the paper... Do not split sections up and submit them to me! All work, including the homework assignments/paper must be typed or word processed, double spaced with proper margins, free of grammatical errors and spelling mistakes, with properly labeled diagrams and charts!

IV. Grading: Your final course grade will be based on the following weighting scheme:

Exams 50% (25% each)
Homework/Attendance 20% (5% each)
Research Paper/Presentation 30%

The grading scale is         94-100% A             74-76% C
                                        90-93% A-             70-73% C-
                                        87-89% B+             67-69% D+
                                        84-86% B                 64-66% D
                                        80-83% B-                 60-63% D-
                                        77-79% C+                 Less than 60 F
*If at anytime during the semester, you are unsure about the grading criteria or would like to understand how you are being graded and why, please contact me and we can discuss it! Also, you may have an Internet assignment, which I still have to work on and will let you know as we go along.

V. Attendance & Academic Conduct:

You are expected to attend all classes. No makeup exams or extensions on the Homework assignments and Paper will be allowed or accepted. If you cannot fulfil some of the course requirements on time, make sure that you have received prior permission. Remember that in order to do well you need to take all the exams, do the homework, participate in class - just by fulfilling either one or two of the requirements ...will not get you the desired grade, even if you think that what you have left out or not turned in...is worth only a small percentage of the total grade! You can always contact me via E-mail, phone or leave a message outside my office. Excused absences and unforeseen emergencies will be given consideration. However, 3 unexcused absences will result in a grade penalty at the end of the semester.

VI. General Guidelines & Suggestions:

In class, I will highlight the important aspects of each chapter and topic being discussed, but you will be ultimately responsible for the details in each chapter, unless I specifically ask you to leave certain sections out! I will be giving you handouts. However, my handouts should serve only as a guide or a reference. Read the chapters thoroughly - you should read all the examples in the Boxes/inserts and Cases. You should be able to answer the questions at the end of each chapter and be able to discuss questions given to you in class. You are encouraged to form study groups and discuss material presented in class and work together. However, students are expected to follow the codes of academic honesty set forth in the Student handbook. If you find the discussion in class and/or the text difficult to understand, please contact me individually or as a group - Do not wait for the night before the exam.... Do drop by my office any time to talk about anything, and finally if you are intimidated in class or feel that you cannot contribute as much because of an ‘aggressive peer’, then please feel free to discuss it with me in my office and I will try and make the classroom a more comfortable environment for you.......!

VII. Tentative Course Outline

First Day of Class Introduction & Read Ch 1 (U.S. Trade Data discussed)
Week 1 Ch 2, 3 & 4
Week 2 Contd.. *HW 1
Week 3 Ch 6, 8
Week 4 Ch 10,11,12 *HW 2
Week 5 Ch 13, 14, 15
Week 6 MIDTERM *March 15th in Class
Abstract of Research Paper
Outline & Intended Bibliography *March 17th
Spring Break
Week 7 Contd. and Ch 18 *HW 3 (Ch 20, 21)
Week 8 Ch 23, 24, 25
Week 9 Contd.
Week 10 Ch 26 & 27 *HW 4
Week 11 Ch 28
Week 12 In Class Formal Submission/Presentation of Research Paper

*Note you could have only one person presenting or both presenting to the class, but both must participate, work on the power point and write the paper TOGETHER!

Last Day of Class Review for Final Exam
FINAL EXAM (May 17th from 3.00-6.00pm)