International Trade Syllabus



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International Trade Syllabus Instructor: Prof. Dr. Harald Sander Office: CL 301 Telephone: (221) 8275-3419 email: harald.sander@fh-koeln.de Class e-site: Class Hours: see Summer School Schedule Office Hours: individual appointments, walk-ins are ok. I. TEXTBOOKS, ETC. Required: Students can use either Pugel, Thomas A., International Economics, 13 th edition or later if available, McGraw-Hill International Edition. or: Krugman, Paul R. and Maurice Obstfeld, International Economics, latest edition. Required: s provided by lecturer Assigned articles (provided by lecturer) Recommended: The Economist (current issues; library or subscription). WTO, International Trade (downloadable) II. PURPOSE OF COURSE This course affords students who have already had principles of microeconomics the opportunity to analyze and understand current international economic events. By the end of the course, students should have a good understanding of the determinants of international trade and the impact of trade policies on global trade. They should be able to use the associated skills to analyze critically world events and international business strategies. The course is also a core course in the major and minor in international business programs. The course provides an overview of international trade and international trade policies by introducing such topics as the reasons for and costs and benefits of trade among countries, trade policies and trade liberalization, the workings of the World Trade Organization as well as the workings of regional trade organization such as the European Union and NAFTA. Upon successful completion of this course, students will have achieved the following learning outcomes: A deep understanding of the major driving forces of globalization and regionalization of international trade Capability to analyze international trade using both classical and new models Ability to compare and contrast the textbook trade models to real-world trade outcomes by analyzing how the political economy of trade differs from the pure economic theory Analyze the roles that government, businesses, labor unions and international organizations play in determining the international trading environment Capability to assess the implications of a changing international trading environment for international business strategies. III. COURSE REQUIREMENTS Students are expected to attend all scheduled classes and study the assigned readings in advance. There will be a final exam at the end of the summer program which covers the complete course content. All students will have to write a term paper. Team work is possible when accepted explicitly by the instructor. The presentation will take 20 minutes and will be followed by a discussion of the presentation and 1

the underlying paper. The term paper is due on the same day and must be handed in printed from to the instructor before the presentation starts. Details will be provided at the appropriate time (handouts). IV. GRADING Students will earn grades according to the following scheme: Participation in course Term Paper and Presentation Final examination 20% of final grade 40% of final grade 40% of final grade Any late work will be penalized at the rate of 25% per day against the maximum value of the work. This penalty applies regardless of the legitimacy of the excuse. In particular, computer and printer problems, whether hardware or software, will not get you any special treatment. There will be no exceptions. Plan ahead and don t procrastinate. If you have any questions about any grading, you must discuss them with the instructor before the beginning of the class period after they have been returned in order for any credit to be awarded. UNF CUAS A 1.0-1.3 A- 1.7-2.0 B+ 2.3-2.6 B 2.7-3.2 B- 3.3-3.6 C+ 3.7-3.9 C 4 F 5 V. ACADEMIC INTEGRITY Working together is a wonderful way to learn, and your instructor encourages it. You may work with others in this class on any activity except quizzes and examinations. All work, whether in-class or take-home, must be individual efforts. Plagiarism is taking someone else s work and passing it off as your own. Plagiarism includes taking phrases, sentences, or paragraphs from someone else s writing and using them in your own writing without providing true attribution of their source. Avoiding plagiarism, of course, does not mean neglecting to conduct solid research. It is appropriate to read what various scholars and experts have learned about an issue before you form your own conclusions about it. However, you must ensure that you understand the literature. At a minimum, students should rephrase the literature s content, rather than quoting it verbatim. This practice also helps to ensure student understanding of the issue, as you cannot write intelligently unless you do know your 2

subject. Another way to avoid plagiarism is to ensure that you utilize a large number of sources, so that your knowledge goes beyond that of any particular book or article. The internet now provides students with the opportunity to purchase term papers. Turning any paper that is not your own work is a violation of academic integrity. With regard to these and all other issues of academic integrity, students are also expected to adhere to the code of conduct as outlined in the UNF catalog. Anyone caught violating the academic integrity code will be disciplined fully. VI. STUDENTS WITH DISABILITIES If you have a disability, as defined by the Americans with Disabilities Act (ADA), which requires a classroom accommodation or auxiliary aid(s), please inform me of your needs during the first week of class so that I may take appropriate action. You should also notify the Office of Disabled Services Programs at 620-2769 concerning any needs you may have. VII. CLASSROOM ETIQUETTE Students are expected to remain polite during classroom discussions. Even during heated debates, you must treat your classmates and your instructor with respect. Violation of this policy will result in disciplinary action in accordance with the UNF Student Handbook. For example, you should not make derogatory remarks about your classmates ideas. Instead, explain why you think they are wrong, backing up your viewpoint with sound economic analysis and refrain from personal attacks. Another example is being quiet while someone else (including your instructor!) has the floor. You may not use cellular telephones or pagers in class. If you bring them to class, the must be turned off. If there is an emergency situation that requires you to have an active telephone or pager in class, you must notify the instructor in advance that your equipment will be turned on. In such cases, pagers (and cell phones, if possible) should be set to vibrate, not to ring. Violation of this policy will result in your being asked to leave the classroom for the remainder of the period. Repeated violations will be reported to the appropriate UNF authorities and will result in disciplinary action. VIII. CLASSROOM EXPECTATIONS AND SUCCEEDING IN THIS CLASS Class time will involve a combination of lectures, discussions and students working in small groups to help one another learn. In order to succeed in this class, students should: Prepare for all classes by reading the assigned material (see below) before class begins Do the reading! Just looking at PPTs and attending class isn t sufficient Attend and participate in all classes Spend 2-3 hours studying outside of class for every hour spent in class Study by closing their texts and notes and attempting to remember as much about the material as possible Be able to draw and explain all graphs, including prices, quantities, areas, etc. Find study partners and work with them teaching others is the best way to learn something yourself Ask questions in class If you have open questions ask them in class or contact the instructor. 3

IX. TENTATIVE COURSE SCHEDULE The following table lists topics, required readings, assignments, exams, etc. For the exact dates see the Summer School Schedule provided to you in Cologne. Session Topics to be covered Suggested reading before class 1 Introduction to International Pugel, Chapter 1 and 2 Trade and Globalization or Krugman/Obstfeld (KO), 2 Introduction to International Trade and Globalization: Distinguished Lecture on The European Union 3 Classical model of trade; absolute vs. comparative advantage; numerical examples; opportunity cost; general equilibrium analysis terms of trade & gains from trade; trade & wages 4 Heckscher-Ohlin (HO) model and the factor proportions theory; Leontief Paradox; winners and losers from free(r) trade 5 New trade theories: intraindustry trade; internal/external scale economies; role of industry structure 6 Trade Policy Analysis Arguments for & against protection: validity of policy goals &; politics of protection; partial equilibrium analysis: consumer/producer surplus; (net national) welfare analysis; tariffs and their effects; deadweight loss; types of tariffs; large country welfare analysis; optimal tariff and retaliation; rent-seeking and lobbying Non-tariff protectionism: quotas and import licenses, VERs, NTBs; 7 Regionalism versus multilateralism; distortionary effects of regional trade agreements; preferential trade agreements; EU, NAFTA, MERCOSUR, Chapter 1 and 2 Willem Noe, EU- Commision Pugel, Chapter 3 or KO Chapter 3 Pugel Chapter 4 & 5 or KO Chapter 4 & 5 Pugel Chapter 6 or KO Chapter 6 Pugel Chapter 8,9 or KO Chapter 8,9 Pugel Chapter 12 or KO Chapter 11 Other assignments due, etc. 4

ASEAN 8 Multilateral Trade Liberalization The WTO: History and Structure Structure The current World Trading System as the outcome of the Uruguay Round. The current Doha round and the future of the World trading system 9 Term Paper Presentation and Discussion 10 Final Examination Pugel Chapter 10 or KO Chapter 10 Term paper must be submitted on the scheduled day of presentation 5

European Business Environment Syllabus Instructor: Dr. Michael Fritsche Office: Telephone: +49 (170) 5 57 33 77 email: fritsche@focusla.de Class e-site: Class Hours: see Summer School Schedule Office Hours: individual appointments I. TEXTBOOKS, ETC. Required: Johnson, Debra and Turner, Colin: European Business, 2 nd edition, Routledge, New York 2006 Mercado, Simon, Welford, Richard, and Prescott, Kate, European Business, 4th ed., Prentice Hall 2000 Somers, Frans (ed.): European Business Environment. Doing Business in the EU, Noordhoff Uitgevers, Groningen 2010 Required: Assigned articles (provided by lecturer) Recommended: Online publications of the European Union (e.g. http://bookshop.europa.eu; http://publications.europa.eu; http://www.ena.lu) II. PURPOSE OF COURSE This course is designed to raise and discuss issues confronting globally operating companies in foreign markets, especially the European Common Market, in order to remain competitive in an increasingly fast-paced, global environment. The focus of the course will be on the business effects of European and policy issues and the role of external environment of companies for their business decisions. The professor will present a series of lectures on these topics. Some of the out-of-class reading and research on multilateral organizations will also relate to these topics. The course will require a great deal of active learning by students: both practical and theoretical in nature. III. COURSE REQUIREMENTS Students are expected to attend all scheduled classes and study the assigned readings in advance. There will be a final exam at the end of the summer program which covers the complete course content. All students will have to prepare a presentation during the course. Team work is possible when accepted explicitly by the instructor. Details will be provided at the appropriate time (CUAS E-learning portal). IV. GRADING Students will earn grades according to the following scheme: Participation in course (incl. presentation) Presentation 25% of final grade 75% of final grade 1

UNF CUAS A 1.0-1.3 A- 1.7-2.0 B+ 2.3-2.6 B 2.7-3.2 B- 3.3-3.6 C+ 3.7-3.9 C 4 F 5 V. ACADEMIC INTEGRITY Working together is a wonderful way to learn, and your instructor encourages it. You may work with others in this class on any activity except quizzes and examinations. All work, whether in-class or take-home, must be individual efforts. Plagiarism is taking someone else s work and passing it off as your own. Plagiarism includes taking phrases, sentences, or paragraphs from someone else s writing and using them in your own writing without providing true attribution of their source. Avoiding plagiarism, of course, does not mean neglecting to conduct solid research. It is appropriate to read what various scholars and experts have learned about an issue before you form your own conclusions about it. However, you must ensure that you understand the literature. At a minimum, students should rephrase the literature s content, rather than quoting it verbatim. This practice also helps to ensure student understanding of the issue, as you cannot write intelligently unless you do know your subject. Another way to avoid plagiarism is to ensure that you utilize a large number of sources, so that your knowledge goes beyond that of any particular book or article. The internet now provides students with the opportunity to purchase term papers. Turning any paper that is not your own work is a violation of academic integrity. With regard to these and all other issues of academic integrity, students are also expected to adhere to the code of conduct as outlined in the UNF catalog. Anyone caught violating the academic integrity code will be disciplined fully. VI. STUDENTS WITH DISABILITIES If you have a disability, as defined by the Americans with Disabilities Act (ADA), which requires a classroom accommodation or auxiliary aid(s), please inform me of your needs during the first week of class so that I may take appropriate action. You should also notify the Office of Disabled Services Programs at 620-2769 concerning any needs you may have. VII. CLASSROOM ETIQUETTE Students are expected to remain polite during classroom discussions. Even during heated debates, you must treat your classmates and your instructor with respect. Violation of this policy will result in disciplinary action in accordance with the UNF Student Handbook. For example, you should not make derogatory remarks about your classmates ideas. Instead, explain why you think they are wrong, backing up your viewpoint with sound 2

economic analysis and refrain from personal attacks. Another example is being quiet while someone else (including your instructor!) has the floor. You may not use cellular telephones or pagers in class. If you bring them to class, they must be turned off. If there is an emergency situation that requires you to have an active telephone or pager in class, you must notify the instructor in advance that your equipment will be turned on. In such cases, pagers (and cell phones, if possible) should be set to vibrate, not to ring. Violation of this policy will result in your being asked to leave the classroom for the remainder of the period. Repeated violations will be reported to the appropriate UNF authorities and will result in disciplinary action. VIII. CLASSROOM EXPECTATIONS AND SUCCEEDING IN THIS CLASS Class time will involve a combination of lectures, discussions and students working in small groups to help one another learn. In order to succeed in this class, students should: Prepare for all classes by reading the assigned material before class begins Do the reading! Just looking at PPTs and attending class isn t sufficient Attend and participate in all classes Spend 2-3 hours studying outside of class for every hour spent in class Study by closing their texts and notes and attempting to remember as much about the material as possible Find study partners and work with them teaching others is the best way to learn something yourself Ask questions in class If you have open questions ask them in class or contact the instructor. 3

IX. TENTATIVE COURSE SCHEDULE The following table lists topics, required readings, assignments, exams, etc. For the exact dates see the Summer School Schedule provided to you in Cologne. Day Topics to be covered Suggested reading before class 1 Introduction; regional integration; Johnson, ch. 1, 2, 3 Other assignments due, etc. Strategy and structure of European Business; Mercado ch. 8 Objectives and historical development of Fontaine, ch. 1, 2 the EU 2 Team work Competitiveness and country analysis of EU member states Preparation of a country analysis and presentation 3 EU Institutions and fields of activity Fontaine, ch. 4, 5, 8, 9, 10; How the European Union works 4 The single market, the EMU an further Fontaine, ch. 6, 7 policies concerning market integration Policies concerning inputs and factors of production Lobbying in the EU 5 Eastern Enlargement of the EU Course Review Johnson, ch. 10, 11, 12, 13, 14, 15 E-Learning material on Lobbying in the EU; Fontaine, ch. 3; Johnson, ch. 16 4