SYLLABUS International Economics SZFNSNG001AEA All Business BA courses Year 2 Full time 2013/2014, Autumn Term 1/9
International Economics Course unit code: SZFNSNG001AEA All business BA courses, full time, year 2 2013/2014 Autumn Term Department: Course unit leader: Tutor(s): Department for International Business (Nemzetközi Gazdálkodási tanszék) Main Building 222 Tel: (56) 511-753 nemzetkz@szolf.hu Dr László Kacsirek, professor Main Building 222 (International Office) kacsirek@szolf.hu László Kacsirek Office hours: Monday 8.00-9.30 Status: You are welcome to drop in at this time but individual appointments can be made with me via email in advance for a time that better suits your convenience. Core Contact hours: 2+0 Credits: 3 Prerequisites Venue: 216 Macroeconomics Time: Monday 11.55-13.25 Aims and objectives The major aim of the course unit is to provide you with skills necessary to understand and analyse some of the contemporary international macroeconomic issues. This includes the theories behind cross-border business activities, the flow of goods, services and capital, monetary issues and their institutional framework. 2/9
Learning outcomes By successfully completing this course you will be able to Apply trade theories on current international economic relations Understand the arguments for and against protectionism and understand the operation of trade policy instruments Assess current cases of international movement of goods, services and factors Understand major international monetary issues, including the international monetary system and its institutions Assess and criticise today s international economic issues Course unit description The course unit focuses on the international aspects of economics. We will discuss issues in four major parts. Part One is about Trade Theory we will seek an answer to the question: Why do nations trade? One of the outcomes of this part will be that the most beneficial way of trading is free trade. We will end this part with international factor movements with an emphasis on foreign direct investments. Part Two, the part on Trade Policy will answer the following astonishing question: if free trade is beneficial, then: Why do nations restrict trade? We will also talk about international trade rules and the World Trade Organisation (WTO). Part Three will introduce you to the exciting world of International Finances. You will learn the difference between a trade balance and the balance of payments, and you will also understand what determines the price of 1 Euro in US dollars (that is the EUR/USD exchange rate) and we will discuss also reasons for the changes of exchange rates. By the time we finish the semester you will have an overview of the international monetary system and its institutions. With Part Four the course finishes with an overview of globalisation and the major players of the international economic system. 3/9
Course schedule September October 16 Course introduction, methodology, assessment. What is international economics about? Is it shear theory or is it something useful in our everyday life? Discussion. Pugel CH 1 23 Part 1 Trade Theory Trade theory why nations trade. Absolute and comparative advantages. Pugel CH 2, 3, 30 The trade theory 2. The Heckscher-Ohlin theory, technology endowment and trade. CH 4, pp 74 (Case study) 7 Demand and international trade. Competitive advantages. Pugel CH 6, 7 14 International factor movements The international movement of capital foreign direct investments. Pugel CH 15 21 Autumn holiday No classes November December 28 Part 2 Trade Policy Trade policy. Arguments for and against protection. Trade policy instruments. Pugel CH 10, 8, 9, 11 4 The international regulation of trade: the Multilateral Trading System. Achievements and operation of the GATT/WTO system. The World Trade Organisation. 11 Current international trade talks the Doha Round. Major topics in international trade. 18 Presentation of case study reports. 25 Presentation of case study reports. 2 Part 3 International Finances International finances basics. Understanding foreign exchange. Exchange rates. Payments among nations. The balance of payments. The convertibility of the national currency. Pugel CH 16, 19, 24 9 The evaluation of the international monetary system. International financial institutions. CH 21 16 Part 4 Globalisation and the players of the international economic system Globalisation and regionalism. The players of the international economic system. 4/9
Methodology My teaching philosophy is that my job is to help you acquire the knowledge and the skills you are to gain from a certain subject. This means that I will never give a lecture in its conventional sense. We will always develop and explore things together. Even when I will give you information, we will do that in an interactive way perhaps you will be talking more than I will. Active participation in sessions is required. Often I will be more a moderator than teacher. Please feel free to ask questions and share your comments. Our work will be supported by a core book (please note that we will not go chapter-by-chapter). This means a number of things. Instead of receiving information in a conventional lecture you will read theory in your book and we will discuss it in class or you simply will have opportunities to ask questions, if you have any. Some of the issues will not be discussed in details in class, so you will have to understand them from your book. Other issues will be discussed in details during the lectures, and you will find less in your book. We will be having discussions, debates, and we will also work with case studies. Some of the case studies we will discuss together, some you will have to work on at home, individually or in groups. All this also means that a part of your work will be done out of class. There is an emphasis on preparation for the courses this means partly the preparation of home assignments, but also understanding and learning the course material discussed the week before and reading the appropriate chapter of the book (or other readings) for the current lecture. The chapters you are to read before the lectures are indicated in the syllabus. To enhance and control your preparation you will write a brief quiz in the beginning of a number of lectures. The frequency of quizzes depends on how prepared you generally will be the more prepared you will be the less we will have to lose time by writing quizzes. It is also an integrate part of my teaching philosophy that life is short so we have to make the best of it. For that reason we should not only perform hard work but I would like us to have fun and a great time in all senses. So if it s up to me, we will have a great class atmosphere if you agree with this, please support my efforts. Assignments During the semester you will have a number of individual and group assignments these will be specified and described in sessions. There will be one bigger assignment the analysis of a brief case study and the presentation of your outcomes. 5/9
Assignment Case study analysis You will analyse a brief case study you can find them in your core book. You are to submit a written report on your findings and you will be required to present your results. You can download them from the website that supports your studies (http://english.szolfportal.hu). Read the assignment description; you will also find the title of the case studies there (document: Case study assignment description GENERAL). Please individually choose a case study analysis (in case the number of the group cannot be divided by three, some of you will be working in pairs). Choose and rank three cases and send the information to me via email (kacsirek@szolf.hu). Please read document Application process for case analysis topics that you can find on the website. Dates and deadlines. Deadline for application is 10 th October, midnight. You should submit your written report 1 week before your presentation the latest (paper and electronic version). You are to present your findings on the 18 th or the 25 th of November (I will give you exact information in time). Academic dishonesty (plagiarism) will be penalised with 0 marks awarded for the essay. To pass the exam you will have to write a new essay that meets the minimum standards; but this will not change your 0 marks for the assignment. Missed deadlines. Every started 24 hours of delay will be penalised by an extraction of 10% of your assignment marks (10% of the 100% total). Please note that deadlines are always the latest date to hand in your assignments; you can submit them earlier at any time. No excuses will be accepted. Assessment and grading Your assessment will be based on four pillars: course work (including individual and group assignments), the analysis of a case study (written and oral report), quizzes written in the beginning of a number of lectures and a written exam. Your individual performance in class sessions will be subject to assessment. The major principle of assessment will be the quantity and quality of your contribution to discussions, debates, and thinking-together. Presence is not satisfactory to acquire marks: just being there is not enough to acquire any marks. Please note that if you are not present, you cannot contribute to the seminar, thus your performance of that day is 0%. Note that all in-class work and performance, including the 6/9
content of all presentations and the outcome of group work form an integrate part of the course and as such are subject to assessment. Coursework will form 10% of your final mark (that is you can acquire 10 points out of total 100% by working in seminars). Assessment of your coursework will take place according to the following pattern: 1. Participation in 75-100% of sessions, but no contribution (no questions, no remarks, no participation in discussions): 0 points. 2. Participation in 100% of sessions, active and high quality contribution to discussions: 10 points. 3. Participation in the majority of sessions, regular, but modest in frequency and quality contribution to classes, or active and high quality contribution to discussions, but participation in only 75% of seminars: 5 points. 4. 1-4, and 6-9 points will be rewarded depending on the frequency of participation (that is the opportunities to work) and the quantity and quality of contribution. Grades will be given according to the following pattern: Course work: 10% Case study (written report and presentation) 25% Quizzes: 10% Written exam 55% 100% Grading 0-50% fail 51-62% pass 63-74% satisfactory 75-86% good 87-100% excellent Course policies Attendance is not only compulsory but is also required because you will only acquire skills if you take part in the development of topics and in the learning activity. Note that class performance forms a part of your assessment (if you are not present, your current performance is zero). Attendance will be checked (you cannot be absent from more than 30% of sessions). 7/9
If you know that you will not be able to attend a class, please notify me in advance (tell me or send an e-mail). This is important partly because it is nice to let me know, but also because I have to know the exact number of attendants to prepare your work in class (group numbers, etc.). Thank you. Mobile phones are not welcome in class. Turn them off and put them away. Students who fail to do so may be asked to leave the room (and will be registered as absent). You are welcome to use your laptop/notebook for taking notes or for supporting your work. You will be asked to put your laptop away (and never bring it with you again) if you use it for other purposes in class (checking emails, browsing the net, etc.). If you happen to be ill, please send me an e-mail. The best way to communicate with me is via e-mail. Please turn off all beepers and cell phones and all other noise-making devices. Note that we will always start classes at exactly 11.55. That means that I would like you to arrive a few minutes in advance, so you are ready for work by the time we start. Thank you again. If you happen to arrive late which you should not please come in as quietly as possible and prepare yourself for work as silently as possible. Compulsory readings Pugel, Thomas: International Economics 13 th edition New York: McGraw-Hill. 2007 ISBN-13 9780073523026 Chapters 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 15, 16, 19, 21, 24 And: Topics and issues discussed in lectures. News of the international economic and business world, most of which you can follow with the help of the national and international printed and electronic media (e.g. The Economist, Financial Times, The Guardian, Newsweek, CNN, Handelsblatt, Neue Zürcher Zeitung, Le Monde Diplomatique, HVG, Figyelő, etc). Recommended readings Krugman, Paul Maurice Obstfeld: International Economics: Theory and Policy 7th edition or 8 th edition Pearson Addison Wesley 2007/2008 Salvatore, Dominick: International economics 9 th edition 8/9
Wiley 2007 Suranovic, Steven M.: International Trade Theory And Policy The International Economics Study Center http://internationalecon.com/trade/t-toc.php Understanding the WTO 11 th edition World Trade Organisation WTO Information and Media Relation Division, Geneva 20011 This is also available on the website of the WTO: https://www.wto.org/english/thewto_e/whatis_e/tif_e/understanding_e.pdf 9/9