US Agricultural Trade
AGEC 337 – Spring 2014
School of Agriculture - Western Illinois University
INSTRUCTOR
Professor William C Bailey
Office Phone: 309/298-1522
Office: 318 Knoblauch
Office Hours: Tuesday 9:30 – 11:00; Wednesday 1:00 –
2:00; Thursday 9:30 – 11:00
Office Fax: 309/298-2280
E-mail: WC-Bailey@WIU.EDU
CLASS TIMES AND LOCATIONS
AGEC 337 will meet on Tuesday and Thursday in KH306 from 11:00 – 12:15 p.m.
COURSE DESCRIPTION AND PREREQUISITES
Overview of U.S. agricultural trade; examination of issues that impact international agricultural trade,
including trade agreements, country-of-origin labeling, food safety, and risk assessments; examination
of changes in world agricultural production and trade patterns over time.
COURSE OBJECTIVES:
1. Examine the impact of agricultural trade restrictions, including tariffs and non-tariff barriers,
used by the United States and other countries.
2. Identify key agricultural importing and exporting countries, what products they trade and how
agricultural trade flows have changed over time.
3. Explain all aspects of the international agricultural supply chain, including payment methods,
such as letters of credit, and export related documentation.
EXPECTATIONS OF STUDENTS
Participation: Students are expected to regularly attend class and to actively participate in discussions.
Academic Integrity: The rules and regulations outlined in the University's policy on academic integrity
are applied to this course.
Student Rights and Responsibilities: Detailed information regarding student rights and responsibilities
can be found at http://www.wiu.edu/provost/student/. It is your responsibility to be familiar with the
posted information.
Special Accommodations: If you need special accommodations, please feel free to stop by and discuss
your needs or contact Disability Support Services at 298-2512.
USE OF CELLULAR PHONES AND PAGERS
As a courtesy to other students and to the instructor, all cell phones and pagers should be turned off
prior to class. Continued disregard of this policy may result in ejection from the course. If, due to
medical or public safety concerns, a student needs an exception to this policy he/she should inform the
instructor prior to class. Cell phones are not to be used under any circumstances on exams. Texting is
not allowed during class and repeated violations will lead to dismissal from the course with an
assigned grade of F.
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IMPORTANT DATES
January 20 – Martin Luther King Holiday
Feb 12 – Abraham Lincoln Birthday
Mar 10 -14 – Spring Break
May 8, 10AM – Final Exam
GRADING POLICY
The course grade will be based on the following factors, with weightings as indicated:
Exam I
30 %
Comprehensive Final Exam 40 %
Quizzes and homework
20 %
Market Briefings
10%
Total
100%
Grade breaking points may be lowered but in no case will they be raised. These breaking points will
be evaluated only after final numerical grades have been calculated.
Attention Education Majors: The changes within the state certification requirements, which go into
effect immediately for all of those students who graduate in the spring 2012 and after, you are required
to receive a grade of a "C" or better in this course in order to meet these new requirements. With the
new university +/- grading system, receiving a "C-" or below will require you to retake this course or
find a substitute course to meet School of Agriculture graduation requirements.
QUIZZES
The instructor reserves the right to use both announced and unannounced quizzes. The lowest
quiz/homework score will be dropped. Only excused absences will be allowed to make up quizzes.
Unless there is an emergency, only excused absences approved in advance will be excused. It is at the
discretion of the instructor as to whether an absence is excused or unexcused.
HOMEWORK
Homework will focus on understanding key concepts with heavy reliance on graphing and problem
solving. Students are strongly encouraged to work on their own before checking their answers with
other students. Assignments are due at the beginning of class. Late assignments will be docked 10%
per day. Assignments will not be accepted after the problem set has been discussed in class.
MARKET BRIEFINGS
Each week, a student will brief the class on world issues that could affect US agriculture. Included
will be a review of international commodity and currency markets. The briefing will be 5 – 10 minutes
in length.
EXAMS
There will be 1 exam during the semester and one final exam. Exams will consist mostly of short
answers and problem solving. The final will be comprehensive. Makeup exams will be given only in
extreme situations.
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COURSE OUTLINE
Part I –Explain of the principle of comparative advantage and the economic arguments in favor of
open trade in agricultural products.
Part II – Examine the impact of agricultural trade restrictions, including tariffs and non-tariff barriers,
used by the United States and other countries.
Part III - Identify key agricultural importing and exporting countries, what products they trade and
how agricultural trade flows have changed over time.
Part IV – Explore the movement agricultural products from the farm to final international customer,
including use of relevant logistics terminology and documentation, and the role of supply chains in that
movement.
Detail:
Jan 13 – Week 1 – Economic Theory of Trade
Jan 20 – Week 2 – International Trade
Jan 27 – Week 3 – Information Sources
Feb 3 – Week 4 – Current Trade Issues
Feb 10 – Week 5 – Key International Agricultural Producers and Trade Participants
Feb 17 – Week 6 – (continued)
Feb 24 – Week 7 – (continued)
Mar 3 – Week 8 – Review and Exam
Mar 10 – Spring Break
Mar 17 – Week 9 – Introduction to International Agricultural Supply Chains
Mar 24 – Week 10 – Agricultural Trade Risk Management, including foreign exchange risk
Mar 31 – Week 11 – Terms of Trade (INCOTERMS)
April 7 – Week 12 – Methods of payment
April 14 – Week 13 – Import/Export documentation
April 21 – Week 14 – Exports contracts and negotiations
April 28 – Week 15 – Review
May 5 – Finals Week
Please be advised that this syllabus is tentative. All classes are different and we may or may not be able to
address all of the content areas or stick with the anticipated number of exams. Any deviations from the syllabus
will be announced as soon as possible.
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