Econ 420/520:International Economics
Department of Economics
Minnesota State University
Spring 2003
Dr. Saleheen Khan
Office: 121 Morris Hall
Phone: 389 2711
e-mail: saleheen.khan@mnsu.edu
COURSE OBJECTIVES:
This course provides an introduction to the basic theory of international economics and
its application. The main objective is to investigate the effects of various international
economic policies on domestic and world affairs. International economics is a
framework for making choices in an increasingly globalized world. Your goal in this
course should be to understand this framework and to develop an ongoing interest in the
world economic affairs. Upon successful completing of this course, you should be able
to understand the basic international economics principles and their applicability to the
real world situation.
TEXTBOOK
-
International Economics: Theory and Policy. 6th Edition.
by Paul Krugman and Muarice Obstfeld (required)
EXAMINATIONS
Two mid-term exams and a final exam will be given in class during the semester. Exams
will consist of short essays, identify/explain the significance questions, and multiple
choice questions.
HOMEWORK
There will be four homework assignments. Students are recommended to make a study
group (each consists of 3 to 4 students) and are strongly encouraged to study together to
solve homework problems. In order do understand the materials covered in the class you
must solve these problem sets. Solution to the homework problems will be discussed in
the class.
MAKE-UP POLICY
Make-up exams may be given under extreme circumstances. You need to show an
official, written university excuse to get that opportunity. For those with an official
excuse, a single comprehensive make-up will be given during the last week of the
scheduled class. Any student fail to follow this policy will receive an automatic zero for
the missed exam(s).
PAPER:
Students need to find an article that relates to what we have covered in the class. Write a
report on this article that is 5-8 pages long. The paper must use graphs as an integral part
of the analysis. The paper must be double-spaced, have 1 inch margins, and a front size
of 12. This is a group project and each group will have 3-4 students. Upon completion
of the article, each group will be required to present their work to the class.
Page2
OFFICE HOURS:
My office hours are M – R: 12 – 2 or by appointment. I strongly encourage you to stop
by my office to discuss your progress.
GRADING POLICY
The total number of possible points in the course is 400.
First mid-term
: 100 pts
Second mid-term
: 100 pts
Final Exam
: 100 pts
Home Work
: 40 pts
Paper on Current Events
: 40 pts
Class participation and attendance :20 pts
COURSE OUTLINE:
1. Labor Productivity and Comparative advantage
Krugman and Obstbeld: Chapter 2
2. Specific Factors and Income Distribution
Krugman and Obstbeld: Chapter 3
3. Resources and Trade: The Heckscher-ohlin Model
Krugman and Obstbeld: Chapter 4
4. Economies of Scale, Imperfect Competition and International Trade
Krugman and Obstbeld: Chapter 6
5. The Instrument of Trade Policy
Krugman and Obstbeld: Chapter 8
6. The Political Economy of Trade Policy
Krugman and Obstbeld: Chapter 9
7. Controversies in Trade Policy
Krugman and Obstbeld: Chapter 11
8. Exchange Rates and the Foreign Exchange market: An Asset Approach
Krugman and Obstbeld: Chapter 13
Page 3
COURSE OUTLINE(continued):
9. Money, Interest Rates, and Exchange Rates
Krugman and Obstbeld: Chapter 14
10. Price levels and Exchange Rate in the Long Run
Krugman and Obstbeld: Chapter 15
11. Output and Exchange Rate in the Short Run
Krugman and Obstbeld: Chapter 16
12. Fixed Exchange Rates and Foreign Exchange Intervention
Krugman and Obstbeld: Chapter 17
** Please read the lecture notes, textbook chapters, and other supplementary materials
regularly as we proceed through the semester.
SPECIAL NOTE
Every attempt will be made to accommodate qualified students with disabilities. If
you are a student with a documented disability, please see me as early in the
semester as possible to discuss the necessary accommodations, and or contact the
Disabilities Services Office at (507)-389-2825 or 1-800-627-3529(MRS/TTY".