JUNIATA COLLEGE
Accounting, Business and Economics Department
International Economic Issues
EB 105
Professor Brad Andrew
Brumbaugh C205D
Office Hours: MWF 10-11 AM
TuTh 11:00-11:50 AM
and by appointment.
Office: 814-641-3378
E-Mail: Andrew@juniata.edu
Home Page: Brad Andrew's Home Page
Textbook Website: Carbaugh's Texbook Site
Course Objectives:
EB 105 is an introduction to economic thought as it applies to international economics. The purpose of this
course is to develop a broad understanding of international economic relations, including the benefits of
international exchanges and the tensions that arise from trade between nations. Important concepts covered in
this course include a basic introduction to:
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Basic economic terminology;
International Organizations that influence trade and finance;
A rudimentary understanding of market forces;
methods of measuring international economic integration;
forces increasing international economic integration;
the gains from international trade;
the reaction to increased international economic integration;
trade and economic development;
the role of exchange rates;
measurement of the balance of payments and what it tells us about a nation's economy;
After taking this course, you will have an understanding of some key terms used in international economic
discourse. Furthermore, you will be better able to analyze international economic issues that are in
newspapers and on TV. Finally, you should be able to connect international economics to broader historical
and social trends, giving you a better understanding of the world.
Required reading:
1. Robert J. Carbaugh, International Economics 12th edition, Addison-Wesley, 2009.
2. Philippe LeGrain, Open World:/The Truth about Globalisation, Ivan R. Dee, 2004.
3. Class handouts and web-based articles
Grades:
There are three assignments, 14 quizzes (13 count—the lowest is dropped), two mid-term exams and a final
exam. Class participation also counts. The exams are a combination of short essays, numerical problems, and
interpretation and construction of graphs. Weights of each item are:
Test 1
Test 2
1 Comprehensive final
13 Best Quizzes (out of 14—lowest grade dropped)
3 Group Assignments
Class Participation
Total possible =
10%
15%
25%
15%
25%
10%
100%
Due dates:
Assignments:
Quizzes:
Tests:
Final Exam:
Every 4-5 weeks at the beginning of class, (20 point penalty for 0-24 hours late, 40
points for 24-48 hours late, etc.). See schedule for due dates.
See course calendar
9/27, 11/1
TBA
Quizzes:
Quizzes will be primarily from the reading for that week, but will often include a question or two from the
previous week’s topics. The lowest quiz grade will be dropped.
Group Assignments:
The group assignments will be a combination of problems and exercises from the text, outside
sources, plus short assessments of articles that you find from various sources. All assignments must
be typed. The best way to get the articles that you need to complete the assignments is to go to the
library’s database page and search ProQuest Direct over the last two years using the keywords that I
suggest in the assignment. Be sure to click on “Show results with full text availability only” box
below the search boxes. Doing this ensures that your search will only return articles that are available
online. The way you will write the group assignments will be described in each assignment’s
directions.
Participation:
This course requires participation by you. You are expected to attend class and participate regularly in
developing the ideas concepts of international economics. Class participation will include answering
questions, occasional short in-class assignments designed to stimulate class discussion, and keeping
track of current economic issues relevant to the class. Regularly reading the Financial Times (whose
website is the first listed below) plus browsing the following sites will aid you in this task:
www.ft.com
http://cnnfn.cnn.com/news/economy
www.wsj.com
www.economist.com
www.bls.gov/home.htm
www.worldbank.org
www.msnbc.com/news/com_front.asp
http://www.wto.org/
www.imf.org
Academic Honesty & Integrity Policy:
Ethics are an integral feature of all personal, social, and professional considerations. Thinking
ethically and accepting responsibility for one’s actions are essential to personal development.
Juniata’s graduates are committed to their intellectual, ethical, and social development throughout
life. Students are expected to understand and comply with Juniata’s Academic Honesty & Integrity
Policy.
Dropping the Course:
The registrar sets the deadline for dropping this course. After this date, you may drop the course with my
permission, but only after you have met with me to discuss your situation.
Course Calendar:
Note: Each assignment is to be read for Monday except where otherwise noted.
Week
8/30
9/6
9/13
9/20
9/27
10/4
Assignment
Carbaugh, ch. 1; LeGrain, Introduction; Handout
(see next page)*
Carbaugh, pp. 29-45, 53-59; LeGrain, pp. 86-89
Carbaugh, pp. 245-248, Online readings** for
Monday; Homework #1 due Wednesday,
September 15
LeGrain, Chapter 7 and LeGrain, pp. 254-263 for
Monday.
Test 1, Monday September 27; McEachern,
Chapter 3 (On reserve) for Wednesday
No readings
10/11 Carbaugh ch. 3, for Wednesday. Homework #2
due Friday, October 15
10/18 Fall Long Weekend (two days is NOT a break)
Online readings*** for Wednesday
10/25 Carbaugh, pp. 109-110, 121-125, 133-144, 148163 for Monday
11/1 Test 2 on Monday, November 1; Handouts and
Online Reading****, Carbaugh, pp. 226-236,
249-263, for Wednesday
11/8 LeGrain, 47-66 and Online Readings***** for
Wednesday
11/15 Carbaugh, ch. 10 for Monday; Online
Reading****** for Friday
11/22 Homework #3 due Monday, November 23;
Thanksgiving Break (3 days is close enough to
call it a break)
11/29 Carbaugh, ch. 11 for Wednesday
12/6 Carbaugh, pp. 398-414
12/13 Catch up, Review and Reflect
Final Exam
Topic
Introduction; Create groups; International
Integration; Quiz will be on Wednesday
Comparative Advantage; Quiz on Monday
International Organizations; Quiz on Monday
Finish Int’l Organizations; Quiz on Monday.
Test 1 on Monday; Start supply/demand analysis;
Quiz on Wednesday
Con’t supply/demand analysis;
Quiz on Supply/Demand analysis Monday;
Comparative Advantage and Factor Endowments;
Quiz on Wednesday
Con’t Comparative Advantage and Factor
Endowments; Start Tariffs and Non-Tariff
barriers; Quiz on Wednesday
Con’t Tariffs and Non-Tariff barriers
Test 2 on Monday; Trade and Economic
Development; Quiz on Wednesday
Labor Issues; Quiz on Wednesday
Balance of Payments and the Int’l Monetary
System; Start Exchange Rates; Quizzes on
Monday and Friday
Exchange Rates, con’t
Quiz on Wednesday; Exchange Rates, con’t
Exchange Rates, con’t; Quiz on Monday
Catch-up, Review and Reflect
TBA
*Handout for Week of 8/30:
Mehrene Larudee, “Who Gains from Trade?”, from Real World Globalization.
**Online Readings/Handouts for Week of 9/13:
The WTO in brief
Criticism of the WTO, Wikipedia
Philip Stephens, “The Blindfolds that wrecked a deal to Boost Global Trade”, Financial Times, 8/1/08
(available on Lexis-Nexis; search under “world news” and “European news sources”).
Fact sheet: The IMF at a glance and IMF Conditionality
About the World Bank
William Easterly, “The Cartel of Good Intentions”, Foreign Policy July/August 2002 (available on Proquest).
William Easterly, “The Poor Man’s Burden”, Foreign Policy, January/February 2009.
***Additional Readings for Week of 10/18:
Richard DuBoff, Globalization and Wages
Brad DeLong, “An Outsourcing Finger Exercise” (just read first article posted by DeLong)
****Online Readings for Week of 11/1:
Interview with Amartya Sen by AsiaSource
Yunus, Mohammad, “The Grameen Bank,” Scientific American, Vol. 281, No. 5, November 1999, pp. 114 –
119 (Available on Wilson Omnifile via library’s database page).
Look at this site: http://www.gapminder.org/
******Online Readings for Week of 11/8:
Dara O’Rourke, “Sweatshops 101”
Paul Krugman, “In Praise of Cheap Labor”
Sheridan Prasso, “Trading Up”, The New Republic, 8/16/04
Keith Bradsher, “Defying Global Slump, China Has Labor Shortage”, NYT, February 26, 2010, and Nicholas
Kristoff , “Starved by Red Tape”, NYT October 18, 2005 (both NYT articles are available on Lexis-Nexis)
*******Online Reading for Week of 11/15:
“Strong Dollar, Weak Dollar” by the Federal Reserve Bank of Chicago (handout)
If you are having difficulty:
Come see me!!!! It’s much easier to explain concepts one-on-one than to forty people.