AZUSA PACIFIC UNIVERSITY
SCHOOL OF BUSINESS & MANAGEMENT
ECON 372: International Trade & Finance
Dr. Roger B. Conover: rconover@apu.edu , Wilden 219
Phone: (626) 815-3823; Fax: (626) 815-3802
AZUSA PACIFIC UNIVERSITY
MISSION STATEMENT
Azusa Pacific University is an evangelical Christian community of disciples and scholars
who seek to advance the work of God in the world through academic excellence in liberal
arts and professional programs of higher education that encourage students to develop a
Christian perspective of truth and life.
SCHOOL OF BUSINESS AND MANAGEMENT
MISSION STATEMENT
We passionately pursue academic excellence and spiritual enrichment
to advance the work of God in business and society around the world
This Study -Travel Program includes coursework at APU in preparation for travel
in China. The on-field portion of the course is inseparable from the lecture
portion.
ECON 372 presents the basics of both International Trade and International
Finance in a concentrated, integrated experience focusing on policy and
business applications, as well as covering theoretical frameworks. The course is
designed to challenge students to think about the international exchange of
goods, services and financial capital in a systematic and structured way. It is
designed to provide them with tools to better understand how the differences
between countries can provide opportunities for national growth and
development in a cooperative environment, yet can also lead to economic (and
political) conflict.
The program will cover international trade models, debates over protection and
free trade, historical and current international trade agreements and regional
trading blocs. We will also discuss international financial flows, foreign exchange
markets, and international banking systems on a comparative basis. While
abroad, we will look at the effect of trade on the Chinese economy, and the
effects of the trade balance and international financial flows on the value of
various currencies.
The program will use an e-textbook, lectures and discussions. Pre-travel and onfield reading assignments are required to be completed according to the
schedule that will be provided. Material will be presented in lecture and
discussion formats. Student evaluation will be based on exams, written
assignments and effective participation in discussions.
Prerequisites:
1. BUSI 250: Macroeconomics
2. BUSI 251: Microeconomics
Upon completion of this course, students should be able to:
1. Explain why countries can benefit from free trade and why the amount that
each benefits may not be the same.
2. Discuss why barriers to trade exist, and why the countries that impose
them may perceive them as justifiable.
3. Identify the principle assumptions and applications of major theories of
international trade and their implications for the growth of national
economies.
4. Describe current developments in international trading arrangements and
how they have come into existence.
5. Explain how foreign exchange markets function and the variety of issues
that influence the determination of exchange rates.
6. Describe how inflation and interest rates in one country can influence the
economic well being of other countries.
7. Evaluate how changes in foreign exchange markets would influence the
decisions of international investors and businesses.
8. Describe the role of international finance capital in the development of the
European Union and of China.
9. Explain the approach used to manage the European and Chinese
exchange rates and trade balances.
Required Texts:
(1) Salvatore, D. (2012). Introduction to International Economics, 3rd ed.
(Hoboken, NJ: John Wiley & Sons).
Available at:
International Economics Text for Summer 2013
(2) Additional readings as assigned.
Highly Recommended: A Writer’s Reference, 8th ed., by D. Hacker, (Bedford /
St. Martin's, 2010), or equivalent writing and style reference.
Office Hours:
At APU: Tuesday, 2-4 pm
E-mail also works for some questions.
Classroom and Field Decorum:
Please respect and love your fellow students. Demonstrate that love by preparing
for the day’s class ahead of time so that you can actively share your insights with
the others. Come to class on time. Turn off your cell phone as you enter class.
Refrain from talking except in the general discussion. Do not pass notes to one
another in class. Be civil and courteous to one another. Correct those who fail to
show respect for the rest of the class, but do so in love.
Travel, especially foreign travel, can stress relationships and challenge a
student's ability to work together with others. It will be critical that program
participants be flexible, but also that they be very disciplined. Particularly when
you are on the road, it is essential that you adhere to the policies of conduct of
APU and follow the direction of the program leader.
Discussions about economics tend to invite speculation and ideological opinions.
Please note that our discussions are not a forum for speculation and opinion. For
the purposes of this course, “right” answers are those that correctly apply the
concepts and theoretical techniques we are studying. Points for the discussions
will be awarded on the basis of each student’s positive contribution to the
discussion and the ability of the student to communicate the relationships
between the theoretical concepts and the material under consideration. Nonparticipation and participation that detracts from the group discussion will be
penalized.
Academic Honesty:
Students in this and all courses at Azusa Pacific University are expected, as part
of their enrollment, to uphold the following Academic Integrity Pledge:
“As a student at this Christ-centered University, I will uphold the highest
standards of academic integrity. I will not lie, cheat, or steal in my
academic endeavors, nor will I accept the actions of those who do. I will
conduct myself responsibly and honorably in all my academic activities
as an Azusa Pacific University student.”
The mission of Azusa Pacific University includes cultivating in each student not
only the academic skills that are required for a university degree, but also the
characteristics of academic integrity that are integral to a sound Christian
education. It is therefore part of the mission of the university to nurture in each
student a sense of moral responsibility consistent with the biblical teachings of
honesty and accountability. Furthermore, a breach of academic integrity is
viewed not merely as a private matter between the student and an instructor but
rather as an act which is fundamentally inconsistent with the purpose and
mission of the entire university. A complete copy of the Academic Integrity Policy
is available in the Office of Student Life, the Office of the Vice Provost for
Undergraduate Programs, and online.
You may not give or receive any assistance on homework problems,
papers and / or exams except from the course professor. Any work
throughout the course that appears to have been copied from another source
violates the standard of academic integrity. Because of the difficulty in
establishing “who copied from whom,” if any homework, quizzes or exam papers
do appear to be copied, or other cheating occurs, all students involved will
receive a grade of “F” for the course. Any other acts of academic dishonesty will
be dealt with in a similar manner. In any case of a suspected violation of the
standards of academic integrity, the incident will be reported to the Vice Provost’s
office and further steps may be taken in accordance with the Academic Integrity
Policy of the University.
Attendance Policy:
Students are expected to attend every class, and attendance will be taken. This
is particularly important in this course because of the cooperative nature of this
learning experience. Therefore, students who arrive after class has begun will be
counted as absent. 25 points will be deducted from a student’s final score for
each absence. Exceptions: With the approval of a valid, documented excuse,
(e.g. sickness with signed medical excuse, etc.), alternative arrangements may
be made.
General Grade Expectations:
Your grade will depend upon your performance on the assigned paper, quizzes
and exams, and on your participation in the program. No extra credit is available
except as may be occasionally announced in class. Students who are concerned
about their grades should see the instructor as early as possible during the
semester to work out possible strategies for improving your performance. Grades
will not be changed after the course is over except in the case of clerical error.
Grade appeals procedures may be found in the Student Handbook.
In general, the following guidelines will apply to this course. Your specific grade
will be determined by the point total that you accumulate throughout the course.
Grade A: Outstanding knowledge regarding details, assumptions and
implications of comparative economics and international trade and
finance; demonstrates superior thinking with information relevant to
application, critique, relationship to other information.
B: More than adequate knowledge regarding technical terms, distinctions,
ability to begin using information; demonstrates ability to think clearly
about the information and its relationship to other information.
C: Basic knowledge needed to function and carry on learning regarding
major principles, central terms, major figures, awareness of the field.
D: Serious gaps in knowledge, confusion of concepts and categories,
inability to recall basic information.
F: Absence of knowledge, incapable of carrying on a conversation about
the subject, misunderstands most concepts, confuses all categories.
Specific Grading Policy: There are 400 points possible in the course:
Problem sets (5x50)
Paper
Participation
250
100
50
400
(Scale TBA)
(Scale TBA)
The problem sets will consist of a combination of problems, multiple choice
questions and essay questions. Late submissions will not be accepted. You may
use your own notes and the textbook, but you may not consult anyone about the
paper or the problem sets other than the instructor.
The paper assignment will be distributed in early May. It will be due Monday, July
15 at 12 noon, PDT by e-mail. You may e-mail me your paper at any time before
that. Late papers will be penalized 25 points per day or part thereof.
Preparation:
Students are expected to come to each class fully prepared. This includes a full
and complete reading of the material assigned for the day. The professor will
pose questions each class period for discussion, and will evaluate each student’s
participation in the discussion on the basis of how well the answers given reflect
knowledge of the reading material and how well the student is able to critically
evaluate and apply that material. By definition, failure to attend class means that
the student receives no participation points for the class.
Disabilities:
Students in this course who have a disability that might prevent them from fully
demonstrating their abilities should meet with an advisor in the Learning
Enrichment Center as soon as possible to initiate disability verification and
discuss accommodations that may be necessary to ensure full participation in the
successful completion of course requirements.
Revisions:
The professor may revise this syllabus at any time as necessary.
Meetings at APU
Meeting
Topic
Chapters to cover
1
Introduction to International Trade,
Comparative Advantage,
The Standard Model of International Trade
1, 2, 3
2
The Heckscher-Ohlin Model
Protectionism: Tariffs and Non-tariff barriers
4, 5, 6
3
Economic Integration
International Capital movements
7, (8), 9
4
Foreign exchange markets
Exchange Rates: Spot and Forward
11, 12
5
Fixed and flexible exchange rate regimes
International Monetary System history
15, 16
Some additional Readings and References:
US Trade Data
IMF World Economic Outlook, April 2013
Current exchange rate cross-table
Exchange rate arrangements 2007