UNIVERSIDAD DE ESPECIALIDADES ESPÍRITU SANTO
FACULTAD DE ESTUDIOS INTERNACIONALES
SYLLABUS
ENGLISH VERSION
FOR DAC 11 VER 12 03 09
COURSE:
International Trade
FACULTY: Vicente Maldonado
# CONTACT HRS: 48 H
YEAR: 2010
DAYS: Mon-Thurs
ROOM #: G-204
CODE: UGER 402
CREDITS: 3
NON CONTACT HOURS: 96 H
PERIOD: Fall 2
SCHEDULE: 19:30 – 20:50
DATE: October 04, 2010
1. - DESCRIPTION
This course offers an overview of international trade from both a theoretical and a practical
perspective; considering relevant political, economic, legal-regulatory, socio-cultural,
technological, and environmental factors. Basic concepts of international trade are
introduced including mercantilism, absolute advantage, comparative advantage, and national
competitive advantage, gains from specialization and trade, balance of payments, exchange
rates, trade barriers, international capital flows. Also, the logistics of exporting and importing
will be discussed.
2. - JUSTIFICATION
This course provides the students with an overview of international trade and explains the far
reaching implications of international trade agreements.
3. - OBJECTIVES
3.1 GENERAL
Understand the impact of trade within the domestic economy; why nation’s trade
and who gains and who loses from trade.
3.2 SPECIFIC
a. To develop the ability to analyze and comprehend trade policies and trade
agreements, and their affect on economic development.
b. Give the students the knowledge to analyze and explain trade theory, trade
agreements and trade policy.
c. Develop research and analytical skills.
4. - COMPETENCIES
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To examine different research sources – library and internet
Develop abilities of analysis and comprehension – abilities to summarize knowledge.
To introduce and interpret macro-economical data of countries.
To discuss and argue theories and concepts presented.
Identification of key components of current regional and global trade issue.
5.- COURSE CONTENT OUTLINE
DATE
Session 1
04/Nov
Specific
competencies
Content
The student
identifies what
is International
Trade
Introductions, Profiles,
Syllabus review, Brief history
of international trade.
Session 2
08/Nov
Session 3
09/Nov
Session 4
The student
assesses
international
trade policy.
10/Nov
Session 5
11/Nov
Session 6
15/Nov
Session 7
16/Nov
Session 8
17/Nov
Session 9
The student
critically
analyzes and
evaluates trade
literature and
assesses
various
international
trade policies.
18/Nov
Session 10
22/Nov
Session 11
23/Nov
Session 12
24/Nov
Session 13
25/Nov
The student
critically
analyzes and
evaluates
regional and
global trade
agreements
Theories of international
trade:
- The Heckscher-Ohlin model
of trade
-An economy of scale model
of trade
- A product differentiation
model of trade
- A product cycle model of
trade
- A transportation cost model
of trade
- A environmental standards
model of trade
D. Salvatore, Chapter 1
The Mercantilists’ Views on
Trade:
- Trade Based on Absolute
Advantage: Adam Smith
- Trade Based on Comparative
Advantage: David Ricardo
- Comparative Advantage and
Opportunity Costs
- The Basis for and the Gains
from Trade under Constant
Costs
- Empirical Tests of the
Ricardian Model
D. Salvatore, Chapter 2
The Standard Theory
Of International Trade
- Production Frontier with
Increasing Costs
- Community Indifference
Curves
- Equilibrium in Isolation
- Basis for and Gains from
Trade with Increasing Costs
- Trade Based on Differences
in Taste
D. Salvatore, Chapter 3
Homework/projects/
assignments
(Non-Contact Hours)
Research on
Ecuadorian Current
International Trade
Policy
Prepare an Article to
review LatinAmerican Countries
International Trade
Policies
ASSESSMENT
(performance
indicators/
markers)
Discuss
Ecuadorian
Imports and
Exports
Discusses current
Ecuadorian
International
Trade Policy
compare to these
theories
Demonstrates
knowledge of
comparative
advantage in a
Prepare an Article to
practical sense;
review Euro-Zone’s
specific policies
and US’s International and impact.
Trade Policies
Recognizes and
classifies key
fields of
knowledge.
Prepare an Article on
Bolivarian Alternative
(ALBA)
Discusses
ramifications and
ideology of
ALBA.
Demand and Supply, Offer
Curves, and the Terms of
Trade:
- The Equilibrium-Relative
Commodity Price with TradePartial Equilibrium Analysis
- Offer Curves
- The Equilibrium-Relative
Commodity Price with TradeGeneral Equilibrium Analysis
- Relationship between
General and Partial
Equilibrium Analysis
D. Salvatore, Chapter 4
Prepare an Article on
North American Free
Trade Agreement
(NAFTA)
Midterm Exam
Test of knowledge
The student
recognizes
what is the
WTO and its
place in
current
international
trade.
The Instruments of Trade
Policy:
- Basic Tariff Analysis
- Costs and Benefits of a Tariff
- Other Instruments of Trade
Policy
- The Effects of Trade Policy:
A Summary
P. Krugman, Chapter 8
Prepare an Article on
How World Trade
Organization (WTO)
has changed
International Trade
The student
evaluates
collective
information to
understand
course content
and its
connection to
national and
international
welfare.
The Political Economy of
Trade Policy:
- The Case for Free Trade
National Welfare Arguments
against Free Trade
- Income Distribution and
Trade Policy
- International Negotiations
and Trade Policy
P. Krugman, Chapter 9
Research and Prepare
an Article on
Ecuadorian
Government
Protectionism
The student
understands key
factors the add
complexity to
international
trade.
Developing Countries:
Growth, Crisis, and Reform
- Income, Wealth, and Growth
in the World Economy
- Structural Features of
Developing Countries
- Developing Country:
Borrowing and Debt
- Latin America: From Crisis
to Uneven Reform
Research and Prepare
an Article on
Ecuadorian
Government Plan of
Development
The student
understands the
impact
international trade
has on countries’
development.
Session 14
29/Nov
Session 15
30/Nov
The student
understands
current topics
in international
trade.
Session 16
01/Dic
The student
identifies a few
key considerations
in a trade
agreement
Session 17
02/Dic
Session 18
06/Dic
Session 19
07/Dic
Session 20
08/Dic
Session 21
09/Dic
Session 22
13/Dic
Session 23
14/Dic
Session 24
15/Dic
Session 25
16/Dic
Session 26
20/Dic
Session 27
21/Dic
Session 28
22/Dic
The student
understands
key concepts
of actualizing
trade
agreements
and the
Discusses
international trade
policy and its
effect.
logistics of
importing and
exporting.
Session 29
Knowledge
Assessment
- East Asia: Success and Crisis
- Lessons of Developing
Country Crises
- Reforming the World’s
Financial “Architecture”
P. Krugman, Chapter 22
FINAL EXAM
23/Dic
6. - METHODOLOGY
The course will have a number of components, including lectures, software demonstrations,
hands-on work with the computers, quizzes, homework, and exams.
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Each class begins with a brief summary of the previous lecture.
A daily lecture and PowerPoint presentation to highlight and elucidate the readings.
Interspersed student involvement exercises and discussions.
A summary of the main points.
Lectures are given with the support of PowerPoint and a Projector.
7.- EVALUATION
7.1 Assessment Criteria
 Class discussion
 Analysis of different modules of learning within the field of international trade.
 Elaboration of trade concepts.
 Practical projects covering various areas relative to trade policy analysis.
7.2 Performance Markers
 Determines the nature of international trade and its implications.
 Analyzes and identifies the theories supporting international trade.
 Analyzes the policies of various regional and global trade pacts.
 Uses acquired knowledge to make presentations on applied theory.
 Recognizes the complex challenges facing free trade.
7.3 Weighting
 Homework
 Tests
30%
70%
8.- BIBLIOGRAPHY
8.1 REQUIRED:
Salvatore, Dominick (2004). International Economics, 8th Edition. New Jersey: John
Wiley and Sons.
Paul R. Krugman and Maurice Obstfeld. International Economics: Therory & Policy,
6th Edition. Pearson – Addison Weasley
8.2 COMPLEMENTARY:
Stiglitz, Joseph E. (2005). Fair Trade For All. New York: Oxford University Press.
Stiglitz, Joseph E. (2002). Globalization and Its Discontents. New York: W.W. Norton
Company.
Gilpin, Robert. (2001). Global Political Economy, Understanding the International
Economic Order. Princeton: Princeton University Press.
Articles from various online magazines and periodicals, including: The Economist,
New York Times, L. A. Times, Financial Times, The Guardian, BBC News.
8.3 HANDOUTS/READINGS:
TBA
8.4 WEBLIOGRAPHY
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EBSCO at http://search.epnet.com
World Bank and IFC web sites at http://www.worldbank.org and http://www.ifc.org
The World Trade Organization’s web site at http://www.wto.org
United Nations Conference on Trade and Development web site at
http://www.unctad.org/Templates/Startpage.asp?intItemID=2068&lang=1
Organization for Economic Cooperation and Development web site at
http://www.oecd.org/home/0,2987,en_2649_201185_1_1_1_1_1,00.html
The European Union web site at http://www.europa.eu.int
The Andean Community web site at http://www.comunidadandina.org
The Mercosur web site at http://200.40.51.219/msweb
The Export and Promotion Corporation of Ecuador: http://www.corpei.org/
9. - FACULTY INFORMATION
NAME:
Vicente Maldonado
ACADEMIC CREDENTIALS:
UNDERGRADUATE: B.A. Economics, Universidad Católica, Guayaquil – Ecuador
GRADUATE: M.S. Logistics, Escuela de Organización Industrial, Seville – Spain
E-mail: vmaldonado@uees.edu.ec
10. - FACULTY SIGNATURE AND OR DEAN/DIRECTOR’S APPROVAL (SIGNATURE)
Prepared by: Vicente Maldonado
Date: Oct/04/2010
Reviewed by: Dean Monica Reynoso
Date: Oct/04/2010