ECON 462/662 – International Trade
University of Nevada, Reno
TR 4:00 - 5:15 PM
AB 101
Professor Elliott Parker
Office: AB 401-H
Office Hours: TWR 2:00 – 2:45 PM
e-mail: eparker@unr.edu
Fall 2014 Syllabus
The full syllabus for this course is on my homepage at http://business.unr.edu/faculty/parker/econ462,
and it includes all assignments, old exams, and policies for students with disabilities, audio and video
recording, academic dishonesty, makeup exams, and balancing school and work. Grades will be reported on
Webcampus. You will also be subscribed to an e-mail list, and if you have a spam feature you may need to
explicitly allow messages from this list.
Learning Goals and Prerequisites:
My primary goal is to teach you the economic theory of international trade. You should emerge from this
class with a deep understanding of comparative advantage and the patterns of trade. You should
understand the many reasons an economy may benefit from trade, and also understand the costs and
consequences. You should learn how the effects of trade may differ under imperfect circumstances. You
should know the tools and policies available to governments seeking to control trade between nations, and
understand the effects. You should finally understand the role of international institutions such as
NAFTA, the EU, the International Monetary Fund, and the World Trade Organization.
In the new Silver Core, this course will satisfy CO11 (Global Contexts: Students will apply and evaluate
modes of academic inquiry to problems in historical and contemporary global contexts and understand the
connections among local, national, and international events that affect their current local situations.) This
course will also develop competency in CO2 (Quantitative Reasoning).
The Student Learning Outcomes are as follows:

Students will demonstrate knowledge of the major economic theories of international trade.

Students will demonstrate an ability to use formal economic models to make predictions of
the outcomes of trade and government trade policies.

Students will clearly explain how international trade affects output, incomes, and welfare.

Students will demonstrate an understanding of major economic events, government policies,
and international institutions that have affected the patterns of international trade.
This course requires ECON 102. ECON 302 is encouraged by not required.
Grading:
Group homework (totaling 30%), with peer evaluations.
Quizzes (4 of 5 in-class quizzes, 20% total).
Midterm examination (25%) – Thursday, October 16.
Final examination (25%) – Thursday, December 11, 5:00-7:00 PM.
Group homework will be assigned weekly, and you will grade the contribution of your classmates to the
group. Quizzes will be announced in advance, and are intended to check your understanding of the basic
models. Exams will be generally problem-oriented, as based on the textbook and the lectures (past exams
are available on the website). Makeup exams are given only under very unusual circumstances. Good
participation and attendance will help if you are on the margin, you should also not arrive late or leave
early without explanation, and you should keep up with the assigned readings and contribute to class
discussion.
ECON 462/662 Syllabus for Fall 2014
Page 2
Textbook:

Feenstra, R.C. & A.M. Taylor (2010), International Trade, 2nd edition (Worth Publishers).
There will be some additional readings on the website.
Graduate Student Requirements: To receive graduate credit for this course, significant additional work
is required, including a research paper that is required to pass the class. Exams will include an additional
take-home component, and the quizzes are not required. Grading weights will be divided equally between
the research paper, the group homework, the midterm exam, and the final exam.
Schedule:
Details of the lecture schedule and reading assignments are given on the course webpage, along with the
homework due dates and the quiz dates.
I.
II.
Introduction to International Trade – 1 week
International Trade Theory - 7 weeks
A. The Ricardian Model
B. The Neoclassical Models
i. The Specific Factors Model
ii. The Heckscher-Ohlin Model
C. The Effects of Growth and Migration on Trade and Income
D. The Leontief Paradox, and Other Trade Theories
III. Monopoly Power and International Investment - 2 weeks
A. Imperfect Competition Models
B. International Investment Outsourcing
IV. Commercial Policy, and the Political Economy of Trade Policy - 5 weeks
A. Tariffs and Non-Tariff Barriers
B. Protectionism with Imperfect Competition
C. Subsidies and Competition
D. Reviewing the Case for Protectionism
E. U.S. Trade Policy and International Institutions
F. Trade Policy in Developing Economies
Academic Success Services: Your student fees cover usage of the Math Center (784-4433), Tutoring
Center (784-6801), and University Writing Center (784-6030). These centers support your classroom
learning; it is your responsibility to take advantage of their services. Keep in mind that seeking help
outside of class is the sign of a responsible and successful student.