International University of Grand-Bassam
School of Business, International Relations, and Economic Policy
INTERNATIONAL TRADE
ECON 4800
Instructor: Dr. Ndeye Salimata Fall
Office:
Phone: +22547540255
Email: nsfall@gmail.com
Office Hours: Mondays 2:30 to 3:30 PM and Tuesdays 10:00 to 11:30 AM
Class meets MW: 8:30 to 10:00 AM
Prerequisite: Econ 2106
Course Description
This course examines theories of trade and their empirical verification, the relationship between
trade and welfare, tariff and nontariff barriers to trade, common markets, and the relationship
between growth and trade.
The theoretical principles, historical developments of International Trade, and new trade theories
will be studied and examined through class lectures and discussions. The importance of David
Ricardo’s contributions will be studied as well as economic features of open and closed
economies, benefits derived from trade and its impact on production, consumption and
distribution of income.
Intended Learning Outcomes
By the end of the course students should be able to:
1.
2.
3.
4.
Understand the key facts about international trade
Identify and describe the gravity model of world trade.
Understand and describe the concept of Comparative Advantage and its determinants.
Understand the application of the Ricardian and Heckscher-Ohlin models of international
trade.
5. Identify the gains from trade.
6. Understand the standard trade model and how trade patterns are established by both
demand and supply side factors.
7. Understand the implications of introducing imperfect competition and increasing returns
to scale into models of international trade.
8. Evaluate the costs and benefits of trade protection policies.
9. Explain how international trade agreements have promoted trade.
10. Understand the issues raised by preferential trade arrangements.
11. Identify the causes of labor mobility between nations and theories that explain the
existence of multinational firms.
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International University of Grand-Bassam
School of Business, International Relations, and Economic Policy
Text/Materials
International Economics: Theory and Policy by Krugman and Obstfeld, 8th Edition (AddisonWesley, 2009) will be our primary textbook. A calculator is recommended (cellular phone
calculators cannot be use on exams). Access to a computer and the internet is required.
EXAMS AND GRADING POLICY
Grade Distribution
Midterm
Quizzes
Attendance
Final Exam
Homework
Final Paper
25%
15%
5%
30%
10%
15%
Grade Scale
Letter Grade
A+
A
AB+
B
BC+
C
CD
F
Numeric Grade
96 - 100
93 – 95
90 – 92
87 – 89
83 – 86
80 – 82
77 – 79
73 – 76
70 – 72
60 – 69
<60
GPA Quality Points
4.3
4.0
3.7
3.3
3.0
2.7
2.3
2.0
1.7
1.0
0.0
Exams
There will be two exams – a midterm exam and a final exam. The exams are cumulative.
No make-up exams are provided except for documented health or business reasons arranged with
the instructor in advance if at all possible. No extra-credit projects are available under any
circumstances.
Quizzes
These consist of in-class pop quizzes.
Homework
Regular homework will be given in order to assess your understanding of key concepts
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International University of Grand-Bassam
School of Business, International Relations, and Economic Policy
Term Paper
A term paper of approximately 10 pages in length is due in the 14th week of the course. The
topic of the paper is Current Issues in International Trade. Each student should choose one
specific issue to research and write about. The paper should include a well written introduction,
provide a literature review and expert assessment of the issue and provide a conclusion related to
the issue chosen. Some potential topics include: what is the most relevant trade model for the
21st century? What countries have benefited most from international trade in the last 25 years?
Can trade really increase economic development?
A topic and broad outline are due in the 4th week of class. You will receive approval for your
topic or be requested to change topic or focus by Week 5.
Attendance Policy
Attendance will be taken daily and will account for 5 percent of your overall grade in the class.
Missing up to 3 classes will not be penalized; missing 4 through 6 classes will cost you 2 out
of the 5 points; and missing more than 6 classes will cost you all the 5 points.
Besides, attending class significantly increases your understanding of the course content and
improves your odds of obtaining a good grade in the class. If you missed class, it is your
responsibility to find out what you missed.
Policy on Academic Honesty
All students are responsible for knowing and adhering to academic honesty. Any incidents of
academic dishonesty (i.e. cheating on a test, plagiarizing, etc.) will result in an automatic “F” for
the course.
Disruptive Student Conduct in the Classroom or Other learning Environment
All forms of disruptive behavior should be avoided. Disruptive student behavior includes, but is
not limited to, verbal or physical threats, repeated obscenities, unreasonable interference with
class discussion, making/receiving personal phone calls or pagers during class, leaving and
entering class frequently in the absence of notice to instructor of illness or other extenuating
circumstances, and persisting in disruptive personal conversation with other class members.
Please ensure that all potentially noise-making equipment (cellular phones, pagers, laptop
computers, etc) are turned off during lectures. Furthermore, be sure to get to class on time.
Entering class during the lecture is disruptive to the instructor as well as to the students.
Tentative Course Schedule/Outline
Date
Week 1
Textbook Chapter
Chapters 1-2
Topic
Trade and trade patterns
Week 2
Chapter 3
Labor productivity and comparative
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International University of Grand-Bassam
School of Business, International Relations, and Economic Policy
advantage – David Ricardo’s Model
Week 3
Chapter 4
The Specific Factor Model
Week 4
Chapter 5
Week 5
Chapter 6
Week 6
Week 7
Chapter 7
Chapter 8
Midterm Assessment
Chapter 8
Chapter 9
Chapter 9
Chapter 10
Chapter 11
Chapter 11
Catch up
The Standard Trade Model
Paper Topics and Broad Outlines Due
Imperfect Competition and International
Trade
International Factor Movements
Instruments of Trade Policy
Week 8
Week 9
Week 10
Week 11
Week 12
Week 13
Week 14
Week 15
Instruments of Trade Policy
The Case for Free Trade
The Case for Free Trade
Trade Policy in Developing Countries
Controversies in Trade Policy
Controversies in Trade Policy
Papers due!
FINAL ASSESSMENTS
Notes
1. If you require special accommodations for exams (e.g., "time and a half"), you must provide
documentation and make arrangements with me PRIOR to the exam dates.
2. Incompletes will only be given to students who are passing the course, and even then, only in
very special circumstances. In the case where an incomplete is awarded, it must be removed
by the end of the next term that the student is enrolled (and within two terms regardless of
whether or not the student is enrolled) or it will automatically turn into an F.
3. Students who withdraw after the midpoint of each term will not be eligible for a "W" except
in cases of hardship.
4. All instructors must, on a date after the mid-point of the course (to be set by the Provost) give
a WF to all those students who are on their rolls, but no longer taking the class and report the
last day the student attended or turned in an assignment. If you plan to drop the class, do let
me know.
5. This course syllabus provides a general plan for the course; deviations may be necessary.
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