Page 1Page 2Page 3Page 4SYLLABUSEconomics 452 International Trade Theory & Policy Spring 2012IntroductionInternational trade matters to the well-being of individuals, groups, and society asa whole. The impact of international trade has been illustrated in debates oversuch events as the passing of NAFTA, the Uruguay round of GATT, and theDoha round of WTO. The United States has experienced recent trade disputessuch as with Japan over import access for auto parts, with China over intellectualproperty rights protection, with France over oilseeds, and with Brazil, Japan andRussia over dumping of steel. To make wise policy choices, politicians,journalists, and voters need to understand the causes of international trade andits impact on individuals and countries.ObjectivesThis course should enhance each student's ability to make informed decisionsinvolving international economic issues from the standpoint of rigorousmicroeconomic analysis. Lectures will emphasize the theory needed to hold well-informed discussions of international trade issues.ContentThis course will develop two main ideas: international trade stems fromcomparative advantage, and countries gain from trading with each other. Whilecountries as a whole are better off under free trade than they would be in theabsence of trade, some individuals are hurt by international trade. This coursewill identify who is hurt and possible policy responses designed to easeadjustment to increased openness. Tariffs or other trade restrictions may beimplemented to protect these groups at the expense of the overall economic well-being of the country and the world. This course also will examine the potentialconsequences of immigration and multinational firms (foreign direct investment).PrerequisitesThe requirement for this course is a solid understanding of MicroeconomicTheory (Economics 323) or Applied Microeconomic Theory (Economics 322).Students without this prerequisite, especially INTS majors, should see me todiscuss their situation. You should know how to use the Internet to access theclass web page and read documents using Adobe Reader.ClassesTuesdays and Thursdays 10:20-11:35am and 11:55am-1:10pm in Allen 1002. The first class is Tuesday, January 17 and the last class is Thursday, April 26(Tuesday, May 1 is redefined so students attend their Friday classes). No classon Tuesday, March 13 or Thursday, March 15 due to Spring Break.Office HoursTuesdays 1:30-4:30pm in Allen 3062. For an appointment at other times, call845-8507 or e-mail [email protected]. BooksInternational Economics: Theory and Policy, 9th Edition by Paul R. Krugman,Maurice Obstfeld, and Marc J. Melitz ISBN 978-0-13-274483-6 or the customtextbook ISBN 978-1-25-624248-2. On reserve at the Political Sciences &Economics Library. Class web page http://econweb.tamu.edu/aglass/econ452/.GradesBased on your performance in learning fundamental models and results ininternational trade and applying them to real world issues, as determined by yourscores on the three exams (25% each for 75% total), three problem sets (15%total), and eleven quizzes (10% total). Problem Set 1 on chapter 3 is due in classon Thursday, February 9; Problem Set 2 on chapter 5 Thursday, March 8; andProblem Set 3 on chapter 9 Thursday, April 12.ExamsExam questions test your knowledge of concepts and ability to work throughexercises using a mixture of multiple choice and problems requiring detailedsolutions (including equations used). The multiple choice section tests thebreadth of your knowledge, while the problem section tests its depth. Past examsare available on the class web page so you can acquaint yourself with the formatof exams. The final exam is not cumulative. Note when the final exam isscheduled below. Bring a Scantron 882-E, #2 pencil, ruler, and basic (notgraphing or programable) calculator to the exams. No cell phones. You musttake each exam in your assigned section.DATE CHAPTERS EXAMThursday, February 162, 3 First ExamThursday, March 224, 5 Second ExamThursday, April 266, 8, 9 Final ExamHow to Succeed in this CourseRead this syllabus carefully – it contains important dates and guidelines forassignments. Before class, read the pages indicated in the text (and anyadditional readings) so that the lectures will be easier to understand. Attendclass and pay attention! After class, read the material a second time to help itsink in. Work on the exercises in the lecture notes soon after we cover thecorresponding examples in class. Ask questions if anything does not makesense. Work hard on the problem sets, which also will help prepare you for theexams. Keep up as we cover material in class. Get help if needed. Considerlinking up with a classmate to study so that you can help each other out whenconfused. Do not leave studying to the last minute – pace yourself and leavetime to get help if needed. Use some past exams to familiarize yourself with theformat, but leave one or more as a practice test to assess any weaknesses inyour knowledge that might remain and to make sure you can finish a practiceexam in the time allotted. Reinforce those weak areas with more studying prior tothe exams.Attendance and ConductAt this point in your studies, standards for good behavior should go withoutsaying – but to be clear of my expectations, I make the following requests. As acourtesy to me and your fellow students, please be on time and do not departearly. Refrain from disruptive behavior (such as talking to each other or readingthe newspaper) while I am lecturing. If you have a question during the lecture,ask me for clarification – other students might have the same question. If forsome exceptional reason you must come late or leave early on a particular day,please alert me in advance and sit close to the door so that you disrupt the rest ofthe class as little as possible. You must attend class (or have a Universityexcused absence http://student-rules.tamu.edu/rule07) to receive credit for thequizzes and exams.Academic IntegrityAggie Code of Honor: “An Aggie does not lie, cheat or steal, or tolerate those whodo.” For additional information visit http://aggiehonor.tamu.edu.Americans with Disabilities Act (ADA) The Americans with Disabilities Act (ADA) is a federal anti-discrimination statutethat provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities beguaranteed