Economics 433, Fall 2007
Professor: Andrés Rodríguez-Clare
E-mail: andres@psu.edu
Website: http://www.econ.psu.edu/~aur10/433
Office: 617 Kern
Building
Phone: 863-1295
Office hours: Tuesday
11:00 am to 12:00 pm, and Thursday 3:30-4:30 pm, or by
appointment
Teaching Assistant: Oleksandr Kikot
E-mail: ouk103@psu.edu
Office: Kern
512
Office hours: Wednesday
9:00 to 11:00 a.m.
Staff
Assistant: Michele Moslak (mwm5@psu.edu,
Kern 515)
Scope of the Course
This advanced undergraduate course develops basic theories of international trade, migration, and foreign direct investment (FDI), and uses them to address policy issues. General questions include: Why is there trade among countries? What determines the pattern of trade? Do countries gain from trade? How much? Are there losers from trade? What are the effects of trade on employment and wages? What determines migration and FDI, and what are their effects on a country’s welfare? What is the relationship between outsourcing, trade and FDI? More specific policy questions include: should the US trade with low-wage countries? Does China pose a threat to the US? What is the role of the WTO? What are the political forces that shape trade policies?
Students are presumed to have taken Economics 302
(Intermediate Micro Theory) and/or Economics 333 (International Economics)
prior to enrollment.
Grades will be based on a number of problem sets (5 each worth 4 percent), 2 midterm exams (each worth 25 percent) and a comprehensive final exam (worth 30 percent). The midterm exam schedule is:
First Midterm Exam: October 4 (in class)
Second Midterm Exam: November 8 (in class)
The TA will conduct review sessions before each exam.
Readings
The textbook for this course is International Economics, written by Robert C. Feenstra and Alan M. Taylor. The book is not yet published, but we will have access to the final draft at a reduced price, courtesy of Robert Feenstra and the publishers. You can buy a copy of chapters 1-11 in the bookstore. Additionally, we will use the following two books:
- Russell Roberts, The Choice: A Fable of Free Trade and Protectionism (Updated and Revised), Prentice Hall, 2001
- Douglas Irwin, Free Trade Under Fire, 2nd Edition, Princeton University Press, 2005
Structure of the Course
We will closely follow the Feenstra-Taylor textbook. In addition, you are expected to read all the chapters from The Choice, and chapters 1 and 2 of Free Trade Under Fire (FTUF). Chapters 1 to 4 of The Choice and chapters 1 and 2 of FTUF are about trade and comparative advantage, and should be read as we are exploring these topics in class. The rest of The Choice should be read within the first two weeks of the course.
We will use the rest of FTUF when we talk more about trade policy and trade agreements.
It is extremely important that you work on linking the concepts that we cover in class with developments in the real world. This is the only way to make sure that these concepts are really understood. I cannot emphasize this enough: you will be waisting your time if you don’t make this marginal effort. I will regularly send you emails with links to articles where trade and international economics issues are discussed. But I urge you to do this on your own as well. Good sources are The Financial Times, The Economist and Google World News. Also, check out CID’s Global Trade Negotiations Home Page at http://www.cid.harvard.edu/cidtrade/index.html and The Trade Observatory at http://www.tradeobservatory.org. For starters, check out www.cid.harvard.edu/cidtrade/issues/outsource.html – this has a nice discussion about a recent article by Senator Charles Schumer and Paul Craig Roberts, a former Reagan administration official, criticizing free trade, and some reactions. If you find an interesting or amusing article about trade, immigration, FDI, outsourcing, or any of the issues we discuss in class, please send it to me so that we can discuss it in class.
Academic Integrity
The ability of the University to achieve its purposes depends upon the quality and integrity of the academic work that its faculty, staff and students perform. Academic freedom can flourish only in a community of scholars which recognizes that intellectual integrity, with its accompanying rights and responsibilities, lies at the heart of its mission. Observing basic honesty in one's work, words, ideas, and actions is a principle to which all members of the community are required to subscribe.
All course work by students is to be done on an individual basis unless an instructor clearly states that an alternative is acceptable. Any reference materials used in the preparation of any assignment must be explicitly cited. In an examination setting, unless the instructor gives explicit prior instructions to the contrary, whether the examination is in-class or take-home, violations of academic integrity shall consist of any attempt to receive assistance from written or printed aids, or from any person or papers or electronic devices, or of any attempt to give assistance, whether the one so doing has completed his or her own work or not. Other violations include, but are not limited to, any attempt to gain an unfair advantage in regard to an examination, such as tampering with a graded exam or claiming another's work to be one's own.
Violations shall also consist of obtaining or attempting to obtain, previous to any examinations, copies of the examination papers or the questions to appear thereon, or to obtain any illegal knowledge of these questions. Lying to the instructor or purposely misleading any Penn State administrator shall also constitute a violation of academic integrity.
In cases of a violation of academic integrity it is the policy of the Department of Economics to impose the most severe penalties that are consistent with University guidelines.
Missed Exams
There will be no make-up exams. Those who miss a midterm exam without a valid excuse will receive a zero for that exam. Those who miss an exam but document a valid excuse for their absence will receive a course grade based on their remaining course work. The Economics Department defines valid excuses as follows:
Valid Excuses: During the course many possible situations may arise that would result in your inability to attend class, attend exams, or perform at a minimally acceptable level during an examination. Illness or injury, family emergencies, certain University-approved curricular and extra-curricular activities, and religious holidays can be legitimate reasons to miss class or to be excused from a scheduled examination.
In the case of your own illness or injury, confirmation from a physician, physician’s assistant, a nurse-practitioner, or a nurse is required. Be advised that University Health Services cannot provide such verification unless they have provided treatment and the student authorizes release of information to the instructor. Further, barring extraordinary circumstances, the confirmation must be available to the instructor prior to the missed course event.
With regard to family emergencies, you must provide verifiable documentation of the emergency. Given the vast array of family emergencies the instructor will provide precise guidance as to what constitutes adequate documentation. Unless the emergency is critical you should notify the instructor in advance of your absence from the scheduled course event. In cases of critical emergencies, you must notify the instructor within one week of your absence.
For University-approved curricular and extra-curricular activities, verifiable documentation is also required. The student should obtain from the unit or department sponsoring the activity a letter (or class absence form) indicating the anticipated absence(s). The letter must be presented to the instructor at least one week prior to the first absence.
In the case of religious holidays, the student should notify the instructor by the third week of the course of any potential conflicts.
Disabilities
The Pennsylvania State University encourages qualified people with disabilities to participate in its programs and activities and is committed to the policy that all people shall have equal access to programs, facility, and admissions without regards to personal characteristics not related to ability, performance, or qualifications as determined by University policy or by state or federal authorities. If you anticipate needing any kind of accommodation in this course or have questions about physical access, please tell the instructor as soon as possible.