Jorge G. Gonzalez Office: CGC N417 Phone: 736 - 7224 E-Mail: jgonzal1@trinity.edu Web: www.trinity.edu/jgonzal1
Office Hrs:
Monday 2:00 - 4:00 Tuesday 2:00 - 4:00 Wednesday 10:00 - 12:00 And by appointment
These office hours are designed to help you throughout the whole term. Please do not wait until the end of the term to use them.
The purpose of this class is to give you an analytical framework that can be used to study international trade. Countries around the world trade goods and services, and factors of production move across their borders every day. The models studied in this class give insight into the reasons and consequences of these flows. Furthermore, it is well known that trade restrictions are common in the world. The theory of international trade is also used to study the effects of these restrictions on the different countries of the world.
PREREQUISITE:
Economics 325. This course will make extensive use of intermediate microeconomic tools. If you had Economics 325 some time ago, or you do not remember its material well, I strongly suggest that you review your notes from that class.
TEXT:
Required: Salvatore, Dominick, International Economics, Sixth Edition, 1998.
Recommended: Wall Street Journal.
Additional readings will be put on reserve at the library or handed out in class.
COURSE REQUIREMENTS:
50 points
The take-home assignments will consist of problems sets that will be graded and several class assignments in the form of readings or problems to be done at home but that will not be handed in.
Students are allowed and encouraged to do their problem sets in groups of 2 to 3 members. Students that decide to work in groups will only hand in one problem set per group and all group members will receive the same grade for the assignment. Those students that wish to work in groups should form their groups and inform me about their members by February 2. Students are allowed to quit their groups at any point during the semester, but these students will not be able to join another group.
Class participation is strongly encouraged. Class participation is not only 5% of your grade but also decisions on borderline grades will take into consideration the class participation of the student during the term.
Although class attendance is not directly represented as part of your grade, if you are absent from class you will miss points from class assignments and class participation and this will be reflected in your grade.
There will be no make-up exams.
Problem sets are due at the beginning of the stated class period. Under no circumstances will problem sets be accepted late.
Cheating and plagiarism cannot be tolerated within the Trinity community. Any student who violates the regulations on academic integrity will be subject to the penalties described in Trinity University’s Student Handbook (pages 1 and 2).
GRADING SCALE:
COURSE OUTLINE:
I. INTRODUCTION
Chapter 1, plus pp. 423-429.
II. THE CONCEPT OF COMPARATIVE ADVANTAGE AND EXTENSIONS OF THE BASIC MODEL
Chapters 2, 3 and 4.
III. THE BASIS OF COMPARATIVE ADVANTAGE
Chapters 5 and 6.
Gonzalez, J.G. and A. Velez, "Intra-Industry Trade Between the United States and the Major Latin American Countries: Measurement and Implications for Free Trade in the Americas," The International Trade Journal, Winter 1995, Vol. 9, No. 4, pp. 519-536.
World Bank, "A Changing International Division of Labor," in World Development Report 1995, Washington, DC: Oxford University Press, 1995, Chapter 8, pp. 54-60.
IV. BARRIERS TO TRADE: THE TARIFF
Chapter 8.
Newman, B., "The Greeks Have a Word for Banana But Lack Bananas," in J. Adams, ed., The Contemporary International Economy, A Reader, Second Edition, New York: St. Martin's Press, 1985.
V. BARRIERS TO TRADE: NON-TARIFF BARRIERS
Chapter 9 (pp. 257-278 and 292-293).
Gold, D.M., R.J. Ruffin, and G.L. Woodbridge, "The Theory and Practice of Free Trade," Economic Review, Federal Reserve Bank of Dallas, Fourth Quarter 1993, pp. 1-16.
Corden, W.M., "Does the Current Account Matter? The Old View and the New," in Frenkel, J.A., and M. Goldstein, eds., International Financial Policy: Essays in Honor of Jacques J. Polak, Washington, DC: International Monetary Fund, 1991, pp. 455-478.
VI. COMMERCIAL POLICY
A. U.S. Commercial Policy and GATT
Chapter 9 (pp. 278-287)
Stiglitz, J.E., "Dumping on Free Trade: The U.S. Import Trade Laws," Southern Economic Journal, 1997, Vol. 64, No. 2, pp. 402-424.
B. Economic Integration
Chapter 10.
Gould, D.M., "Has NAFTA Changed North American Trade?," Economic Review, Federal Reserve Bank of Dallas, First Quarter 1998, pp. 12-23.
Kamdar, N. and J. Gonzalez, "Quis, Quid, Ubi, Quibus Auxiliis, Cur, Quo Modo, Quando? The U.S. House of Representatives Votes on NAFTA and GATT," in K. Fatemi, ed., International Business in the New Millennium, Vol. II, Laredo, TX: Texas A&M International University, May 1997, pp. 435-449.
VII. TRADE PROBLEMS OF DEVELOPING COUNTRIES
Chapter 11.
VIII. FACTOR MOVEMENTS
Chapter 12.
Reich, R.B., "Who Is Us?," Harvard Business Review, January-February, 1990, pp. 53-64.
