1. Contact Information
  2. Prerequisites
  3. Course Description and Credit Hours
  4. Required Texts
  5. Course Objectives
  6. Student Learning Outcomes
  7. Other Course Materials
  8. Outline Of Topics
  9. Exams and Assignments
  10. Grading Policy
  11. Policy on Missed Exams and Coursework
  12. Attendance Policy
  13. Notification of Changes
  14. Custom Sections
  15. Statements on Academic Misconduct
  16. Statement On Disability Accommodations
  17. Severe Weather Protocol
  18. Pregnant Student Accommodations
  19. Religious Observances
  20. UAct Statement

International Trade

EC 430-001Fall 2021 | 3 Credit Hours

Lecture

Paul Pecorino

Contact Information

UA Campus Directory:

Prerequisites

UA Course Catalog Prerequisites:

EC 308 or EC 310

Course Description

Course Description and Credit Hours

Analysis of theoretical principles underlying international trade, with application of these principles to recent developments and to current national policies.

Required Texts

Required Texts from UA Supply Store:
  • ACCESS GRANTED DIGITAL MATERIALS / EC 430/530 ACCESS GRANTED PROGRAM (KRUGMAN/INTERNATIONAL ECONOMICS) (Required)

Course Objectives

By the end of this course you will understand the principles underlying international trade, while obtaining a mastery over some basic models. This will enable you to evaluate the effects of trade policy and more critically analyze arguments for and against protection. This course will also provide a foundation for more advanced study in international trade.

Student Learning Outcomes

See the outline of topics. That is what they will learn.

Other Course Materials

Bring a calculator and a straightedge to each exam. If your calculator has text storage capability, you need to demonstrate that the RAM has been cleared.

Outline of Topics

Course Outline

  1. Introduction (chapters 1 and 2)

  2. Trade in an Endowment Economy

  3. The Standard Trade Model (chapter 6)

  4. The Ricardian Model (chapter 3)

            First Exam on Thursday, September 16th

  1. The Specific Factors Model (chapter 4)

  2. The Heckscher-Ohlin Model (chapter 5)

  3. International Factor Movements (pp. 72-78, pp. 141-144 and pp. 197-209).

            Giovanni Peri, “Immigrants, Productivity, and Labor Markets.” Journal of Economic                                           Perspectives 30 (Fall 2016): 3-30.

            Sari Pekkala Kerr, William Kerr, Çağlar Özden, and Christopher Parsons, “Global Talent Flows.”

                        Journal of Economic Perspectives 30 (Fall 2016): 83-106.

            Second Exam on Thursday, October 14th

 

  1. Chapter 8 - Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Firms

Marc J. Melitz and Daniel Trefler, “Gains from Trade when Firms Matter.” Journal of

Economic Perspectives 26 (Spring 2012): 91-118.

  1. The Instruments of Trade Policy (chapter 9)

            Mary Amiti, Stephen J. Redding, and David E. Weinstein, “The Impact of the 2018 Tariffs on                              Prices and Welfare.” Journal of Economic Perspectives 33 (Fall 2019): 187-210.

  1. Controversies in Trade Policy (chapter 12).

            Paul R. Krugman, "Is Free Trade Passé?" Journal of Economic Perspectives 1 (Fall 1987):131-145.

 

            Third Exam on Tuesday, November 9th

     

  1. The Political Economy of Protection (chapter 10)

             Gordon Tullock, "The Welfare Cost of Tariffs, Monopolies and Theft." Western Economic

                        Journal 5 (1967): 224-232.

            Anne O. Krueger, "The Political Economy of the Rent-Seeking Society." American Economic

                        Review 64 (1974): 291-303.

  1. Trade Policy in Developing Countries (chapter 11).

            Douglas Irwin, “The Rise and Fall of Import Substitution.” World Development 139 (2021):         Article 105306.

  1. Chapter 7 – External Economies of Scale and the International Location of Production

 

            Final Exam on Tuesday, December 7th, 8:00 – 10:00 AM

Exams and Assignments

Important Dates:       

First exam:                                                                   Thursday, September 16th

Second exam:                                                               Thursday, October 14th

Last day to withdraw:                                                   Wednesday, October 27th

Third exam:                                                                 Tuesday, November 9th

Paper                                                                           Tuesday, November 16th

Final Exam:                                                                  Tuesday, December 7th, 8:00 – 10:00 AM

Grading Policy

Course Grade: Your final average = 0.7*Midterm Avg. + .2*Final Part 1 + 0.1*Paper + Bonus Points. See below for information on how the components of your final average are determined. Your course grade is determined by your final average on a scale where 90 or above is an A and less than 60 is an F.  In addition, passing grades are modified in each grade range so that grades falling within [0,3) receive a '-' and those within [7,10) receive a '+'. For example, 90 is an A-, 87 is a B+ and 82.9 is a B-.

Notes: 1. There is no rounding of your final average. For example, 82.9 is a B-, not a B.

  1. Exams scores will not be curved.

  2. Your intention to graduate will not factor into your course grade.

Course Paper: You will be asked to prepare one 4-6 page paper. The paper will be graded on a 100 point basis. Further details on the paper are provided on a separate handout.

Use of Turnitin: The University of Alabama is committed to helping students uphold the ethical standards of academic integrity in all areas of study. Students agree that their enrollment in this course allows the instructor the right to use electronic devices to help prevent plagiarism. All course materials are subject to submission to Turnitin.com for the purpose of detecting textual similarities. Assignments submitted to Turnitin.com will be included as source documents in Turnitin.com’s restricted access database solely for the purpose of detecting plagiarism in such documents. Turnitin.com will be used as a source document to help students avoid plagiarism in written documents.

Examinations: There are three midterm exams and a two-part final. Part 1 of the final is a fourth exam while part 2 is a mandatory make up/optional exam. Each exam will each contain 105 points worth of questions. Thus, there are 5 “extra” points available on each exam. Everyone must take part 1 of the final. Part II is a comprehensive exam covering material from exams 1-3. This serves as the mandatory make-up exam for anyone who missed any of the first three exams for any reason. In addition, other students may use this exam to replace their lowest score from exams 1-3. The score from part I of the final cannot be replaced. If the part 2 score is lower than all of the exam 1-3 scores, it will not count. Thus taking part 2 of the final cannot lower a student's midterm average. After the substitution (if any) from part 2 of the final, you will have three scores which will be used to determine your midterm average. For students who miss a midterm, part 2 of the final will replace the missing score. There will be no early midterm exams. 

Homework and Class Participation: You may earn a maximum of 2.5 points based on your diligence in doing the homework assignments and a maximum of 2.5 bonus points based on your positive classroom participation. These bonus points directly increase your final average.

  1. Homework: Knowledge of the homework is essential in doing well on the exams. Problems will be assigned and collected on a weekly basis. Your work will be returned with an answer key (no homework = no answer key), and will be evaluated on a scale from -1 to 1.25. A grade of 0 indicates a lack of adequate effort on the homework and does not contribute towards an award of bonus points. A failure to hand in your homework indicates no effort and will earn a score of -1. Bonus points are earned through your average homework score: Bonus Points = 2.5*HWAVG up to a maximum of 2.5. If your homework average at the end of the semester is less than or equal to zero, your will earn zero bonus points for both homework and class participation.

Late homework will receive a 0 at maximum (but you may still receive an answer key). Homework handed in after 4:45 P.M. on the day it is due is considered late. On a maximum of two occasions during the semester, you may hand in your homework by 9:00 AM on the day after the due date without it being considered late.

Feel free to get together with other students to discuss homework problems, but you must write up the homework on your own. If you copy the homework from another student, both students will receive zero bonus points for both homework and class participation. Also, if you dig up old homework answer keys and copy answers, you will get zero bonus points for both homework and class participation.

Note: The answer key provides model answers for the homework problems. You should always check the key when you get the homework back, regardless of what grade you received on the homework.

  1. Class Participation: Positive classroom participation includes asking pertinent questions in class and answering questions posed to the class. Attending class is very important, but attendance is not positive participation and will not earn you bonus points by itself. Negative classroom participation such as frequent absences, lateness, private conversations and any other disruptive activity can lead to a reduction in bonus points awarded. In particular, your 3rd absence will reduce the maximum bonus points awarded by 1, and your 4th and 5th absence will reduce the maximum bonus points by 2 points each. Thus, if you are absent 5 times or more, you will receive no bonus points for either homework or class participation. There are no excused absences for the purpose of this policy. Any type of disruptive activity may lead to a loss of bonus points whether they were to be awarded for homework or classroom participation. Cell phones should be in silent mode and out of sight during the lecture. Laptops can be used for note taking only.

  2. Some Aspects of this Policy: You can receive a maximum of five points under this policy and a minimum of zero. These are truly bonus points in that a failure to receive points under this policy will not detract from your grade as determined by your test performance. There are no other opportunities for "extra" points in this class. There will be no rounding. If you need .1 points for the next higher grade, but are awarded 0 points under this policy, you will not get the next higher grade.

Policy on Missed Exams and Coursework

This is covered under grading policy.

Attendance Policy

This is covered under grading policy. In particular, see class participation.

Notification of Changes

The instructor will make every effort to follow the guidelines of this syllabus as listed; however, the instructor reserves the right to amend this document as the need arises. In such instances, the instructor will notify students in class and/or via email and will endeavor to provide reasonable time for students to adjust to any changes.

Statement on Academic Misconduct

Students are expected to be familiar with and adhere to the official Academic Misconduct Policy provided in the Online Catalog.

Statement On Disability Accommodations

Contact the Office of Disability Services (ODS) as detailed in the Online Catalog.

Severe Weather Protocol

Please see the latest Severe Weather Guidelines in the Online Catalog.

Pregnant Student Accommodations

Title IX protects against discrimination related to pregnancy or parental status. If you are pregnant and will need accommodations for this class, please review the University’s FAQs on the UAct website.

Religious Observances

Under the Guidelines for Religious Holiday Observances, students should notify the instructor in writing or via email during the first two weeks of the semester of their intention to be absent from class for religious observance. The instructor will work to provide reasonable opportunity to complete academic responsibilities as long as that does not interfere with the academic integrity of the course. See full guidelines at Religious Holiday Observances Guidelines.

UAct Statement

The University of Alabama is committed to an ethical, inclusive community defined by respect and civility.  The UAct website (www.ua.edu/uact)  provides extensive information on how to report or obtain assistance with a variety of issues, including issues related to dating violence, domestic violence, stalking, sexual assault, sexual violence or other Title IX violations, illegal discrimination, harassment, hate or bias incidents, child abuse or neglect, hazing, threat assessment, retaliation, and ethical violations or fraud.

Statement on COVID-19

All University faculty, staff, and students are expected to maintain a commitment to the health and safety of our campus community. Due to the current COVID-19 pandemic, specific health and safety standards are in place to minimize exposure and community spread on campus. In the interest of your health and safety and that of all UA students, faculty and staff, the University reserves the right to change the mode of instruction or schedule of instruction at any time, based upon prevailing public health and other guidance. While the method of delivery may change, educational instruction and opportunities will continue. As such, the University will not provide a refund of tuition, in whole or in-part, based on any such changes. Detailed information on changes in format or schedule can be found at studentaccounts.ua.edu and financialaid.ua.edu.

UA students, faculty and staff are required to comply with UA System Comprehensive Health and Safety Task Force guidance regarding social distancing, face coverings and other measures.

Getting vaccinated is the best way to protect yourself and our herd. COVID-19 vaccines are being administered by the University Medical Center, the Student Health Center and various businesses and healthcare providers. Students who report proof of their vaccination status will receive Bama Cash as a thank you gift for doing their part.

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  • Monday-Friday during routine Center hours (205-348-3863).
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