ࡱ> pro .bjbj̵ +\צצ&%D D 8QlLA* ~"f$LANANANANANANACuFNA""&NAcA* LA"LAn;>0#efJ< A<yA0A<GG@>>R@"""D :   BROWN UNIVERSITY DEPARTMENT OF ECONOMICS INTERNATIONAL TRADE No nation was ever ruined by tradeB. Franklin Professor: Maria Carkovic Economics 1540 Office: Sayles 016 Fall 2011 E-mail:  HYPERLINK "mailto:Maria_Carkovic@Brown.edu" Maria_Carkovic@Brown.edu Class Website: @MyCourses Office Hours: Thursdays 2-3pm, and by appt. TA: Eren Arbatli. E-mail:  HYPERLINK "mailto:Earbatli@gmail.com" Earbatli@gmail.com PRE-REQUISITE EC 1110 or 1130. GOALS The goal of this class is to understand three main issues: (i) the pattern of international trade; (ii) the effect of trade on income distribution; and (iii) the effect of trade policy on a countrys welfare. The class will use two integrated approaches. First, it will develop several theoretical models of international trade. The models will provide a framework to think about international trade problems. Second, the class will present important contemporary debates on issues such as globalization, strategic trade, agricultural subsidies, bilateral trade agreements, the work of the WTO, etc. ASSESSMENT 80% of the grade: Exams. There will be three exams. The exams are individual, will be done in class, with closed books, and according to the following schedule: Exam 1: Monday, October 3; Exam 2: Friday, November 4; Exam 3: Wednesday, December 7. 20% of the grade: Problem sets, which will be assigned in class. I expect class participation from students throughout the semester. An outstanding participant will routinely voice good comments, and always be on time for class. A good participant will occasionally express insightful comments, and be on time for class. I expect you all to be good or exceptional participants. REQUIRED READINGS AND RESOURCES 1. Required: Textbook and Study Guide: Krugman, Paul and Maurice Obstfeld, International Economics: Theory and Policy, 8th edition. (Addison Wesley). 2. Special Readings and web pages are posted in MyCourses. They will be updated during the semester. Academic Conduct Statement Your conduct in this course is governed by the  HYPERLINK "http://www.brown.edu/Administration/Dean_of_the_College/academic_code/code.html" Brown Academic Conduct Code, http://www.brown.edu/Administration/Dean_of_the_College/academic_code/code.html . CLASS PLAN Please note that the lectures, articles for class, and problem sets are posted in MyCourses. Also see online quizzes for each chapter of the book in the Textbook website link in MyCourses. Motivation: The Latest Research If youd like, see these articles: Eichengreen, Barry, and Douglas Irwin, The Protectionist Temptation: Lessons from the Great Depression for Today in  HYPERLINK "http://www.voxeu.org/index.php?q=node3280" www.voxeu.org/index.php?q=node3280 Andrew Rose The International Economic Order in the Aftermath of the Great Recession, in  HYPERLINK "http://faculty.haas.berkeley.edu/arose/RecRes.htm#Present" http://faculty.haas.berkeley.edu/arose/RecRes.htm#Present Chapter 1: Introduction Material to read: Textbook chapter 1 Articles: Trade Bounty, the Economist, 12/2/04 In the steps of Adidas, the Economist, 2/8/07 Opening the Floodgates, the Economist, 5/7/09 Quinoas Global Success Creates Quandary at Home, New York Times, 3/19/11 Material due: Problem set 1 Chapter 2: The Gravity Model & Changing Patters of Trade Material to read: Textbook chapter 2 Articles: New York Times, Outsourcing is Climbing Skills Ladder, 2/16/06 S. Edwards, How Chile Can Make the Most of its US Trade Deal, WSJ 1/3/03, in  HYPERLINK "http://www.anderson.ucla.edu/faculty/sebastian.edwards/TheWallStreetJournal_Chile2003.pdf" http://www.anderson.ucla.edu/faculty/sebastian.edwards/TheWallStreetJournal_Chile2003.pdf Frankel, Jeffrey and E. Cavallo, Trade Openness Reduces Financial Vulnerability, in  HYPERLINK "http://www.nber.org/digest/jul05/w10957.html" www.nber.org/digest/jul05/w10957.html Sala-i-Martin, Xavier, Economic Growth is Reducing Global Poverty, in  HYPERLINK "http://www.nber.org/digest/oct02/w8933.html" www.nber.org/digest/oct02/w8933.html Wei, Shang-Jin and Y. Wu, Globalization Reduces Inequality in China, in  HYPERLINK "http://www.nber.org/digest/mar02/w8611.html" www.nber.org/digest/mar02/w8611.html Hanson, Gordon, Globalization and Poverty in Mexico, in  HYPERLINK "http://www.nber.org/digest/apr05/w11027html" www.nber.org/digest/apr05/w11027html Material to help you study: Textbook: all questions Study Guide: all questions Textbook website: Quiz Material due: Problem set 2 Chapter 3: The Ricardian Model Material to read: Textbook chapter 3 Articles: Faster, cheaper, better, The Economist, 11/11/04 A world of opportunity, The Economist, 11/11/04 Paul Krugman Reckonings: Hearts and Heads, the NY Times, 4/22/01 Paul Krugman Wal-Mart excuses, the NY Times, 12/12/05 Edmonds, Eric & N. Pavcnik Globalization reduces child labor in Vietnam, in  HYPERLINK "http://www.nber.org/digest/jul02/w8760.html" www.nber.org/digest/jul02/w8760.html Doubts on Cheap Labor, Financial Times, 4/5/11 Material to help you study: Textbook: all questions Study Guide: all questions Textbook website: Quiz Material due: Problem set 3 Chapter 4: The HeckscherOhlin Model Material to read: Textbook chapter 4 Articles: Hanson, Gordon What happened to wages in Mexico since NAFTA? in  HYPERLINK "http://www.nber.org/digest/sept03/w9563.html" www.nber.org/digest/sept03/w9563.html The Caribbean, The Economist 9/22/05 Blinder, Allan: Free Trades Great But Off-shoring Rattles Me, Washington Post, 5/8/07, in  HYPERLINK "http://www.washingtonpost.com/wp-dyn/content/article/2007/05/04/AR2007050402555.html" http://www.washingtonpost.com/wp-dyn/content/article/2007/05/04/AR2007050402555.html Greg Mankiws blog on the subject, in  HYPERLINK "http://gregmankiw.blogspot.com/2007/05/blinder-on-offshoring.html" http://gregmankiw.blogspot.com/2007/05/blinder-on-offshoring.html NY Times,  HYPERLINK "http://ethemes.pearsoncmg.com/0321445635/article_19/index.html" \t "_blank" "Why Is Income Inequality in America So Pronounced? Consider Education", May 17, 2007 Material to help you study: Textbook: all questions Study Guide: all questions Textbook website: Quiz Material due: Problem set 4 Chapter 5: The Standard Trade Model Material to read: Textbook chapter 5, except for pages 99-102 Article: Sokoloff, K. et.al. Global links raise Asian countries productivity in  HYPERLINK "http://www.nber.org/digest/aug02/w8894.html" www.nber.org/digest/aug02/w8894.html Wacziarg and Horn Welch, Trade Liberalization and Growth: New Evidence, Oxford University Press, 2008 Material to help you study: Textbook: all questions Study Guide: all questions Textbook website: Quiz Material due: Problem set 5 Chapter 6: Economies of Scale & Imperfect Competition & Technology Material to read: Textbook chapter 6 Articles: Friedman, Thomas Losing our edge, NY Times, 4/22/04 Povertys chains, The Economist, 10/9/03 Mankiw, Gregory and P. Swagel Antidumping: The third rail of trade policy, Foreign Affairs, Dec. 2005 Stepping Up the Pressure Against Piracy in China, NY Times, 12/6/04 The Miracle of the Cerrado, the Economist, 8/26/10 Material to help you study: Textbook: all questions. Please note that answer to problem No. 3 (provided in the study guide) is wrong. Study Guide: all questions Textbook website: Quiz Material due: Problem set 6 Chapter 7: Immigration & capital movements Material to read: Textbook chapter 7 Articles: Brown, D, A. Deardorff & R. Stern Multinationals, wages & working conditions in developing countries, NBER Digest, October 2003, in  HYPERLINK "http://www.nber.org/digest/oct03/w9669.html" http://www.nber.org/digest/oct03/w9669.html The brain drain cycle, The Economist, 12/8/05 Myths and Migration, The Economist, 4/6/06 Footloose firms, The Economist, 5/25/04 Damuri and Peri, Immigration: Evidence from Europe, NBER Working Paper 17139, June 2011 Material to help you study: Study Guide: All questions Textbook problems: All problems except No. 7 Textbook website: Quiz Material due: Problem set 7 Chapter 8: Trade Policy Material to read: Textbook chapter 8 Articles Europes farm follies, The Economist, 12/8/05 A harvest of disgrace. The Eonomist,.5/22/08 The Doha round. The Economist, 7/31/08 Dead Man Talking, The Economist, 4/28/11 Material to help you study: Study Guide: All questions Textbook website: Quiz Textbook problems: All problems. Material due: Problem set 8 Chapter 9: Protection, Free trade & the WTO Material to read: Textbook chapter 9. Note that we will skip section on political economy, pp 217-221 in textbook. Articles: Trefler, Daniel, The Long and Short of the Canada-US FTA, AER, Sept. 2004  HYPERLINK "http://www.atypon-link.com/AEAP/doi/pdf/10.1257/0002828042002633" http://www.atypon-link.com/AEAP/doi/pdf/10.1257/0002828042002633 In the rough, The Economist, 11/3/05 Do despair, The Economist 7/8/05 News on US trade agreements, in  HYPERLINK "http://www.tradeagreements.gov/" http://www.tradeagreements.gov/ Tang, Man-Keung and Shang-Jin Wei, The Value of Making Commitments Externally: Evidence from WTO Accessions,  HYPERLINK "http://www.voxeu.org/index.php?q=node/2816" www.voxeu.org/index.php?q=node/2816 Irwin, Douglas, GATT Turns 60,  HYPERLINK "http://www.dartmouth.edu/~dirwin/GATT%20at20%2060.html" www.dartmouth.edu/~dirwin/GATT%20at20%2060.html Round One, Boeing. The Economist, Sept 4, 2009. Defying Gravity and History. The Economist, 8/5/10 (just to read) The WTO and China, The Economist, 7/7/11 Material to help you study: Study Guide: All problems Textbook problems: All problems except Nos. 4 & 8 Textbook website: Quiz Material due: Problem set 9.     PAGE  PAGE 5 *?qr{}~   0 2 3 4 L M y z      ȹȮȞȗȌ|pgaga h^7aJh^h^7aJh^7CJOJQJaJ h91h^7h_h^70Jjh^7U hQJh^7 hf6h^7h1h^70Jjh^7U hhth^7jh^7Uh^7 h;h^7h*qh^756CJaJh^756CJaJh^75CJaJh;h^7CJaJ&)*?qrz  ! '  !:]:^gd^7:&d P ]:^gd^7 :]:^gd^7$:]:^a$gd^7 ! 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