Economics 3403
Fall 2004
Instructor: Billy Mertens Office: ECON Room 4a
Phone: 303-492-3021 email: mertens@colorado.edu
Website: http://spot.colorado.edu/~mertens
Office Hours: M,W
International Economics 6th ed. By Steven Husted and Michael Melvin. Addison-Wesley Pubs.
In this course, we will study the theories, policies, and institutions of international trade and finance. The economic, political, and social forces underlying many of the issues involved in international economics are complex, multi-faceted, and dynamic. They cannot be fully or easily analyzed in a professional lifetime, much less a one-semester course. They do, however, lend themselves extremely well to critical thinking and rational inquiry, which are the guiding principles of this course. Our goal is to become and remain informed about issues related to international economics and, even more importantly, acquire the ability to think about complex issues in a logical objective manner. Thinking critically is what permits us to differentiate between the illogical and the sensible, between the misleading use of statistics, misleading anecdotal evidence, and the reasonable presentation of information.
We will use several different models to analyze the different topics covered. These models are based largely on diagrams and some mathematics. You will be given problem sets that will be instrumental in your preparation for exams. I will cover all necessary material to complete these problem sets and prepare for exams in class. The text is helpful in understanding many of the topics will cover, but it will not help you at all for other topics and you should not rely on it as your primary source of information. I will post some summary outlines on the course website, but these notes and the book are meant to complement what you learn in class they are not substitutes for lecture materials!
Students must have completed ECON 2010 and ECON 2020, or have completed ECON 1000. It is NOT sufficient to take these courses concurrently. I assume that you did not only take the class(es), but also that you understand and remember the content. We will spend some time reviewing some of the important concepts that you should have learned but this review must be brief, therefore, the prerequisites must be strictly enforced.
Your course grade will be based on four exams (18% each),
four problem sets (1.5% each) and a cumulative final (22%). Exams are not cumulative (other than the final), but
the material does build on itself so it is important to understand all of the
concepts as we go. If you miss an
exam, you will receive a zero unless you are ill and can provide proof (e.g. a
letter from the student health center).
Note that the exam dates below are not tentative exams will be
given in class on the days listed.
Incompletes, Extra Credit, etc.
I adhere strictly to the University guidelines on Incompletes (An IF or IW is given only when students, beyond their control, have been unable to complete course requirements. A substantial amount of work must have been satisfactorily completed before approval for such a grade is completed.). Bad grades, unsatisfactory performance, too many credit hours, work conflicts, etc. are not reasons for an incomplete.
I am adamant about giving each student an equal opportunity to perform well in the course, so there will be no extra credit opportunities that are not offered to the entire class. You should focus your efforts on learning the material and doing well on the exams.
Introduction, Review class notes
General Equilibrium Modeling Chapters 1 and 2
The Classical/Ricardian Trade Model Chapter 3
The Heckscher-Ohlin Model Chapter 4
The Specific Factors Model class notes and Chpt.4 appendix
Exam 1 Monday, September 20th
Evidence and Other Reasons for Trade Chapter 5 and class notes
Tariffs Chapter 6
Non-tariff Barriers Chapter 7
Other Commercial Policies and issues Chapter 8 and class notes
International Factor Movements Chapter 10
Exam 2 Friday, October 15th
Preferential Trade Arrangements Chapter 9
Public Choice and International Trade Class notes
Trade Institutions Class notes
The Environment and Other Current Trade Issues Class notes
Exam 3 Friday, November 5th
Intro. to International Finance, FPI & BOP Chapter 11 & some 12
Foreign Exchange Markets Chapter 13
Prices and Exchange Rates Chapter 14
Interest Rates and Interest Parity Chapter 15
Foreign Direct Investment and MNEs Class notes
Exam 4 Friday, December 3rd
Cumulative Final Exam Tuesday,
December 14th at
This is an aggressive outline and it is very likely that we may not cover every topic scheduled before each exam, but the exam dates will not be changed. Instead, if we fall behind, the number of topics covered in each exam will be altered.
Grading Scale
Your score Grade
92% to 100% A
90% to 91% A-
88% to 89% B+
82% to 87% B
80% to 81% B-
78% to 79% C+
72% to 77% C
70% to 71% C-
68% to 69% D+
62% to 67% D
60% to 61% D-
Below 59.5% F
Additional Notes:
If you qualify for accommodations because of a disability, please submit to me a letter from the Disability Services (DS) early in the semester so that your needs may be addressed. DS determines accommodations based on documented disabilities (303-492-8671, Willard 322, www.colorado.edu/sacs/disabilityservices).
Accommodations can be made if there are any conflicts with religious holidays, but you must notify me during the first week of classes.