ECON 342: International Economics
Prerequisites: ECON 105, ECON 106, and one of the following: MATH 126, MATH 169, MATH 171, or ECON
207.
Credit hours: (3)
Instructional Method: Three hours lecture
An examination of classical and modern theories of international trade patterns and
traderelated policies in competitive and non-competitive markets.
Detailed Description of Course Content
Economic interdependence and globalization have become the norm. Economies have become
so interconnected that events and policies in one part of the world have global effects.
An understanding of these effects is critical to functioning in the global marketplace.
In this course, students will analyze the economics of international trade. Firstly,
students will identify the foundations, beginning with comparative advantage and working
through the Ricardian model and the Heckscher-Ohlin model. With this basic understanding,
students will then assess the implications of current trade theory and policy, comparing
and contrasting different approaches to trade. This will lead to the discussion of
both protectionism and integration and students will analyze the pros and cons of
each, both for developed and developing nation.
Topic Outline
1. The Ricardian Model
2. The Specific-Factors Model
3. The Heckscher-Ohlin Model
4. Trade Under Monopolistic Competition
5. International Trade Policies
6. The Political Economy of Trade Policy
7. Fixed vs Floating Exchange Rates
Detailed Description of Conduct of Course
The following teaching strategies will be employed:
Lectures, class discussion, written assignments, oral presentations, exams, or course
homework.
Student Learning Outcomes
After successfully completing this course, students will be able to:
1) Compare the outcomes of international trade as interpreted through various
models of trade theory.
2) Analyze policy choices, such as tariffs and non-tariff barriers, and examine
their relation to gains and losses of international trade.
3) Analyze how changes in evonomic variables affect decisions of firms, households,
and equilibrium in markets. (SLO6)
4) Analyze how changes in economic variables throughout the world affect the
national economy. (SLO7)
Assessment Measures
The following assessment measures may be employed: Tests, quizzes, homework, reports, presentations, or class participation. Grades and percentages depend on individual professors.
Review and Approval
December 2013 C. Vehorn
AprFixed vs Floating Exchange ratesil 16, 2012
December 2004 N. Hashemzadeh
Revised June, 2023