International Economics LNDN ECON 3360 Course Description The objective of this course is to introduce the student to the theoretical analysis of international Economics and its impact on commercial business policy. The course has four main topics. 1: The pure theory of international trade as exemplified by comparative advantage and gains from trade in the classical and neo classical models. 2: It will explore alternative explanations of trade; an assessment of tariffs, quotas and other forms of intervention which are used to justify particular commercial policy responses both by countries and by other economic models. 3: The theory of customs unions and modern day explanations of preferential trading arrangements will be explored. 4: Some of the principal unresolved theoretical and practical problems of free trade will be examined – contemporary issues in The United States and Europe will be examined specifically here. Aims/Objectives: (i) To provide students with an understanding of the theoretical and policy underpinnings of the international trade system with particular reference to GATT, (the General Agreement on Tariffs and Trade) and its successor organization the WTO, (World Trade Organization), the IMF, (International Monetary Fund), the OECD, (Organization for Economic Co-operation and Development), the World Bank and UNCTAD (the United Nations Conference on Trade and Development). (ii) To provide students with an understanding of how conflicts arise between nations on matters of trade; how these have been resolved in the past, and current procedures and practices for their resolution. (iii) To provide students with an understanding of the arguments used by particular nations to defend and justify the enforcement of tariffs and quotas and other projectionist measures. (iv) To enable students to understand the influences which drive groups of nations to favour 'preferential tariff arrangements' and other forms of 'custom union' and the potential threats to free trade that these developments pose. V) To enable students to understand the limitations of the theory of comparative advantage and hence the benefits from free trade in a world increasingly dominated by what is described as 'money using' entrepreneurial economies.

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Pre-requisites Students are advised to ensure they possess adequate knowledge of basic economic concepts and constructs before taking this module. Ideally, completion of an Introduction To Economics module is advisable, but appropriate direction will be given to those needing to research subject content in order to develop a better understanding of the issues examined. Learning outcomes At the end of the module, students will be able to: 1) Define and describe the nature of the specific theories that account for the incidence of international trade relationships that are apparent today. 2) Describe the various approaches to regulating and managing the international economic environment at both the national and supra-national level. 3) Understand the nature of the forces that are contributing to the development of the international economy. 4) Understand and evaluate the importance of the emerging forces that are shaping the modern global economy. Developmental outcomes At the end of this module, students should expect to be able to: 1) Demonstrate confidence in the usage of key concepts, abstract models and theories from a range of disciplines in order to study the international economic system. 2) Improve their skills in interpreting and presenting different kinds of evidence to evaluate ideas and arguments. 3) Be more effective in Comparing and evaluating competing ideas and arguments about the developing global economy Course Methodology The course will be taught using a variety of methods including but not restricted to lectures, directed and undirected reading, case studies, visits, guest speakers, project work, and discussions.

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Schedule of meetings The course in international Economics will take place over 13 weeks as follows:

Meeting 1

Topic: Introduction - International Economics today. Activity 1: Video Presentation – The Chinese are coming! (Part 2) Out of class activity 1: Video – The Chinese Are coming (Part 1) Reading requirement: www.economist.org www.bbc.co.uk

Meeting 2

Topic: National Differences in Political Economy and Culture

Activity 1: Group exercise – contrasting values Activity 2: Introduction to International Economics Dropbox 1) Out of class activity: 1) ME Event today – A Gristwood co-ordinating. Details tbc. 2) Assessment 1 issued

Reading requirement: Reading pack 1 Meeting 3 Topic – The world trading environment and Trade Theories Activity 1 – Group discussion Activity 2 – Reprap Video and discussion Out of class activity – www.eco.co.uk Reading requirement: Reading pack 2 in Dropbox Meeting 4 Topic – The Political Economy of International Trade Activity – Review of available visits.

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Out of class activity – LSE Lecture - UK cultural influences. (Refer to dropbox) Reading requirement: www.capastudent.blogspot.com Meeting 5 Topic – International Trade Strategies 1) Activity – Discussion based on prior reading 2) NB – Assessment 1 due Out of class activity – Grad Fair, Olympia. (NB – Register?) Reading requirement – Reading pack 2 Meeting 6 Topic – FDI Activity – Group discussion and review Out of class activity – Gradfair, Design Centre. (NB – University of London event. Register?) Reading requirement – Exam pack 1 Meeting 7 Mid-term exam

Meeting 8 Topic – Forex markets Activity 1 – Group discussion Activity 2 – Video (Forex dealing) Assignment 2 issued. Out of class activity – LSE on-line lecture. Law and Politics in the UK. (Refer to dropbox) Reading requirement: Reading pack 3 Meeting 9 Topic – Global Economic Development and contemporary issues

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Activity 1 – Christian Salvesen Video and discussion Out of class activity – Refer to ME calendar. Reading requirement – Reading pack 4 Meeting 10 Topic – Global Capital Markets Activity 1 – Video Activity 2 – Discussion. Alternatives to market economies? Out of class activity – Review www.eco.co.uk Reading requirement – Reading pack 5 Meeting 11 Topic – Europe. The continuing crisis. (This class may be inserted into another part of the programme – much depends upon any developments that may impact the EU during the Fall term.)

Meeting 12 Topic – Programme review Activity – Group Discussion NB: Assignment 2 due Out of class activity – Refer to ME calendar Reading requirement – Exam pack 2 Meeting 13 Final Exam NB – Assignment 3 due (ME report)

C. Required and Recommended Reading During the course students will be issued with limited written material in the form of course notes. All presentations are available on the intranet – please access the relevant dropbox. Instructions will be distributed in week 2. Course notes will be supplemented by additional reading as directed. Students

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will be required to read both The Economist newspaper and the Financial Times. Details of other reference material will be announced as the course advances. Standard text books supporting the course are as follows: International Economics, Trade Theory and Policy - D R Appleyard and A J Field International Business - Charles W L Hill 5th Edition Handouts and readings covering the topics discussed during each meeting will be issued to students in lieu of a recommended text. Students are advised to purchase The Penguin Dictionary of Economics, Bannock et al, Penguin Books, 1998, IBSN 0-14-051-3760, as a supporting text. D. Assessment policies and grading distribution. Module assessment is based on students completing 2 exams, and producing 3 assignments. Additional credit will be earned for contributing to the module blog and playing an active part in class discussion. The 3 written assignments are essays. Specific instructions will be provided on the dates indicated in the Class schedule. Please note that the third assignment is linked directly to the Capa ME programme, which will require students to attend and account for a ‘My Education’ event in the term or during the mid-course break. Grading is determined as follows: Descriptor Excellent

Alpha A A-

UK 75+ 70-74

US 95+ 90-94

GPA 4.0 3.7

Good

B+ B BC+ C

66-69 63-65 60-62 56-59 53-55

86-89 83-85 80-82 76-79 73-75

3.3 3.0 2.7 2.3 2.0

Below Average / Poor

CD+ D

50-52 46-49 40-45

70-72 66-69 60-65

Fail

F