University of Minnesota-Duluth

Labovitz School of Business and Economics

International Economics (Econ-4410)

Spring 2010
____________________________________________________________________
Venue: LSBE 165, Time: T/Th: 11:15-12:45 PM
Instructor : Dr. Bedassa Tadesse
Email : btadesse@d.umn.edu
Office : LSBE 330G
Phone : 218-726-8365
Fax : 218-726-6509
Course page : http:// www.d.umn.edu/~btadesse/
Office Hours : MWF: 10-11:00 am and by
appointment

Text Book (Required):

© 2004 / Husted, Steven and Melvin, Michael. International
Economics, 6th Edition, Boston, Addison Wesley Longman.

Study Guide (Recommended):

© 2004 / Husted, Steven, and Melvin, Michael. Study Guide to
Accompany International Economics, Sixth Edition Addison Wesley.

Some of the topics covered in this course are often discussed in several
national and local newspapers. Reading Wall Street Journal and your
local news papers, such as Duluth News Tribune, is helpful.

Course Description: This course is designed to give students a solid overview

of the fundamental principles governing International Economics (the
exchange of goods and service across national borders and the finances
associated with the transaction of goods and services). The first half of the
course is devoted to the discussion of international trade (trade theories, trade
barriers, arguments for and against protectionism, instruments of trade policy
and international trade agreements). The second half of the course is devoted
to the discussion of international finance (the analysis of balance of payments,
foreign exchange markets, and international monetary systems and
arrangements).

Course Objectives: the educational goal of this course is to provide students

with detailed understanding of the real economic aspects of the global
economy. At the completion of this course, students will be able to: (i)
understand the importance of international trade in our daily lives; (ii) learn the
basis of international trade; (iii) recognize the interrelationships between
international trade and finance; (iii) interpret and critique the role of the
government policy in international transaction of goods and services, (iv) have
some mathematical and theoretical skills required to analyze problems in
international trade and finance, and thereby the ability to evaluate alternative
policies.

Attendance and Participation Policy:

i) Attendance
Regular class attendance and active participation is expected from every
student registered for the course. Extra credit points will be given for students
that regularly attend the class and actively participate in class discussions.

ii) Extra-credit
No extra credit work will be assigned on an individual basis. However, if deemed
appropriate, I reserve the right to give extra assignments for extra credit to the
class as a whole.

iii) Make-ups
It is imperative that you attend all exams, quizzes and submit all assignments
on their due dates. There will neither be make-ups nor substitutions for missed
quizzes and assignments not turned in on their due dates. Unless and
otherwise you provide me with certified documents (notes from doctors, police
or court papers etc) that might be accepted at my discretion, your absence
from any of the scheduled tests exams will not be excused. If accepted, all
make-up tests will be ESSAY type.

iv) Assignments
Assignments must be turned in as scheduled. Assignments can only be
submitted at the end of the class on the day they are due. No assignment will
be collected before or after the due date. Students will be given at least four
days to work on answers for assignments. I expect text answers for
assignments and the accompanying graphs to be neat and typed.

v) Additional Course Materials

In addition to the text book materials supplementary reading materials may be
provided in class or posted on the course website. It is the responsibility of the
student to be present in class and obtain the materials. Supplementary
materials will not be made available for students missing a class without prior
permission.

IV) Special Need:

If you are a student with disability and are in need of special assistance in the
administration of tests, quizzes or class discussions, you should notify me your
special need during the first week of the semester so that I make all possible
arrangements to accommodate your needs.

Exams, Assignments, Quizzes, and Grading Policy:

Including the final exam there will be three separate tests. While the final exam
accounts 30%, each of the remaining two tests will account for 20% of the final
course grade. All assignments and quizzes together with bonus points for active
participation and regular attendance will account for the remaining 30% of the
final course grade.

Tentative Grading Scale (in %):

 94-100 (A), 90-93(A-); 87-89(B+), 83-86 (B), 80-82(B-); 77-79(C+), 73-
76(C), 70-72 (C); 65-70(D+), 60-64(D); <60 (F)

Course Outline

Readings/
Date Topic Assignments/Exam
s
Week -01 (1/18- Introduction:
1/22) • International Trade and Finance Chapter-1

International Trade
Week-02 (1/25-1/29) • Tools for analyzing international trade Chapter-2
Week-03(2/1-2/5) • The Classical theory of international Chapter-3
trade
Week-04(2/8-9/12) • The HO theory of international trade and Chapter-4 and 5
Tests of Trade Models
Week-05(2/15-2/19) • Barriers to International Trade Chapter-6
Week-06(2/22-2/26) • Barriers to International Trade Chapter-7
Continued
Test-1
Week-07(3/1-3/5) • International Trade Arrangements Chapter-9
Week-08(3/8-3/12) • International Trade Arrangements Chapter-9
Continued
Week-09(3/22-3/26) • Commercial Policy of the United States Chapter-8

International Finance
Week-10(3/29-4/2) • Balance of Payments Chapter-11 and 12
Week-11(4/5-4/9) • The Foreign Exchange Markets Chapter-13
Test-2
Week-12(4/12-4/16) • International Prices and Exchange Chapter-14
Rates
Week-13(4/19- 4/23) • Exchange Rates and Interest Rates Chapter-15
Week-14(4/26-4/30) • Foreign Exchange risks and FDI Chapter-16
Week-15(5/3-5/7) • The IMF and the World Bank Supplementary
Materials
Test-3(Final Exam)**
Monday, December 19/2010; Time: 8:00-9:55am; Venue:
SBE-36)
[** Subject to the Dean’s approval, it is possible that I may re-schedule the final exam
to the last week of the class.]
Tips for Success: Never leave your concerns and questions in this course
unaddressed. Feel free to visit my office and address your questions. Be forthcoming.
Take initiatives to participate in class discussions. Even if it may not be my official
office hours, as long as you have concerns and questions related to this course, you
can always stop by my office and talk to me. I am there to help you.