1

COURSE OUTLINE: INTERNATIONAL ECONOMICS 1. Course Details

Number: 3.30315 Title: International Economics Credits: 3 Points Semester / Year: 1, 2015 Role in Degree Program: Elective course for B.Ec students. 2. Lecturer and Contact Information

Lecturer and Tutor: Mr. Michael Cornish Background Michael is a Visiting Fellow at the Crawford School of Public Policy at the Australian National University, and recently a Visiting Lecturer with the School of Economics and School of Social Sciences at the University of Adelaide. Michael holds a Master of Arts in International Relations (majoring in International Economics and Conflict Management) from Johns Hopkins University; a Masters in Peace and Conflict Studies from the University of Sydney; a Bachelor of Laws from the University of Adelaide; and a Bachelor of Economics, also from the University of Adelaide. Michael has lectured across various courses, including microeconomics, macroeconomics, development economics, international trade, international politics, peace and conflict studies, development studies, and statistics. He has undertaken economic research for the University of Adelaide, the OECD, ASEAN, APEC, and DFAT. Michael's key interests include international conflict resolution, international politics and development economics, but he is interested in all manner of public policy issues. Contact details Room: TBC Email: michael.cornish@anu.edu.au Consultation hours: Monday, 2 - 4pm However, you are also encouraged to speak to Michael either before or after lectures and tutorials. Tutorials Tutorials will be one hour long and student attendance and active participation is expected (see Assessment below).

International Economics [3.30315], Semester 1 2015, UPNG

2

3. Assumed Knowledge. You must have completed the following prerequisite courses to take International Economics: Pre-requisite courses

• Principles of Microeconomics • Principle of Macroeconomics • Quantitative Economics 1

4. Objectives

The aim of the course is to provide students with a foundational grounding in the following:

• Current major issues and debates in the global political economy; • The major models that are used to understand how international trade operates, and

how to apply those models; • The policy tools available to governments that can be applied to international trade,

and what their effects are; • An introduction to international monetary policy; • The international flow of money between countries, especially foreign direct

investment and international aid. From a thematic point of view, the course aims to adopt a critical thinking approach to problem-solving, especially regarding issues of economic policy. 5. Learning Activities: Schedule

Completion of this course requires your participation in the following learning activities: Mon Tues Wed Thurs Fri Sat

Lectures 1 - 2pm KD127

12 -1pm KD 127

Tutorial 1 - 2pm

KD225

Reserve Lecture Time

3 - 4pm SLT

International Economics [3.30315], Semester 1 2015, UPNG

3

6. Assessment

Summary The assessment scheme is:

Tutorial participation 10% Individual assignment 15% Group assignment 25% Final Exam 50%

Tutorial attendance and participation Tutorials are a crucial part of achieving the learning outcomes of this course. Many of the tutorial questions will be similar to the questions in the final exam. Tutorial participation will be assessed throughout the course. If a student misses a session due to medical reasons or for reasons of compassion, arrangements can be made for the student to submit additional written work instead. Individual Assignment Imagine that you are working for the World Bank. You are required to write a Trade Profile for a country of your choice (except for PNG), detailing:

• A brief introduction to the country’s current economic situation • The country’s trading patterns, including its important imports and exports • The country’s exchange rate trends in past several years, and likely trends into the

future • ...and anything else that you think is particularly relevant to the country’s

international trade However, the Trade Profile must be written like a report, and not simply a list of ‘answers’. To help you, imagine that you are writing for someone who knows nothing about the country. [Hint: Some sites you may help you find your data may include the World Bank, the World Trade Organisation, the UN Statistics Division, and the national statistics agency of your chosen country.] The page limit for the individual assignment is two single-sided pages or one double-sided page. Only the first two pages submitted will be marked. The individual assignment will be due on Monday 13th April (Week 5) by 1pm (at the beginning of the Monday lecture).

International Economics [3.30315], Semester 1 2015, UPNG

4

Group Assignment The instructions for the group assignment will be given out separately after the individual assignment is handed in. The individual assignment will be due on Monday 13th April (Week 5) by 1pm (at the beginning of the Monday lecture). Final Exam The final exam will cover all of the material covered in the semester. You will be notified of the examination time and venue later in the semester. Guidelines on Submission of Assignments Assignments can be submitted either in hardcopy to Michael, or via email. Penalty for late submission of assessment tasks will be a 10% deduction of marks for each 24 hour period after the due date and time (this is 24 hours in full or in part, meaning that even 1 minute pass the deadline would incur a 10% deduction in marks). Extensions to due dates may be given on medical or compassionate grounds with evidence. 7. Resources Textbook The textbook for this course is: Paul R. Krugman, Mauric Obstfeld & Marc J. Melitz, International Economics: Theory and Policy, Ninth Edition The book can be purchased at the UPNG Bookshop as it soon it is available (the lecturer will let you know when this happens). A few copies will then be made available in the library. Other resources All other course materials will be available on Michael’s personal website, at: http://michaelcornish.org/international-economics/

International Economics [3.30315], Semester 1 2015, UPNG

5

8. Syllabus and Schedule of Learning Activities

The following is the current proposed schedule, and is subject to change: Week Date Topic Textbook Chapter

2 Friday 27th March Introduction Chapter 1

3 Monday 30th March

Guest Lecturer: Mr. Paul Flanagan (Australian National University) Current challenges facing PNG in the international economy

Powerpoints

Friday 3rd April EASTER FRIDAY

4

Monday 6th April EASTER MONDAY

Friday 10th April International Political Economy Chapter 2 + Powerpoints

5

Monday 13th April Trade Models I: The Ricardian Model Chapter 3

Friday 17th April Trade Models II: The Specific Factors Model

Chapter 4

6

Monday 20th April Trade Models III: The Heckscher-Ohlin Model

Chapter 5

Friday 24th April Trade Models IV: The Standard Trade Model

Chapter 6

7

Monday 27th April Trade Models V: Modern Trade Models

Chapter 7 + Powerpoints

Friday 1st May Trade Theorems Chapters 3 to 7 + Powerpoints

8 Monday 4th May Firms in the Global Economy Chapter 8

Friday 8th May Revision Lecture: Trade Models Chapters 3 to 7

9 Monday 11th May Trade Policy: The Tools Chapters 10 & 11

Friday 15th May Trade Policy: The Developing World Chapter 11

10

Monday 18th May Trade Policy: Challenges Chapter 12

Friday 22nd May National Income Accounting and the Balance of Payments

Chapter 13

11

Monday 25th May The History of the International Monetary System

Chapter 19

Friday 29th May Case Studies: The European Union / The Global Financial Crisis

Chapter 20

12 Monday 1st June Foreign Investment Powerpoints

Friday 5th June International Aid Powerpoints

13

Monday 8th June Future Trends Powerpoints

Friday 12th June Revision Lecture Chapters 1 to 13, & 19