Class Meetings: Mondays and Wednesdays 12:00 noon – 1:15 pm

Suggested Text:Yarbrough and Yarbrough, The World Economy: Trade and Finance, (referred to as "YY" henceforth) Fourth Edition, published by Dryden Press and the accompanying Study Guide (referrred to as "YYSG" henceforth). Both the textbook and the Study Guide are required.

Contact Information: Office: CIC 125J

Phone: 372-7238

E-mail: achaudh@tricity.wsu.edu

Course Webpage: http://www.tricity.wsu.edu/~achaudh/intl.html

Office Hours: Open (I am usually in my office during the day on weekdays. All you need to do if you wish to see me is to give me a call or send me a mail to tell me what time you want to come by. Also I will be in my office before class – feel free to stop by at that time. I am not averse to making appointments on weekends either)

Prerequisites are designed to protect you from taking courses that you are unprepared to successfully complete. It is very important that you have fulfilled the prerequisites. The following courses are prerequisites for this course:

• Introduction to Microeconomics
• Introduction to Macroeconomics

You are expected to have mastered the material in these courses before taking the present course. I will assume in teaching this course that you have completed these two courses already.

1. Introduction

A. Y&Y, Chapter 1

2. International Trade Theory and Policy

A. Comparative Advantage and the Causes and Gains from Trade

(1) The Ricardian Model, Y&Y Chapter 2

(2) The Neoclassical/Heckscher-Ohlin Model, Y&Y Chapter 3

(3) The distribution of the Gains from Trade, Y&Y Chapter 4

B. Trade Policy and Protectionism

(1) The Theory of Tariffs, Y&Y Chapter 6

(2) Non-tariff Barriers and Modern Protection Policies, Y&Y Chapter 7

(3) Justification for Protection, Y&Y Chapter 8

C. Economic Integration, International Trade Agreements and Factor Mobility

(1) Y&Y Chapter 11

Y&Y chapter 9, pp. 323-340

Y&Y Chapter 10

3. International finance and Payments

A. The foreign Exchange Market: Microeconomics

(1) Y&Y Chapter 12

B. Balance of Payments

(1) Concepts, Y&Y Chapter 13

C. Open Economy Macroeconomics

(1) The Market for Goods and Services in an Open Economy, Y&Y Chapter 14

(2) Money and Foreign Exchange in an Open Economy, Y&Y chapter 15

(3) Fiscal and Monetary Policy in and Open Economy - Fixed Exchange Rates

Y&Y Chapter 16

(4) Fiscal and Monetary Policy in an Open Economy - Flexible Exchange Rates

Y&Y Chapter 17

The reading list is subject to modifications. Depending on the availability of time we may or may not be able to cover all the topics listed. I will keep you abreast at all times as to where we are and where we are going in terms of the reading list.

Your Grade for this course will be based on Two exams during the semester, the FINAL and homework assignments. Each mid-term will be worth 25% of your grade and the final will be worth 30% of your final grade. The midterm and Final exams will be in-class exams. The homeworks together will be worth the remaining 20% of your grade. I will hand out the homeworks in class and will usually give you ample time to turn them in. However if you miss a class it is VERY IMPORTANT that you find out if I handed out a homework in class.

All the homeworks will also be available on-line on the course webpage. However I am going to leave myself some flexibility about the actual number of homework assignments and their timing. As you must realize they will depend to a large extent on how fast or how slowly we are going in class and how much material we have covered.

The Mid-terms will not be cumulative, however the final exam will be cumulative.

Please mark these dates on your calendar.

I take exams seriously and I expect you to do the same. I expect you to take the exams at the proper time except in the event of an emergency. I will not give make-up exams for the mid-terms except under the direst of circumstances. As for the Final, a make-up exam, if administered, will have to be within ONE DAY of the actual final. If you miss one mid-term exam, then I will, at my discretion award you a grade based on your score in the other mid-term, and the final. You will get a FAILING GRADE if you miss both mid-terms or the final or both.

Once again, you have the dates for all the exams - please plan your schedule accordingly.

We will talk about the exact format of the exams at a later date. In any case they will probably consist of a mixture of multiple choice questions and word problems.

I believe that class attendance and participation is very important. Given the abstract and mathematical nature of the subject matter, missing lectures is not a good idea. However attendance does not count towards your final grade. However your attendance record will probably impact upon the grade you get in the course - in the sense that anytime you are at the border of two grades - whether you get the higher grade or not will depend on it. Also your attendance will dictate the extent of help you will get from me outside the classroom.

Please come to class in time and try not to leave early. If you are coming to class you have to come on time. You are most welcome to stay back after class if you have any questions. If you are having problems, please feel free to come and talk to me and I will try to help you to the best of my abilities. You can also write to me on e-mail. I encourage you to utilize my office hours. You do not have to make an appointment if you are coming to see me during scheduled office hours.

Let me make it very clear that any attempts to adopt dishonest means during exams will be dealt with very sternly. I reserve the right to decide on seating arrangements during exams as well as the right to move a person from his/her seat if I believe there are reasons to do so. I will, if necessary, evict a person from the exam room and report him/her to the Dean if I catch that person adopting unfair means.

Talk to me - it is important to talk about problems early instead of waiting for the last moment.