Wuhan University of Technology, China.

2013.9-12

International Economics
Wei Long
Professor of Economics, Ph. D Wuhan University of Technology longwei@whut.edu.cn Office: JIAN SI Building, Room10-2 Teaching Time: Tuesday8:00-11:30. Office Hour: Mon. Thursday 8:00~10:00 Course Website:http://jpkc.whut.edu.cn/ppkc1/gjjjx/

Syllabus:

Course objectives Nine weeks allocation Evaluation policy Textbook and further reading suggestion

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Objectives
This course is specially prepared for economics students who are supposed to be Internationally thinking of the business world The objective of the course is to Enhance the understanding of various economic presence of the world and their interdependence. Provide a framework to explore the knowledge of macroeconomic issues in an open economic system with reagrads to its theoretical and practical implications of the international competition.
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Nine weeks allocation

Week 6------week15

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Evaluation policy
Class participation 30% Final Examination 70%
English as working language. Chapter Reading would be strictly needed before and after class events. Weekly Essay is also suggested to address the major points and comments on each topic. Anyone who appeared in events will be marked in the final score. The exam breakdown will be placed as: class participation and final exam weights respectively
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Textbook
. International Economics, 10th Edition by Robert J. Carbaugh (Hardcover - 2005) Washington Central University

1 Used & new from $90.00: Buy This edition on Amazon

International Economics, 7th edition.(see Review P3) Steven Husted, professor of economics at Arizona State University,coeditor of Journal of Intl Money and Finance,Ph.D.(UCLA). Research interests:international finance Michael Melvin, professor of economics at University of Pittsburg, Ph.D (Michigan State University). Research interests:international trade policy and finance International Economics: Theory and Policy,8/e Paul R. Krugman, professor at MIT- Princeton University, Nobel Laureate for Economics in 2008 Maurice Obstfeld, professor at UCLA, MA(Cambridge)Ph.D(MIT)

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Robert Carbaugh:11/e
http://www.amazon.com/InternationalEconomics $129.81

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Steven Husted and Michael Melvin

7/e $124.34

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Paul Krugman :8/e http://www.aw-bc.com/krugman/

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Customer Review

By A Customer: Very good learning medium with a sufficient indepth coverage, March 24, 1999
I m a Computer Science student. Recently, I took an economics course titled "International Trade". This book is the text book for our class. I found it very easy and clear to understand ( there is no doubt that you really need to have a very solid Idea about macro and micro economics before reading this kind of a book). The book is deep enough to serve as an educational media, it is no to little and not too much. I recommend this book
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10 copyright in China

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Content:

CHAPTER 1 WORLD TRADE AND THE NATIONAL ECONOMY DEFINITION WHAT IS UN IQUE ABOUT I NTERNAK ECONOMICS? INTERNATIONAL TRANSACTIONS AN EMPIRICAL GLIMPSE FOREIGN TRADE IN THE NATIONAL ECONOMY Aggregate Measures Desegregation Qualitative C0nsideradons Summary ORGANIZATON FO THLS BOOK Summary Important Concepts Review Questions PART INTERNATIONAL TRADE RELATIONS THE PRINCIPLE OF COMPAR ADIVE ADVANTAGE POLICY IMPLICATIONS

PART INTERNATIONAL FINANCLAL RELATIONS BIBLIOGRAPHY INDEX

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Further Online Reading Suggestions

Prof.Weis course website: http://jpkc.whut.edu.cn/ppkc1/gjjjx/ (study entry) China as the second largest economy of the World:

http://english1.people.com.cn/ http://www.cnie.cn/ http://www.mofcom.gov.cn/

Global perspective:

WTO,IMF,IBRD,ABD,UNCTAD,WEF,IMD official websites

Topic 1 What is Unique in International Economy

1.1 National Vs International
Nations came to the European world after the middle ages(1000 ~ 1450) Differences largely exist in:
Resources available Benefit consideration Currency Government role Information and culture ---------

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Topic 1 :continued
1.2 Interdependent World
Historical evolution of the world order
Prior to WW2:Trade colonialism In the post WW2 era: industrialization,MNC Never important as it is today!

Economic Integration
Three major forces: Trade: goods, services, raw materials, energy Finance: foreign debt, foreign investment, exchange rates Business: multinational corporations, global production

Multilateral system:UN,WTO,IMF,IBRD
IF America sneezes, Europe should catch a cold, who may suffer a pneumonia?

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Country Exports as percent of GDP (1999,TIR) Netherlands 55% Norway 41 Canada 39 Mexico 31 South Korea 31 United Kingdom 29 Germany 25 France 25 United States 12 Japan 10 China 8.27 1949.3/10832.8= 17.99% 6.45 year 2011.18,986/74,970 = 25.3%
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GDP Forecast:USA,CHINA,JAPAN

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Topic 1
continued
Opportunities and Threat
Efficiency and welfare due to market enlargement
Production internationalization B787

More aligned to international changes Competing up/down:competitiveness Transition to ideal society Discussion Topics:
What is a Chinese Company? What makes a company Chinese?

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US: JAPAN: JAPAN: Flexible Leading Edge Device Wing box The central wing box

JAPAN: airframe
FRANCE: cabin door
US: pilot's cockpit

JAPAN: Stable Trailing Edge Device of Wings

AUSTRILIA: Flexible Trailing Edge Device SWEDEN : The Cargo-hold door

US: the hanging rack on engine

FRANCE: landing gear

US/UK: engine

US: nacelles CHINA/US /CANADA /AUSTRILIA: Vertical CHINA/US /CANADA /AUSTRILIA :fairing KOREA : wingtip

trail wing
:

ITALY: the middle and rear part of the airframe

1.3 Globalization as A New Trend

Forces driving the Globalization:
Technological change:
Production Communication & information Transportation

Liberalization of trade & investment:

Tariff, non-tariff barrier reductions Liberalized financial transactions International financial markets

An open mind of the majority

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Globalization as A New Trend

Advantages
Productivity increases faster when countries produce according to comparative advantage Global competition and cheap imports keep prices low and inflation at bay An open economy encourages technological development and innovation with ideas from abroad Jobs in export industries pay more than those in import-competing industries Free movement of capital gives trading nations access to foreign investment and keeps interest rates low
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Disadvantages
Millions of domestic jobs lost due to imports or production abroad; those displaced find lowerpaying jobs Millions of other natives fear getting laid off Workers face pressure for wage concessions under threat of having the jobs move abroad Service and white-collar jobs are joining bluecollar ones in being vulnerable to moving overseas Home workers can lose their competitiveness when firms build state-of-the-art factories in lowwage countries, making them as productive as plants in much industrial countries
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1.4 New Philosophy

From: Unknown world To Global World and now to The Flat World Consequently, the physical and institutional differences and information, knowledge and all other things are converging and sharing!
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Summary and Study Questions

Interdependent world in terms of trade, finance and across border investment International economy creates great opportunities and threat to public and private sectors for various nations

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Further Reading and Homework

A Cover Story (course website) (http://jpkc.whut.edu.cn/ppkc1/gjjjx/) Robert J. Carbaugh, pp2-23 P.Krugman, pp1-7 Steven & Michael, Preface,pp 1-25 Thomas Frieman, The World is Flat,2006
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