SYLLABUS
FACULTY ECONOMIC AND BUSINESS
INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF)
1 Name of Course / Module International Trade and Development
2 Course Code EI8475
3 Credit Value 3
4 Objective
International Trade and Development, is an introductory course in international economics. The course focuses on trade relations between countries. We examine why nations engage in international trade and evaluate the benefits and costs of such activity; the arguments for and against trade protection; and the impact of trade on developing economies.
5 Learning Outcomes
At the end of this course, the students are expected to (1) understand the philosophical foundations of international trade, (2) possess a keen insight about the factor endowments, trade patterns as well as trade policies; (3) acquire detailed knowledge of how the international trading system has evolved and the issues pertaining to trade protections; (4) have in-depth overview on GATT, WTO and Trade liberalization.
6 Synopsis
This course will be conducted not only by the materials of lecturer but also the presentation whose selected topics will be determined later.
7 References
Paul R. Krugman, “Ricardo’s Difficult Idea: Why Intellectuals Don’t Understand Comparative Advantage,” G. Cook, ed., The Economics and Politics of International Trade (Routledge: 1998);
http://www.pkarchive.org/trade/ricardo.html, (PK)
Paul R. Krugman & Maurice Obstfeld, The International Economics: Theory and Policy (Addison & Wesley:2006), (K&O)
D. Irwin, “Goodbye, Free Trade?” Wall Street
Journal (October 8, 2010);
http://online.wsj.com/article/SB10001424052748704 696304575538573595009754.html , (DI)
A. Davidson, “World Sock Capital Suffers From Duty-Free Imports” (Nov. 27, 2007) and “Thriving Honduran Sock Industry May Disappear,” (Nov. 28,
2007); (audio);
http://www.npr.org/templates/story/story.php?storyId
=16661333 , (AD)
Planet Money, “Why U.S. Taxpayers Are Paying Brazilian Cotton Growers” (Ocotber 29, 2010), http://www.npr.org/blogs/money/2010/10/29/130917 279/the-friday-podcast-cotton-wars (audio), (PM)
E. Gresser, “Toughest on the Poor – America’s Flawed Tariff System,” Foreign Affairs (Nov/Dec 2002), (EG)
N. Gregory Mankiw and P. Swagel, “Antidumping: The Third Rail of Trade Policy,” Foreign Affairs (July-August 2005), (M&S)
Trebilcock and Howse, The Regulation of International Trade. 2
nd
edition. Routledge Press, pp.
25-38; 51-80; 167-172; 190-198; 205-214; 226-239;
245-254; 367-379; 386-394, (T&H)
Clive George, The Truth about Trade: The Real Impact if Liberalization, (Zed books: 2010), (CG) 8 Lecturer Dyah Titis Kusuma Wardani, SE., MIDEc
9 Correspondence
Lecturer Room, E4 Building 2nd Floor E-mail:
[email protected]/[email protected] Phone: +62 82327 810 910 (WA)
10 Consultation time By appointment
11 Academic Evaluation
1. Competency Test I 30%; Competency Test II 35%
2. Presentation 20%
3. Assignments 10%
4. Class Participation 5%
Total 100%
COURSE OUTLINE
Meetings Course Material Material
Readings 1 Introduction to the course: syllabus, goals and class agreement PK; K&O 2 Mercantilism; Absolute Advantage and Comparative advantage PK; K&O 3 Gains from Trade; Factor endowments and trade patterns PK; K&O 4 The Instruments of Trade Policy (tariff, quota, etc);
Qualifications to the case for free trade: reciprocity, the optimal tariff, infant industries, etc.
PK; K&O 5 The Evolution of the International Trading System
6 Tariffs and the Costs of Protection DI; AD; PM
and EG
7 Tariffs and the Costs of Protection (2) DI; AD; PM
and EG
8 Arguments For and Against Trade Protection M&S
9 Competency Test I
10 Fundamentals of the GATT and the WTO T&H
11 Fundamentals of the GATT and the WTO (2) T&H
12 Chinese Economy
13 Trade Liberalization CG
14 WTO & RTA CG
15 WTO & Development CG
16 Trade Diversion and Trade Aversion CG
17 The Role of NGOs in Shaping Globalization CG
18 Competency Test II
Rules of class meeting:
1. A sitting examination for mid-term will be given at week 9.
2. A sitting examination for final will be given at week 18. This final exam changeable with 5 page-paper (optional for students) will be due at the end of the semester. Students will be given a list of several topics from which to select.
3. Grading System
Grading and Weight Interval (%)
A A≥80
AB 75≤AB<80
B 65≤B<75
BC 60≤BC<65
C 50≤C<60
D 35≤D<50
E <35
