Trade Policy and International Economics Tutorial

Prof. Suman Modwel
Spring -- 1 credit
 
This tutorial is an e-learning module on Blackboard.com. It is divided into three parts. The first two, Understanding International Trade and Current Issues in International Trade and Investment are actually on-line courses, the first at a basic level and the second a little advanced, where the student will be hand-held, guided sequentially through several topics, each with specific readings to prepare for the assignment/exam. They are valued at 1 credit each. The third part, is for those students who have either attended a basic business economics or the above Understanding International Trade course (plus have some knowledge of open macroeconomic issues and exchange rates), and are motivated to plunge in on their own, or in small groups. They will work on a paper with "tutorial" facilitation that can earn from 0.5 to 1.5 credits depending upon its length and depth. Approval of their proposals is required before they are enrolled.

Part I: The topics in the first part include:
  - Explaining Inter-industry Trade: Ricardo´s  Model of Comparative Advantage
  - Gains and Pains of Trade: Income Distribution Effects
  - Explaining Intra-Industry Trade: Monopolistic Competition and Economies of Scale
  - Explaining "Trade" of Labor and Capital Factors: Foreign Direct Investment and

Multinational Corporations
  - A First View of the Political Economy of Trade
  - From GATT to the WTO

Part II: The topics in the second part include:
  - Foreign Direct Investment as an option to trade; multinational corporations; intra-firm trade
  - Analyzing some regional integration experiences ( trade creation and trade diversion)
  - Strategic Trade Policy and positive externalities (with ref. to Airbus vs. Boeing)
  - The debate on Globalization and its effects - is "Globalization with Social Responsibility" feasible?
  - Multilateral Trading System and the "New Issues" in the WTO
  - WTO after Seattle Doha and Cancun

Part III: The third part addresses the specific needs of participants. The process will provide them with advanced conceptual inputs relevant to their chosen topic on a flexible response-to-felt-need basis. These tutorials will also support them on their research methodology and needs and help them develop the required rigor in their project in order to produce a final paper of high quality. The tutorials may include any one of the above themes plus others in the area of monetary macroeconomics and exchange rates, e.g: exchange rates, real exchange rates; strong currency, over-valued currency; interest rate rise effects on currency appreciation or depreciation; fixed vs. floating exchange rates, currency boards; "shorting" a currency, capital controls; monetary vs. post-Keynesian economics; real wages, real exchange rate, productivity and competitiveness, total factor productivity issues relating to the "new economy" debate, etc.

Assessment: The assessment mode is in the form of three essay type assignments as far as Parts 1 and 2 are concerned. They are in downloadable documents in the course site. It will be seen that there are three assignments in each part, each covering two topics at a time, and they are to be submitted 3, 6 and 10 weeks after enrolment respectively.  For Part 3, the assignment by definition will be the paper that they will write under "tutorial" facilitation.

This tutorial course is on-line at http://coursesites.blackboard.com/index.html. Those interested should contact Prof. Modwel to login and see the details. In Paris, the course will begin with a live class session at the start of the second semester in February that will serve as an introductory" walk through".