Economics 342

ECON 342: International Economics
Prerequisites: ECON 105, ECON 106, and one of the following: MATH 126, MATH 169, MATH 171, or ECON 207.

Credit hours: (3)

Instructional Method: Three hours lecture


An examination of classical and modern theories of international trade patterns and traderelated policies in competitive and non-competitive markets.

Detailed Description of Course Content

Economic interdependence and globalization have become the norm. Economies have become so interconnected that events and policies in one part of the world have global effects. An understanding of these effects is critical to functioning in the global marketplace. In this course, students will analyze the economics of international trade. Firstly, students will identify the foundations, beginning with comparative advantage and working through the Ricardian model and the Heckscher-Ohlin model. With this basic understanding, students will then assess the implications of current trade theory and policy, comparing and contrasting different approaches to trade. This will lead to the discussion of both protectionism and integration and students will analyze the pros and cons of each, both for developed and developing nation.
Topic Outline

1.  The Ricardian Model

2.  The Specific-Factors Model

3.  The Heckscher-Ohlin Model

4.  Trade Under Monopolistic Competition

5.  International Trade Policies

6.  The Political Economy of Trade Policy

7.  Fixed vs Floating Exchange Rates

Detailed Description of Conduct of Course

The following teaching strategies will be employed:

Lectures, class discussion, written assignments, oral presentations, exams, or course homework.

Student Learning Outcomes

After successfully completing this course, students will be able to:

    1) Compare the outcomes of international trade as interpreted through various models of trade theory.
    2) Analyze policy choices, such as tariffs and non-tariff barriers, and examine their relation to gains and losses of international trade.
    3) Analyze how changes in evonomic variables affect decisions of firms, households, and equilibrium in markets. (SLO6)

     4) Analyze how changes in economic variables throughout the world affect the national economy. (SLO7)

Assessment Measures

The following assessment measures may be employed: Tests, quizzes, homework, reports, presentations, or class participation. Grades and percentages depend on individual professors.

Review and Approval

December 2013 C. Vehorn
AprFixed vs Floating Exchange ratesil 16, 2012
December 2004 N. Hashemzadeh

Revised June, 2023