Why do countries trade with each other? How, why and by whom is international trade regulated? What are the welfare consequences of international trade? How does international trade affect individual firms, consumers, workers and industries? Why do some firms decide to export but not others? What is the impact of government policies on trade and welfare, and what are the best policies? Is a tariff war “easy to win”? What are the welfare effects of preferential trading arrangements between countries? What does the WTO do? What determines currency exchange rates and is a low or high dollar a good thing? Is monetary and fiscal policy more or less effective in an open economy than in a closed one? These are some of the questions we might consider in this class.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. demonstrate an understanding of the basic models of international economics and the analytical tools that economists use to analyze international economic interactions;
2. demonstrate an understanding of the tools taught in class and be able to recognise their application to the analysis of real world fact situations;
3. construct theoretical models of international economics related phenomena and manipulate them;
4. read and understand the gist of professional articles in the field of international trade.

Research-Led Teaching

The lecturer is an active researcher in the area of international economics and students will be exposed to current economics research in the field throughout the course.

Examination Material or equipment

The final exam will be run as a timed open-book assignment on Wattle and students can use any offline materials.

Recommended Resources

For the undergraduate (pass) component, the textbook is highly recommended but not required, and will be available in the library on short term reserve (it is not available as an ebook from the ANU Library.)

Krugman, P., M. Obstfeld & M. Melitz (2018), International Economics: Theory and Policy. 11th Ed. – Global Ed. Pearson Education Ltd: Harlow UK.

The following is entirely optional but would be useful; it is also on short term reserve in the library…

Feenstra, R. & A. Taylor (2014), Essentials of International Economics 3e. Worth Publishing: NY USA.

 

Students will be supplied with any necessary further readings and copies of (most of) the lecture slides as we proceed. In particular, for the Grad/Hons courses (ECON 4415/8015) a lot of material and supplementary readings and notes will be provided through the Wattle page.

Staff Feedback

Students will be given feedback in the following forms in this course:

We will provide a verbal review of each tutorial exercise and review of the quizzes (in tutorial time) and thus feedback to the class as a whole. All online and in-class questions will be discussed directly in class.

The Wattle site contains a forum for ongoing (anonymised) discussion and feedback and there will also be a small, optional survey mid-way through the course.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Tutorials

All students attend a one hour tutorial starting in the second week. Enrolment in tutorials will be completed online through Wattle in Week One. The tutorials cover only the Pass component of the course. There will be face-to-face tutorials for on-campus students and online options for off-campus students.

 

The first tutorial will take place during the second week of class. Tutorial exercises are designed to apply and reinforce the principles taught in lectures. Foundation tutorial questions for the second week will be available on Wattle in Week One (but not the other questions – you must attend the tutorial to get those.) I emphasise that you must attempt the foundation tutorial problems before attending the tutorial in order to make sense of the regular problems that will be discussed in the tutorial. N.B. Almost none of the tutorial materials will be made available online. The final exam questions will include tutorial style problems. You will only learn problem-solving skills (necessary to pass the final exam) through practice, NOT by simply writing down answers from tutorials. You learn by doing and practicing.

Technology, Software, Equipment

I plan to use Wattle extensively and as my main means of getting material to you: https://wattlecourses.anu.edu.au/. Please ensure that you have access and that you check it regularly. 

 

I will also be using the MyEconLab feature of the optional textbook for the Pass material. In most weeks there will be 1-2 tests assigned on the week’s material through MyEconLab and full engagement in these (optional) will earn you 5% of your course grade, redeemable against the final. There will be some examples set in week one but the ones that count start in week two. There is nothing in these that is not in the course, so it is not essential to do this. I do think it is useful, though.

Workload

Students taking this course are expected to commit at least 10 hours a week to completing the work, averaged across the semester, comprising:

·        3 hours a week of lectures

·        1 hour a week of tutorial

·        6+ hours a week: reading, writing and tutorial preparation

Some weeks will demand less time than this; some more.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Lectures. Pass: Intro and gains from trade; World trade overview & gravity model; Ricardian 2x2 setup. It will also be explained that these summaries are tentative and aspirational only and actual coverage will depend on class progress, which varies from year to year. Grad/Hons: Intro and gains from trade	Optional online exercises.
2	Lectures. Pass: Ricardian (cont.): analytics, comp. adv., wages, n goods Ricardian: evidence; Ricardo-Viner - PPB, labour allocation diagram. Grad/Hons: gains from trade (revealed pref.) Tutorials.	Optional online exercises. 'Weekly' quiz #1/8.
3	Lectures. Pass: Ricardo-Viner: comp stats of prices, distn effects; trade & employment; intn'l L mobility; Heckscher-Ohlin (HO): 2x2 algebra, S-S, R thms. Grad/Hons: Ricardian model; Ricardo-Viner. Tutorials.	Optional online exercises. 'Weekly' quiz #2/8.
4	Lectures. Pass: Heckscher-Ohlin (cont.): H-O and FPE thms.; Trade & income inequality; tests of H-O; Standard Model: ToT, biased growth; intertemporal trade. Grad/Hons: Ricardo-Viner (cont.); Heckscher-Ohlin. Tutorials.	Optional online exercises. 'Weekly' quiz #3/8.
5	Lectures. Pass: Firms in world economy: Monop comp & intra-ind trade; MNCs' decisions; outsourcing. Grad/Hons: Heckscher-Ohlin (cont.): low dimensions and mxn. Tutorials.	'Midterm' quiz #1. Optional online exercises.
6	Lectures. Pass: Instruments of trade pol: tariffs in PE - small & large countries; optimal tariff; Instruments of trade pol: Tariffs in GE; Quotas and non-equivalences. Grad/Hons: Heckscher-Ohlin (cont.): low dimensions and mxn. Tutorials.	Optional online exercises. 'Weekly' quiz #4/8.
7	Lectures. Pass: Instruments of trade pol: NTBs, EX subs, local content. Arguments: case for free trade; Arguments: cases against - opt. tariff, targeting, 2nd-best. Tutorials.	Optional online exercises. 'Weekly' quiz #5/8.
8	Lectures. Pass: Arguments: infant industries; CVDs; tariffs & deficit; Dumping & Anti-Dumping (AD). Grad/Hons: Dixit & Stiglitz; Melitz. Tutorials.	Optional online exercises. 'Weekly' quiz #6/8.
9	Lectures. Pass: Multilateral co-op to WTO. Grad/Hons: Trade policy with duality. Tutorials.	'Midterm' quiz #2.
10	Lectures. Pass: Preferential trading arrangements (PTAs). Hons/Grads: Trade policy with duality; Quotas & VERs - Krishna model. Tutorials.	Optional online exercises. 'Weekly' quiz #7/8.
11	Lectures. Pass: NI acctng & BOP & some Aus numbers. Exchange rates (ER) & ForEx: asset approach. Interest parity - covered and uncovered. Grad/Hons: Quotas & VERs - Krishna model (cont.) Tutorials.	Optional online exercises. 'Weekly' quiz #8/8.
12	Lectures. Pass: Prices and ER in long run: Law of One Price, PPP; monetary approach; inflation & expectations, real ERs. Grad/Hons: Grossman & Helpman "Protection for Sale". Tutorials.	Optional online exercises.

Tutorial Registration

All students attend a one hour tutorial starting in the second week. Enrolment in tutorials will be completed online through Wattle. Face-to-face (on-campus) and online tutorials will be available.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
'Midterm' quiz #1	15 %	26/03/2021	31/03/2021	1, 2
'Midterm' quiz #2	15 %	07/05/2021	14/05/2021	1, 2, 3
Optional online questions	5 %	*	*	1, 2, 3, 4
Eight 'weekly' online (Wattle-mediated) quizzes	40 %	*	*	1, 2, 3, 4
Final Exam	25 %	*	*	1, 2, 3, 4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

The assessment of the optional, redeemable online questions is based on engagement only - there are no right or wrong answers. Due to travel restrictions, this course will be largely delivered through online platforms.?Aspects of the delivery will be asynchronous. However, there will be synchronous activities also taking place (both online and on-campus). Details of the delivery of this course and expectations of student participation will be outlined in further detail on the Wattle course site in O-week. Attendance at synchronous activities, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b). In addition, tutorials are a discussion-based class. Providing worked solutions would not effectively compensate for missing a tutorial. Students who, through unavoidable and unplanned occurrences, are unable to attend a tutorial class one week are encouraged to work through the problems and attend a consultation session for discussion and solutions.

Examination(s)

There is a final exam for this course (see Assessment Task 4). The final exam is a hurdle assessment in line with the student assessment coursework policy (see https://policies.anu.edu.au/ppl/document/ANUP_004603). You must achieve at least 40% in the final exam in order to pass the course.

Assessment Task 1

'Midterm' quiz #1

Quiz - 15%, NOT redeemable against final, held in Week 5 (March 22-26). The quiz will be 50 minutes long, run online through Wattle and covering material from weeks 1-5 inclusive, and will be discussed in a subsequent tutorial. If you miss the quiz for a legitimate reason, documentation will need to be provided to IntnlEcon@anu.edu.au and, if your reason is accepted, a make-up quiz will be provided. Further details will be provided in lectures.

Assessment Task 2

'Midterm' quiz #2

Quiz - 15%, NOT redeemable against final, held in Week 9 (May 3-7). The quiz will be 50 minutes long, run online through Wattle and covering material from weeks 1-9 inclusive, and will be discussed in a subsequent tutorial. If you miss the quiz for a legitimate reason, documentation will need to be provided to IntnlEcon@anu.edu.au and, if your reason is accepted, a make-up quiz will be provided. Further details will be provided in lectures.

Assessment Task 3

Optional online questions

Online questions to be completed each week. These will be made available on Monday morning each week and are due by the end of the teaching semester. Worth 5% overall for demonstrated engagement in learning outcomes, prorated by the proportion of weeks attempted – redeemable against final. Covers only the Pass component of the course.

Assessment Task 4

Eight 'weekly' online (Wattle-mediated) quizzes

Eight (8) times during the semester there will be a short online quiz run through Wattle and covering the preceding week's lectures and/or tutorials. Each will be worth 5 points and will count for 5% of your course grade. The quizzes will be made available for half an hour at a pre-specified time (to be determined in consultation with students in week one) and you will be able to attempt them once only, abiding by the instructions provided in the quizzes themselves. If you miss a quiz for a legitimate reason, documentation will need to be provided to IntnlEcon@anu.edu.au and, if your reason is accepted, your remaining quizzes will be re-weighted. Quiz answers will be provided and discussed in tutorials in the following week.

Assessment Task 5

Final Exam

25-30%, depending on the student's performance in assessment task 3. It will be a two-hour exam held during the ANU Exam Block in June, run online through Wattle as a timed assignment, covering the entire course and consisting of some combination of short- and longer-answer questions, both discursive and/or analytical. The final exam is a hurdle assessment in line with the student assessment coursework policy (see https://policies.anu.edu.au/ppl/document/ANUP_004603). You must achieve at least 40% in the final exam in order to pass the course.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

N/A

Hardcopy Submission

N/A

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

The intention is that each quiz will be returned in tutorials in the week following it being sat.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

N/A

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students