The International Economics
Study Center
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GWU Econ 6280/2180
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Professor: Steve Suranovic | ||
Online Course Component: China Component - Time & Location: July 2 - July 15, 2017 Various times, See Schedule below |
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Office Hours: by appt. | ||
E-mail: smsuran@gwu.edu | ||
Evaluation | ||
Class Participation |
10% |
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6 online quizzes |
5% each; Only top 4 scores count |
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2 Short Papers |
15% each |
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1 Final Exam |
40% |
Deadlines and Exams | ||
Paper #1 - 15% |
Due July 31: 11pm EDT
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Paper #2 - 15% | Due July 31: 11pm EDT |
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Final Exam |
July 14: 1:30-4:30pm |
(Tentative) Course Outline |
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Sunday July 2 |
Arrival and Check-in at Crowne Plaza Fudan Welcome Dinner at 7pm near hotel |
Monday July 3 9am-12 ASC |
National Income Accounts, the Balance of Payments and the Evaluation of Trade Imbalances In the first session we explore the topics
and issues of international finance. We
will review highlights from history, describe notable current laws and institutions, both domestic and international. This session tries to dispel the popular notion that trade
deficits are "bad" and trade surpluses are "good". The material
highlights the intertemporal borrowing and lending associated with
trade imbalances and notes situations in which each of these could
be appropriate (or inappropriate) for both individuals and for nations.
Key factors needed to determine the seriousness of a trade imbalance
are discussed and a case study for the US is presented.
Readings:Chapter 1 - Introductory Finance Issues: Current Patterns, Past History, and International Institutions Chapter 2 - National Income and the Balance of Payments Accounts Chapter 3 - The Whole Truth about Trade Imbalances Supplementary Readings:US Annual GDP Data 1929-present The Latest International Data US
National Income and Product Accounts (NIPA) US International
Accounts Data Japan Twin Deficit Identity 1982-2009 International Investment Position Data Imports and Economic Growth |
Monday July 3 1:30-6:30 |
Tour of Old and New Shanghai: Yuyuan Garden, The Bund, Pudong, Nanjing Lu |
Tuesday July 4 9am-12pm ASC |
Exchange Rates, Interest Rates and Interest Rate Parity
This session highlights the linkage between the exchange
rate, and interest rates through the interest rate parity condition.
It is shown how changes in economic variables can affect differential
rates of returns which in turn can affect the value of the exchange
rate.
Readings:Chapter 4 - Foreign Exchange Markets and Rates of Return Chapter 5 - Interest Rate Parity |
Tuesday July 4 1 - 4 pm
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Shopping Tour of Shanghai: Fake and Real
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Wednesday July 5 9am-12 ASC |
More Interest Rate Parity and Purchasing Power Parity and Fixed Exchange Rates
This session continues with interest rate parity and then presents the theory of purchasing power parity.
The logic of the theory as an explanation for exchange rate movements
is provided. More importantly, the supplemental readings help teach
the way PPP exchange rates are used to make international comparisons
of economic data. The session also introduces fixed exchange rates and proceduires for maintaining them.
Readings:Chapter
6 - Purchasing Power Parity Supplementary Readings:The
Economist's Big Mac Index Wikipedia GDP Data Comparative
Price Levels for OECD countries |
Weds July 5 2pm
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Visiting Lecturer GW Alumni Ted Hornbein on the Business Environment in China Presentation and Q&A (Unconfirmed) |
Thurs July 6 9am-12 |
Fixed vs. Floating Exchange Rates This session presents a brief overview of the differences
between fixed and floating exchange rates.
Readings:Chapter
8 - Policy Effects with Floating Exchange Rates Chapter
9 - Fixed Exchange Rates Chapter
11 - Fixed vs. Floating Exchange Rates
Supplementary Readings:Fixed
or Flexible? Getting the Exchange Rate Right in the 1990s |
Thurs July 6 Afternoon |
Free Time |
Thurs July 6 Evening |
Karaoke Night |
Friday July 7 Free Day |
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Sat July 8 |
Travel to Hangzhou (7am) Visit West Lake and Lingyin Temple |
Sun Jul 9 Free Day |
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Monday July 10 9am-12 ASC |
International Economic Issues: Competitive Markets, Comparative Advantage and Income Redistributions
In the first session we explore the topics
and issues of international economics, both trade and finance. We
will review highlights from history, describe notable current trade
laws, and introduce the WTO. This session we will also discuss the pure exhange model, the Ricardian theory of comparative
advantage, the gains from trade, and the workings of a competitive
international market.
Readings:Chapter 12 - Introductory Trade Issues: History, Institutions, and Legal Framework Chapter 13 - A Pure Exchange Model of Trade Chapter 14 - The Pure Exchange Model and Market Ethics Chapter 15 - Production, Trade and Comparative Advantage |
Mon July 10 Afternoon |
Visiting Lecturer TBD Presentation and Q&A (Unconfirmed) |
Tuesday July 11 9am-12 |
Travel to Jiangwen Campus; 8:00 am departure Class at the New City Campus Profit, Competitive Markets, Income Redistributions and Immobile Factors This session will begin with an explanation
of the most basic gains from trade and follow with a discussion
reasons why trade can produce winners and losers.
Readings:Chapter
17 - A Pure Exchange Model Again with Three Traders Chapter
18 - Factor Mobility and Income Distribution |
Tuesday July 11 6:30pm |
GW Alumni Event Networking Opportunity (Unconfirmed)
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Wednesday July 12 9am-12 ASC |
The Effects of Trade Policies: Tariffs, Subsidies and Retaliation This session will demonstrate the price and welfare effects of a tariff, and export subsidies in large and small country cases. We will also consider simple examples of trade wars and use insights from this to help understand the motivations for the WTO. Readings:Chapter
21 - Trade Policy Effects with Perfectly Competitive Markets Chapter
23 - Political Economy and International Trade |
Weds July 12 2-4pm |
Free Time
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Thurs July 13 9am-12 ASC |
Market Imperfections and Distortions, Evaluating the Controversy This session will discuss market imperfections and distortions such as unemployment, infant industries and environmental concerns. This will raise some questions concerning the appropriateness of free trade. However, we will also consider counterarguments and conclude with the modern argument supporting free trade.
Readings:Chapter
22 - Trade Policies with Market Imperfections and Distortions Chapter
24 - Evaluating the Controversy Between Free Trade and Protectionism Supplementary Readings:Economist Views on Free Trade The
Fruits of Free Trade Domestic
Support Policies Trade
and the Environment in the WTO |
Thurs July 13 Afternoon
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Free Afternoon and Evening |
Friday July 14 Morning |
Free Morning
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Friday July 14 1:30-4:30 ASC |
Final Exam |
Friday July 14 6:30-9 |
Departure Dinner Location TBD
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Saturday July 15 before noon
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Checkout and Departure from Crowne Plaza Fudan |
Monday July 31 by 11PM EDT |
Papers 1 and 2 Due |