COURSE DESCRIPTION - Examines the history, structure, and institutional foundations of the international trading system.  Analyzes the impact of trade on economic growth, employment, and living standards with a focus on contemporary issues.

COURSE OBJECTIVES - Success in business today requires an understanding of how the international economy functions as well as an understanding of recent events.  This course provides you with a foundation for such understanding by examining the history, structure, and institutional foundations of international trade and investment.  In addition, we will examine a variety of current issues including the effect of economic integration and the recent international financial crises.   By the end of the semester, you should be able to explain why it is important to understand the international economy and demonstrate an understanding of the international economy through knowledge of:

the reasons for trade and investment flows between nations;

the key to economic prosperity in an international economy;

BOP accounts and the effect of changes in international markets and governmental policies on such accounts;

the determination of exchange rates and why major currencies float;

international financial markets and the connection to exchange rates;

the current state of international economic integration and the arguments for and against such integration;

the WTO’s efforts to improve international trade and investment; and

recent international financial crises.

• Czinkota, Ronkainen, & Moffett (1999) International Business, 5th edition, Dryden.
• The ECO300.03 (Fall 2001) website (http://www.uncg.edu/eco/dpleyden/eco300f01)
• Porter, "The Competitive Advantage of Nations," Harvard Business Review (March-April 1990), pages 73-93.

CONDUCT OF CLASSES - Learning to think (as opposed to memorizing material) requires active involvement in the learning process.  As a result, this course is not composed of lectures that simply repeat text material.  Instead, class time is devoted to case studies, overviews, question-and-answer sessions, and more general discussions.   Studies show that participation in the classroom and completion of assignments is valuable both to the student (such participation is a strong factor in successfully completing a course) and to fellow students (this course is based on a shared learning experience).  It is therefore important that you come to class ready to participate, that you turn in all outside assignments, and that you sit for all in-class examinations.

REQUIRED SKILLS - Economics is often considered to be a difficult subject because successful completion of the course requires a number of skills, some of which can only be developed slowly and through continual practice.  In general, successful completion of the course will require that you:

• know basic terms -
• relate terms that have the same meaning
• select the term that best fits a particular definition
• identify terms used in examining an economic problem
• understand economic concepts and principles -
• identify examples of economic concepts and principles
• describe economic concepts and principles in own words
• point out the interrelationship of economic principles
• explain changes in economic conditions in terms of the economic concepts and principles involved
• apply economic principles to new situations -
• describe how to solve a practical economic problem
• explain the likely cause of a change in economic conditions
• predict the probable outcome of an event
• evaluate economic arguments -
• distinguish between positive and normative arguments
• identify the main point of an economic argument
• distinguish assertions from reasons
• distinguish relevant from irrelevant arguments
• differentiate facts, reasoned judgements, and tastes

distinguish warranted from unwarranted conclusions.

MAKE-UP POLICY - All examinations must be taken at the assigned time, and all assignments must be turned in no later than the end of class on their due date, or a zero will be recorded.   Because the two lowest problem set grades are automatically dropped, there will be NO exemption for problem set assignments.  For the examinations, exceptions to this policy will only be granted for serious circumstances that are BEYOND YOUR CONTROL.  Arrangements for an exception must be made as soon as possible and in advance if at all possible.  You should be prepared to provide evidence that the situation is indeed beyond your control.

WEATHER POLICY - If the University is closed on a day in which an assignment is due or an examination is scheduled, the assignment due date or examination will be moved to the next regularly scheduled class.  If the University is closed the day of the class immediately before an assignment is due or an examination is scheduled, the assignment due date or examination date will be moved ahead one class day.  In addition, please note that in the event that the University is closed, I reserve the right to revise the remainder of the schedule as needed.  If the University is not closed but severe weather precludes you from coming to class, follow the Make-Up Policy above.

ASSIGNMENTS - There are 11 problem sets (6 taken from the Czinkota textbook and 5 written by myself) that must be done outside of class.   For details on those assignments, click on the Assignments link in the sidebar to the left.  For the list of due dates for these assignments, click on the Calendar link.

ACADEMIC INTEGRITY POLICY - The virtues of honesty, trust, fairness, respect, and responsibility are necessary if the free flow of ideas, which form the basis for true learning, is to take place.  As a result, UNCG requires that all work undertaken in this course must be carried out in good faith and with due regard for the integrity of the learning process, and that each student sign the Academic Integrity Pledge:

on all major work submitted to an instructor.  A student's work need not be graded until he/she has signed the statement, and students who do not sign the pledge may be assumed to have violated the Academic Integrity Policy.  In signing the pledge, the student indicates his/her knowledge that the Academic Integrity Policy governs his/her academic activities at the University.

SOURCE OF PROSPERITY Porter (pages 77-86)	18 September
TRADE THEORY Czinkota, Chapter 5 (pages 151-182)	20, 25, 27 September, 2, 1, 11 October
COMPETITIVE ADVANTAGE OF NATIONS Porter (reread entire article)	16 October
BALANCE OF PAYMENT ACCOUNTS Czinkota, Chapter 6 Problem Set 4 due October 23rd Problem Set 5 due October 23rd Problem  Set 6 due October 30th Problem Set 7 due October 30th	18, 23, 25, 30 October

CURRENCY MARKETS Czinkota, Chapter 7 (pages 214-237)	6, 8, 13, 15 November
FINANCIAL MARKETS Czinkota, Chapter 7 (pages 237-252)	20, 27 November
ECONOMIC INTEGRATION Czinkota, Chapter 8 Problem Set 8 due December 4th Problem Set 9 due December 4th Problem Set 10 due December 6th Problem Set 11 due December 6th	29 November, 4, 6 December