Dr. Neil Bjorksten
Winter, 1993
Department of Economics

Course description

Attendance policy:
100% attendance expected.

International Economics by Krugman and Obstfeld
International Trade by Richard Pomfret

Topics to be covered:

1. Comparative advantage and the Ricardian model
2. Relative factor endowments and the Heckscher-Ohlin model
3. Offer curves
4. Trade policy tools and the political economy of protectionism
5. Imperfect competition and strategic trade policy
6. The international currency system
7. Purchasing power parity and market exchange rate determination
8. Fixed versus floating exchange rates
9. International financial policy


The midterm exam will count for 30% of the grade.
The (cumulative) final exam will count for 50% of the grade.
Homework will count for 20% of the grade.

To reward improvement, I have decided that if the final exam score is higher than the midterm exam score, the final exam will count for 70% of the grade and the midterm exam for 10% of the grade.

The homework grade will be divided into three components: essays, problems and presentation. Essays, requiring analytical thinking, appropriate use of economic tools of analysis and written expression of ideas, will be given higher numbers of points. Problems, requiring quantitative skills, will not be given as many points as essays since it is very difficult to prevent people from copying each others' work. To discourage such copying, problems will often appear in modified form on exams. Presentation, referring to level of participation in homework sections, will be graded excellent, satisfactory or unsatisfactory, where excellent raises the homework score by a third of a grade point (for example from B + to A-), satisfactory leaves it unchanged and unsatisfactory lowers the score by a third of a grade point.

In addition, there may be unannounced 5 minute quizzes at any lecture or review session. These quizzes will always cover material from the previous lecture. Quiz scores will only be used to determine borderline cases when final grades are assigned; they may affect a grade positively or negatively.

CRC-Curriculum Resource Center
CEU Budapest, Hungary
Modified: May, 1996


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