Week 6

September 30, 2019     Chapter 6 - Tariffs

• Read Chapter 6 - Tariffs Chapter 6 PPT
  • Gains from Free Trade
  • An Introduction to Tariffs
    • Producer and Consumer Surplus
    • Pick a country!

October 2, 2019    Chapter 6 - Tariffs continued

• Read Chapter 6 - Tariffs
  • Gains from Trade one more time, World Price
  • Welfare cost of Tariffs - Dead Weight Loss (DWL)
• World price revisited
  • Who Gains and Who loses within a country
  • An Export Tariff
  • The Optimal Tariff
  • Tariff Escalation
• Quotas - What's an Embargo?
• Quotas
  • Producer and Consumer Surplus - Gains and losses (the welfare effects of Quotas)
  • What are quota rents?
  • Equivalence or nonequivalence of tariffs and quotas

Week 5

September 23, 2019    Review Day

• Review all the material so far!
  
  

September 25, 2019    Exam 1, Chapters 1 - 4 Plus

• TEST 1

Week 4

September 16, 2019    Finish Chapter 4: The HO Model, Stolper-Samuelson, Rybzinski Theorem, etc.

• Comparative Advantage
  
  
• Review of Theories so far - Attendance Quiz
• Major Points:
  • Adam Smith and Mercantislism - the world is positive sum = win-win
  • Models:
    • Ricardian Concepts: Productivity
    • HOS Model: Factor Endowments, that is relative amounts of resources prior to trade
  • "Add-ons"
    • Stolper-Samuelson
    • Factor Price Equalization
    • The Rybczynski Theorem
    
    

September 18, 2019     Chapter 5: Beyond Comparative Advantage

• Read Chapter 5 - The PowerPoint are here: Chapter 4 PPT
• Chapter 5: Beyond Comparative Advantage
  • Introduction: More reasons to trade
  • Intraindustry Trade
    • Characteristics: New Trade Theory
    • Oligopoly and Monopolistic Competition
    • The Gains from Intraindustry Trade
  • Trade and Geography
    • Geography, Transportation Costs, and Internal Economics of Scale
    • External Economics of Scale
    • Trade and External Economies
    • Industrial Policy
    • Market Failures
    
    
    

Week 3

September 9, 2019    Finish Chapter 3: Comparative Advantage and the Gains from Trade

• Comparative Advantage
  
  
• Read Chapter 3: Comparative Advantage and the Gains from Trade - Here's the PowerPoint Slides: Chapter 3 PPT
• Introduction: The Gains from Trade
  • Adam Smith and Mercantislism - the world is positive sum = win-win
  • A simple Model of Production and Trade
    • Absolute Productivity Advantage and the Gains from Trade
    • Note that the Cost is Opportunity Cost: production which could have been made instead
  • Comparative Productivity Advantage and the Gains from Trade
    • The Productions Possibilities Curve
    • Relative Prices
    • The Consumption Possibilities Curve
    • Autarky - "Pre-Trade"
    • The Gains from Trade
    • Domestic Prices and the Trade Price
    
    
• EIA numbers in a .pdf file - updated a week ago

September 11, 2019     Chapter 4: The HO Model

• Read Chapter 4 - The PowerPoint are here: Chapter 4 PPT
• Introduction: The Determinants of Comparative Advantage
  • Two Countries and Two Goods
  • Factor Abundance and Factor Scarcity
    • Relative adbundance of a factor implies that the relative cost is less than in scarcer countries
    • Relative Intensity and relative abundance
  • Increasing Costs: A Bowed outward PPC
    • Opportunity Cost and the slope of the Productions Possibilities Curve
    • The Consumption Possibilities Curve (CPC)
    • The Stolper-Samuelson Theorem
    • An increase in the price of a good raises the income earned by the factors used intensively in producing that good
    • The Magnification Effect

Week 2

September 2, 2019     HAPPY LABOR DAY HOLIDAY!!!

September 4, 2019     Chapter 2: International Economic Institutions Since World War II

• International Institutions
  
  
• Read Chapter 2: International Economic Institutions Since World War II - Here's the PowerPoint Slides: Chapter 2 PPT
• Introduction to Chapter 2: World Bank, International Monetary Fund (IMF), and the General Agreement on Tariffs and Trade
  • Bretton Woods, July 1944, New Hamphsire
    • In order to avoid the mistakes of the 1920s and 30s: Created the World Bank and IMF.
    • IMF: Quota based on economic size - helps when foreign exchange reserves are low or a crisis in international payments occurs (loans funds in times of crisis)
    • World Bank: Loans funds for infrastructure or development in non-industrial economies
    • GATT to the WTO: Principles of National Treatment and Most-Favored Nation (Nondiscrimination)
  • Regional Trade Agreements
    • Five Types of Regional Trade Agreements
      • EU, NAFTA, MERCOSUR, are examples
      • Arguments for and against
  • Public Goods
    • Nonexcludable and Nonrival
    • Free Riding
    • Lender of Last Resort
    
    
• Comparative Advantage
  
  
• Read Chapter 3: Comparative Advantage and the Gains from Trade - Here's the PowerPoint Slides: Chapter 3 PPT
• Introduction: The Gains from Trade
  • Adam Smith and Mercantislism - the world is positive sum = win-win
  • A simple Model of Production and Trade
    • Absolute Productivity Advantage and the Gains from Trade
    • Note that the Cost is Opportunity Cost: production which could have been made instead
  • Comparative Productivity Advantage and the Gains from Trade
    • The Productions Possibilities Curve
    • Relative Prices
    • The Consumption Possibilities Curve
    • Autarky - "Pre-Trade"
    • The Gains from Trade
    • Domestic Prices and the Trade Price
    
    
  • Quiz 3, Question #1 in Gerber

  Week 1