MBA507 International Economics

for F2P 2010

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Mission Statement: The mission of the School of Graduate and Professional Studies at Park University is to provide leadership and directions to Park University's graduate and professional programs to assure that they are specialized, scholarly, innovative, and designed to educate students to be creative, independent, and lifelong learners within the context of a global community.

Vision Statement: Park University's School of Graduate and Professional Studies will be an international leader in providing innovative graduate and professional educational opportunities to learners within a global society.


MBA 507 International Economics


F2P 2010 MBD


Kurien, Jacob


Adjunct Faculty



Office Location


Office Hours

By Appointment

Daytime Phone


Other Phone



Web Page

http:// "n/a"

Semester Dates


Class Days


Class Time

5:30 - 9:50 PM



Credit Hours



World Trade And Payments: An Introduction ( Tenth Edition)
Richard E. Caves
Jeffrey A. Frankel
Ronald W. Jones
Publisher: Pearson- Addison Wesley
ISBN:      0-321-22660-7

Additional Resources:

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Course Description:
MBA 507 International Economics: Analysis of the theory, structure and policies of international economic and financial institutions. Topics include international trade, trade policies, problems of international finance and exchange rates. Prerequisites: EC141 and EC142 or equivalent approved by Program Director. (Formerly EC 507)

Educational Philosophy:

  •  Be a role model for students and an able facilitator.
  •  To have a command of the subject matter.
  •  Have a concern for the students.
  •  T.o be a enthusiastic facilitator.

Learning Outcomes:
  Core Learning Outcomes

  1. Explain import and export flows using the two-country trade-triangle graphical model.
  2. Discuss Heckscher-Ohlin, Stolper-Samuelson, and Factor-Price models in terms of empirical evidence.
  3. Show how protectionism including production subsidies, tariffs, quotas, and dumping affect international trade.
  4. Explain national savings determines the trade deficit, regardless of protectionism or other international trade factors.
  5. Describe how international cartels affect international trade.
  6. Explain how the devaluation of domestic currency affects the trade balance when exchange rates are fixed versus when they are floating.
  7. Write a formal report of the research findings related to International Trade and Finance.

  Instructor Learning Outcomes
  1. Understand the dynamics of global trade.
  2. Evaluate the trends in global trade and markets.
  3. Relate the functioning of financial and exchange markets to global trade.
  4. Familiarize with the process of economic transition in the context of globalization.
Core Assessment:

Class Assessment:

  • Written Tests; Class Participation and Group Discussions; Worksheet Assignments; and Term Paper.


Mid Term Exam                             50  marks
Final Exam                                     50  marks
Class Participation                         25  marks
Group Presentation                        25  marks
Term Paper                                   50  marks

Late Submission of Course Materials:

  •  A term paper proposal will have to be submitted in the second week of the semester. The format for the proposal    will be discussed in class at the beginning of the semester.
  •  All homework and assignments must be submitted on the due dates as assigned by the Instructor. Late submission of homework/ term paper will result in lowering of grade at the discretion of the Instructor.
  •  Prior permission will have to be obtained from the Instructor for late submission.

Classroom Rules of Conduct:

  • All the students are expected to attend classes and be present in the class on time. In case of anticipated delay,  inform the Instructor by leaving a voice mail or e-mail message.
    Attendance will be taken in all working days.
  •  Use of cell phones, electronic gadgets  and/or surfing the internet is strictly prohibited in the classroom.
  •  Maintain classroom decorum and discipline to facilitate a learning environment.
  •  Mid Term and Final Exams must be taken on the dates assigned unless prior permission is obtained from the Instructor for make-up Exam.

Course Topic/Dates/Assignments:

  • Week-1: ( Chapter-1) Nature and Scope of the study of International Economics; Patterns of International Trade; ( Chapter-2) Autarky versus Free Trade; Indifference Curves and Production Possibilities Schedules; Gains from trade and Free Trade. ( Chapter-3) Growth and International Trade and the Market Structure; Discuss the format of a Term Paper.
  • Week-2: ( Chapter-4 & 5))  The Ricardian and Factor Endowments Models of Trade; ( Chapter-6) The Heckscher-Ohlin Trade Model;  ( Chapters-8) Outsourcing and Fragmentation of Production; Outsourcing and Wage Rates; ( Chapter -9)  International Capital Movements and Foreign Direct Investments. Topic for Group Discussion: Foreign Investment in the U.S.
  • Week-3: ( Chapters- 11) Growth Protection and Welfare; Protection and Unemployment; ( Chapter-13) Tariffs: Levels and Trends; Prospects for Special Protection; ( Chapter-14) Regional Preferences and Regional Trade; Trade and Growth. Topic for Group Discussion: Regional Trading Blocs: Success and Failures
  • Week-4: ( Chapter-15) Balance of Payments Accounts; Trade Balances ( Chapter-16) Supply and Demand for Foreign Exchange.   Mid- Term Exam
  • Week-5: ( Chapter-19) Purchasing Power Parity and Balance of Payments; ( Chapter-21) Globalization of the Financial Markets; The Foreign Exchange Market; Liberalization and Financial Integration. Topic for Group Discussion: U.S.Trading Partners and the Current A/c Deficits.
  • Week-6: ( Chapter-23) Fiscal and Monetary Policy under Floating Exchange Rate ( Chapter-24) Crisis in Emerging Markets; Role of IMF; Effects of Devaluation and Capital Controls. Topic for Group Discussion: Global Financial Crisis and the status of the U.S. Dollar. Review of Term Paper.
  • Week-7: ( Chapter-25) International Transmission of Disturbances under Floating Exchange Rates. ( Chapter-28) Forecasting the Spot Exchange Rate; Role of Exchange Risk.  Submission of Term Paper
  • Week-8:      FINAL EXAM

Academic Honesty:
As a learning community, the University upholds the highest standards of academic integrity in all its academic activities, by faculty, staff, administrators and students. Academic integrity involves much more than respecting intellectual property rights. It lies at the heart of learning, creativity, and the core values of the University. Those who learn, teach, write, publish, present, or exhibit creative works are advised to familiarize themselves with the requirements of academic integrity and make every effort to avoid possible offenses against it, knowingly or unknowingly. Park University 2010-2011 Graduate Catalog Page 20


Plagiarism involves the appropriation of another person's ideas, interpretation, words (even a few), data, statements, illustration or creative work and their presentation as one's own. An offense against plagiarism constitutes a serious academic misconduct.  Although offenses against academic integrity can manifest themselves in various ways, the most common forms of offenses are plagiarism and cheating. Plagiarism goes beyond the copying of an entire article. It may include, but is not limited to: copying a section of an article or a chapter from a book, reproduction of an art work, illustration, cartoon, photograph and the like and passing them off as one's own. Copying from the Internet is no less serious an offense than copying from a book or printed article, even when the material is not copyrighted.

Plagiarism also includes borrowing ideas and phrases from, or paraphrasing, someone else's work, published or unpublished, without acknowledging and documenting the source. Acknowledging and documenting the source of an idea or phrase, at the point where it is utilized, is necessary even when the idea or phrase is taken from a speech or conversation with another person.

Park University 2010-2011 Graduate Catalog Page 20

Attendance Policy:

Instructors are required to maintain attendance records and report absences. Excused absences can be granted by the instructor, for medical reasons, school sponsored activities, and employment-related demands, including temporary duty. Students are responsible for any missed work. Absences for two successive weeks, without approved excuse, will be reported to the Director of the individual graduate program, or to the Executive Director for the Graduate School, for appropriate action. Students with such a record of absences, without an approved excuse, may be administratively withdrawn from the class and notified that an "F" will be recorded, unless the student initiates official withdrawal from the class(es).Park University 2010-2011 Graduate Catalog Page 24

Disability Guidelines:
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page: .


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Last Updated:9/20/2010 9:20:46 AM