Economics 188 - Management and the Global Economy

Spring Quarter 2012

Professor Alan Spearot

Overview and Expectations

 

In this course, we will study the behavior of firms in the international economy, and the motivations for governments to regulate international commerce.  To do so, we will incorporate the modern theory of the firm within standard models of international trade.  Doing so requires economic theory, so I will expect that everybody gives an honest effort in working through the derivations that we cover in class.  Further, we will also cover various empirical studies.  As such, I will expect that students read through these studies in preparation for class.  Finally, we will cover a handful of business case studies to study how individual firms made decisions related to participation in the global economy.

 

Coursework and Grading

 

Grading will be based on five items.  There will be two quizzes that follow critical sections of the course.  Each will be worth 25% of your final grade.  The rest of the grade will be based on various steps in developing a paper/presentation for the course.  I will discuss the paper/presentation below.  The precise grading breakdown is summarized in the following table:

 

5%   Paper Topic

10% Paper Outline

15% Paper Presentation

20% Paper

25% Exam 1

25% Exam 2

 

 

Cheating will be dealt with harshly.  You will fail the course and be reported for academic misconduct.

 

TA

 

Sameh Habib - sfhabib85@gmail.com

Office Hours: 2-3PM and 4:45-5:45PM Monday, 403 E2

Section: Monday, 3:30PM-04:40PM, Baskin 372

 

Eva Shapiro - esshapir@ucsc.edu

Office Hours:  2-4PM Tuesday, 403 E2

Section: Wednesday, 11:00AM-12:10PM, Baskin 372

 

 

Readings

 

Reading and assignments are posted on the webpage.  Readings are linked for download.  Most readings must be downloaded from JSTOR, in which case you must download them from a university computer or be logged into the library prior to download.  Please plan ahead.  If you have a problem with downloading these papers, please let me know.

 

Business case studies must be downloaded from Harvard Business publishing.  Please use the following link to access the 188 course module:

 

http://cb.hbsp.harvard.edu/cb/access/13410486

 

The cost of each study is roughly $4, so you will have to pay via credit card when downloading each case.

 

Paper/Presentation

 

In this course, 50% of your grade will be determined by a paper and presentation.  The assignment is to pick an industry that interests you, and to write a paper summarizing that industry and how it interacts in the global economy.  Who are the major players?  What expansion strategies did these players choose?  What are the major global policies that affect this industry?

 

Office Hours

 

My office hours will be 1-3 on Fridays.  My office is 459 Engineering 2.  My email is acspearot@gmail.com.  The Course website is the following:

 

http://people.ucsc.edu/~aspearot/Econ188.htm

 

Exam Re-grades

 

Exam re-grade requests must be submitted in writing, and only after looking at the answer key.  I reserve the right to re-grade the entire exam during a re-grade.

 

Course Schedule and readings:

 

Date

Section

Title

Reading

Notes

Assignments

3-Apr

Intro

Review and Intro

Obama Speech to Export-Import Bank

 

 

5-Apr

 

Modeling Firm Behavior

Krugman

 

 

10-Apr

Exporting

Firms and Exporting

 

Optional Reading:

Helpman 2.1-2.3, 2.7

 

 

 

 

Bernard, Jenson, Redding, and Schott

 

 

12-Apr

 

Firms and Exporting

 

Optional Reading: Helpman 2.1-2.3, 2.7 (Link above)

 

 

 

 

Hummels

 

 

 

 

 

Ben and Jerry's

Harvard Case

 

17-Apr

 

Policies that affect exporters

Trefler

Optional Reading: Helpman 2.1-2.3, 2.7 (Link above)

Proposal 

(2 pages)

 

 

 

Blonigen

 

 

19-Apr

 

Policies that affect exporters

Broda and Weinstein

 

 

24-Apr

Exam 1

Practice Exam, Answers, Practice Exam 2, Answers

Actual Exam, Answers

 

EXAM

26-Apr

Writing

Practicum

 

 

 

 

1-May

FDI

Which firms invest and why?

 

Optional Reading: Helpman 2.4 (Link above)

Detailed Outline

(2 pages)

3-May

FDI

Which firms invest and why?

Feenstra

Optional Reading: Helpman 3 (Link above)

 

 

 

 

Offshoring of America

Harvard Case

 

8-May

FDI

Policies that affect foreign investment

Ireland,  FDI in China

Harvard Case

 

10-May

FDI

FDI Case Studies

Walmart in Germany,  Autos, NAFTA

Harvard Case

 

15-May

Exam 2

Practice Exam, Answers

Practice Exam 2, Answers

 Actual Exam, Answers

 

EXAM

17-May

Presentation Practicum

 

 

 

 

22-May

Management

Management Practices

Survey

 

 

24-May

Management

Management Practices

India, Environment

 

Detailed Outline

(4 pages)

29-May

Policy

GATT/WTO and Trade Agreements

Crowley

 

 

31-May

Policy

GATT/WTO and Trade Agreements

Tokarick, Cambodia, HongKong

 

 Harvard Case

 

5-Jun

 

Presentations

 

 

 

7-Jun

 

Presentations

 

 

Paper Due

(10 pages)

11-Jun

4-7PM

Presentations