GISDepartment of Global and Interdisciplinary Studies

This class is an advanced level course of that focuses on the concept of international economics. In this class, I introduce the state of the economy as we stand now, and then we learn basic concepts and theoretical underpinning about trade.

The goal of this section is to understand the theoretical explanations of why various types of trade occur and how countries gain from trade. For example: (i) how the global supply chain works; (ii) how/why Japan’s trade patterns have changed over time; (iii) why trade creates (often temporary) income inequality, etc. We aim to the level that you can explain why certain news related to trade – for example, the Trade war, Japan’s trade deficit, why the same goods are traded across borders (e.g., Japan exports and imports automobiles at the same time).

Will be able to gain “DP 1”, “DP 2”, “DP 3”, and “DP 4”.

英語 / English

There is no textbook for this class. The PDF version of the PowerPoint File (with some space for you to write memos) will be posted on Hoppii in two days in advance. In the subsequent class, we may have a brief (5-10 minutes) discussions of the previous class, drawing on the real-world examples. At the beginning of class, feedback/questions for the previous class from students (if there are any) will be provided. I may ask some students to make comments, so I strongly recommend having a clear understanding and thinking of the actual applications of what we have learnt in the previous class. Some knowledge of Economics will help, but if you find something that you are not familiar with, please Email me at ayako.saiki.67@hosei.ac.jp

あり / Yes

なし / No

授業形態/methods of teaching：対面/face to face

※各回の授業形態は予定です。教員の指示に従ってください。

1[オンライン/online]：Introduction to the course

The class structure, grading scheme, etc., will be explained.

2[対面/face to face]：State of the World Trade

We will review the current status of the world economy, especially focusing on trade and the supply chain disruption.

3[対面/face to face]：The Era of Mercantilist

Up to the 18th century, many European countries took mercantilist policy, which often led to conflicts among states. We learn what occurred during that period, and the reason behind the idea.

4[対面/face to face]：Advantage, relative and absolute

Relative advantage is a core concept behind the basic trade model. We'll learn the difference between absolute and relative advantages.

5[対面/face to face]：Ricardian Model

Ricardian Model is the first model which gave justification to trade between countries. We study the model.

6[対面/face to face]：Heckscher-Ohlin Model

Heckscher-Ohlin Model, which considers differences in factor abundance among countries as a driver of the world trade, will be covered.

7[対面/face to face]：Discussion/Review

We'll review what we have learnt and the limitation of the models. Active discussion is strongly encouraged. All students will be asked to contribute to the discussion.

8[対面/face to face]：New Trade Model (1)

We study “the second generation” models of trade using increasing returns to scale and network effect.

9[対面/face to face]：New trade model (2)

We study the importance of intra-industry trade (trade of same goods), vertical integration, global supply chains in the world trade and their theoretical underpinning.

10[対面/face to face]：The impact of trade on income distribution

Often, some argue trade (or globalization) worsens inequality. We will review the empirical evidence and theoretical explanation.

11[対面/face to face]：Trade and exchange rate

We study how trade affect exchange rate, and vice versa.

12[対面/face to face]：Trade policy

We study various tools countries employ to govern international trade (preferential trade agreement, tariffs, import quotas), and how WTO handles them.

13[対面/face to face]：The infant industry argument

Many East Asia countries, including Japan and China, took and/or taking protectionist policies in the early phase of their economic development. We will learn how developing countries often protect certain industries and how such policies benefits/harms economic development, and what is the key ingredients of success.

14[対面/face to face]：Final Exam and Review

Close-book final exam.

Preparatory study and review time for this class are 2 hours each.

Please make sure you have your slide printed out (I prefer you to not to use laptop), and review what you have learnt, which might be on a quiz (not-pre-announced mini test). Also, if you have a particular subject matter you want to have a discussion, please let me know so that I can incorporate into the actual class. If you have any questions, please feel free to contact me via Hoppi or via Email.

There is no textbook. The PPT slide is the only required material (I will make PPT self-explanatory as much as possible). Students who want to study further, or need some textbook as a reference, recommended books are as follows:

There will be handout which will be distributed as the course progresses. But here is some interesting link you might want to check from time to time.
https://www.imf.org/en/Publications/WEO (IMF: World Economic Outlook
)
• https://www.cia.gov/the-world-factbook/ (CIA World Factbook)
The Economist, The Financial Times would be helpful to learn about the current status of the world economy.
Also, if you want to study this subject further, I recommend these two books:

(1) Caves, Frankel and Jones, “World Trade and Payments,” Pearson College Division (Used in Kennedy School of Government, Harvard university (MA Level))

(2) Krugman and Obstfeld, "International Economy: Theory and Policy". (any version is fine)

Both are available at amazon.com, but make sure you purchase from Book Depository because there are many "fake" books sold by individual seller.

There will be four “quizzes” (non-pre-announced mini-test). So I recommend you come to the class with a good understanding of what you have learned in the previous classes.
The grading will be based on the final exam (50%), quizzes (10% x 3=30%) and class participation (20%).

In the class participation, I check your understanding of the previous class, as well as the active engagement in each class via comments, your thoughts, your own experiences, etc.

In the previous year, many students gave me feedbacks that the course was too theoretical for non-Econ major students. While some theoretical explanations are necessary, I will try to make it more approachable for non-Econ students. Also, since this year’s class will be held on-campus, I would like to increase the amount of free discussion during the class.

* Academic Integrity
You are expected to be honest in all of your academic work. Allegations of alleged academic dishonesty will be subject to sanctions, including failing.
* Disability Statement
If you are a student who needs accommodations, please talk with me or go to students and present your letter of accommodation as soon as you can. In order to provide special accommodations for test etc, I need the documentation over 48 hours in advance; accommodation cannot be made retroactively. The same goes for quizzes. You cannot excuse for missing a quiz ex post (after the quiz). If you have questions about documenting a disability or requesting accommodations, please contact the Administration Office and talk to me immediately as the class starts.

Please note that if I noticed you are clearly doing something else (games, SNS, etc.), or if you are talking to other students, I would ask you to leave the class since it disturbs other students. It is also prohibited to take a photo of the blackboard. I recommend using pen and pencils instead of laptops.

There are no prerequisite class(es).