Shidler College of Business University of Hawai i at Manoa Spring Bus 313 Economic & Financial Environment of Global Business

Transcription

1 Shidler College of Business University of Hawai i at Manoa Spring 2017 Bus 313 Economic & Financial Environment of Global Business Instructor: Alex Hittle W-F: 9:00-10:15am Office Hours: By Arrangement Location: C aahittle@hawaii.edu Course Description: BUS 313 The Economic & Financial Environment of Global Business introduces students to the theory of trade and international finance. Using that theoretical foundation, the course will examine a number of global regions and particular case studies. Ultimately the class should enable students to think, in a structured fashion, about the following question: How do nations best arrange their trade and financial arrangements with the rest of the world? Textbook and Materials: Textbook: International Economics, 6 th Edition, James Gerber, Pearson. Grading Structure: Midterm one: 20% Midterm two: 20% Final: 30% Issue Briefing (Pass/Fail) 20% Attendance: 10% The midterms will be on the material from the topics presented in Part I and then Part II of the course. The final will be cumulative. Exams will include quantitative problems with point answers as well as short answer problems. Calculators will be permitted. The issue briefing will require the student to make a concise oral background presentation to the class (2-3 minutes) and a short (1-2 page) written briefing document. I believe that attendance is important. I draw heavily from what I discuss in lectures to develop my exams and have found a consistent relationship between poor attendance and poor grades. I take attendance sporadically and may call on you to prepare an issue briefing or an update on your issue. If I call out your name and you are not there, it looks bad. If you do poorly on the midterms and I see that you have

2 not been attending class much, I will not be very sympathetic. I also understand that things come up in life, as a courtesy, I encourage you to you alert me ahead of time that you can t make a class a brief will do. Make-up exams can only be made under unusual circumstances. If there is a reason you cannot take an exam, you must make arrangements before the exam. Unless approved in advance, no make-up exam will be given. Academic Dishonesty: It is not worth it! It is much easier to simply learn the material rather than cheat. So don t do it. Instances of academic dishonesty, as defined by the University Student Conduct Code: ( will not be tolerated and may result in a grade of F.

3 Bus 313 Economic & Financial Environment of Global Business PART 1: Introduction and the Microeconomic Analysis of Trade 1 1/11 Introduction: None - Course structure - Main themes 2 1/13 Globalization and the Disasters: Chapter 1 - Review of Supply and Demand Curves - Edwardian Europe and the gold standard - Depression and Wars 3 1/18 After the Disasters: Chapter 2 - The Bretton Woods System - The World Bank - The IMF - The GATT 4 1/20 Trade - Microeconomic Approaches: Chapter 3 Adam Smith Absolute Advantage David Ricardo Comparative Advantage 5 1/25 Gains from Trade: Chapter 4 Heckscher-Ohlin 6 1/27 Winners and Losers: Chapter 4 Stolper-Samuelson A Game! 7 2/1 Beyond Comparative Advantage: Chapter 5 - Economies of Scale - Economic Clusters - Industrial Policy 8 2/3 Theory of Trade Barriers: Chapter 6 - Tariffs - Quotas 9 2/8 Commercial Policy: Chapter 7 - Justifying tariffs and quotas 10 2/10 Labor and Environmental Standards: Chapter 8 - Problem sheet #1 handed out 11 2/15 Review of Problem sheet #1 12 2/17 MIDTERM #1 13 2/22 Walkthrough of Midterm

4 PART 2: International Finance: Macroeconomic Theory, Trade, and Financial Flows 14 2/24 Balance of Trade and Payments: Chapter 9 - Balance of Trade - Balance of Payments - Fixed vs. floating rates 15 3/1 Exchange Rates: Chapter 10 - Purchasing power parity - Covered interest arbitrage 16 3/3 Open Economy Macroeconomics: Chapter 11 - Fiscal Policy - Monetary Policy - The J -Curve 17 3/8 Financial Crashes in International Context: Chapter 12 - Bank crashes - Currency Crashes - Debt Crashes 18 3/10 Into the Ditch #1: The US in TBD 19 3/15 Into the Ditch #2: Greece 2008-? TBD 20 3/17 Into the Ditch #3: Japan - Problem Sheet #2 handed out 21 3/22 Discussion of Problem Sheet #2 22 3/24 Midterm #2 Spring Break. No Class 3/29/17 or 3/31/ /5 Walkthrough of Midterm Kyle Bass Video

5 PART 3: Applying Theory Global Geography 24 4/7 Putting Japan in our framework: - Pivotal event - Population trends - Natural Resources - Globalization 25 4/12 The United States: Chapter 13 - The decline(?) of American Manufacturing - Migration Good Friday. No Class 4/14/ /19 The European Union: Chapter 14 - From Coal and Steel to the Euro 27 4/21 The BRICs #1 China - The greatest economic miracle of all time 28 4/26 The BRICs #2 India - Is democracy a failure? 29 4/28 The BRICs #3 Russia - Succumbing to the resource curse? 30 5/3 Review and Class Summary Final Exam: Week of 5/8/17 5/12/17