Introduction to the World Economy

Econ 355

Overview Protectionism Sample Tests

Introduction + HW1+HW3
Ranking of countries + HW2
One Belt, One Road Initiative
John McCain National Defense Authorization Act 2019.
Per capita GDP in history
Cantaloupe Indices
Significance of Trade
Babylonian culture and Tablets
Prices in an Open Economy
tPrices in the Roman Empire

Trade Wars
Commercial Policies

 Why a trade surplus is bad
 Food Prices in Japan
wtoWTO, GATT and Trade Disputes

Lecture Schedule

Grade book: visit canvas

Sample Test 1
Answers to Sample Test 1

Sample Test 2
Partial Answers to Sample Test 2

The Ricardian Model Factor Mobility Foreign Exchange and Balance of Payments

Absolute vs Comparative Advantage
Closed versus Open Economy
World Production Possibility Curve
Offer Curves and Trade Equilibrium
Roman Emperors
triangleAlong the river (in Kaifeng) at the Qingming Festival

Factor Markets

Multinational Corporations
Taxation of MNCs

Currencies of the World

Foreign Exhange Markets

Balance of Payments
Historic Coins of the World

Specific Factors Economic Integration Macroeconomic Policies

Specific Factors Model

Increasing Cost
Numerical Example

Economic Integration

Effects of Integration

Comparison of the Military Power of three countries before WWII

Macroeconomic Policies in an Open Economy
Keynesian and
General Models
Internal and External Balance
Effectiveness of Monetary and Fiscal Policies
Heckscher-Ohlin Model Economic Development and Trade Evolution of International Monetary System

Trading with Labor Abundant Countries
China Timeline through Pottery
Factor Price Equalization
Violations of assumptions
Stolper-Samuelson Theorem
Rybczynski Theorem
Heckscher-Ohlin Trade Theorem
Cobb-Douglas Example of the Heckscher-Ohlin Model

Leontief Paradox
triangleKnossos Palace

Developing Countries
China's Vision

(a) Gold Standard
(b) Bretton Woods
Contemporary Monetary System


Japan Europe


China's history through pottery

The House of Dancing Water, Macao

Shaolin Temple, Zhengzhou

A mural in Foguangshan Temple, Kaoshiung. (Zen Buddhism)


Mediterranean breakfast, Tel Aviv

School of Athens

Trajan's market (the first shopping mall)

The Blue Mosque, Istanbul

Contact Problems Caveat

Professor E. Kwan Choi
Department of Economics
Iowa State University
Ames, IA 50011
Fax: 515-294-9913
Tel: 515-294-5999

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alarm clock
On an experimental basis, lecture notes are made available here for a period of about 5 days after each lecture. If attendance is adversely affected, this service will be discontinued.
The basic struggle of man was, and is, and ever shall be, for land.Knowledge is possessed only by sharing it. There is no happiness without intelligent effort.1

This symbol means the subject is an extra. It will not be on the exam. There is no need to print it.

Tsai Chih Chung's cartoons are reproduced here with express permission of Asiapac Books.

Author Announcement Textbook and Copyright

Kwan Choi at Richard Daley Center,

a cartoonist's sketch

This page is designed primarily for teaching purposes.



TA: Ms. Oranuch Wongpiyabovorn

Office: 75 Heady Hall
Office Hours: 1:30 - 3:00 pm, MW (Questions on homework, exam, etc.)

or contact

Classroom: Hamilton 0169 (2:10 - 3:00pm, MWF)

Watch: The Billion dollar Day

Final exam (tentative): 12:00 - 2:00pm, May 9 (Thursday)

Complete your 'teaching evaluation of econ 355' by Kwan Choi and earn 3 bonus points . (April 19 - May 5)

Textbook (optional): International Economics: Theory and Policy

Paul Krugman and Maurice Obstfeld

Copyright 2019 by Kwan Choi. These notes may be freely redistributed in whole or part for any purpose. It may not be sold, or placed in something else for sale, without permission from the author. This guide is provided as is without any express or implied warranty.

Grand Place, Brussels, Belgium (bel001)

Jagiellonian University, Krakow, Poland. The second oldest university in Europe (war080)
Pallace of Versaille, Gates of Honour (ver004), the Treaty of Versailles planted the seed of WWII.
Red ( Beautiful) Square, Moscow (mos065)
Annunciation Cathedral, Moscow (mos096)
Qianmen Street, Beijing (bei149),
Arbeit Macht Frei ("work gives you freedom"), Auschwitz concentration camp (war041).
Kaifeng (capital of Song Dynasty, China)
Hallelujah mountains (Avatar), Zhangjiajie, China
Yuyuan garden, Shanghai
Hermitage, St. Petersburg, Xiaoqi Plaza, Shanghai.
Peterhof (Peter's palace in Russia)
donation of Shujing (Book of Documents), I Ching (Book of Changes) and Liji (Book of Rites) published in 1779 to City University of Hong Kong