International Economics, Fall 2017

Lecturer: Professor E. Kwan Choi

Hours: 1:10 - 2:00 pm, MWF, Ross 0124

Office: 280C Heady Hall

Office Hrs: 9:00 - 10:30 am, MW, and other hours by appointment


TA: Xiaogang Li, 12:30 - 1:30pm, MWF, 75 Heady Hall

(Questions on homework, exam, etc.)


Mark Heng's sketch of Paul Krugman

Textbook (not required): Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics: Theory and Policy, 9th edition (2011)
Learning Objectives

1. Given the input-output coefficients or two goods, car and foods for instance, a student will be able to determine which country has a comparative advantage in foods. Learn two models of international trade and the implications of trade barriers.

2. Students should become familiar with the four stages of international economic integration. Students learn the roles of EU and other free trade agreements, and why the international monetary system has evolved from the gold standard to the current system.

Components of grade

First Examination: 40%

Homework: 6%

Quizzes (random) 14%

Final Exam* 40%

*The final exam is necessary for letter grades (A, B, C and D)


89% and above: A

85% and above: A-

75% and above: B

65% and above: C

55% and above: D

Exam policies Please use restrooms before the exam begins. No cell phone is allowed during the exam.


Week of Krugman and Obstfeld
August 21
Chapters 1
Chapter 2
Labor Productivity
September 4
Chapter 3
The Ricardian Trade Model
Specific Factors
Increasing Cost
Chapter 4
The Heckscher-Ohlin Model
Empirical Tests
October 2
First Exam
Chapter 8
Chapter 9
Tariffs and Welfare
World Trade Organization
Chapter 7
Factor Movements
Multinational Corporations
Economic Integration
November 6
Chapter 13
Foreign Exchange Market
Chapters 10 & 12
Developing Nations
Balance of Payments
Thanksgiving break
Chapter 18

Bretton Woods System
Current International Monetary System

December 4
Chapters 14-16
Macroeconomic Policy in an Open Economy
Final Examination (December 11, Monday, 12:00 -2:00 pm)

Disability Statements

1. "If you have a documented disability and anticipate needing accommodations in this course, please make arrangements to meet with me soon. Please request that a Disability Resources staff send a SAAR form verifying your disability and specifying the accommodation you will need."
2. “If you have a disability and require accommodations, please contact the instructor early in the semester so that your learning needs may be appropriately met. You will need to provide documentation of your disability to the Disability Resources (DR) office, located on the main floor of the Student Services Building, Room 1076, 515-294-7220.”
3. “Iowa State University complies with the American with Disabilities Act and Section 504 of the Rehabilitation Act. Any student who may require an accommodation under such provisions should contact me as soon as possible and no later than the end of the first week of class or as soon as you become aware. No retroactive accommodations will be provided in this class.”
4. “This material can be provided to you in alternative format. Anyone who anticipates difficulties with the content or format of the course due to a physical or learning disability should see me immediately in order to work out a plan. You may also want to contact the Disability Resources (DR) office, located on the main floor of the Student Services Building, Room 1076 or call them at 515-294-7220.“
5. “If a student has a disability that qualifies under the Americans with Disabilities Act and Section 504 of the Rehabilitation Act and requires accommodations, he/she should contact the Disability Resources (DR) office for information on appropriate policies and procedures. DR is located on the main floor of the Student Services Building, Room 1076-- phone 515-294-7220.”
6. “Any student who feels s/he may need an accommodation based on the impact of a disability should contact me privately to discuss your specific needs. Please contact the Disability Resources Office at 515-294-7220 in room 1076, Student Services Building to coordinate reasonable accommodations for students with documented disabilities.“
7. "If you have a documented disability that requires assistance, you will need to go to the Disability Resource (DR) Office for coordination of your academic accommodations. The DR is located in the Student Services Building, Room 1076. Their phone number is 515-294-7220, TDD 515-294-6335."
8. “Please address any special needs or special accommodations with me at the beginning of the semester or as soon as you become aware of your needs. Those seeking accommodations based on disabilities should obtain a Student Academic Accommodation Request (SAAR) form from the Disability Resources (DR) office (phone 515-294-7220). DR is located on the main floor of the Student Services Building, Room 1076.”