Introduction to the World Economy

Econ 355

Overview	Protectionism	Sample Tests
Introduction + HW3 Ranking of countries Per capita GDP in history Cantaloupe Indices Significance of Trade Babylonian culture and Tablets Prices in an Open Economy Prices in the Roman Empire	Protectionism Trade Wars Commercial Policies Why a trade surplus is bad Food Prices in Japan WTO, GATT and Trade Disputes	Lecture Schedule Your Grade (final grade) 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 + HW1 World Production Possibilty Curve Offer Curves and Trade Equilibrium Roman Emperors Along the river (in Kaifeng) at the Qingming Festival	Factor Markets Multinational Corporations	Currencies of the World Foreign Exhange Markets Balance of Payments Historic Coins of the Worldind
Specific Factors	Economic Integration	Macroeconomic Policies
Spespcific Factor Model Sericulture Derivatives Increasing Cost Numerical Example + HW2	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	The 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 Knossos Palace	Developing Countries Future China's Vision	(a) Gold Standard (b) Bretton Woods (c) Contemporary Monetary System
China	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 E-mail:kchoi@iastate.edu http://www2.econ.iastate.edu/classes/ econ355/choi/	Printing problems? Color printers are recommended. If a figure is partially printed, click the right mouse button, choose "view Image," and then print it. Browser problem? Internet Explorer has some problems viewing some equations. In this case, use Firefox. Venice	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.	Questions? TA: Mohammad Hasan Office: 468J Heady Hall Office Hours: (Questions on homework, exam, etc.) 3:30 - 5:00pm, Tu, Th or contact kchoi@iastate.edu Classroom: Carver 0305 (2:10 - 3:00pm, MWF) Midterm, (Friday) Final exam (tentative): 12:00 - 2:00pm, May 2 (Tuesday).	Textbook (optional): International Economics: Theory and Policy Paul Krugman and Maurice Obstfeld Copyright 2017 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 of the author. This guide is provided as is without any express or implied warranty. Note 1. The Urantia Book (1955, p.556-7) hit counter New counter, April 2008.

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