IDENTIFYING DATA 2015_16
Subject (*) WORLD ECONOMY Code 16204105
Study programme
Bachelor's Degree in Finances and Accounting
Cycle 1st
Descriptors Credits Type Year Period
6 Compulsory Third 1Q
Language
Anglès
Castellà
Català
Department Economia
Coordinator
SICART BARCELO, NURIA
FIGUEROLA JIMENEZ, BERNAT ROGER
SÁNCHEZ TOSTADO, JUAN CARLOS
COCA SÁNCHEZ, JAVIER
ARAUZO CAROD, JOSEP MARIA
SOLDEVILA LAFON, MARIA VICTÒRIA
VILA CÓRCOLES, JOSE MANUEL
E-mail juancarlos.sanchez@urv.cat
josepmaria.arauzo@urv.cat
josemanuel.vila@urv.cat
mariavictoria.soldevila@urv.cat
nuria.sicart@urv.cat
bernatroger.figuerola@urv.cat
javier.coca@urv.cat
nuria.barrubes@urv.cat
anna.moskalenko@urv.cat
Lecturers
SÁNCHEZ TOSTADO, JUAN CARLOS
ARAUZO CAROD, JOSEP MARIA
VILA CÓRCOLES, JOSE MANUEL
SOLDEVILA LAFON, MARIA VICTÒRIA
SICART BARCELO, NURIA
FIGUEROLA JIMENEZ, BERNAT ROGER
COCA SÁNCHEZ, JAVIER
BARRUBÉS PIÑOL, NÚRIA
MOSKALENKO -, ANNA
Web
General description This course provides an analysis of the theories of international trade, the labor movement (migration), the movement of firms (FDI) and trade in intermediate goods (outsourcing). It also analyzes trade policy and the operation of the main instruments of this policy. The first part of the course presents business models that explain why countries trade and what gains from trade. Some of the models examined include the Ricardian model and the Heckscher-Ohlin and the new trade theories based on economies of scale and imperfect competition and outsourcing of goods and services. The second part of the course deals with trade policy. Specifically, it discusses the implementation of tariffs and import quotas and export subsidies, in perfect competition as a market structure with imperfect competition. We study the effect of these instruments on the welfare of the countries involved. Finally, the course ends with a discussion of international trade agreements and their implications in areas such as the volume of trade, labor rights and the environment.

Competences
Type A Code Competences Specific
 A7 Understand basic micro- and macroeconomic principles and their influence on the financial sector.
Type B Code Competences Transversal
 B3 Critical, logical and creative thinking, and an ability to innovate
 B4 Autonomy, responsibility and initiative
Type C Code Competences Nuclear
 C1 Have an intermediate mastery of a foreign language, preferably English
 C3 Be able to manage information and knowledge
 C4 Be able to express themselves correctly both orally and in writing in one of the two official languages of the URV

Learning outcomes
Type A Code Learning outcomes
 A7 Understand the theoretical models regarding international commerce and trading policies.
Apply analytical tools for intepreting external trade patterns and trade policies in the real world.
Type B Code Learning outcomes
 B3 Be aware of the limitations and weak points of their work processes and methods.
Find new methods for doing things.
 B4 Present results before the stipulated deadlines.
Present results in the appropriate way in accordance with the bibliography provided and before the deadline.
Type C Code Learning outcomes
 C1 Understand instructions about classes or tasks assigned by the teaching staff.
 C3 Critically evaluate information and its sources, and add it to their own knowledge base and system of values.
Have a full understanding of the economic, legal, social and ethical implications of accessing and using information.
 C4 Produce well-structured, clear and rich written texts
Produce written texts that are appropriate to the communicative situation

Contents
Topic Sub-topic
UNIT 1. Introduction.
1.1. Reasons for trade.
1.2.Trade flows, movement of people (migration) and movement of capital (FDI) nowadays.

UNIT 2. Trade and technology: the Ricardian model.
2.1. Absolute advantage and comparative advantage.
2.2. Trade and wages.
2.3. Application: Labor productivity and wages.
2.3. Other applications.

UNIT 3. Gains and losses from trade: the specific-factor model.
3.1. Mobile and specific factors.
3.2. Determination of wages.
3.3. Earning of capital and land.
3.4. Redistributive effects of trade.
3.5. Applications.

UNIT 4. Trade and resources: the Heckscher-Ohlin model.
4.1. Model assumptions and model predictions.
4.2. Application: the Leontief paradox.
4.3. The effect of trade on factor prices.
4.4. Model extensions: many goods, factors and countries.
4.5.More empirical tests of the model.

UNIT 5. Movement of labor and capital between countries.
5.1. Migration.
5.2. Foreign Direct Investment (FDI).
5.3. Applications.
5.4. Gains from migration and FDI: theory and empirical evidence.

UNIT 6. Intra-industry trade: economies of scale and perfect competition.
6.1. Monopolistic competition.
6.2. Trade and monopolistic competition.
6.3. Applications: the gravity equation and the adjustment costs due to the opening to trade.

UNIT 7. Foreign outsourcing of goods and services.
7.1. The value chain and outsourcing.
7.2. Application: outsourcing and the skilled-unskilled wage premium.
7.3. A simple model of outsourcing.
7.4. Gains from outsourcing.
7.5. Outsourcing of services.

UNIT 8. Trade policy I: tariffs and quotas under perfect competition.
8.1. A brief history of WTO and the key provisions of GATT.
8.2. Tariffs for a large and a small country.
8.3. Quotas for a large and a small country.
8.4. Applications: the Multifibre arrangment and others.

UNIT 9. Trade policy II: tariffs and quotas under imperfect competition.
9.1. Tariffs and quotas with a monopoly at home.
9.2. Infant industry protection.
9.3. Applications.
9.4. Tariffs with a foreign monopoly.
9.5. Dumping and the policy response to dumping.

UNIT 10. Trade policy III: export subsidies in agriculture and high-technology industries.
10.1 Agricultural export subsidies in a large and a small country.
10.2. Agricultural production subsidies.
10.3. High-technology export subsidies.
10.4. Applications.

UNIT 11. International agreements: trade, labor and the environment.
11.1. Multilateral and regional trade agreements.
11.2. Trade creation and trade diversion.
11.3. International trade agreements and labor issues.
11.4. International trade agreements and the environment.
11.5. Applications.


Planning
Methodologies  ::  Tests
  Competences (*) Class hours
Hours outside the classroom
(**) Total hours
Introductory activities
2 0 2
Lecture
A7
B3
34 34 68
Problem solving, classroom exercises
B3
C1
C4
20 40 60
Seminars
A7
4 4 8
Personal tuition
C4
4 4 8
 
Mixed tests
A7
B3
C1
C3
4 0 4
 
(*) On e-learning, hours of virtual attendance of the teacher.
(**) The information in the planning table is for guidance only and does not take into account the heterogeneity of the students.

Methodologies
Methodologies
  Description
Introductory activities Introduction to the material and goals of the course.
Lecture Lectures presenting the material with the help of power point prsentations.
Problem solving, classroom exercises Discussion sections where problems will be solved and the class material and applications will be discussed.
Seminars Treball en profunditat d'un tema (monogràfic). Ampliació i relació dels continguts donats a les sessions magistrals amb el quefer professional.
Personal tuition Office hours to clarify doubts and other material-related questions.

Personalized attention
Description
In order to clarify doubts and problems related to the material, the professor will hold office hours whose timetble will be announced at the beginning of the course.

Assessment
Methodologies Competences Description Weight        
Problem solving, classroom exercises
B3
C1
C4
Throught the course, students are expected to do homework sets in groups and they'll be required to hand in 3 of them. 15%
Seminars
A7


Vinculat al Simposi d’Economia organitzat per la Facultat. Els alumnes hauran de completar la prova avaluativa dissenyada en el context del Simposi.
5%
Mixed tests
A7
B3
C1
C3
In October there will be a mid-semester test consisting of several multiple choice questions, 2 short-answer questions and 1 problem or essay type of question.

During the exam week there will be a final comprehensive exam, the format of which will be announced in class or at the moodle.
30%






50%
Others  
 
Other comments and second call

The second call will consist of a final comprehensive exam and it will account for 100% of the mark.

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IMPORTANT:

It is forbidden any kind of IT device to communicate or transmit information during any kind of avaluation.


Sources of information

Basic Robert Feenstra and Alan Taylor, International Trade, Worth Publishers, 2008
Robert Feenstra y Alan Taylor , Comercio Internacional, Ed. Reverte, 2011

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Complementary

Recommendations

Subjects that continue the syllabus
INTERNATIONAL ECONOMIC RELATIONS/16204204
INTERNATIONAL ECONOMICS/16204203


Subjects that it is recommended to have taken before
PRINCIPLES OF APPLIED ECONOMICS/16204006
MICROECONOMY/16204103
(*)The teaching guide is the document in which the URV publishes the information about all its courses. It is a public document and cannot be modified. Only in exceptional cases can it be revised by the competent agent or duly revised so that it is in line with current legislation.