Contacts | Class structure | Text | Podcasts | Questions | Requirements | Schedule | Policies | Readings |
Classes: | 8/26 | 8/28 | 9/4 | 9/9 | 9/11 | 9/16 | 9/18 | 9/23 | 9/25 | 9/30 |
10/2 | 10/7 | 10/9 | 10/16 | 10/21 | 10/23 | 10/28 | 10/30 | |||
11/4 | 11/6 | 11/11 | 11/13 | 11/18 | 11/20 | 11/25 | 12/2 | 12/4 |
Alan Deardorff: | |||
Office: | 5304 Weill (But I may never be there, unless you ask for an in-person appointment) | ||
Phone: | 734-239-5914 (My cell, but I prefer you to use email) | ||
Office Hours: | Mondays and Thursdays 10-11 AM via Zoom | ||
E-mail: | alandear@umich.edu | ||
Feel free to e-mail me with questions or to request a virtual meeting outside of my office hours. | |||
Zoom Links: (for classes and office hours) | |||
Class sessions: | https://umich.zoom.us/j/95778615598 Passcode = 541 | ||
Office hours: Sign in through Canvas / Zoom | |||
Course Home Page: | |||
https://websites.umich.edu/~alandear/courses/541/541.html |
PURPOSE: | The aim of this course is to teach you a lot about the economics -- and a little about the institutions -- of international trade and trade policy. The course is companion to SPP 542, International Finance Policy, which deals with international macroeconomic topics such as the balance of trade and balance of payments, determination of exchange rates, and international macroeconomic policies. Each course also includes some bare essentials of the other course so that if you take only one of them, you won't be lost in the world economy.
The course is mainly about trade policy. You will learn what trade policies are, how they are used by the United States and other countries, and how their use is restricted by international agreements. More importantly you will learn how to use economic modeling to understand the effects of trade policies and to quantify those effects. Along the way you will also learn about the institutions of the world economy, especially those that have to do with trade. And you will learn a little bit about the economic theories of why nations trade, why economists argue that nations gain from trade, and why there are also losers from trade.
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Prerequisite: | PubPol/Econ 555 or equivalent course in intermediate microeconomics |
Organization: | The course meets twice a week, Mondays and Wednesdays, 8:30-9:50 AM, online via Zoom. |
Room reserved: | While the class will meet only online, some of you may need a quiet place to access it if you need to be on campus for other courses. The registrar has reserved 1220 Weill Hall for your use during the MW 8:30-9:50 class time, and you are welcome to use that space to access the course with your own laptop. |
Jackson, John H., The World Trading System: Law and Policy of International Economic Relations, Second Edition, MIT Press, 1997, isbn #0-262-60027-7, out of print (see below).
NOTE on the Krugman, Obstfeld, Melitz text:
The most recent edition, the 12th, came out in 2022. I list page numbers for that and for the previous edition, the 11th. An earlier edition exists in a trade-only version that would be acceptable except that it excludes chapters on exchange rates and balance of payments, which I also assign, so I've made those available on Canvas.
NOTE on the Jackson text:
There are also many additional readings that are required. All are available under Files/Readings on Canvas, and are linked to on this syllabus. Many of the readings are also available free to the public on the web, through links included on this syllabus. A few readings are available through subscription sites, including ones subscribed to by U of M (e.g., JSTOR). And many (especially from news sources) are available only on Canvas.
Because of the speed with which issues evolve, readings selected in advance can never cover all of the latest developments. We will therefore spend time each week discussing recent news related to trade and trade policy. You should follow current issues of international trade policy by reading daily periodicals such as the Wall Street Journal, New York Times, or Financial Times or weekly publications such as Business Week or The Economist. Student subscriptions to these publications are available at reduced prices. I also post links to relevant news items on my personal website. We will devote some time each week to discussing the news.
PODCASTS
For the last siz years, the Peterson Institute for International Economics has provided weekly podcasts, Trade Talks, most of them featuring Soumaya Keynes of The Economist and PIIE scholar Chad Bown, discussing topics of international trade policy. I include links to a number of these at appropriate points in the syllabus marked Optional to Hear. I have not listened to many of them myself, but I've heard enough to know that they are valuable, if you can take the time to listen to them.
REQUIREMENTS
Requirements for the course consist of three graded short papers handed in during the term, graded weekly quizzes, and class participation. There is also a series of problem sets that you may wish to work through, though they will not be graded, and are not particularly relevant for the papers nad quizzes.
The weights on each of these requirements in determining your grade will be as follows:
Problem Sets | 0% | |
Papers | 45% | (15% for each of three papers) |
Quizzes | 40% | (4% for each of your top ten) |
Class participation | 15% |
Quizzes: | Due every Friday (except 11/29) | 11:59 PM (Accepted late to Sat 11:59 PM with 1 point penalty) |
Paper #1: | Wednesday, October 2 | 8:30 AM |
Paper #2: | Wednesday, November 6 | 8:30 AM |
Paper #3: | Wednesday, December 11 | 8:30 AM |
WRITING ASSISTANCE
I will grade your papers on both content and presentation, which means you should take full advantage of the Ford School resources for helping you with your writing. See http://fordschool.umich.edu/writing-center/ for more information, including links to the websites for signing up for advising appointments. This assistance is available to all students in Ford School courses, such as this, whether or not you are enrolled in a Ford School program. |
FORD SCHOOL POLICIES AND EXPECTATIONS
Ford School Public Health Protection Policy:
In order to participate in any in-person aspects of this course, including meeting with other students to study or work on your group papers, you must follow all the public health safety measures and policies put in place by the State of Michigan, Washtenaw County, the University of Michigan, and the Ford School. Up to date information on U-M policies can be found here. It is expected that you will protect and enhance the health of everyone in the Ford School community by staying home and following self-isolation guidelines if you are experiencing any symptoms of COVID-19.
Inclusivity: Members of the Ford School community represent a rich variety of backgrounds and perspectives. We are committed to providing an atmosphere for learning that respects diversity. While working together to build this community we ask all members to:
Accommodations for Students with Disabilities: If you believe you need an accommodation for a disability, please reach out to U-M Services for Students with Disabilities (SSD) office to help determine appropriate academic accommodations and how to communicate about your accommodations with your professors. Any information you provide will be treated as private and confidential. Student Mental Health and Well-Being Resources: The University of Michigan is committed to advancing the mental health and wellbeing of its students. We acknowledge that a variety of issues, both those relating to the pandemic and other issues such as strained relationships, increased anxiety, alcohol/drug problems, and depression, can directly impact students’ academic performance and overall wellbeing. If you or someone you know is feeling overwhelmed, depressed, and/or in need of support, services are available. You may access counselors and urgent services at Counseling and Psychological Services (CAPS) and/or University Health Service (UHS). Students may also use the Crisis Text Line (text '4UMICH' to 741741) to be connected to a trained crisis volunteer. You can find additional resources both on and off campus through the University Health Service and through CAPS. Academic Integrity: The Ford School academic community, like all communities, functions best when its members treat one another with honesty, fairness, respect, and trust. We hold all members of our community to high standards of scholarship and integrity. To accomplish its mission of providing an optimal educational environment and developing leaders of society, the Ford School promotes the assumption of personal responsibility and integrity and prohibits all forms of academic dishonesty, plagiarism and misconduct. Academic dishonesty may be understood as any action or attempted action that may result in creating an unfair academic advantage for oneself or an unfair academic advantage or disadvantage for any other member or members of the academic community. Plagiarism involves representing the words, ideas, or work of others as one’s own in writing or presentations, and failing to give full and proper credit to the original source. Conduct, without regard to motive, that violates the academic integrity and ethical standards will result in serious consequences and disciplinary action. The Ford School's policy of academic integrity can be found in the MPP/MPA, BA, and PhD Program handbooks. Additional information regarding academic dishonesty, plagiarism and misconduct and their consequences is available at: http://www.rackham.umich.edu/current-students/policies/academic-policies/section11#112. Use of Technology Students should follow instructions from their instructor as to acceptable use of technology in the classroom, including laptops, in each course. All course materials (including slides, assignments, handouts, pre-recorded lectures or recordings of class) are to be considered confidential material and are not to be shared in full or part with anyone outside of the course participants. Likewise, your own personal recording (audio or video) of your classes or office hour sessions is allowed only with the express written permission of your instructor. If you wish to post course materials or photographs/videos of classmates or your instructor to third-party sites (e.g. social media), you must first have informed consent. Without explicit permission from the instructor and in some cases your classmates, the public distribution or posting of any photos, audio/video recordings or pre-recordings from class, discussion section or office hours, even if you have permission to record, is not allowed and could be considered academic misconduct. Technology in this class: Regarding technology, you will of course be using it for our class meetings, since they are all online. You are welcome to use whatever devices you find helpful during class, such as looking up current news and other information relevant to class discussion. Quizzes will be open book, and you will be welcome to use online resources (but not other students) to help you, subject to the quiz time limit. In this class, contrary to what is stated above, not all course materials are confidential, because I post them on my publicly available website. Specifically, this syllabus and the associated list of readings, slides for each class, and the assignments are all available there. Therefore you are also free, if you wish, to share them with others. The questions that I provide on the readings for each class are also posted on my public website, as will my answers to those questions after the quizzes associated with them have been graded, so these too can be shared if you wish. Quiz questions and answers, however, should not be shared. Please review additional information and policies regarding academic expectations and resources at the Ford School of Public Policy at: https://intranet.fordschool.umich.edu/academic-expectations. |
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0. | Introduction to the Course (Class 0: Aug 26) | |||||
No readings for today. For all subsequent classes, you should read everything assigned before the class meets. I've listed the numbers of pages for each reading and for each topic, so plan accordingly. Today: I will introduce myself and ask each of you to introduce yourselves, so plan to turn on your microphone and camera. Tell the class:
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Following that I will present some background information about the international economy and trade. | ||||||
Optional to View:
Kudlow, "Don't blame Trump' for trade fights" YouTube (2:14) Oliver, "Trade" YouTube (21:13) | ||||||
I. | Overview of the International Economy | |||||
A.1. | The State of Play in International Trade and Trade Policy I: Trade Wars (Class 1: Aug 28) [53 pp + Opt 37 pp] Questions | |||||
Bown & Kolb, "Trade War Timeline" | Online (PDF). [27 pp] | ||||||
Steel & Aluminum: | ||||||
Reuters, "Biden extends EU steel, aluminum tariff exemption for 2 years" | Canvas. [2 pp] | ||||||
Rampell, "The terrible lesson Biden learned from Trump on trade" | Canvas. [2 pp] | ||||||
Optional to Read: | ||||||
Wall Street Journal Editorial Board, "Call Them the Biden-Trump Tariff's Now" | Canvas.[2 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #159, "How Biden and Europe settled Trump's steel and aluminum tariffs" 11/7/21 | Podcast [22:44 minutes] | ||||||
Trade Talks #175, "The dreaded WTO ruling on Trump’s national security tariffs" 1/22/23 | Podcast [54:36 minutes] | ||||||
China Tariffs: | ||||||
Swanson, "The Contentious U.S.-China Relationship, by the Numbers" | Canvas.[2 pp] | ||||||
White House, "FACT SHEET: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices" | Online. [7 pp] | ||||||
~Foroohar, "Not all American tariffs are created equal" | Canvas. [3 pp] | ||||||
Bounds et al., "EU to hit Chinese electric cars with tariffs of up to 48%" | Canvas. [4 pp] | ||||||
Williams, "US targets Chinese steel exports with tariffs on shipments via Mexico" | Canvas. [2 pp] | ||||||
Optional to Read: | ||||||
Manak et al., "The Cost of Trump’s Trade War with China Is Still Adding Up" | Online [7 pp] | ||||||
Bown and Wang, "Five years into the trade war, China continues its slow decoupling from US exports" | Online (PDF). [17 pp] | ||||||
Warner, "How Companies Dodge Tariffs" | Canvas. [2 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #118, "Ins and Outs of the US-China Phase-One Trade Deal" 1/18/20 | Podcast [44:58 minutes] | ||||||
Trade Talks #181, "US-China trade war fallout: This is what decoupling looks like" 3/21/23 | Podcast [45:43 minutes] | ||||||
Semiconductors: | ||||||
Mozur and Liu, "With Ban on Micron, China Escalates Microchip Clash With U.S." | Canvas.[2 pp] | ||||||
Sohn et al., "China’s Export Curb on Chip-Making Metals Prompts Countries to Explore Supply-Chain Diversification" | Canvas.[4 pp] | ||||||
Optional to Read: | ||||||
Hayashi and McKinnon, "U.S. Looks to Restrict China’s Access to Cloud Computing to Protect Advanced Technology" | Canvas.[4 pp] | ||||||
Economist, "Castles made of silicon: Should the world fear China's chipmaking binge?" | Canvas. [5 pp] | ||||||
Optional to View: | ||||||
Miller, Chris, "Chip War: The Fight for the World's Most Critical Technology" 2/23/23 | Video [84 minutes] | ||||||
Optional to Hear: | ||||||
Trade Talks #170, "National security, semiconductors, and the US move to cut off China" 11/2/22 | Podcast [59:33 minutes] | ||||||
Quiz 0, Due Fri, Aug 30 11:59 PM Practice Quiz, not for credit *********************************** | ||||||
A.2. | The State of Play in International Trade and Trade Policy II: Other (Class 2: Sep 4) [42 pp + Opt 49 pp] Questions | |||||
Optional to Read: | ||||||
KOM: [21 pp]
Ch. 1, "Introduction" Ch. 2, "World Trade: An Overview" | ||||||
BREXIT: | ||||||
Kirkegaard, "The Brexit agreement: An economic guide for the perplexed" | Online. [4 pp] | ||||||
Colchester and Luhnow, "As Britain Gears Up for an Election, No One Is Talking About Brexit" | Canvas. [5 pp] | ||||||
Optional to Read: | ||||||
Economist, "The story of a divorce: How Brexit happened" | Canvas.[8 pp] | ||||||
Economist, "Brexit and Northern Ireland: Explaining what is in the Windsor framework" | Canvas.[2 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #154, "Global Britain: How's that going then?" 6/17/21 | Podcast [27:55 minutes] | ||||||
CHINA TRADE ACTIONS: | ||||||
White, "China bans export of rare earth processing technologies" | Canvas. [2 pp] | ||||||
Winning, "China to Lift Tariffs on Australian Wine, as Frosty Relations Thaw" | Canvas. [3 pp] | ||||||
Huang, "China to Impose Export Controls on Aviation Equipment, Technology" | Canvas. [1 pp] | ||||||
RUSSIA SANCTIONS: | ||||||
Bown, "Russia's war on Ukraine: A sanctions timeline" | Online. [4 pp] | ||||||
Sanger et al., "U.S. Expands Sanctions on Russia as G7 Leaders Gather" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
Funakoshi et al., "Tracking sanctions against Russia" ("Sanctions by Countries" only) | Online. [11 pp] | ||||||
OTHER DISPUTES, ACTIONS, AND EVENTS: | ||||||
EU Carbon Tariff: | ||||||
Hancock and Dempsey, "Aluminium companies complain about EU carbon border tax loophole" | Canvas.[3 pp] | ||||||
Mooney, "US examines carbon pricing on imports, climate envoy says" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
Financial Times Editorial Board, "The EU’s pioneering carbon border tax" | Canvas.[3 pp] | ||||||
Shipping Disruptions: | ||||||
Financial Times Editorial Board, "Global trade shudders over blockages in the Suez and Panama canals" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
Lerman et al., "See how the Key Bridge collapse will disrupt the supply of cars, coal and tofu" | Canvas. [4 pp] | ||||||
Forced labor import ban: | ||||||
Swanson, "U.S. Bans Imports From 3 Chinese Companies Over Ties to Forced Labor" | Canvas. [3 pp] | ||||||
EU Deforestation import ban: | ||||||
Economist, "The forest for the trees: How EU do-goodery risks harming Africa’s small farmers" | Canvas. [2 pp] | ||||||
Vietnam market-economy status: | ||||||
Lakshmi, "US rejects Vietnam’s bid for ‘market economy’ status in blow to trade ties" | Canvas. [3 pp] | ||||||
EU-MERCOSUR FTA: | ||||||
Pooler et al., "EU inches closer to trade deal with South America" | Canvas. [3 pp] | ||||||
Quiz 1, Due Fri, Sep 6 11:59 PM State of Play *********************************** | ||||||
B. | Tariffs and Quotas (Classes 3, 4: Sep 9, 11) [37 pp + Opt 16 pp] Questions | |||||
KOM: [12 pp]
"Basic Tariff Analysis" "Costs and Benefits of a Tariff" 12th Ed.: Ch. 9, pp. 216-227 11th Ed.: Ch. 9, pp. 215-226 10th Ed. (trade only): Ch. 9, pp. 206-217, 220-224 | ||||||
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 1-12 | Online (PDF) [12 pp] | ||||||
Lahart, "The Imperfect Science of How Much Tariffs Will Hurt". | Canvas.[2 pp] | ||||||
Martin, "US Importers Bore Cost of Trump’s China Goods Tariffs, ITC Says". | Canvas.[3 pp] | ||||||
Economist, "The Tijuana two-step: How Chinese goods dodge American tariffs". | Canvas. [4 pp] | ||||||
Wolf, "Tariffs are bad policy, but good politics". | Canvas. [4 pp] | ||||||
Optional to Read: | ||||||
Deardorff, "Analysis of Tariffs and Quotas" | Canvas.[16 pp] | ||||||
Optional to View: | ||||||
Touillon-Ricci, "A 4,000-year old tale of trade and contraband" (7:54) (Tariffs are not new!) | ||||||
Optional to Hear: | ||||||
Trade Talks #122, "Tariffs, Protests and Wine" 2/23/20 | Podcast [29:58 minutes] | ||||||
Trade Talks #130, "So you want to design a tariff schedule..." 5/31/20 | Podcast [33:14 minutes] | ||||||
Quiz 2, Due Fri, Sep 13 11:59 PM Tariff Analysis *********************************** | ||||||
C. | Exchange Rates (Class 5: Sep 16) [27 pp] Questions | |||||
KOM: [11 pp]
"Exchange Rates and International Transactions" "The Foreign Exchange Market" 12th Ed. Ch 14, pp. 356-364 11th Ed. Ch 14, pp. 350-360 Canvas (for those who have an older trade-only text) | ||||||
Economist, "The Big Mac index: What the Big Mac index says about the dollar and the dong" | Canvas.[4 pp] | ||||||
Economist, "Burgernomics: The Big Mac index: where to buy a cheap hamburger" | Canvas.[4 pp] | ||||||
Economist, "What comes after Bretton Woods II?" | Canvas.[3 pp] | ||||||
McDougall, "US dollar to maintain dominance over next decade, say central banks" | Canvas.[4 pp] | ||||||
Eichengreen , "The fate of dollar rests on the US election" | Canvas. [3 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #95, "Is China a Currency Manipulator?" 8/9/19 | Podcast [22:33 minutes] | ||||||
Trade Talks #104, "How to Hit Currency Manipulators and Fight the Strong Dollar" 12/19/19 | Podcast [29:01 minutes] | ||||||
D. | International Transactions and the Trade Balance (Class 6: Sep 18) [47 pp + Opt 14 pp] Questions | |||||
KOM: [25 pp]
Ch 13, "National Income Accounting and the Balance of Payments" Canvas (for those who have an older trade-only text) | ||||||
Berg, "A look at the U.S. International Transactions, First Quarter 2024" | Online [10 pp] | ||||||
Obstfeld, "Targeting specific trade deficits is a game of whack-a-mole" | Canvas.[2 pp] | ||||||
Krugman, "Of Dictators and Trade Surpluses" | Canvas. [2 pp] | ||||||
~Pettis, "No, trade surpluses aren’t caused by comparative advantage" | Canvas. [4 pp] | ||||||
Bradsher, "China Reaches Record Trade Surplus, Raising Alarm Abroad" | Canvas. [4 pp] | ||||||
Optional to Read: | ||||||
~Scott & Mokhiber, "Growing China trade deficit cost 3.7 million American jobs" pp. 1-9 only | Online (PDF) [9 pp] | ||||||
~Buffett, "America's Growing Trade Deficit Is Selling the Nation Out From Under Us" | Online (PDF) [5 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #98, "What's Wrong with Germany's Trade Surplus" 8/28/19 | Podcast [31:46 minutes] | ||||||
Quiz 3, Due Fri, Sep 20 11:59 PM Exchange Rates and BOP *********************************** | ||||||
E. | Policies and Institutions: International (Classes 7, 8: Sep 23-25) [59 pp + Opt 43 pp] Questions | |||||
KOM: [10 pp]
"International Negotiations and Trade Policy" "BOX: Settling a Dispute -- And Creating One" "CASE STUDY: Testing the WTO's Metal" 12th Ed.: Ch. 10, pp. 264-272 11th Ed.: Ch. 10, pp. 260-269 10th Ed. (trade only): Ch. 10, pp. 252-262 | ||||||
Jackson, Ch. 1 pp. 1-11 Canvas. [11 pp] | ||||||
Jackson, Ch. 2 pp. 49-58 Canvas. [10 pp] | ||||||
Rodrik, "What Do Trade Agreements Really Do?" | Canvas. [18 pp] | ||||||
Kugler and Morgan, "The MPIA: A Viable Temporary Alternative)" (omit Colombia-Frozen Fries)| Online. [4 pp] | ||||||
Denamiel et al., "Insight into the 13th WTO Ministerial Conference" Online. [6 pp] | ||||||
Optional to Read: | ||||||
Jackson, Ch. 2 pp. 31-49, 58-78 Canvas. [31 pp] | ||||||
Schlesinger, "How China Swallowed the WTO" | Canvas. [12 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #60, "America May Be Doing Away with WTO Dispute Settlement" 10/28/18 | Podcast [31:50 minutes] | ||||||
Trade Talks #180, "The WTO is in trouble. Econ 101 to the rescue?" 3/212/23 | Podcast [1:10:41 minutes] | ||||||
Quiz 4, Due Fri, Seo 27 11:59 PM International Institutions *********************************** | ||||||
F. | Policies and Institutions: National, United States (Class 9: Sep 30) [40 pp + Opt 5 pp] Questions | |||||
Jackson, Ch. 3, pp. 79-100 Canvas. [21 pp] | ||||||
Verrill, "An Introduction To Trade Remedies Available Under U.S. Law" | Canvas. [3 pp] | ||||||
USTR, "USTR Releases President Biden’s 2024 Trade Policy Agenda and 2023 Annual Report" | Online. [2 pp] | ||||||
Economist, "Trade mission: Taking stock of America’s flagship trade programme for Africa," | Canvas. [4 p] | ||||||
Fefer et al., "Section 232 Investigations: Overview and Issues for Congress," | Canvas. [2 p] | ||||||
Tai, "Trade must transform its role in the social contract," | Canvas. [3 p] | ||||||
Tankersley, "Biden’s Trade Moves Raise Tensions Abroad but Draw Cheers in Swing States," | Canvas. [5 p] | ||||||
Optional to Read: | ||||||
Rampell, "What women’s underwear tells us about our trade system" | Canvas. [5 pp] | ||||||
G. | Policies and Institutions: National, Other (Class 10: Oct 2) [44 pp] Questions | |||||
European Union: | ||||||
Jackson, Ch. 3, pp. 100-104 Canvas. [5 pp] | ||||||
EC, "The European Union in Brief" | Canvas. [5 pp] | ||||||
EC - Trade, "Making Trade Policy" | Online [2 pp] | ||||||
Matthijs and Parsons, "Single-Market Power: How Europe Surpassed America in the Quest for Economic Integration." | Canvas. [6 pp] | ||||||
Economist, "The Trade War Within" | Canvas. [3 pp] | ||||||
Bounds, "EU seeks protected status for goods such as Donegal tweed and Limoges porcelain" | Canvas. [2 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #148, "The EU's new trade policy, with Sabine Weyand of DG Trade" 1/17/21 | Podcast [41:31 minutes] | ||||||
Japan: | ||||||
Jackson, Ch. 3, pp. 104-105 Canvas. [1 p] | ||||||
METI, "Trade Control" | Online [1 p] | ||||||
WTO, "Trade Policy Review: Japan" | Online-PDF [5 pp] | ||||||
China: | ||||||
MOFCOM, "Mission" of the Ministry of Commerce, People's Republic of China | Online. [4 pp] | ||||||
WTO, "Trade Policy Review: China" | Online-PDF [6 pp] | ||||||
Wei, "China Spends Far More Than Others to Help Favored Industries, Report Finds" | Canvas. [4 pp] | ||||||
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Paper 1, Due Wednesday, Oct 2 8:30 AM ************************************************** | ||||||
Quiz 5, Due Fri, Oct 4 11:59 PM National Institutions *********************************** | ||||||
II. | Trade Barriers | |||||
A. | Non-tariff Barriers (Class 11: Oct 7) [46 pp] Questions | |||||
KOM: [10 pp]
"Import Quotas: Theory" "Voluntary Export Restraints" "Local Content Requirements" "Other Trade Policy Instruments" 12th Ed.: Ch. 9, pp. 233-241 11th Ed.: Ch. 9, pp. 229-238 10th Ed. (trade only): Ch. 9, pp. 217-220, 224-227, 232-235 | ||||||
Jackson, Ch. 5, pp. 153-156 Canvas. [3 pp] | ||||||
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 12-16 | Canvas. [5 pp] | ||||||
Feenstra, "How Costly Is Protectionism?" | Canvas. [20 pp] | ||||||
Beattie, "Mind your TRQs: a Brexit lesson in global trade" | Canvas. [4 pp] | ||||||
Economist, "Buying local is more expensive than it looks" | Canvas. [4 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #49, "Are Trump's Steel Quotas Worse than His Steel Tariffs?" 8/1/18 | Podcast [20:26 minutes] | ||||||
B. | Export Policies (Class 12: Oct 9) [35 pp + Opt 22 pp for Intermission] Questions | |||||
Laborde et al., "A Global Assessment of the Economic Effects of Export Taxes" | Canvas. [17 pp after omissions] | ||||||
Beckman et al., "The impacts of export taxes on agricultural trade" | Online [4 pp] | ||||||
Godek, "Why China’s Export Controls on Germanium and Gallium May Not Be Effective" | Online [6 pp] | ||||||
Beattie, "Why export controls are failing to cripple their targets" | Canvas [4 pp] | ||||||
Savage and Jilani, "Pakistan rice exports hit record following Indian sales ban" | Canvas [4 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #146, "Semiconductors and US export bans -- from Huawei to SMIC" 12/20/20 | Podcast [32:35 minutes] | ||||||
Quiz 6, Due Fri, Oct 11 11:59 PM NTBs and Export Taxes *********************************** | ||||||
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Optional to Read: Questions | ||||||
Scott, "It's time to end the male monopoly in international trade" | Canvas. [5 pp] | ||||||
Economist, "Making trade greener: When environmental protection turns into trade protection " | Canvas. [6 pp] | ||||||
Telling, "China urges developing countries to oppose ‘unrealistic’ shipping levy" | Canvas. [3 pp] | ||||||
Economist, "The urge to protect: How trade restrictions are being used as a tool to protect human rights" | Canvas. [6 pp] | ||||||
Swanson, "Foreign Trade Competition Has Hurt Black and Disadvantaged Workers Most, Report Says" | Canvas. [2 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #124, "Is Trade Bad for Women?" 3/5/20 | Podcast [21:07 minutes] | ||||||
C. | Multi-Market Analysis (Class 13: Oct 16) [13 pp] Questions | |||||
Deardorff, "Trade Policy with Interacting Markets" | Canvas. [13 pp] | ||||||
D. | Why Countries Restrict Trade (Class 14: Oct 21) [46 pp + Opt 19 pp] Questions | |||||
KOM: [14 pp]
"The Case for Free Trade" "National Welfare Arguments against Free Trade" "Income Distribution and Trade Policy" "BOX: Politicians for Sale: Evidence from the 1990s" 12th Ed.: Ch. 10, pp. 251-262 11th Ed.: Ch. 10, pp. 246-259 10th Ed. (trade only): Ch. 10, pp. 236-252 | ||||||
Baldwin and Magee, "Is Trade Policy for Sale?" | Online-Springer (PDF) [22 pp] | ||||||
Magee, "Why Are Trade Barriers So Low?" | Online-Wiley [6 pp] | ||||||
Krugman, "Wonking Out: Two Cheers for Carbon Tariffs" | Canvas. [3 pp] | ||||||
Ponnuru, "The politics of trade favor Trump in 2024" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
Deardorff and Stern, "Introduction" | Canvas. [19 pp] | ||||||
Optional to Hear: | ||||||
Davidson, "U.S. Tariffs On Shoes" | Online [4 minutes] | ||||||
Trade Talks #121, "Can Infant Industry Protection Work? Evidence from Napoleon" 2/12/20 | Podcast [24:09 minutes] | ||||||
Trade Talks #156, "Tackling climate change with a carbon border adjustment mechanism" 7/25/21 | Podcast [43:45 minutes] | ||||||
Trade Talks #198, "Inside Washington’s lobbying industry" 12/3/23 | Podcast [33:02 minutes] | ||||||
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III. | The Theory of International Specialization and Exchange | |||||
A. | The Standard Trade Model (Classes 15, 16: Oct 23, Oct 28) [26 pp] Questions | |||||
KOM: [22 pp]
"The Standard Trade Model" Ch. 6 (any edition) | ||||||
Bernhofen & Brown, "Evidence from nineteenth century Japan" | Online [4 pp] | ||||||
Quiz 7, Due Fri, Oct 25 11:59 PM Multi-Market and Why Restrict *********************************** | ||||||
B. | Behind the Standard Trade Model: Comp. Adv., Inc. Dist. (Class 17: Oct 30) [51 pp] Questions | |||||
KOM, on comparative advantage: [15 pp]
"The Concept of Comparative Advantage" "A One-Factor Economy" "Trade in a One-Factor World" "BOX: The Case of Babe Ruth" "BOX: The Losses from Nontrade" "Misconceptions about Comparative Advantage" "BOX: Do Wages Reflect Productiity? 12th Ed.: Ch. 3, pp. 25-40 11th Ed.: Ch. 3, pp. 24-40 10th Ed. (trade only): Ch. 3, pp. 24-40 KOM, on effects of trade: [10 pp] "Effects of International Trade between Two-Factor Economies" "CASE STUDY: North-South Trade and Income Inequality" "Factor-Price Equalization" 12th Ed.: Ch. 5, pp. 97-102, 107-108 11th Ed.: Ch. 5, pp. 97-102, 107-108 10th Ed. (trade only): Ch. 5, pp. 94-98, 102-103 | ||||||
Deardorff, "Intro to Comparative Advantage" | Online (PDF) [7 pp] | ||||||
Freeman, "Are Your Wages Set in Beijing?" | Online-JSTOR (PDF) [19 pp] | ||||||
Quiz 8, Due Fri, Nov 1 11:59 PM Standard Model *********************************** | ||||||
C. | Scale Economies and Imperfect Competition (Class 18: Nov 4) [25 pp] Questions | |||||
KOM: [25 pp]
"External Economies of Scale and the International Location of Production" (Except "Interregional Trade and Economic Geography") "The Theory of Imperfect Competition" "Monopolistic Competition and Trade" 12th Ed.: Ch. 7, pp. 151-164; Ch. 8, pp. 170-180 11th Ed.: Ch. 7, pp. 151-164; Ch. 8, pp. 170-180 10th Ed. (trade only): Ch. 7, pp. 145-156; Ch. 8, pp. 164-174
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Paper 2, Due Wednesday, Nov 6 8:30 AM ************************************************** | ||||||
IV. | Uses and Abuses of Trade Policy | |||||
A. | Preferential Trading Arrangements (Class 19: Nov 6) [49 pp + Opt 12] Questions | |||||
KOM: [7 pp]
"The End of Trade Agreements?" "BOX: Do Agricultural Subsidies Hurt the Third World?" "Preferential Trading Agreements" "BOX: Free Trade Area Versus Customs Union" "BOX: Brexit" "CASE STUDY: Trade Diversion in South America" "The Trans-Pacific Partnership" 12th Ed.: Ch. 10, pp. 273-280 11th Ed.: Ch. 10, pp. 269-276 10th Ed. (trade only): Ch. 7, pp. 263-268 | ||||||
WTO, "Causes and Effects of PTAs" pp 94-109 | Online (PDF) [16 pp] | ||||||
Posen, "The Errors of Conservatives Obscure the Case for Trade" | Canvas. [2 pp] | ||||||
Deardorff and Sharma, "The Simple Analytics of Trade Creation and Diversion" | Online (PDF) [21 pp] | ||||||
Russ, "Yes, US trade agreements led to economic gains, especially in services, new report says" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
WTO, "Causes and Effects of PTAs" pp 109-120 | Online (PDF) [12 pp] | ||||||
Quiz 9, Due Fri, Nov 8 11:59 PM Behind and Beyond the Standard Model *********************************** | ||||||
B. | FTAs and Other Trade Deals (Class 20: Nov 11) [47 pp + Opt 3 pp] Questions | |||||
Economist, "The art of the deal: Rumours of the trade deal’s death are greatly exaggerated" |
Canvas [4 pp]
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USMCA: | ||||||
Kirby, "USMCA, Trump's New NAFTA Deal, Explained in 600 Words" |
Online [2 pp]
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Campbell, "Mexico trade deal threat poses risk to prices of US pick-ups, warns Chrysler boss" |
Canvas [2 pp]
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Optional to Hear: | ||||||
Trade Talks #200, "Has the USMCA improved working conditions in Mexico?" 12/18/23 | Podcast [46:28 minutes] | ||||||
RCEP: | ||||||
Hayashi, "U.S. on Sidelines as China and Other Asia-Pacific Nations Launch Trade Pact" | Canvas. [3 pp] | ||||||
CPTPP: | ||||||
Edmond, "The United Kingdom is set to join the Trans-Pacific free trade pact. Here's what you need to know" | Online [4 pp] | ||||||
EU and other: | ||||||
Bounds, "EU seals Chile trade deal that will improve bloc’s access to key minerals" | Canvas. [3 pp] | ||||||
Fildes and Bounds, "Australia and EU fail to reach free trade deal" | Canvas. [3 pp] | ||||||
Bounds, "Brussels to proceed with LatAm trade deal despite French objections" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
Bounds and Schipani, "EU agrees trade deal with Kenya as Brussels aims to boost Africa ties" | Canvas. [3 pp] | ||||||
UK and other: | ||||||
Fedor and Politi, "US calls for revived UK trade talks after Northern Ireland deal" | Canvas. [5 pp] | ||||||
Edgington, "Trade deals: What has the UK done since Brexit?" | Online. [2 pp] | ||||||
US and other: | ||||||
Economist, "The great steeplechase: America is losing ground in Asian trade" | Canvas. [2 pp] | ||||||
Beattie, "The US trade pledge to the Indo-Pacific is empty" | Canvas. [3 pp] | ||||||
Areddy, "U.S., Taiwan Reach Trade Deal as Tensions With China Simmer" | Canvas. [3 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #166, "Biden’s new Indo-Pacific talks vs. TPP" 11/2/22 | Podcast [44:52 minutes] | ||||||
Other: | ||||||
Daniels and Leahy, "China deepens ties in Latin America with Ecuador free trade agreement" | Canvas. [4 pp] | ||||||
Lawal, "Can Africa’s new free trade treaty boost business on the continent?," | Online. [7 pp] | ||||||
C. | Safeguards (Class 21: Nov 13) [39 pp] Questions | |||||
Jackson, Ch. 7 Canvas. [37 pp] | ||||||
USITC, "Understanding Safeguard Investigations" undated | Online [2 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #20, "Tariff Time! Washing Machines and Dirty Trade Policy" 1/26/18 | Podcast [21:31 minutes] | ||||||
Quiz 10, Due Fri, Nov 15 11:59 PM PTAs & FTAs *********************************** | ||||||
D. | Trade Adjustment Assistance (Class 22: Nov 18) [43 pp] Questions | |||||
Brainard et al., "Insuring America's Workers" | Online (PDF) [8 pp] | ||||||
Rosen, "Strengthening Trade Adjustment Assistance" | Online [10 pp] | ||||||
Lawrence, "A Numbers Argument for Renewing " | Canvas. [2 pp] | ||||||
Beattie, "The flaws in trying to compensate globalisation's losers" | Canvas. [3 pp] | ||||||
~James, "Maladjusted: The Misguided Policy of Trade Adjustment Assistance'" | Online [13 pp] | ||||||
Collins, "Trade Adjustment Assistance for Workers: Background and Current Status" | Canvas. [6 pp] | ||||||
Brown, "Trade Adjustment Assistance (TAA) Reauthorization Act of 2024" | Online. [1 p] | ||||||
Optional to Hear: | ||||||
Trade Talks #91, "Can Trade Adjustment Assistance Work?" 7/4/19 | Podcast [19:04 minutes] | ||||||
Quiz 11, Due Fri, Nov 22 11:59 PM Safeguards & TAA *********************************** | ||||||
E. | Dumping and Anti-Dumping Policy (Classes 23, 24: Nov 20, 25) [60 pp + Opt 8 pp] Questions | |||||
Jackson, Ch. 10 Canvas. [33 pp] | ||||||
Deardorff, "Economic Perspectives on Anti-Dumping Law" | Online (PDF) [15 pp] | ||||||
~Jakob, "Lesser Duty Rule and Community Interest in Anti-dumping" | Online-Springer (PDF) [5 pp] | ||||||
EC DG-Trade, "Anti-dumping measures" | Online [2 pp] | ||||||
Hayashi, "U.S. Downgrades Russia to Nonmarket Economy" | Canvas. [2 pp] | ||||||
Leahy et al., "China launches anti-dumping probe into EU pork imports" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
Harris et al., "Brazil launches China anti-dumping probes after imports soar," | Canvas. [4 pp] | ||||||
Wall Street Journal Editorial Board, "Protectionists Go to the Mattresses," | Canvas. [2 pp] | ||||||
Politi, "Janet Yellen warns China against clean energy dumping," | Canvas. [2 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #80, "Zeroing: The Biggest WTO Threat You've Never Heard Of" 4/9/19 | Podcast [22:14 minutes] | ||||||
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F. | Economic Sanctions (Class 25: Dec 2) [45 pp + Opt 15 pp] Questions | |||||
Haass, "Economic Sanctions: Too Much of a Bad Thing" | Online. [10 pp] | ||||||
Masters, "What Are Economic Sanctions?" | Online [12 pp] | ||||||
Mulder, "The Sanctions Weapon" | Canvas. [4 pp] | ||||||
Alderman, "Leave Russia? A Year Later Many Companies Can’t, or Won’t." | Canvas. [4 pp] | ||||||
Rodriguez, "The harm that sanctions do to the vulnerable" | Canvas. [3 pp] | ||||||
Kantchev et al., "How Sanctioned Western Goods Are Still Flowing Into Russia" | Canvas. [7 pp] | ||||||
Bounds, "EU prepares tariffs on Russian goods exempt from sanctions" | Canvas. [2 pp] | ||||||
Belton and Stein, "Russia financial system shaken after U.S. imposes new sanctions" | Canvas. [3 pp] | ||||||
Optional to Read: | ||||||
Elliott, "Evidence on the Costs and Benefits of Economic Sanctions" | Online. [6 pp] | ||||||
Stein and Cocco, "How four U.S. presidents unleashed economic warfare across the globe" | Online. or Canvas. [9 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #178, "Why sanctions to stop Russian gas pipelines backfired" 2/19/23 | Podcast [53:11 minutes] | ||||||
Quiz 12, Due Fri, Dec 6 11:59 PM Dumping & Anti-dumping *********************************** | ||||||
G. | Subsidies and Countervailing Duties (Class 26: Dec 4) [54 pp + Opt 3 pp] Questions | |||||
KOM: [11 pp]
"Export Subsidies" "Sophisticated Arguments for Activist Trade Policy" "BOX: A Warning from Intel's Founder" "CASE STUDY: When the Chips Were Up" 12th Ed.: Ch. 9, pp. 232-233, Ch. 12 pp. 302-310 11th Ed.: Ch. 9, pp. 226-229, Ch. 12 pp. 298-306 10th Ed. (trade only): Ch. 9, pp. 217-218, Ch. 12 pp. 293-296 | ||||||
Jackson, Ch. 11 Canvas. [25 pp] | ||||||
Chazan et al., "A global subsidy war? Keeping up with the Americans" | Canvas. [13 pp] | ||||||
European Commission, "Commission launches investigation on subsidized electric cars from China" | Online. [3 pp] | ||||||
Espinoza and Bounds, "EU launches probe into Chinese wind turbine companies" | Canvas. [2 pp] | ||||||
Optional to Read: | ||||||
Baschuk, "US Treasury Rolls Out Guidelines for Electric Car Subsidies" | Canvas. [3 pp] | ||||||
Optional to Hear: | ||||||
Trade Talks #116, "Fish Subsidies. What’s the Catch?" 12/19/19 | Podcast [28:27 minutes] | ||||||
Trade Talks #184, "The US-EU fights over electric vehicles and the Inflation Reduction Act" 5/7/23 | Podcast [46:28 minutes]
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Paper 3, Due Wednesday, Dec 11 8:30 AM ************************************************** | ||||||
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Quiz 13, Due Fri, Dec 13 11:59 PM Sanctions and Subsidies ***********************************
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