Final DRAFT - Econ 201a, Global Economic Environment Spring 2016, Wednesday evening

Dr. John W. Ballantine, Jr. Global Economic Environment, Econ 201a

978 371-2652 (home, fax) limit to 45 +/- students (9 – 10 groups) e-mail: [email protected]

Class meetings: Wednesday 6:30 pm to 9:15 pm Office hours: after or before class or by appointment (please email me and TAs)

I Course description : Global Economic Environment (GEE) is about how business decision-makers, politicians, and policy-making institutions operate in our changing/conflicted global environment. The process of globalization -- the interconnection of financial and goods / real markets, and information -- brings together a series of disparate topics, cutting across many disciplines, particularly politics and economics. We will look how people approached these issues over time and today through case discussions, debates, readings, papers and problem sets.

We begin the class, with:  basic macro-economic concepts (GDP, inflation, money, growth) and

 the theory of trade – why countries trade / the gains from trade. From here we will move to

 foreign investment (FDI) and capital flows – how and why companies invest in other/foreign countries…and then back to

 financial crises (FX) and growth. A review of these topics will let us examine productivity, growth, capital markets, and foreign exchange rates.

We will also look at the changing institutional arrangements governing the economy and the broader policy issues that are part of the political debate – distribution of income, labor practices, environmental impact, the role of the state, corruption, human rights, and, of course, our economic well-being / current state of our global recovery / political crises. These issues will form the focus of in our class debates and discussions around political economy

Student debates about current topics will take up much of our class time. This will give small groups of students the opportunity to present information and arguments clearly, respond to other perspectives / points of view (POV), and persuade your fellow students of the strength of your debate position. The debates bring a lot of energy to our class discussions.

In addition to debates about economics and politics, students will be actively involved in case discussions that contain confusing data. Students will learn to make recommendations with incomplete information. Each student will also work on drafting short memos – how to present recommendations and back up arguments with relevant data that are to the point.

By the end of the class, you should have a good sense of economic principles, be familiar with economic data, be able to write strong memos, be eager to debate almost any topic with passion, logic and humor, and be comfortable with case discussions. GEE is FUN, challenging and exciting. Welcome Aboard! Ballantine GEE Spring 2016

Learning Goals : Through a combination of cases, readings, debates, discussion, and research, GEE students will gain a better understanding of the complexities of our global economy. Throughout the semester the course will focus on the following learning goals.

1. Understanding of economic concepts: - monetary policy, money supply, credit creation, money demand and inflation - fiscal policy, multipliers; aggregate supply and demand, and economic growth - National economic measures (GDP, etc); Balance of payments - Trade theory, comparative advantage, FDI, capital flows, - Financial markets, international financial flows, exchange rates, currency crises - regulation and controls of global markets - economic growth, productivity, and development

2. Appreciation of political economy - different political systems and the role of institutions - role of people, leaders and how various groups are represented in the state - different perspectives / backgrounds and history of the key players - rule of law and ways of “doing business” - government policy, decisions and economic consequences

3. Development of professional skills - case analysis and discussion - debate positions / presentations, questions & answers, - data analysis, graphs and presentation - memo writing and written communication / recommendations - team participation, leadership and group work - research and bibliographic resources

4. Grasp of the complexities of globalization - interaction of various forces / people / institutions - principles of economic, politics, sociology, history, and culture - complexity of change and the challenges facing our global economy

5. Be excited about learning

Course Structure The schedule lays out the general structure of the course. We will cover four broad areas:

 Macroeconomics / economic principles  Trade theory / foreign direct investment  Capital markets, crises and foreign exchange  Economic growth and development

These economic topics will be explored through a combination of readings, background material,

2 Ballantine GEE Spring 2016 data analysis, and case discussions . The first 80 minutes of class will be spent:

 first, discussing the economic theory / principles illustrated by the case. Our focus will be on the intuition of economics through a quick economic principles lecture with slides (10 minutes) with the online text providing a more structured review.

 Second the case discussion with involve understanding the DATA exhibits / issues: read the cases, think about the questions on the syllabus, and look at the data.

 Third, the class will break into separate Role Plays to understand the perspective of various players involved in the case. I will provide a description of the role play before our case discussion and an online student forum to discuss the roles. The role plays are a dynamic and somewhat confusing part of the class, however, it will engage everyone in the case discussion.

Once the class is underway, we will Debate some of the key issues confronting decision makers throughout the world. We will discuss the debate issues and divide into small teams to debate the issue during the second half of the class (60 + minutes). See details later in the syllabus.

This is a reading, discussion, writing, and research intensive course with a good deal of prepared work that will be passed in on a regular basis. See the schedule: eight assignments during the semester, plus two debates OR, 12 assignments including the debate paper . TAs will be available for assistance with the material (not the answers, but how to approach).

Course material: Required: Course packet, use Harvard Business school web site, see HBS registration instructions on next page 5 with link. Or https://cb.hbsp.harvard.edu/cbmp/access/44412234

Background text online: Krugman and Wells, Economics (KW), or Feenstra and Taylor (FT) available on LATTE,

Debate material will be posted on latte as background for your debates. The debate teams are expected to go beyond this material as they prepare the debates.

Please read Financial Times or The Economist to keep current with our changing world.

You are responsible for obtaining the materials prior to each class. Additional material will be made available on the course latte web site or passed out in class.

Come to class PREPARED

Prerequisites: There are NO prerequisites for the course and ALL IBS students are expected to take a global political economy class at IBS. Many students have some familiarity with economics and the business press.

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GRADING: Course grades will be determined according to the following schedule: Case write-ups (4) 25% Problem sets (4 short online) 20% Debates, two (2) (groups of 4) 20% Final debate paper (groups of 2 or 3 students) 15% Class participation 20%

DUE DATES (see class schedule and latte)

Written assignments (10 including final debate paper and global essay): Case write-ups are due during the week -- Uploaded to LATTE -- marked on the syllabus:

A. Class 2 (Wednesday Jan 27) - Globalization CHALLENGES from YOUR perspective, 1-2 page with some supporting data / example

2. Class 3 Sunday Feb. 7, country data down load memo

3. Class 5 Sunday Feb 28, small group case

4. Class 8 Sunday March 20, individual case

5. Class 12 Sunday April 17, individual case

Problem set / online quizzes (4): During the semester there will be four (4) short take home (online) problem sets to make sure that you have an understanding of the economic concepts that are illustrated through the case discussions / readings. The problem sets will be drawn from the online economics text (KW, FT) and cases. You will have one week after the case discussion to prepare for the quizzes. The quizzes/problem sets will be taken and scored online (due on Sundays).

B. class 4 problem set1 Sunday, Feb14 (practice)

2. Class 6 problem set 2, Sunday March 6

3. Class 10 problem set 3, Sunday April 3

4. Class 13 problem set 4, Sunday April 24

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NAME cards: Students should keep name cards up throughout the semester, and sit in the same seat!

NO computers should be open in class, except for debates / case material. (No email, facebook, OR WEB cruising)

Pay attention to class discussion and PARTICIPATE!

Teaching Assistants: The TAs will read all the assignments and put initial grade on the written assignment that I will also read (two readings), they will also keep track of class participation and be available for additional out of class assistance. Email contact through GEE latte site.

Our GEE TAs are:  Alyssa Abel  Trang Do  Song Peijue  Peter Walton

Instructions to Access the Harvard Business Course Materials Online: Course link at HBS: link to course packet

Thank you. COURSE DETAILS For technical assistance, please contact the Harvard Business Publishing Tech Help line at 800 810-8858 (outside the U.S. and Canada, call 617 783-7700): or email [email protected]. Our business hours are 8 am - 8 pm ET, Monday-Thursday, and 8 am - 7 pm ET on Friday.

COURSE schedule on following pages and more detailed instructions in Course Syllabus Supplement posted on Latte.

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Academic Honesty: All students are expected to be familiar with and abide by the academic honesty policies of Brandeis.

Academic Integrity: The University has request that course syllabi include the following passages: “ Academic integrity is central to the mission of educational excellence at Brandeis University. Each student is expected to turn in work completed independently, except when assignments specifically authorize collaborative effort. It is not acceptable to use the words or ideas of another person – be it a world-class philosopher or your lab partner – without proper acknowledgement of the source. This means that you must use footnotes and quotation marks to indicate the source of any phrases, sentences, paragraphs or ideas found in published volumes, on the internet or created by another student. “Violations of University policies on academic integrity, described in Section Three of the Rights and Responsibilities, may result in failure in the course or on the assignment, or in suspension from the University. If you are in doubt about the instructions for any assignment in this course, it is your responsibility to ask for clarification. “ If you are working in groups that I have authorized, I will expect your answers to resemble those of your partners; otherwise I expect you to do your work separately from your friends, classmates, family members, and so on. You are not permitted to have anyone other than your professors help you on written assignments outside of class. If you have questions on the type of help you may receive, please ask me before you seek help from someone.” 1

NOTE, We will check your essays and papers through TURNITIN for academic honesty. I will also expect that the work you submit is your work; however, you may consult and work with others on problem sets and memos. NONETHELESS, you are expected to follow the class instructions regarding group work and consult with TAs if you have questions.

Disabilities:

If you are a student with a documented disability on record at Brandeis University and wish to have a reasonable accommodation made for you in this class, please see me immediately.

1 Shawn McGuirk, Kara Curcio, and Carrie Klugman, “Information for your Syllabi,” Memoradum to Faculty, Department of Student Development and Conduct, Brandeis University, August 1, 2004.

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SIMPLE Course Schedule below, with detail in syllabus supplement (latte)

Date Topic, Case and Material Assignments (due Sundays) January 13 Class 1 - Introduction and Institutions  International Institutions / Bretton Woods  Videos and articles January 27 Class 2 - Monetary Policy Globalization essay (2-3)  German Hyperinflation due in class (upload latte) Wednesday Jan. 27  Readings and KW text February 3 Class 3 – Fiscal Policy Group country memo with  Obama case data graphs Sunday Feb. 7  Readings and KW text February 10 Class 4 – Government growth Practice problem set 1  China Unbalanced Sunday Feb. 14  Readings and KW text BREAK

February 24 Class 5 – Trade Group case memo 2  Corn Laws Sunday February 28  Readings and KW text  DEBATE 1 March 2 Class 6 – Fair Trade / Protection Problem set 2  Cambodia Sunday March 6  Readings and KW & FT text  DEBATE 2 March 9 Class 7 – Institutions and FDI  South Africa  Readings and KW&FT  DEBATE 3 March 16 Class 8 – Productivity / Growth Individual case 3  India Sunday March 20th  Readings and FT  DEBATE 4 March 23 Class 9 – Financial crises  1933 Banking  Readings and KW  DEBATE 5 March 30 Class 10 – FX crises Problem set 3 Sunday April 3

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 Korea / Asia 1997  Readings and FT  DEBATE 6 April 6 Class 11 – Financial / FX crises  Greece and  Readings and KW  DEBATE 7 April 13 Class 12 - Regional Growth Individual case memo 3  Eurozone Sunday April 17  Readings  DEBATE 8 April 20 Class 13 – Crises Problem set 4  Greece and Eurozone Today Sunday April 24

 DEBATE 9 & 10

BREAK

May 8 DEBATE Papers Sunday May 8 Email or mail to John at 268 Fiske Street Carlisle MA 01741 May 11 GRADES DUE Wednesday May 11

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