Course International Business And Economics 2016 0

INTERNATIONAL BUSINESS AND ECONOMICS

Course code ECO127 Course title International Economics and Trade Type of course Main Study level 1st Department Undergraduate Studies Year of study 2nd -4th Semester Summer University Credits 6 ECTS 36 hours lecture 124 hours self study Lecturers Assoc Prof. Dr. Maik Huettinger; Aras Zirgulis, MSc. Study form Full-time Courses to have prior this course Microeconomics, Macroeconomics, Introduction to Business Course language English

ANNOTATION This course is an introduction into the contemporary debate on the changing patterns of global business, the economy, and challenges the world is facing. The course deals with three major aspects of global business the economy; firstly the trans-national economic flows, such as trade in goods and services, transactions and investment. The aspects covered are balance of payments dynamics, exchange rate regimes, national income accounting, terms of trade, etc. Secondly, the course deals with the challenges and opportunities in a globalized world. Thirdly, the course looks at the actors in the global economy: international organizations, national governments, non-governmental organisations, multinational corporations and regional integration initiatives. The motives, interests and interaction of the actors are scrutinised and furthermore the development of the global economic governance system is discussed.

AIMS OF THE COURSE The International Business and Economics course aims to equip students with necessary analytical tools for analyzing and critically assessing the current dynamics of global business and the economy and challenges the nation states face in their pursuit of economic welfare.

LEARNING OUTCOMES Upon successful completion of the course, students will be able to:  Introduce students to various conceptualizations and theories of (economic) globalization phenomena;  Analyze global trade and finance governance structures and assess their policies and role in international economics;  Examine strategies and techniques of trans-national corporations in global economy;  Discuss the key issues and future challenges for the globalized world economy of the 21st century;  Identify and exemplify causes and consequences of change in international labour, trade and financial flows;  Provide the underpinnings of the global financial system;  Discuss the causes and policy actions surrounding economic crises.

LEARNING METHODS The course is entirely taught in English and designed to achieve its aims through a combination of lectures and interactive seminars, including oral group presentations and data analysis. Seminars and lectures are designed to encourage active participation, co-operative and creative work, interactive communication and critical thinking.

IN-CLASS HOURS DATE TOPIC READINGS Lectu Semin re ar Lecture 1 The Shifting Contours and Drivers of the International 2 1 Dicken, Chapter MH Economy I 1, 2,3,4 Questioning “Globalization”, the changing global economic map, developments of the geo-economy CASE DISCUSSION: “ A country is not a company” Lecture 2 International Trade 1 2 1 Krugman & AZ The standard trade model including Hecksher-Ohlin and Ricardian Obstfeld Chapter comparative advantage 4,5 CASE DISCUSSION: “ Chiquita Brands International”

1 IN-CLASS HOURS Lecture 3 The Shifting Contours and Drivers of the International 2 1 Dicken, Chapter DATEMH Economy II TOPIC 3, 6READINGS The role of states in a globalized world, spatial agglomeration, patterns of state behaviour, CASE DISCUSSION: “ Does Third World Growth Hurt First World Prosperity?” Lecture 4 International Trade 2 2 1 Krugman & AZ Overview of global trade due to economies of scale and imperfect global Obstfeld, Chapter competition. 6 CASE DISCUSSION: “Is protectionism dying?”

Lecture 5 Transnational corporations – the movers and actors of the 2 1 Dicken, Chapter MH International Economy 5, 7 Reasons and concepts of transnational engagement, TNC and global production networks, myths of global cooperation CASE DISCUSSION: “ Thriving Locally in the Global Economy” Lecture 6 Foreign Direct Investment and Factor Movements 2 1 Krugman & AZ FDI flow and trends, barriers to FDI, up- and downsides of delocalisation Obstfeld, Chapter and outsourcing 7 CASE DISCUSSION: “The Economics of tax-competition” Lecture 7 Case in IBE: The Global Clothing Industry 2 1 Dicken, Chapter MH Changing patterns in the clothing and the food sector, regulation vs. 10, Rivoli, liberalization, corporate strategies in production CASE DISCUSSION: “ Global sourcing- insights from the global clothing industry—the case of Zara, a fast fashion retailer” Lecture 8 International Monetary System and Policy 2 1 Krugman & AZ History of the International Monetary System and the different policy Obstfeld, options open to governments. Chapter 18,19 CASE DISCUSSION: “The Dollar Dilemma” Lecture 9 Case in IBE: The Automobile Industry 2 1 Dicken, Chapter MH Changing patterns in the car sector, regionalization of production networks 11 CASE DISCUSSION: “ The Impact of the Cash For Clunkers Program” Lecture 10 Guest Lecture – Topic to be announced 2 1 Krugman & AZ Obstfeld Chapter 12 Lecture 11 The Rise of Emerging Markets & Financial Crisis 2 1 Krugman & AZ Global financial capital market, regional emerging markets crises, global Obstfeld, financial and economic crisis, issues facing emerging markets and how the Chapter 21 rise of these markets has affected the rest of the world CASE DISCUSSION: “Broken BRICs” Lecture 12 Final Exam 3 Krugman & MH Obstfeld, Chapter 7 Total hours (for each group):36 18 18

COURSE REQUIREMENTS 1. The pre-assignment consists of analyzing the papers provided to students in advance. Students are required to read the articles, and formulate three well thought out questions (for each article) in order to show that they have understood the content. The grading will be based on the quality and insightfulness of the questions. The questions have to be sent to the instructors until 24th June – 12:00 o’clock noon. Email: [email protected]

2. The attendance will comprise 10% of the grade.

3. During lectures and seminars, active participation will be noted and graded accordingly.

4. The final exam will consists of open answer questions – covering the readings and topics discussed during the classes.

TYPE EVALUATION, % Pre-assignment work 20 Attendance 10 Participation grade 20 Final exam 40 Total: 100

In case of a negative final grade, students are allowed to retake the exam. The retake will consist of a written 2 report on a topic which will be sent by e-mail in 5 working days after the final exam. This written report must be submitted in 20 calendar days after the final exam; the weight of the retake is 40%. Retake reports cannot be rewritten.

Remark: The final grading for the course is calculated according to the accumulative formula as indicated in the Regulation of Studies at ISM. Negative grades (below 5) are not included into the accumulative grading system !

LITERATURE

Obligatory readings: 1. Krugman, P. R. and Obstfeld, M. International Economics. Theory and Policy. – 8th ed. -, Pearson Addison Wesley, 2009. (ISM-Vilnius library) 2. Dicken, P. Global Shift. Transforming the World Economy. – 6th ed. –, London: Paul Chapman Publishing, 2011. (ISM-Vilnius library)

NB. Due to the dynamic nature of the content of the course additional material can be assigned during the course. Slide handouts and readings will be prepared for each class and available for download. The slides are the intellectual property of teaching instructor and students may not distribute or duplicate these notes without written consent.