International+Economics+Calendar

[|Boundless Learning]: Additional resources specifically developed for the textbook chapters below can be found by clicking the link to the left. **Beware**: You will have to sign up with Boundless Learning and choose Mankiw's textbook first. Then, you will have to search for the right chapter.

__**September 11 (Block A); September 12 (Block F)**__**:** Introduction to Year 2 Economics


 * __Homework Due__: None


 * __Assessments and Activities__: Today, we will be taking care of basic business. We will talk about the things you’ll need to to know to get along in this course, including familiarity with Edline and my IB Econ wiki.

__**September 13 (Block A); September 14 (Block F)**__**:** Reasons for trade and the theory of comparative advantage (Syllabus Section 4.1)


 * __Homework Due__


 * 1) __Extract focused on macroeconomics (Section 2 of syllabus)__: Bring a hard copy of the extract that you plan to use for your second commentary to class.
 * 2) Read Chapter 3 (Mankiw) and Section 4.1 (McGee) and watch the following videos on this topic.
 * [|Comparative Advantage Video]
 * media type="youtube" key="vc324aHB2m8" height="315" width="560"


 * __Assessments and A____ctivities__: Lecture on the reasons for trade and the theory of comparative advantage (PDF below)
 * [[file:1 - Comparative Advantage.pdf]]


 * __Related Readings__
 * __[|International Trade]__
 * [|Comparative Advantage]

__**September 15 (Block A); September 18 (Block F)**__**:** Benefits of free trade (Syllabus Section 4.2)


 * __Homework Due__: Read Mankiw (Chapter 9) and McGee (Section 4.2).


 * __Assessments and Activities__: Free-response/problem and lecture


 * __ //Free-response/problem// __ : You will work cooperatively with your partner to construct a response to the following prompt.


 * England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.


 * 1) Which country has the absolute advantage in the production of each good? Which country has the comparative advantage?
 * 2) If England and Scotland decide to trade, which commodity will Scotland trade to England? Explain.
 * 3) If a Scottish worker could produce only 1 sweater per hour, would Scotland gain from trade? Would England still gain from trade?


 * __//Lecture//__: The benefits of free trade (PDF below)


 * [[file:2 - Benefits of Free Trade.pdf]]


 * __Related Readings__
 * [|Free Trade]
 * __[|International Trade]__
 * [|"In Praise of Cheap Labor"]
 * [|"The Case for Sweatshops"]
 * [|"No Case for Sweatshops"]

__**September 19 (Block A); September 20 (Block F)**__**:** Protectionism (Syllabus Section 4.2)

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 * __Homework Due__: Read Chapter 9 (Mankiw) and watch these videos.
 * [|Video on protectionism]
 * [|The effects of a tariff]
 * [|The effects of a quota]
 * [|The effects of a protectionist subsidy]


 * __Assessments and Activities__: Free-response/problem and lecture


 * __ //Free-response/problem// __ : You will work cooperatively with your partner to construct a response to the following prompt.


 * Use a diagram to explain how a nation will benefit when it transitions from a closed economy to an open one and ends up importing goods. Draw a second diagram to show how a country that ends up exporting goods benefits from free trade.


 * __//Lecture//__: Protectionism (PDF below)
 * [[file:3- Protectionism.pdf]]


 * __Related Readings__
 * __[|Economic Sanctions]__

__**September 21 (Block A); September 22 (Block F)**__**:** Economic integration and the WTO (Syllabus Section 4.3 and 4.4)


 * __Homework Due__: Read Chapter 9 (Mankiw) and McGee section on ecomic integration.


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.


 * 1) Define each of the following terms: tariff and quota.
 * 2) Use diagrams to explain how tariffs and quotas are inefficient.


 * __//Lecture//__: Economic integration and the WTO (PDF below)
 * [[file:Free Trade Organizations.pdf]]


 * __Related Readings__
 * [|International Trade Agreements]
 * __[|European Union]__
 * [|"Eurozone: It Seemed Like a Good Idea at the Time"]
 * [|Monetary Union]

__**September 25 (Block A); September 26 (Block F)**__**:** Balance of Payments (Syllabus Section 4.5)


 * __Homework Due__: Read Chapter 31 in Mankiw (The International Flows of Goods and Capital section) and watch this video.


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.


 * Define: Free trade area, customs union, common market and monetary union.
 * Explain the concepts of trade creation and trade diversion.


 * __//Lecture//__: Balance of Payments (PDF below)
 * [[file:Balance of Payments.pdf]]


 * __Related Readings__
 * __[|International Capital Flows]__

__**September 27 (Block A); September 28 (Block F)**__**:** Exchange Rates (Syllabus Section 4.6)


 * __Homework Due__: Read Chapter 31 in Mankiw (The Prices For International Transactions: Real and Nominal Exchange Rates section) and watch the following videos.
 * media type="youtube" key="b_Fm8sW_g98" height="315" width="560"
 * [|Intro to Foreign Exchange Markets (Determinants of Exchange Rates)]


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.


 * Define: Net exports and net capital outflow. Explain why they must be equal.
 * Explain how saving, investment and net capital outflow are related.


 * __//Lecture//__: Exchange Rates (PDF below)
 * [[file:Exchange Rates.pdf]]


 * __Related Readings__
 * __[|Foreign Exchange]__

__**September 29 (Block A); October 2 (Block F)**__**:** Internal Assessment (Commentary #2)


 * __Homework Due__: Be prepared for free-response/problem. Bring your laptop to class, if you would like to write with it instead of the school laptops.


 * __Assessments and Activities__: Free-response/problem and write first draft of Commentary #2.


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.


 * __ Suppose the French suddently develop a strong taste for California wines __.


 * 1) What happens to the demand for dollars in the foreign exchange market?
 * 2) What happens to the value of the dollar in the foreign exchange market?
 * 3) What happens to the quantity of net exports in the United States?


 * //__Commentary writing__//: Once you have completed your response, you can begin writing Commentary #2.

__**October 3 (Block A); October 4 (Block F)**__**:** The relationship between the domestic macroeconomy (prices and interest rates) and international trade (exchange rates and the current and capital accounts).


 * __Homework Due__: Watch the videos linked below. First draft of Commentary #2 to be submitted in hard copy.
 * media type="youtube" key="ci0LTZt7Fjs" height="315" width="560"
 * media type="youtube" key="cg17YTtsk2U" height="315" width="560"
 * media type="youtube" key="KthNiXu458I" height="315" width="560"
 * [|Exchange Rate Practice]
 * [|Effect of fiscal policy on exchange rates]
 * [|Methods of currency devaluation]


 * __Assessments and__ __Activities__: Lecture and practice problems


 * //__Lecture__:// The macroeconomy's effect on international trade flows


 * __Practice problems__


 * 1) Purchasing Power Parity
 * 2) Monetary policy and international trade
 * 3) Fiscal policy and international trade

__**October 5 (Block A); October 6 (Block F)**__**:** Balance of Payment Problems (Syllabus Section 4.7)


 * __Homework Due__: None


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.


 * __ Assume that the government of Japan decides to use a loose monetary policy in order to remedy a recession __.


 * 1) Use diagrams to explain the effect of this policy on the interest rate, level of investment, real GDP and the price level.
 * 2) Explain how the change in the interest rate will affect the international value of the Yen and Japan's trade balance.
 * 3) Explain how the change in price level will affect the international value of the Yen and Japan's trade balance.
 * 4) Explain how the change in real GDP will affect Japan's trade balance and the international value of the Yen.
 * 5) Now assume that Japan embarks on an expansionary fiscal policy, running a budget deficit. Explain how this might result in a trade deficit.


 * __//Lecture//__: Balance of Payments Problems (PDF below)
 * [[file:Balance of Payments Problems.pdf]]


 * __Related Readings__
 * __[|Foreign Aid]__
 * [|International Capital Flows]

__**October 9 (Block A); October 10 (Block F)**__**:** Terms of Trade (Syllabus Section 4.8)


 * __Homework Due__: Watch the following videos and come to class prepared to ask any questions you have.
 * [|Watch this video] (Defining terms of trade and explaining it in Production Possibilities)
 * [|And this one] (Defining and explaining the Marshall-Lerner Condition)
 * [|And one more] (Explaining the J-Curve in conjunction with the Marsall-Lerner Condition)


 * __Assessments and Activities__: Free-response/problem and lecture


 * //__Free-response/problem__//: You will work cooperatively with your partner to construct a response to the following prompt.


 * "Balance of payments surpluses on current account are good; deficits are bad.” Evaluate this statement.


 * __//Lecture//__: Terms of Trade (PDF below)
 * [[file:Terms of Trade.pdf]]

__**October 11 (Block A); October 12 (Block F)**__**:** Globalization


 * __Homework Due__: Read "The World is Flat" (PDF below)
 * [[file:The World is Flat excerpt.pdf]]


 * __Assessments and Activities__: Free-response and discussion


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.


 * Define terms of trade, Marshall-Lerner condition and the J-curve.
 * Evaluate the significance for less developed countries of a deterioration in the terms of trade.


 * __//Class Discussion//__: Once you have completed your response, there will be a discussion on today's reading.


 * __Related Readings__
 * [|"In Praise of Cheap Labor"]
 * [|"The Case for Sweatshops"]
 * [|"No Case for Sweatshops"]

__**October 13 (Block A); October 16 (Block F)**__**:** Globalization


 * __Homework Due__


 * __Read__: "Why the World is Not Flat" (PDF below)
 * __Write__: Two notecard commentaries (one on "The World is Flat" and one on "Why the World is Not Flat"). The notecard commentary should attempt to explain and evaluate one aspect of the reading that is applicable to the concepts we have learned in IB Economics. The commentary should fit on one card and look a lot like a response to an 8-mark "evaluate" (Part D) question on Paper 3 of the IB Exam. [|Click here for an explanation of how to do these kinds of questions]. There is a rubric below, too, for you to reference.

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 * **Article: [[file:Why the World Is not Flat.pdf]]**
 * Rubric: [[file:Note Card Commentary Rubric.pdf]]
 * __Assessments and Activities__: Class discussion and in-class problem
 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.


 * Define terms of trade, Marshall-Lerner condition and the J-curve.
 * Identify and explain two policies that a country could employ to eliminate a current account deficit.
 * Evaluate the significance for less developed countries of a deterioration in the terms of trade.


 * __//Class Discussion//__: Thomas Friedman assumes the the world is flat. Pankaj Ghemawat believes that the world is not flat. What do these authors mean by these assertions and how do they "know" they are correct?


 * __//In-class problem//__: We will work in groups on a problem in international economics.


 * __Related Readings__
 * __[|"In Praise of Cheap Labor"]__
 * [|"The Case for Sweatshops"]
 * [|"No Case for Sweatshops"]
 * [|Productivity Growth and Unemployment]

__**October 17 (Block A); October 18 (Block F)**__


 * __Topic__: International Economics


 * __Homework Due__: Commentary #2 (final draft) of your Internal Assessment Portfolio to be handed in at the beginning of class.


 * __Assessments and Activities__: Review international economics topics and start discussion board.

__**October 19 (Block A); October 20 (Block F)**__**:** International Economics Test (Multiple-choice)

__**October 23 (Block A); October 24 (Block F)**__**:** International Economics Test (Paper 3)