IB&M 200:
“ The Global Economy”
Instructor: Michael
J. Fratantuono
Office hours: Tuesday & Thursday, 2:00-3:30;
Wednesday 11:00-12:00; and by appointment
Email: fratantu@dickinson.edu
Office phone: 717-245-1075
Home phone: 717-243-4848
(No calls after 9 PM please)
Information posted on BLACKBOARD
In class handouts
There will be a few teaching notes or case studies, available for sale
later in the semester in the Bookstore or as items on reserve at the library.
Recommended: Each week, I spend some time with the
following sources. I suggest you read
at least one of the following on a regular basis.
Economist
Financial Times
Business Week
Wall Street Journal or New York Times
Course
description. Welcome to IB&M 200, “The Global
Economy.” I have designed the course
with students majoring in International Studies and International Business and
Management foremost in mind.
Nonetheless, it should also be of interest and value to students from
other majors as well. I certainly am
looking forward to a fun-filled, challenging, and exciting semester.
The ideal
preparation for the course is both Introduction to Microeconomics (Economics
111) and Introduction to Macroeconomics (Economics 112). In some instances, I will make
exceptions.
This semester, we
will explore three major questions.
First, what is globalization?
Second, given the globalization process, what challenges and
opportunities confront national leaders? Third, what role do and should international institutions play in
helping national leaders manage the increasingly global international
system?
As we answer these
questions, we will blend strands of economic and intellectual history,
political science, policy analysis, and economic theory; thus, I regard this as
an interdisciplinary course.
Every time I
redesign this course, I am always pleased by the topics we will be able to
cover, but shake my head in frustration and amusement at what we will have to
leave out. This version is no
exception.
During the semester,
I will occasionally lecture. Most
often, I will make use of cooperative learning groups or the case method of
instruction. They are both active
learning techniques that place a premium on student preparation for class.
Objectives. For
the semester, I have a several objectives in mind. Essentially, I would like to help you
Understand important concepts from economics;
Appreciate the complexity of the global system;
Develop a historical perspective about the global economy;
Apply what you learn in class to the world around you;
Think a bit about what the future
may hold in store for you;
Sharpen your critical thinking skills;
Improve the clarity and effectiveness of your communication skills;
Become more confident about speaking in small and large groups;
Appreciate the contributions you can make to the learning of others;
Appreciate the contributions others
can make to your learning;
Be challenged and stimulated by the classroom environment; and
Become
excited and interested in the material so you talk about it in social settings.
Grades
I will assign grades
to six components of your performance, with the following weights.
18% Exam
1
22% Exam
2
26% Final
Exam
20% 7
to 10 Page Paper
14% Class
Participation and Preparation
Exams. When I design tests with significant
objective content, the numerical results usually make sense in terms of the
letter grades I list below; e.g., a few people score in the 90s, the class
average is around 78 to 82, etc. If an
exam is too hard, then I make adjustments.
On average, people do not usually find my exams too easy.
Grade Numerical Range Descriptor
A 93+
Truly
exceptional.
A- 90-92 Excellent in every respect.
B+ 87-89 Strong performance. Nice work.
B 83-86 Solid job.
B- 80-82 OK.
About average.
C+ 77-79 Reasonable. A shade below average overall.
C 73-76 Passable. Meets minimum standards.
C- 70-72 There are some difficulties or
problems here.
D-, D, D+ 60-69 Serious problems, poor quality,
wrong focus, inappropriate level of effort.
10 Page Paper. This semester, I will ask you to write a ten
page paper on any subject associated with the major themes of the course. Since the themes are so encompassing, this
gives you plenty of room for exploration.
To illustrate, paper topics could include “Oil Reserves in the Caspian
Sea,” “The Common Agricultural Policy of the European Union,” “Global Distribution
of Income,” “Economics and Brazil’s 2002 Presidential Election,” or “The
Challenges of the IMF.” I will post
further guidelines in the near future.
When I read the
papers—and I do so at least twice—I write down my comments, return to the criteria
and the descriptors, and then assign letter grades. Obviously, I make subjective judgments about the quality of
student work; but I try for consistency and attempt to provide a clear
rationale for the grades I assign.
Class preparation
and participation. When I assign a reading, I try to include
“focus” questions. I use the questions
to motivate class discussions or activities.
Sometimes, I use the same or similar questions on examinations. I expect students to take them
seriously.
In the past, I have
tried many ways of evaluating class participation. No method is perfect.
This semester, following each class session, I will jot down a few notes
about contributions made by various students.
Then, each week or so, I also take some time to think about each student
and ask myself some questions—How is Tom doing? Is Judy comfortable with the class? Is Steve working well with others? Is Joyce providing leadership? Is Larry making quality
contributions to discussion? Is Lucy
engaged? Is Harry prepared? At the end of the semester, I will assign a
class preparation and participation grade—I will reward students who manage to
demonstrate good individual-effort and team-skills.
I will not reward
students who have poor attendance, seem indifferent to activities, or do not
prepare for class. I will take
attendance and expect all students to attend every class session. My expectations are of course subject to
normal business practices—that is, I will respect serious illness, the need to
attend very important personal matters, or other pressing College related
commitments (e.g., scheduled varsity sports events or scheduled field trips for
other courses)—but will not look kindly upon casual absence.
Yes, the class
participation grade I assign will be qualitative. No, the grade I assign will not be arbitrary. But the point in all of this is to provide
you with incentives, encouragement, and feedback.
Homework.
Often, many students ask for homework assignments, so they can better
understand the material and prepare for exams.
Thus, I will regularly recommend homework assignments. The assignments will be a combination of
problems, short essays, etc., similar to questions I will ask on exams. I will not grade the homework, but I will encourage you to work in groups to
act as a sounding board for one another’s ideas. I will answer questions you have about assignments on an as
needed basis.
(*I may add or drop a few items as we move through the semester)
Fratantuono, Interactive Exercise, “A review of the
demand schedule and the supply schedule” (In class handout)
Perspectives on Globalization and Structural Change
Session 2, Thursday September 5
Excerpts from The National Intelligence Council,
“Global Trends 2015: A Dialogue About the Future with Non-government Experts.”
Session 3, Tuesday September 10
Fratantuono, Teaching Note, “Mock interviews with
Adam Smith, Alexander Hamilton, Karl Marx and Vladimir Lenin”
Fratantuono, Teaching Note, “Three Ideologies of
Political Economy”, a summary of Chapters 1 and 2, Robert Gilpin, The
Political Economy of International Relations.
Fratantuono, Teaching Note, “Robert Gilpin’s
Discussion of Structural Change”
Fratantuono, Teaching Note, “ Robert Gilpin’s Three
Theories of Political Economy”
Fratantuono, Note, “Tradeoffs in the International
System”
Session 5, Tuesday September 17
Bruce R. Scott (2001), “The Great Divide in the
Global Village,” Foreign Affairs, January/February, p. 161-177.
Martin Wolf (2001), “Will the Nation-State Survive
Globalization?” Foreign Affairs, January/February, p. 178-190.
Statement of Paper Topic Due
Wednesday September 18 by 4 PM
Session 6, Thursday September 19
Clayton Christensen, Thomas Craig, and Stuart Hart
(2001), “The Great Disruption,” Foreign Affairs, March/April p. 80-95.
Jonathan Rauch (2001), “The New Old Economy: Oil, Computers, and the Reinvention of the Earth,” The Atlantic Monthly, January: 35-49.
Session 7, Tuesday September 24
Nina Hachigian (2001),
“China’s Cyber Strategy,” Foreign Affairs, March/April, p. 118-133.
James L. Watson, (2000),
“China’s Big Mac Attack,” Foreign Affairs, May/June, p. 120-134.
Macroeconomics in the Open Economy
Session 8, Thursday September 26
Fratantuono, Teaching Note, “The Circular Flow
Diagram, Market Transactions, and the Composition of the National Accounts”
Examination 1
Fratantuono, Teaching Note, “Prices, Quantities, and
the Macroeconomy”
Selected Data tables from The Economic Report of
the President
May and Neustadt, Kennedy
School of Government case study, “Keynes and Friedman: Two Economists”
May and Neustadt, Kennedy
School of Government case study, “Keynes and Friedman on the Great
Depression,”
Fratantuono, “The Great Depression”, reading notes
from pages 311-315, Rudiger Dornbusch and Stanley Fischer, Macroeconomics
Fratantuono,
Teaching Note, “Interest Rates, The Fed, and The Money Supply”
“The Money Supply Process”
Outline of Paper and Annotated
Bibliography Due
Friday October 11 by 4 PM
Fratantuono, Teaching Note,
“ A Simple Keynesian Cross Model of the Economy”
Fratantuono, “Teaching Note, The Relationship
between National Savings, The Current Account, and the Capital Account”
Joseph Quinlan and March Chandler (2001), “The U.S.
Trade Deficit: A Dangerous Obsession,” Foreign Affairs, May/June, p.
87-97.
Dickinson Mid
Term Pause:
5 PM Friday
Oct. 18 through 8 AM Wednesday Oct. 23
Session 16, Tuesday October 29
Fratantuono, “Interactive Exercises, Monetary and
Fiscal Policies Under Fixed and Floating Exchange Rates”
Fratantuono, “Interactive Exercises, Monetary and
Fiscal Policies Under Fixed and Floating Exchange Rates” (cont.)
Examination 2
Session 19, Thursday November 7
Fratantuono, Teaching Note
and Interactive Exercise, “Ricardo’s Model of Comparative Advantage”
Fratantuono, Teaching Note and Interactive Exercise, “The
Simple
Tariff
Model”
Session 20, Tuesday November 12
Fratantuono, Case Study, “Herbert Hoover and the 71st
Congress Tackle Farm Relief and Tariff Revision”
Session 21, Thursday November 14
The World Trade Organization
Fratantuono, “GATT Chronology and Key Issues”
Nine to Ten Page Paper due
Friday November 15 by 4 PM
Session
22, Tuesday November 19
Excerpts from Web Sites
critical of the globalization process
Michael M. Weinstein and Steve Charnovitz, “The
Greening of the WTO,” Foreign Affairs, November/December, p. 147-156.
Other
Aspects of Interdependence
Session 23, Thursday
November 21
Michael T. Klare (2001), “The New Geography of
Conflict,” Foreign Affairs, May/June, p. 49-61.
C. Ford Runge and Benjamin Senauer (2000), “A
Removable Feast,” Foreign Affairs, May/June, p. 39-51.
Amy Myers Jaffe and Robert A. Manning (2000), “The
Shocks of a World of Cheap Oil” Foreign Affairs, January/February, p.
16-29.
Session 24, Tuesday November 26
Jay Mazur (2000), “Labor’s New Internationalism,” Foreign
Affairs, January/February, p. 79-93.
Ethan B. Kapstein (2001), The Corporate Ethics Crusade, Foreign Affairs, September/October, pp. 105-119.
Dickinson
Thanksgiving Vacation
5 PM Tuesday
Nov. 26 through 8 AM Monday Dec. 2
International Finance
Session 25, Tuesday December 3
Fratantuono, “Evolution
of the International Financial System”
Session 26, Thursday December 5
Jessica Einhorn (2001), “The World Bank’s Mission
Creep,” Foreign Affairs, September/October, p. 22-35.
M.A. Thomas (2001), “Getting Debt Relief Right,” Foreign
Affairs, September/October, p. 36-45.
European Monetary Union
Niall Ferguson and Laurence J. Kotlikoff (2000),
“The Degeneration of EMU,” Foreign Affairs, March/Arpil, p. 110-121.
Session 28, Thursday December 12
Reflection on Semester, Course Wrap Up
and Preparation for Final Exam
Final
Examination: Friday December 20, 2-5 PM