SYLLABUS FOR ECN 138

Subject: ECN 138 (INTERNATIONAL BUSINESS AND TRADE)

Class Professor: Dr. Beethoven Morales

Course Description: International business and trade is a very exciting field. It is also very dynamic and
its recent development has been dominated by the need to understand the changing world economy and to
find solutions to emerging problems in international trade policy. The approach that is used in this course
is to stress concepts and their applications instead of focusing too much attention on theoretical
formalism. The course will also introduce students to various economic issues and questions that have
extreme relevance in today’s world: What are the merits of free trade? What causes countries to run trade
surpluses or deficits? And how should governments handle international financial instability? Students
are expected to do a lot of reading and studying in this course.

Textbooks: International Economics (Dominic Salvatore), International Trade

Theory and Policy (Giancarlo Gandolfo)

RULES, POLICIES AND OTHER IMPORTANT INFORMATION PERTAINING TO THE

COURSE/SUBJECT

HOW TO PREPARE FOR THE LESSONS:

The course consists of four parts. Each part is designed to take about a fourth of the
semester. Each part also contains a list of the lessons that need to be covered and studied. The time
that is required for each lesson in terms of the number of class meetings that are needed in a
regular semester is also given. For example, lesson 1 of part 1 requires two class meetings.
In order to learn and prepare for the lessons, students are required to read certain pages of
the two textbooks for this course. However, students are advised and encouraged to take the
initiative of researching, studying and reading other parts of the two textbooks that are related to
the indicated lessons so that it would be easier for the student to understand the lesson or to
complete the assignment that is required in connection with the lesson. For instance, lesson 1 of
part 1 requires students to read and study pages 1-5 of Salvatore’s book but they are advised to
read beyond the required pages of Salvatore’s book or to read and use as reference Gandolfo’s
book to provide more understanding of the required lesson. Nonetheless, if after all of these things
and the student still finds the lesson or even parts of the book difficult to understand then, please do
not hesitate to communicate with me by e-mail or by text so that I can either find a way to explain
the ambiguities in detail or to send additional material if there is need to do so.

PURPOSE AND IMPORTANCE OF THE TWO TEXTBOOKS:

The two textbooks for this course are meant to complement each other. One textbook gives
summaries of specific topics and lessons while the other one gives a detailed description of the
required topic or lesson. Accordingly, the student is advised to use both textbooks in order to give
them either a quick way of understanding a topic or lesson or to learn in more detail a
corresponding topic or lesson.

RULES AND POLICIES WITH REGARD TO COMPLETION AND

SUBMISSION OF ASSIGNMENTS:
 There are certain important things that are required with regard to the completion and
submission of assignments. FIRST, ALL ASSIGNMENTS SHOULD BE HAND-WRITTEN ON A
YELLOW PAPER OR YELLOW PAPERS (IF MORE THAN ONE PAPER IS NEEDED).
Second, there should not be a single erasure on these assignments. Students can prepare a
draft of their answers and then write their answers without a single erasure on a clean piece or
more of yellow papers. This should not be difficult to do because there are not many assignments to
do and students are given enough time to complete these assignments.
Third, students can use both sides of the yellow paper as long as they are clear, clean and no
erasures.
Fourth, students can write more than one question with answers on a single page if there is
still space on the page. For example, in lesson 1 of part 2, students are required to “Answer
“Questions for Review” Nos. 2 and 3 in page 51 of Salvatore’s book and submit online.” After
answering question no. 2, if there is still space on the page then students can continue and write the
answer to question no. 3 on the same page and continue on to the next page if there is no more
space in the current page.
Fifth, students may come up with their own answers or get their answers to the questions
from any source as long as they do not copy “verbatim” the answers of their classmates.
Sixth, each assignment which includes more than one question should be submitted as one
package. For instance, lesson 4 of part 1 requires two assignments. The first one requires students
to “Answer “Questions for Review” No. 19 in page 19 of Salvatore/s book and submit online” while
the second one requires students to “Read case studies 1-1 and 1-2 in Salvatore’s book and then
discuss and explain the relationship and importance of these two cases to the lessons in Part 1 of
this course. Submit online your discussion and explanation.” These are two assignments and each
one should be submitted as a separate package.
Seventh, students are required to copy the question first before they write their answer or
answers to the question.
Eight, in grading your answers to the questions, I will adopt a policy of not being very strict
with the “correctness of your answers” but rather, I want to see “effort, resourcefulness and
diligence” in terms of how you come up with your answers. I will give high marks to answers that
are well-researched and well-prepared and not done in a hurry.
Ninth, students are required to write the title of the assignment first and then write their
name and affix their signature before they write any question as well as its answer. For example, in
lesson 1 of part 2, students are required to use the following format when submitting the
assignment in that lesson:

Lesson 1 of Part 2: “Questions for Review” Nos. 2 and 3 in page 51 of Salvatore’s book

Name of student: _______________ Signature of student: _________________

2. What were the mercantilists’ views on trade? How does their concept of national wealth differ from
today’s view?

(Write your answer or answers to the above question.)

Name of student: _______________ Signature of student: ________________

3. Why is it important to study the mercantilists’ views on trade? How were their views different from
those of Adam Smith? What is the relevance of all this today?

(Write your answer or answers to the above question.)

SUBMISSION OF ASSIGNMENTS:
Students have the option of submitting their assignments online or submitting their assignments
through the use of a delivery/courier company like LBC EXPRESS.

SUBMITTING ASSIGNMENTS ONLINE:

Students must scan/photograph their hand-written assignment and then save it by using the
following scheme in attaching a file name to it. For example, if the last name of the student is “gensan”
and he is submitting the second assignment of lesson 4 of part 1, then he is to scan/save the assignment
using the following file name: gensanl4p1a2. L4 here means lesson 4, p1 means part 1 and a2 means the
second assignment in the list. If the file consists of only one picture then he can save it as a JPEG file or
by any application program available in WINDOWS. However, if the file consists of more than one
picture, then he has to compress the pictures into a ZIP file so that I will simply receive the whole
assignment in a single file (instead of dealing with more than one file.)
I will post the assignments in the “assignment feature” of GOOGLE CLASSROOM and so the
student can submit their assignment files through the use of the assignment feature in our GOOGLE
CLASSROOM.
When using this option, students must submit each assignment separately (in accordance with
how the assignment is posted in the assignment feature of GOOGLE CLASSROOM). For example,
assignment 1 of lesson 4 of part 1 will have to be submitted separately from assignment 2 of lesson 4 of
part 1.

SUBMITTING ASSIGNMENTS THROUGH USE OF A COURIER SERVICE:

Students may also submit their assignments through the use of a courier service like LBC
Express. They can send it to me at the following address:
Dr. Beethoven Morales, Office of the Faculty, College of Business Administration and Accountancy,
Mindanao State University-General Santos, Barangay Fatima, General Santos City. Unlike the
online option, when using this option, students may submit as many assignments as he can in one single
delivery. For example, he can submit all the assignments in parts 1 and 2 at the same time. However,
when using this option, the student must inform me through my institutional e-mail that they are
submitting their assignments through the use of the courier/delivery option.

DEADLINE FOR SUBMISSION OF ASSIGNMENTS:

Students will be provided with enough time to complete their assignments. Students will be
provided with a deadline of two weeks from the time that the lesson that corresponds to the required
assignment is completed (in accordance with the schedule given in the syllabus). For example, the
deadline for the assignment in lesson 3 of part 1 is 10 class meetings or 5 weeks from the official start of
classes on
September 13. (This is counted as 2 class meetings for lesson 1, 2 class meetings for lesson 2, 2 class
meetings for lesson 3 and 4 class meetings after corresponding lesson is completed. This is also counted
as the equal of 5 weeks under the usual count of two class meetings per week. Please take note that there
are no exceptions for holidays because in an online setting, a student is still required to do his assigned
work even during holidays.)
Nonetheless, students are encouraged to submit their assignments earlier than the deadline. All
the materials and requirements are given in advance so that students will have the luxury of proceeding at
a comfortable pace and, hopefully, to finish everything early and avoiding the usual practice of many
students of doing everything at the last minute. In addition, because of existing university policies on the
need to check papers and submit grades ASAP at the end of the semester, students must not go beyond
one week after the scheduled end of the semester to submit remaining assignments.

SUMMARY OF THE LESSONS AND ASSIGNMENTS FOR THE COURSE

Part 1: Understanding the Importance of Globalization

Lesson 1: The Meaning and Importance of Globalization

Read and study pages 1-5 of Salvatore’s book
Answer “Questions for Review” No. 1 in page 18 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 2: The Relationship between International Trade and the Nation’s Standard of Living
Read and study pages 6-9 of Salvatore’s book
Answer “Questions for Review” No. 3 in page 18 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 3: The International Flow of Goods, Services, Labor and Capital

Read and study pages 9-11 of Salvatore’s book
Answer “Questions for Review” No. 4 in page 19 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 4: Identifying the Major Problems and Challenges in International Trade and Business
Read and study pages 13-15 of Salvatore’s book
Answer “Questions for Review” No. 19 in page 19 of Salvatore/s book and submit online.
Read case studies 1-1 and 1-2 in Salvatore’s book and then discuss and explain the relationship
and importance of these two cases to the lessons in Part 1 of this course. Submit online your
discussion and explanation.
(Time required for lesson: 3 class meetings or 4.5 hours)

Part 2: Understanding the Law of Comparative Advantage

Lesson 1: The Mercantilist’s Views on Trade

Read and study pages 31-33 of Salvatore’s book
Answer “Questions for Review” Nos. 2 and 3 in page 51 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 2: Trade based on Adam Smith’s Absolute Advantage

Read and study pages 34-36 of Salvatore’s book
 Answer “Questions for Review” No. 4 in pages 51 & 52 of Salvatore’s book and submit
online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 3: Trade based on David Ricardo’s Comparative Advantage

Read and study pages 36-37 of Salvatore’s book
Answer “Questions for Review” No. 5 in page 52 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 4: Illustrate the Gains from Trade with Comparative Advantage

Read and study pages 37-39 of Salvatore’s book
Answer “Questions for Review” No. 6 in page 52 of Salvatore’s book and submit online.
Read case studies 2-2 and 2-3 in Salvatore’s book and then discuss and explain the relationship
and importance of these two cases to the lessons in Part 2 of this course. Submit online your
discussion and explanation.
(Time required for lesson: 3 class meetings or 4.5 hours)

Part 3: Understanding Some Important Issues in Trade

Lesson 1: The Terms of Trade

Read and study pages 94-95 of Salvatore’s book
Answer “Questions for Review” Nos. 10 & 11 in page 98 of Salvatore’s book and submit
online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 2: Factor Endowments and the Heckscher-Ohlin Theory

Read and study pages 118-119 of Salvatore’s book
Answer “Questions for Review” No. 3 in page 140 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 3: Economies of Scale and International Trade

Read and study pages 159-163 of Salvatore’s book
Answer “Questions for Review” No. 4 in page 181 of Salvatore’s book and
submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 4: Trade Based on Dynamic Technological Differences

Read and study pages 172-174 of Salvatore’s book
Answer “Questions for Review” No. 10 in page 181 of Salvatore’s book andsubmit online.
Read case studies 4-4, 5-4 and 6-1 in Salvatore’s book and then discuss and explain the
relationship and importance of these two cases to the lessons in Part 3 of this course. Submit
online your discussion and explanation.
(Time required for lesson: 3 class meetings or 4.5 hours)

Part 4: Understanding Some Aspects of International Trade Policy

Lesson 1: Costs of Transportation and the Location of Industry

 Read and study pages 177-178 of Salvatore’s book
Answer “Questions for Review” No. 13 in page 181 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)
Lesson 2: Environmental Standards and International Trade
Read and study pages 178-179 of Salvatore’s book
Answer “Questions for Review” No. 14 in page 181 of Salvatore’s book andsubmit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 3: Trade Restrictions: Tariffs

Read and study pages 221-223 of Salvatore’s book
Answer “Questions for Review” No. 1 in page 243 of Salvatore’s book and submit online.
(Time required for lesson: 2 class meetings or 3 hours)

Lesson 4: Non-Tariff Barriers: Dumping

Read and study pages 264-266 of Salvatore’s book
Answer “Questions for Review” No. 5 in pages 290-291 of Salvatore’s book and submit online.
Read case studies 6-8 and 9-3 in Salvatore’s book and then discuss and explain the relationship
and importance of these two cases to the lessons in Part 4 of this course. Submit online your
discussion and explanation.
(Time required for lesson: 3 class meetings or 4.5 hours)