Mindanao State University
College of Business Administration and Accountancy
DEPARTMENT OF ECONOMICS
ECN 138
INTERNATIONAL BUSINESS AND TRADE
AY 2020 – 2021 First Semester
Instructor: Mercy M. Camasura
Week 1 – Introduction to International Business and Trade
1. Markusen, J., J. Melvin, W. Kaempfer, and K. Maskus, 1995. International Trade:
theory and evidence. Singapore: McGraw-Hill International Editions [MMKM]. Chapter
1: Introduction
2. Feenstra, R., and A. Taylor, International Trade 4th Ed., Worth Publishers, 2017. ISBN
13: 978-319-06890-5. [F &T]. Chapter 1: Trade in the Global Economy
Week 2 –Ricardian Theory: Technology differences
1. [MMKM], Chapter 6 and 7.
2. [F&T], Chapter 2.
3. Pugel, T. & Lindert P. International Economics, 10th Ed. 1996. Times Mirror Higher
Education Group, Inc., company. International Student Edition. [P&L]. Chapter 3.
4. Andrea Maneschi, Comparative Advantage in International Trade: A historical
Perspective.
5. Dornbusch, Fisher and Samuelson, “Comparative Advantage, Trade and Payments in
a Ricardian Model with a Continuum of Goods, American Economic Review, December
1997.
Week 3 – Heckscher- Ohlin: Factor Proportions
1. [MMKM], Chapter 8 and 9.
2. [F&T], Chapter 3 and 4.
3. [P&L], Chapter 3 and 4.
Week 4 - Commodity Market Distortions, Imperfect Competition
1. [MMKM], Chapter 10, 11.
2. Brander and Krugman, “A Reciprocal Dumping Model of International Trade” in
Grossman, Readings.
Week 5 - Product Differentiation and Increasing Returns to Scale
1. [MMKM], Chapter 12
2. [F&T], Chapter 6.
3. Krugman, “Increasing Returns, Monopolistic Competition and International Trade”.
Journal of International Economics, 1979, 469-479. In Bhagwati, Readings.
4. Krugman, “Scale Economies, Product Differentiation, and the Pattern of Trade,
American Economic Review 1980, 950-959.
Week 6 - Out-sourcing and Heterogenous Firms
1. [F&T], Chapter 7.
2. Grossman, G. and Elhanan Helpman. 2005. “Outsourcing in the Global Economy”.
Review of Economic Studies (2005), 72, 135- 159.
3. Feenstra, R.C. 1998. “Integration of Trade and Disintegration of Production in the
Global Economy”, Journal of Economic Perspectives, 12, 31-50.
Week 7 – The Basic Analysis of a Tariff
1. [MMKM], Chapter 15
2. [F&T], Chapter 8 and 9.
3. [P&L], Chapter 7
Week 8 – Quotas and Other Nontariff Barriers
1. [MMKM], Chapter 16.
2. [F&T], Chapter 8 and 9.
3. [P&L], Chapter 8.
Week 9 – Arguments for and Against Protection
1. [F&T], Chapter 9.
2. [P&L], Chapter 9.
3. [MMKM], Chapter 20.
Week 10 – Pushing Exports
1. [P&L], Chapter 10.
2. [F&T], Chapter 9.
Week 11-Trade Blocs and Trade Blocks
1. [P&L], Chapter 11.
2. [F&T], Chapter 11.
3. [MMKM], Chapter 18.
Week 13 - Payments among Nations and the Foreign Exchange Market
1. [P&L], Chapter 15 and 16
2. Dornbush, R., S. Fischer and R. Startz, 2014. Macroeconomics. New York: McGraw-
Hill International Editions [DFS]. Chapter 13.
Week 14 -What Determines Exchange Rate in the Long run and Short Run?
1. [P&L], Chapter 18 and 19
2. Dornbush, R., S. Fischer and R. Startz, 2014. Macroeconomics. New York: McGraw-
Hill International Editions [DFS]. Chapter 13.
Week 15 - Government Policies toward the Foreign Exchange Market
1. [P&L], Chapter 18 and 19.
Week 16 - How does the Open Macroeconomy Work?
1. [P&L], Chapter 21.
2. Dornbush, R., S. Fischer and R. Startz, 2014. Macroeconomics. New York: McGraw-
Hill International Editions [DFS]. Chapter 13 and 23.
Week 17- External and Internal Balance with Fixed Exchange Rates
1. [P&L], Chapter 22.
2. [DFS], Chapter 13 and 23.
Week 18- Floating Exchange Rates and Internal Balance
1. [P&L], Chapter 23.
2. [DFS], Chapter 13 and 23.
Week 19 - Direct Foreign Investments and the Multinationals
1. [P&L], Chapter 27.
2. [MMKM], Chapter 18.
