Office Hours 100-200pm TR; or by appointment by zaaaaa4


									                               The Global Economy
                            ECON 2100 - 005 (CRN 80001)
                                    Fall 2008

Instructor: Paul Kagundu
Office: Andrew Young School of Policy Studies (AYSPS); Room 521
Phone: 404/413-0149
Office Hours: 1:00-2:00pm TR; or by appointment
Class meets TR: 11:00am – 12:15pm in General Classroom, Room # 218

Course Description:

The world's economies have become much more integrated over time. This course is
designed to introduce students to basic facts about the operation of the world economy,
with particular focus on current issues confronting economies of various countries. The
course will discuss the role of international organizations such as the World Bank and the
International Monetary Fund, and will focus on major problems facing policy makers,
such as global income inequality, financial crises, environmental challenges, the
transition to a market economy, currency unions, financial and debt crises.

Course Objectives

The student should be able to:

    1. Define the concepts of resources and wants, and relate them to Scarcity
        and Opportunity Costs.
    2. Identify the Production Possibility Curve and to use it to measure
        opportunity costs.
    3. Understand and describe the concepts and measurement of gross domestic
        product, business cycles, and inflation.
    4. Understand and describe the difference between business cycles and
        economic growth and the factors that contribute to each.
    5. Understand and describe the concepts of Absolute advantage and
        Comparative Advantage.
    6. Understand and describe the concepts of balance of payments and its
        components, as well as the determinants of exchange rates.
    7. Identify the benefits and costs of free trade.
    8. Define globalization and understand its history.
    9. Understand the roles of international trading arrangements (e.g., the North
        American Free Trade Act, the General Agreement on Tariffs and Trade),
        and the functions of international organizations (e.g., the International
        Monetary Fund, the World Bank, the World Trade Organization).
    10. Define and identify the components of capital flows and the determinants
        of capital flows to different regions of the world.


Global Economic Issues and Policies, by Joseph P. Daniels and David D.
Vanhoose, will be our primary textbook. Additional readings (when necessary)
will be made available via uLearn (formerly webct vista). A calculator is
recommended (cellular phone calculators cannot be used on exams). Access to a
computer and the internet is required – there are many computer labs available on
campus – for information about locations and hours see .

uLearn: We will use uLearn for this class, which is available via the “ulearn” link at Check the “Technical help” link for useful information if you are
unfamiliar with uLearn. On uLearn, you will access lecture notes, any additional
readings, send emails, check your grades, etc.


Grade Distribution
Exam I                                           20%
Exam II                                          20%
Group Project                                    20%
Quizzes                                          10%
Class Attendance                                 5%
Final Exam                                       25%

Grade Scale

    Letter Grade            Number Grade           GPA Quality Points

          A                     93 – 100                    4.0
          A-                    90 – 92                     3.7
          B+                    87 – 89                     3.3
          B                      83 – 86                    3.0
          B-                    80 – 82                     2.7
          C+                    77 – 79                     2.3
          C                      73 – 76                    2.0
          C-                    70 – 72                     1.7
          D                      60 – 69                    1.0
           F                      <60                       0.0

We have three exams – two “midterm” exams and a final exam. The first two exams are
non cumulative. The final exam is cumulative but will emphasize material not covered on
Exam I and Exam II.

No make-up exams are provided except for documented health or business reasons
arranged with the instructor in advance if at all possible. No extra-credit projects are
available under any circumstances.

These consist of in-class quizzes. Most quizzes could be done in groups but students will
have the option of doing the quizzes individually. Quizzes will be designed to be
completed in not more than 15 minutes and WILL NOT be announced in advance.

Group Projects

The Assignment Specifications

The group project will consist of 2 parts: (1) a PowerPoint presentation; (2) a
presentation in class, approximately 25 minutes in length. Be sure to list the
names of group members who did work on the project on the first slide of your
presentation. Topics for group projects may be included on the exams, so make
sure you do a good job presenting the material on your topic to the class, and be
sure to pay close attention to your classmates’ presentations.

Grading Criteria:

The group project will be worth a maximum of 20 points to each individual in the
group, broken down as follows: part 1 will be worth a maximum of 10 points and
part 2 will be worth a maximum of 10 points. Everyone in the group will receive
the same points – exceptions to this rule will be rare and will only occur if
participating members of the group unanimously decide on a different distribution
of points, and informs me in writing at the time the project is due. Each group’s
PowerPoint presentation should be sent to me via email at least 24 hours before
the class presentation. Late submissions will NOT be accepted under any
circumstances and will result in 0 points for the entire group (that means that your
group is only as good as your weakest link – please do NOT be the one to let
down your group)… there will be NO MAKE-UPS for group projects! When
assigning points, I will be looking for the following:

    •   Good introduction. Does it become clear from the outset what this
        presentation is about and what will be the parts?
    •   Amount of relevant information included, sufficient detail, and quality of
        explanations in the presentation. Sources should be cited; web links are
        useful; you may also find some interesting video material in the library. In

       addition to factual information, feel free to express opinions on the topic
       and present arguments for your opinions.
   •   Ability to address questions from the audience (including me) during the
       class presentation.
   •   Connection between the parts presented by different members during the
       class presentation and how well the PowerPoint presentation is structured.
       It should not be simply a compilation of the parts that each member wrote
       separately; different parts need to tie in well, and the class presentation
       should flow well. Note that this means it will most likely be necessary to
       get together as a group to think over the structure and practice your class
       presentation in order to avoid incomplete information and/or repetitions,
       and to be sure that it falls within the specified time frame (approximately
       25 minutes).

Formation of Groups:

Each member of the class will be assigned to one of the 12 different groups of
approximately equal size. Groups and topic assignments will initially be done
randomly, and posted on uLearn; then you will be given an opportunity to trade
across groups. All trades must take place within the first week after the random
assignments are announced. Everyone involved in the trade must inform me via
email by the deadline. I will then update the membership in the groups and post
the final group assignments.

Group Presentation Topics and Dates:

GROUP                                  TOPIC                          DATE
Group 1    The Economics of Oil                                       11/06
Group 2    Globalization and the Environment                          11/06
Group 3    The Rising Global Food Prices                              11/11
Group 4    The Word Trade Organization (WTO)                          11/11
Group 5    Free Trade Area of the Americas (FTAA)                     11/13
Group 6    Immigration Issues and the Global Economy                  11/13
Group 7    The Southeast Asian Financial Crisis of 1997               11/18
Group 8    Offshore Outsourcing and the Global Economy                11/18
Group 9    Globalization and Poverty                                  11/20
Group 10 International Monetary Fund (IMF) and the World Bank (WB) 11/20
Group 11 Economic issues related to terrorism                         12/02
Group 12 The United States in the Global Economy                      12/02

Attendance Policy
Attendance will be taken daily and will account for 5 percent of your overall
grade in the class. Missing up to 3 classes will not be penalized; missing 4
through 6 classes will cost you 2 out of the 5 points; and missing more than 6
classes will cost you all the 5 points.

Besides, attending class significantly increases your understanding of the course
content and improves your odds of obtaining a good grade in the class. Note that
quizzes, once missed, CANNOT be made up. If you missed class, it is your
responsibility to find out what you missed.

Policy on Academic Honesty
All students are responsible for knowing and adhering to GSU’s Policy on
Academic Honesty as published in On Campus: The Undergraduate Co-
Curricular Affairs Handbook. Any incidents of academic dishonesty (i.e.
cheating on a test, plagiarizing, etc.) will result in an automatic “F” for the course.

Disruptive Student Conduct in the Classroom or Other learning Environment

All forms of disruptive behavior should be avoided. Disruptive student behavior
includes, but is not limited to, verbal or physical threats, repeated obscenities,
unreasonable interference with class discussion, making/receiving personal phone calls or
pagers during class, leaving and entering class frequently in the absence of notice to
instructor of illness or other extenuating circumstances, and persisting in disruptive
personal conversation with other class members. Please ensure that all potentially noise-
making equipment (cellular phones, pagers, laptop computers, etc) are turned off during
lectures. Furthermore, be sure to get to class on time. Entering class during the lecture is
disruptive to the instructor as well as to the students.
Refer to Georgia State University policy on disruptive student conduct in the classroom
or other learning environment (Under the Georgia State University Student Code of
Conduct and Policies).1


Tentative Course Outline

   WEEK          Textbook Chapter                                     TOPIC
Week 1 (Aug      None (rely on lecture notes)      -   Introduction to the course
19 & Aug 21)                                       -   Scarcity, choice, opportunity cost, and the
                                                       production possibility frontier (PPF)
Week 2 ( Aug   Chapter 1                           -   Introduction to the global Economy
26 & Aug 28)                                       -   Demand and Supply (Global Markets)
Week 3 (Sep. 2 None (rely on lecture notes)        -   Comparative Economic Systems: Market
& Sep. 4)                                              vs. command economies
                                                   -   Transitional Economies
Week 4 (Sep. 9 None (rely on lecture notes)        -   Business cycles
& Sep. 11)                                         -   Inflation
Week 5 (Sep.   Chapter 2                           -   EXAM I on Sep. 16
16 & Sep. 18)                                      -   Comparative advantage, absolute advantage
                                                       and trade
Week 6 (Sep.     Chapter 2                         -   Comparative advantage, absolute advantage
23 & Sep. 25)    Chapter 4                             and trade (continued)
                                                   -   International trade regulations
Week 7 (Sep.     Chapter 4                         -   International trade regulations (continued)
30 & Oct. 2)     Chapter 5                         -   Regionalism and Multilateralism
Week 8 (Oct. 7   Chapter 6                         -   International finance (Balance of Payments)
& Oct. 9)                                          -   International Finance (exchange rates)
Week 9 (Oct.                                       -   Exam II Review
14 & Oct. 16)                                      -   EXAM II on Oct. 16
Week 10 (Oct.    None (rely on lecture notes)      -   International Investment
21 & Oct. 23)                                      -   GDP (Gross Domestic Product)
Week 11 (Oct.    None (rely on lecture notes)      -   Economic Growth and development
28 & Oct. 30)                                      -   Currency Union and the Euro
Week 12 (Nov.    None (rely on lecture notes)      -   Currency and debt crises
4 & Nov. 6)                                        -   Group 1 and Group 2 Presentations on
                                                       Nov. 6
Week 13 (Nov.                                      -   Group 3 and Group 4 Presentations on
11 & Nov. 13)                                          Nov. 11
                                                   -   Group 5 and Group 6 Presentations on
                                                       Nov. 13
Week 14 (Nov.                                      -   Group 7 and Group 8 Presentations on
18 & Nov. 20)                                          Nov. 18
                                                   -   Group 9 and Group 10 Presentations on
                                                       Nov. 20
Wee 15 (Nov.                                       -   No class (Thanksgiving holidays)
25 & Nov. 27)

Week 16 (Dec.                                      -   Group 11 and Group 12 Presentations on
2 & Dec. 4)                                            Dec. 2
                                                   - Final Exam Review on Dec. 4
Final Exam                                      - No Class on Dec. 9
Week (Dec. 9                                    - FINAL EXAM on Dec. 11 at 10:15am
& Dec. 11)                                      (Please take note of the exam time)


1. If you require special accommodations for exams (e.g., "time and a half"), you must
   provide documentation from GSU Disability Services and make arrangements with
   me PRIOR to the exam dates.
2. Incompletes will only be given to students who are passing the course, and even then,
   only in very special circumstances. In the case where an incomplete is awarded, it
   must be removed by the end of the next term that the student is enrolled (and within
   two terms regardless of whether or not the student is enrolled) or it will automatically
   turn into an F.
3. Students who withdraw after the midpoint of each term will not be eligible for a "W"
   except in cases of hardship. A student who withdraws after the midpoint of the term
   is assigned a grade of "WF," except in those cases in which (1) hardship status is
   determined by the Office of the Dean of Students because of emergency employment,
   or health reasons, and (2) the student is doing passing work, as determined by the
   student's instructor(s).
4. Effective Fall 2001, all instructors must, on a date after the mid-point of the course
   (to be set by the Provost) give a WF to all those students who are on their rolls, but
   no longer taking the class and report the last day the student attended or turned in an
   assignment. If you plan to drop the class, do let me know.
5. This course syllabus provides a general plan for the course; deviations may be
6. October 1, 2008 is the semester midpoint and the last day to withdraw and
   possibly receive a “W”.


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