ECO 2121 B

Economics of Globalization
Winter 2020

Instructor Radu Anghel

Hours Monday, 7pm to 9:50pm
Room Tabaret 333
Office FSS 9051
Office hours on appointment, Monday, 5:50pm to 6:50pm
Email radu.anghel@uottawa.ca

EMAIL POLICY AND COMMUNICATION PROTOCOL

Any questions sent by email should receive a response within two business days or
during the following class if taken place within the 48 hours following receipt of the
email. Note that the professor reserves the right not to answer an email if the level of
language used is inadequate.

While I am of the opinion that emails greatly improve communication between students
and professors and I am generally reasonably prompt in answering emails, students
should bear in mind that email communication is not intended to be a substitute for the
following: i) class attendance, ii) office hours, iii) Bright Space announcements. It is your
responsibility to regularly consult Bright Space in order to access the uploaded content
and announcements. Please make sure your @uottawa.ca email account is functional.

OFFICIAL COURSE DESCRIPTION

This course is an introduction to economics of trade, international finance and open

economy macroeconomics. Topics include reasons for trade, domestic and international
trade policies, international finance, exchange rates, open economy macroeconomics, and
maintaining international financial and macroeconomic stability. The role of international
institutions will be discussed – the International Monetary Fund (IMF) and the World
Trade Organization (WTO) – as well as their history and proposals for reform.

GENERAL COURSE OBJECTIVES

Today’s conversations around the concepts of political and economic globalization

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occupy the center stage of our public debates. This course intends to familiarize students
with the key theoretical concepts that surface in these discussions, particularly in those
that focus on economic globalization. The course will provide a historical account of the
observed expansion of markets and a theoretical apparatus with which to study this
phenomenon. While the course is mostly focused on international trade economics, other
topics such as financial globalization, the role of the main international organizations, the
impact of globalization on the distribution of income within a national economy and
across national economies, as well as its disruptive impact on welfare state arrangements
will also be studied.

The effort expected from students revolves around a process of intellectual reflection and
understanding rather than on mere technical learning and memorization of facts.

Prerequisites: ECO 1102 or ECO 1302 or ECO 1104 or ECO 1304.

TEACHING METHODS

Class presentation is mostly delivered by means of PowerPoint presentations with

occasional chalk-work on the blackboard. While the former will be posted on Bright
Space, were a student to miss a class, it is that student’s responsibility to consult another
student and borrow his or her notes.

ASSESSMENT METHODS

The final grade will be calculated as follows:

Midterm #1 (February 3), 25% of the final grade

Midterm #2 (March 9), 25% of the final grade
Final exam (final exam period), 50% of the final grade

However, if a student earns a grade in the final exam above 50%, even if the above
formula would yield a final grade below 50%, the final grade would automatically be
adjusted to 50%.

Please note that I will not alter the weights of the various components of the final grade
once the course has already started, whatever the underlying reason of such a request
might be, including the underperformance of a student in one of the above-listed tests.
Also note that there are no extra assignments or make-up exams.

TEXTBOOK

Textbook: Paul Krugman, Maurice Obstfeld and Marc Melitz, International Economics:
Theory and Policy, Pearson, 10th edition, 2013, chapters 3-5, 8-12, and 19-21 (KOM)

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The textbook can be purchased from the university’s bookstore as well as from
https://www.amazon.ca/International-Economics-Theory-Policy-10th/dp/0133423646 .

In addition to the textbook, some readings for this course will consist in articles and
reports authored, for the most part, by academic economists and international
organizations.

SCHEDULE

The following is a tentative schedule of the topics discussed in this course.

January 6 What is globalization? A historical account of the expansion of markets

January 13 Trade economics – the one-factor Ricardian model (KOM, Ch. 3)
January 20 Trade economics – the specific-factor model (KOM, Ch. 4)
January 27 Trade economics – the two-factor Heckscher-Ohlin model (KOM, Ch. 5)
February 3 Midterm #1; Firms in the global economy (KOM, Ch. 8)
February 10 Trade policy instruments and the political economy of trade policy (KOM,
Ch. 9 and 10)
February 24 The February 24 class will be rescheduled on a Saturday (exact date to be
determined) – Trade policy in developing countries; Controversies in
trade policy (KOM, Ch. 11 and 12)
March 2 International monetary systems and optimum currency areas (KOM, Ch.
19 & 21)
March 9 Midterm #2; International monetary systems and optimum currency areas
(continued, KOM, Ch. 19 & 21)
March 16 Welfare state and globalization
March 23 Welfare state and globalization (continued); The 2007-2009 Global
Financial Crisis (KOM, Ch. 20)
March 30 The 2007-2009 Global Financial Crisis (continued, KOM, Ch. 20)

ACADEMIC FRAUD AND PLAGIARISM

Academic fraud is an act committed by a student to distort the marking of assignments,

tests, examinations, and other forms of academic evaluation. Academic fraud is neither
accepted nor tolerated by the University. Anyone found guilty of academic fraud is
liable to severe academic sanctions.
Here are a few examples of academic fraud:
• engaging in any form of plagiarism or cheating;
• presenting falsified research data;
• handing in an assignment that was not authored, in whole or in part, by the
student;
• submitting the same assignment in more than one course, without the written
consent of the professors concerned.

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In recent years, the development of the Internet has made it much easier to identify
academic plagiarism. The tools available to your professors allow them to trace the
exact origin of a text on the Web, using just a few words.
In cases where students are unsure whether they are at fault, it is their responsibility to
consult the “Writing and Style Guide for University Papers and Assignments.” It can
be found at: http://socialsciences.uottawa.ca/undergraduate/writing-style-guide
Persons who have committed or attempted to commit (or have been accomplices to)
academic fraud will be penalized. Here are some examples of the academic sanctions,
which can be imposed:
• a grade of “F” for the assignment or course in question;
• an additional program requirement of between 3 and 30 credits;
• suspension or expulsion from the Faculty.
For more information, refer to the Student’s Guide to Academic Integrity:
http://www.uottawa.ca/vice-president-academic/sites/www.uottawa.ca.vice-president-
academic/files/academic-integrity-students-guide.pdf
and Academic Integrity Website (Office of the Vice-President Academic and Provost)
http://web5.uottawa.ca/mcs-smc/academicintegrity/home.php

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Policy on language quality and late submissions

Class attendance is necessary to successfully complete this course. However, no grades

are assigned to attending the class and no presence is taken.

Absences from exams will be penalized. Exceptions are made only for illness or other
serious situations. The Faculty reserves the right to accept or refuse the reason. Conflicts
due to travel, jobs, or any misreading of the examination timetable are not acceptable
reasons. Absences from exams which are not excused will result in a mark of zero for the
exam.

Absence due to illness must be supported by a medical certificate. Requests for deferral
must be submitted, with supporting documentation (ex. medical certificate), within five
working days of the exam. The request must respect all the conditions of Academic
Regulation I9.5 (https://www.uottawa.ca/administration-and-governance/academic-
regulation-9-evaluation-of-student-learning). The date and time of the deferred final exam
is May 5, 2020, at 8:30 a.m. (room to be determined).

Students who are excused for missing a midterm will have their final grade calculated as
follows:

Other midterm – 40% of the final grade

Final exam – 60% of the final grade

Students who are missing the final exam for a valid reason and are requesting a deferred
exam have to fill in a form which can be obtained at
https://socialsciences.uottawa.ca/students/undergraduate-forms.

The University of Ottawa does not tolerate any form of sexual violence. Sexual violence
refers to any act of a sexual nature committed without consent, such as rape, sexual
harassment or online harassment. The University, as well as student and employee
associations, offers a full range of resources and services allowing members of our
community to receive information and confidential assistance and providing for a
procedure to report an incident or make a complaint. For more information, visit
www.uOttawa.ca/sexual-violence-support-and-prevention