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Unformatted text preview: UNIVERSITY OF SOUTHERN CALIFORNIA
Marshall School of Business INTERNATIONAL TRADE AND COMMERCIAL POLICY
The class meets in HOH 304, on Mondays & Wednesdays@ 4:00 to 5:50 pm.
Professor Aris Protopapadakis
Hoffman Hall 7th floor #721
COURSE MATERIAL IS ON BLACKBOARD
Office hours are 11:30 am to 12:15 pm on Monday and Wednesday, and 2:00 to 3:15 pm on
Friday. My schedule varies on Fridays so make sure you check with me first. Below is my
schedule for the Fall semester; my office hours are indicated by the shaded boxes. Please stop
by during office hours if you have any questions, difficulties, or if you just want to talk about the
course or anything else. If you know when you are planning to come, do let me know in advance
so that I will be sure to be in my office (I tend to wander into other peoples’ offices). If my
office hours are inconvenient, it is perfectly OK to make arrangements with me in class or by email for a mutually convenient time; phone messages are generally useless.
Time Monday Tuesday Wednesday Thursday Friday 8 – 10 n.a. n.a. n.a. n.a. n.a. 10 - 12 11:30 –
12:15 n.a. 11:30 –
12:00 n.a. Seminar 12 – 2 n.a. n.a. n.a. n.a. Seminar Class
2:00 - 3:15
The best way to contact me is through e-mail and the absolutely worst way is by telephone.
2–4 FBE 462 COURSE OBJECTIVES
The course surveys the major topics in international trade. Trade or the desire to trade has been
credited with the “invention of invention” which has spawned economic progress, with the
invention of writing, and with the invention of mathematics.
Economies almost universally have become increasingly open and international trade has grown
much faster than national GDPs. At the same time, international trade is the subject of
continuous political debate in the U.S. and elsewhere. Policymakers, policy analysts, businesses,
various politicians, and workers unions hold strong and opposing views on several issues.
Firms’ competitive strategies are increasingly influenced by the trade policies of U.S. and other
countries. A firm without a global view will not be competitive in a global economy in which
competition comes not only from domestic firms but also from firms located abroad.
International trade policies are a key ingredient in firms’ strategic plans and their lobbying
We will analyze and discuss the economic incentives that motivate these debates, as well as
explore the institutional structure of trade. We will analyze how international trade influences
such things as social welfare, income distribution, employment, growth, and the ways public
policy can affect the outcomes. We will focus on questions such as:
(4) What is the economic basis for trade?
What determines the value and volume of trade?
What are the effects of trade?
What factors impede trade flows? We will cover most basic trade theories and their policy implications. We’ll analyze various
trade and industrial policies, such as, tariffs, quotas, voluntary export restrictions (VER), antidumping regulations, environmental protection, migration issues, and customs unions. We will
also discuss the institutional framework of WTO/GATT, U.S. trade law, the Uruguay and Doha
Rounds negotiations, the Multi-Fiber Agreement, and NAFTA. The course is concerned mainly
with the non-monetary aspect of international economics. Monetary and balance of payments
issues are only discussed marginally.
International Economics by Thomas Pugel, 13th edition, McGraw-Hill Irwin, 2007.
Pdf versions of my PowerPoint slides and other relevant material is posted on Blackboard.
In addition, I highly recommend that you read regularly sources of economic and business news.
Probably the best source of weekly news is The Economist http://www.economist.com. It is a
British publication with extensive U.S. and world coverage, and it has substantial student
The Wall Street Journal is of course a prime source of information: 2 FBE 462 http://www/wsj.com; there is an additional charge for online access. The New York Times has
broad coverage and good analysis; http://www.nytimes.com/. Its online subscription is free. The
Financial Times of London is an excellent daily newspaper with a clear international flavor, and
it has a relatively inexpensive on-line subscription: http://www.ft.com.
Free Trade vs. Protectionism: the Great Corn Laws Debate, HBR Case 9-701-080, 2001.
Can Florida Orange Growers Survive Globalization? HBR Case 9-904-415, 2004.
The World Trade Organization, HBR Case 9-703-015, 2002.
A “course” has been set up at HBS online, where you can purchase the cases at student rates. To
purchase the cases, please go to: http://cb.hbsp.harvard.edu/cb/access/6416390 and follow
the instructions. The Course name is: “Int’l Trade and Comm. Policy-Fall 2010.” This URL
is specific to this course for this semester only. You cannot access the course by going to the
HBS website, though you may purchase the cases retail also from the HBS website. These cases
are not available as a “reader” in the bookstore.
Article #15 “Humans: Why They Triumphed?” The Wall Street Journal May 22, 2010.
“Unpredictable Tides,” The Economist, July 23, 2009
“Building a Green Economy,” The New York Times April 11, 2010.
“Mexican Farmers Protest End of Corn Import Taxes,” New York Times,
February 1, 2008
“Trade Disputes,” The Economist, Sept. 16, 2004
“Opening the Floodgates,” The Economist, May 9, 2009
“The Great Unbundling: Does Economics Need a New Theory of Offshoring?”
The Economist January 18, 2007
“Globalization and the Rise in Inequality: Rich Man, Poor Man,” The
Economist January 18, 2007
“Trade Talks: Mangling Trade,” The Economist June 28, 2007
“Doffing the Cap: Tradable Emissions Permits Are a Popular, but Inferior, Way
to Tackle Global Warming,” The Economist June 14, 2007
“The Long Shadow of the Visible Hand,” The Wall Street Journal May 22,
“Shale Gas Will Rock the World” The Wall Street Journal May 10, 2010.
“The Newest Frontier: Immigrants are Transforming America,” The Economist,
February 21, 2008
“Give Me Your Scientists,” The Economist, March 05, 2009
“Europe's Immigration Quagmire,” Los Angeles Times, October 22, 2006 All the articles are either in the public domain or can be downloaded from Proquest or the
original sources through the University licensing agreements. However, for your convenience
you will be able to find them in Blackboard as well under Assignments. 3 FBE 462 COURSE REQUIREMENTS AND GRADING
The requirements for the course and the associated grading is: Delivarables Grade Value Two midterms
Case reports (individual reports)
Current events presentations
Attendance and connectivity
Homework 24.0% (12% each)
6.0% (2% each)
10.0%. Graded based on
demonstrated effort You may not use portable computers or any other device that connects to the internet in
class at any time.
The final grade is based on a “curve”. I adhere to the school guidelines, which suggest an
average grade of 3.30 out of 4.00 for undergraduate elective courses. Since this is a B+ average,
it means more B+ than B- grades and more As and Bs than Cs. I do not assign letter grades to
individual exams and project reports. However, periodically I will post the full distribution of all
your grades, so you can tell where you stand in the class. Ws are counted as Fs in the
computation of the average class grade.
The Federal government and the University are very concerned with the privacy of your
academic information. Consequently, I cannot post anywhere your grades with your name or
even with your truncated social security number or your University ID number. Therefore, if
you wish to have your grades posted in Blackboard, you must give me a signed statement with a
number code known only to you. I will then post your grades under this code. I will accept any
number you give me but for your own security you should not use you social security number,
your University ID number, or your home or cell phone numbers. You will find a form for this
purpose at the end of this document; it is also posted on Blackboard.
You must sign and return to me the “Course Syllabus Contract”. If you haven’t done so you will
receive an “Incomplete” for the course. The form is attached; it is also posted on Blackboard.
In order to receive a passing grade for the course, you must
1. Have a combined grade from the three exams, the 3 case reports, homework, class
participation, and attendance at least equal to 75% of the class average.
2. You must turn in the Peer Evaluation form related to the term project. No Peer
Evaluations are necessary for the current topic presentations.
3. You must sign and return to me the Course Syllabus Contract in a timely manner. 4 FBE 462 EXAMS
Each of the two midterms will address the subject matter that precedes it; the midterms are not
cumulative. The final exam will cover the entire course; it is cumulative. The exams are
intended to assess how well you understand the main ideas. You will not find “trick”, off-thewall, or obscure questions in these exams. Each exam will cover the required readings from the
text, readings, cases, projects, and all the material covered in class.
The exams consist of numerical problems, multiple choice questions, and possibly short essays.
All exams will be closed-book, closed-notes. Any violation of the code of academic honesty will
result in the severest sanctions compatible with University regulations.
MAKE UP EXAMS
Current department policy to which I adhere is the following:
No make-up midterm or final exams will be allowed. If for any reason
a student must miss an exam, he/she will be given a ‘0’ for that exam. If
they have an extenuating circumstance that prevents them from taking
an exam, they must discuss their reason with the instructor before the
time of the exam. Current department policy is that a student will not be
given a make-up exam unless he/she obtains a written permission from
the instructor in advance. In addition, a student must be able to
document the extenuating circumstance.
The permission form is attached to this syllabus.
Cases are part of the learning process in the course, because they will provide an alternative
perspective or additional information. In order to get the most out of the cases and prepare for
discussion it is important that you are familiar with the case to be discussed.
Therefore, each student is required to submit a no-more-than-one-page summary of the case.
The report ought to summarize the key arguments and/or issues. You don’t have to “solve” the
case! You may discuss the case with anyone and in particular with your team members but the
report must be your own work. Be prepared to participate in class discussion.
FIELD AND TERM PROJECTS
The term project is an important part of the learning process in the course, because it will help
you acquire valuable information on the trade practices and current negotiating positions of
major trading countries. In order to get the most out of the project as well as to lighten the load,
I will ask you to prepare the project as teams. Effective teamwork should both lighten the
workload and improve the quality of learning for everyone.
The topic of this course is trade. This field project will give you an opportunity to make a practical
assessment of the degree to which a retail business of your choosing depends on international trade. You
should use the same team that you choose for the Term Project for this. 5 FBE 462 I do not assign teams. Students must form teams of 4-5 students by the date indicated on the
schedule. There will be 10 teams or fewer in the class. Students who do not have a team by the
deadline will be assigned teams in class. Each team has to submit the proposed members as well
as three topics by order of preference. See “Project Description” for details.
You must evaluate the overall contribution of each team member, including your own. This
“peer evaluation” grade will modify your term project grade. Your grade is calculated as:
CaseGrade1 0.331 PEvalGrade . A 100% peer eval grade will award you the case grade
unchanged; a 75% peer evaluation grade will award you approximately 92% of the case grade,
etc. The impact of a poor peer evaluation grade can be substantial! You will get an incomplete
in the course if you don’t turn in the peer evaluation form. The necessary form is attached to this
Even though the teams are self-selected, if you feel that irreconcilable differences arise among
the members that may seriously affect your grade, please contact me. I will try to provide a nonpublic and minimally embarrassing solution. Once the semester is over, there will be no
Details for the field and term projects are in a separate project description document.
CURRENT TOPIC PRESENTATIONS
It is important for the course, your job prospects, and your future career that you keep up with
developments in the international environment. You can do this by readings newspapers (e.g.
The Financial Times, The New York Times, and/or The Wall Street Journal), or weekly
magazines (e.g. The Economist). It is also important to think critically about these developments
and develop informed opinions on the issues by applying the theories and information that you
acquire here. To encourage you to do so, and to allow the class to take advantage of your
thoughts and conclusions, we will use the last 15 minutes of class for these presentations.
It is important to provide for everyone a short summary of your topic and the critical article(s)
that you use. Please e-mail me the material by the class prior to your presentation so that I can
post it for all the students in a timely manner.
Class participation is an important ingredient of learning. Your participation grade will come in
large part from self-reporting. Please but ands bring to class a stack of 3x5 cards. When you
believe you have made a relevant contribution (not just asking clarification questions etc.) make
a short note, write your name and section, and turn it in at the end of class.
At the same time I will also keep track and record meaningful participation by students; I will
also keep track of negative participation. After the drop-add period I will make up a seating
chart. You can insure of being correctly identified by always being at your assigned seat. There
will be several opportunities for class participation: these include participation in the general
class discussion, during the current topic presentations (see below), during the case discussions,
and during the term project presentations. I may call on you even when you have not expressed 6 FBE 462 an interest in participating. Consistent lack of preparation when called upon will result in
lowering your participation grade.
The presentations can be done in groups of 1-3 students; these students could be (but don’t have
to be) from your team and not necessarily your whole team. I will circulate a schedule in class
so that you can claim your presentation date in advance. If you don’t sign up at that time, it will
be up to you to let me know by e-mail when you want to make a presentation. You need to
notify me one week in advance. After the initial sign-up space availability is not guaranteed.
I will circulate an attendance sheet each class. Please make sure you sign next to your name by
the end of class. I will start taking attendance after the first two weeks of class. There will be 23
remaining class sessions; if you attend 19 of these you will have a perfect attendance grade. This
arrangement gives you 4 “pre-excused” absences to be used for the usual schedule conflicts, job
interviews, family issues, sicknesses, etc.
Please be sure to
1. sign your name the same way all the time,
2. never sign anyone else’s name.
All course material will be on Blackboard. In addition it will be my principal means of
communication with you outside of class. Therefore, it is important that
1. you can get on Blackboard and know how to download the files,
2. you have your messages forwarded to your favorite e-mail account so that you can
receive them promptly,
3. your e-mail account is functioning and not overfull.
After the end of the drop-add period I will send all of you a message through Blackboard to
which you should respond promptly. This will complete your “connectivity” requirement.
However, if during the semester your account refuses to accept mail or is otherwise unavailable,
it will reduce your “connectivity” grade. Note that if your account is unavailable it means that I
cannot warn you that your grade is being marked down.
The due dates for the homework assignments are listed on the course schedule. Each student is
responsible for turning in her or his homework at the beginning of class on the due dates. You
get full credit for an honest effort by trying to do the homework and turning it in on time. You
will not be graded on the accuracy of your answers. I encourage you to work on the homework
problems with your classmates or your team members. However, each student must submit his
or her own homework! The problem sets will be posted in Blackboard. 7 FBE 462 GRADE APPEAL
If you think there is an error or you otherwise have reason to question a grade, you can appeal to
me in writing, within one week after you have received the grade. Be clear and specific about
the reason for your appeal. As a result of re-grading your score may increase or decrease.
The following is from section 10.0 of the USC publication SCAMPUS:
Because the functions of a university depend on honesty and integrity
among its members, the university expects from its students a higher
standard of conduct than the minimum required to avoid disciplinary
Furthermore, section 11.00 in the same publication outlines behavior violating university
standards and appropriate sanctions. Acts of dishonesty include, but are not limited to, cheating,
plagiarism, falsification of official records and documents, theft etc. My personal policy is to
assign the harshest penalties allowed for any given violation. DON’T EVEN THINK ABOUT
“The use of unauthorized materials, communication with fellow students during an examination,
attempting to benefit from the work of another student, and similar behavior that defeats the
intent of an examination or other class work is unacceptable to the University. It is often
difficult to distinguish between a culpable act and inadvertent behavior resulting from the
nervous tensions that accompany examinations. Where a clear violation has occurred, however,
the instructor may disqualify the student's work as unacceptable and assign a failing mark on the
paper.” (SCampus) ACADEMIC ACCOMMODATIONS BASED ON A DISABILITY
“Any student requesting academic accommodations based on a disability is required to register
with Disability Services and Programs (DSP) each semester. A letter of verification for
approved accommodations can be obtained from DSP. Please be sure the letter is delivered to
me as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m. - 5:00
p.m., Monday through Friday. The phone number for DSP is (213) 740-0776.” 8 DUE DATES OF DELIVERABLES
Free Trade case report due
Form teams & choose topic
Sign up for current topics
Term project report 1st draft due
OJ Case report due
WTO case report due
Term project report 2nd draft due
Field Project due
Final Project Report due
Final Exam 08/25
11/17 & 22
12/08 MATERIAL TO BE COVERED IN EACH TEST
Midterm #1: Chapters 1 - 6 Articles #1 - 6, Free Trade case,
current topic presentations
Midterm #2: Chapters 7 - 12 Articles #6 - 9, OJ Growers &WTO
cases, current topic presentations
Final Chapters 1 – 13, 15 Articles #1-13, The 3 cases Project reports Key information from the project
presentations and the field project. Remaining current events
presentations. FBE 462 COURSE SCHEDULE AND READING ASSIGNMENTS FOR FBE 462
Date Topic Assignment Due Week 1:
08/23 International Linkages & Globalization Ch. 1 08/25 The Basic Principles of Trade
Case: Free Trade vs. Protectionism: Ch. 2; Case report due.
Articles #1 - 3. 08/30 The Basic Principles of Trade Ch. 2, Problems 5-8, 11 09/01 Why Countries Trade -1? Ch. 3 Week 2: Week 3:
09/08 Why Countries Trade -1? Ch. 3, Problems 1-10 Last day to register & last day to drop without a W: 9/10
09/13 09/15 Ch. 4, Problems 3, 7, 8
Form Teams and choose
Ch. 5, Problems 1-6, 8-10
Homework #1 due. Articles
Sign-up for “current topics”
presentation Why Countries Trade -2? Winners and Losers from Trade;
the Heckscher-Ohlin Theorem Week 5:
09/20 Alternative Theories of Trade Ch. 6, Problems 1-10 09/22 Alternative Theories of Trade Ch. 6, Articles #6, 7 09/27 Review for Exam #1 Homework #2 due. 09/29 1st Midterm Exam Chapters 1 thru 6 Week 6: Week 7:
10/06 Ch. 7, Article #8
Term Project report #1 due Growth and Trade
Analysis of Tariffs Week 8:
10/11 Analysis of Tariffs
Case: Can Florida OJ Growers Survive? Ch. 8, Problems 1-9,
Case report due 10/13 Non-Tariff Barriers Ch. 9 10 FBE 462 Date Topic Assignment Due Week 9:
10/18 Non-Tariff Barriers Ch. 9, Problems 1-6
Homework #3 due. 10/20 Arguments For and Against Protection Ch. 10, Problems 1-7, 9 10/25 Pushing Exports Ch. 11, Problems 1-5 10/27 WTO/GATT
Case: The WTO; HBR Case + Article # 9
Pp. 168-175; 213-219, 225228, 267-272. Case report Week 10: Week 11:
11/03 Ch. 12, Term Project report
Ch. 12, Problems 1-9
Field project report due Trade Blocks
Trade Blocks Week 12:
11/08 Review for Exam #2 Homework #4 due. 11/10 2nd Midterm Exam Chapters 7 thru 12 Last day to drop with a W: 11/12
11/15 Trade & the Environment 11/17 Term Project Presentations (10 min per team) Ch. 13, Problems 1-6
Article #10 - 12
All Term Project reports
In-class presentations Week 14:
11/24 Term Project Presentations (10 min per team) In-class presentations No Class Week 15:
11/29 Multinationals & Migration Ch. 15, Problems 1-7, 9
Articles #13-15 12/01 Catch up and review Homework #5 due. Week 16:
12/08 Final Exam: 4:30 – 6:30 pm 11 All material UNIVERSITY OF SOUTHERN CALIFORNIA
MARSHALL SCHOOL OF BUSINESS FBE 462 – INTERNATIONAL TRADE AND COMMERICAL POLICY
RELEASE FORM FOR GRADE POSTING
The Department of Education has notified us that we may not post grades electronically or otherwise that
contain any personal identifiable information. This includes the use of abbreviated social security
numbers. If you wish to be able to access your grade information in Blackboard you must provide me with
a 7-digit identification number of your own choosing and fill out and sign this form. Please
return this form to me in class. ,
Last Name First Name I ask that you post my grades on a list or on the web, using the following 7-digit identification
number. Note: This number may not start with a zero My proposed identification number Signature Date UNIVERSITY OF SOUTHERN CALIFORNIA
MARSHALL SCHOOL OF BUSINESS FBE 462 – INTERNATIONAL TRADE AND COMMERICAL POLICY
COURSE SYLLABUS CONTRACT
This Course Syllabus describes the content, procedures, requirements, and rules for this course.
It functions as a contract between you and me. It is important that you have read and understood
the contents of this syllabus. You will have an “Incomplete” in the course until you complete
and return this document to me. I hereby declare and certify that I, ,
Last Name ,
First Name UNIVERSITY ID # (i)
(iv) am thoroughly familiar with the contents of the course syllabus for FBE 436,
have read the notice in the syllabus and accept the Student Conduct Code of the
University of Southern California,
understand and agree to abide by the policies set by the course, the department, the
school, and the university,
also have read and understood the Field Project and the Term Project Instructions. ,
STUDENT SIGNATURE .
DATE I may have to change due dates or other particulars in the syllabus because of unforeseen
circumstances. If that happens I will notify each of you by e-mail through Blackboard as
much in advance as is feasible. If at any time you perceive some inconsistency between what is written in the syllabus and
what may be written elsewhere or what I state in class, you should ask me for clarification as
soon as possible. FBE 462 LETTER OF PERMISSION This is to verify that I, Aris Protopapadakis have given permission to
STUDENT to be excused
SOCIAL SECURITY # in from the
MID-TERM/FINAL FBE 462 during this COURSE TERM/YEAR semester. The student must make alternative arrangements to take a make-up exam. ,
INSTRUCTOR SIGNATURE .
DATE PEER EVALUATION FORM –FBE 462
Confidentiality will be maintained.
Evaluating Student’s Name:________________________________________________
Instructions: Each team member is asked to assess the relative contributions/efforts of all the
team members. This applies to both the quality and quantity of contributions to the project and to
the cohesiveness and energy of the team.
Divide 100 points between all members of the group (including yourself).
Please list the names of all your team members (including yourself) in the table below. Assign
points to everyone and provide a short explanation/reasoning for your distribution.
Team Member Name 1 2 3 4 5 Total Rating Explanation/Reasoning ...
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