Econ 257 Globalization

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Econ 257 Globalization

• Taught by Professor Ben Zissimos
• Office 201 Calhoun Hall
• Office hours 4.30-5.30pm Mondays,
  Wednesdays
• Meetings outside office hours by appointment
• Phone [phone]
• e-mail ben.zissimos_at_vanderbilt.edu

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To access my web site

• Go to Vanderbilt University Economic Dept.
  website http//sitemason.vanderbilt.edu/econ/
• Click Faculty
• Click ZISSIMOS, Ben
• Click Personal Page http//www.people.vanderbi
  lt.edu/benjamin.c.zissimos
• Click teaching
• Click Econ 257 Topics of Globalization and
  Policy Responses.

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Week 0 Fulfilling Pre-requisites

• There are only two pre-requisites for this
  course.
• You have a serious interest in the broad set of
  international issues that may be relevant to the
  topic of globalization.
• You understand the principle of comparative
  advantage.

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Why Trade? Introduction

• The study of international economics has never
  been as important as it is now.
• At the beginning of the 21st century, nations are
  more closely linked through trade in goods and
  services, through flows of money, and through
  investment in each others economies than ever
  before.
• Globalization covers a range of issues, including
  international trade, outsourcing and immigration.
  Out of all these areas, more is known about
  international trade than any of the others.
  Originally, the principle of comparative
  advantage focused on international trade.

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Why Trade? Introduction

• Figure 1-1 Exports and Imports as a Percentage
  of U.S. National Income

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Why Trade? Introduction

• Figure 1-2 Exports and Imports as Percentages of
  National Income in 1994

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Why Trade? Introduction

• Despite the importance of international trade,
  there is probably greater misunderstanding about
  the implications of trade than any other area of
  economics
• Myth 1 Free trade is beneficial only if your
  country is strong enough to stand up to foreign
  competition
• Myth 2 Foreign competition is unfair and hurts
  other countries when it is based on low wages
• Myth 3 Trade exploits a country and makes it
  worse off if its workers receive much lower wages
  than workers in other nations.