University of Washington
Geography 349
Autumn 2007
PREPARING
FOR THE FIRST IN-CLASS TEST
You might want to take a look at Test 1 from
earlier years.
I'll ask you for a little empirical
memorization, from Dicken's Chapter 2 (on which we responded to written
questions and had small-group discussions in class; I've since returned
those written assignments, with a partial answer key).
Specifically, I think you should leave this course knowing which 5
countries are the world's largest producers of agricultural products,
manufactured goods, and services; which 2-3 countries have the
largest trade surpluses in agricultural products, merchandise trade,
and traded services; and which two countries have the world's
largest bilateral trade flow.
Of course, a major purpose of the
course is to be able to make sense of these trade flows, so I might ask you to
explain -- to make sense of -- those patterns by using any
(combination) of the trade "theories" (frameworks or explanations)
we've studied.
I want you to be able to interpret a
trade-balance table, and to understand the relationship among
components of the economy (see examples of these online). Don't bother to memorize any of
the numbers presented online; if i want you to work with such a
table, I'll provide the table.
I have repeatedly referred to a key
relationship between trade balances and capital flows; what is
that relationship? How is that relationship manifested on a table
of a country's international accounts?
Be very conversant with the
neoclassical theory of international trade. (The online notes and
the Clement chapter are especially helpful; but I've referred to
other resources as well). Why is it a "normative" theory?
Why is it a "deductive" theory? What basic question does it try
to answer? How does it answer that question? As you explain
this, make use of (and be able to define, if I ask) terms such as
"opportunity costs," "comparative advantage," "factor
proportions," and "gains from trade." What are some of the key
assumptions of this approach? (Don't worry about the simplifying
assumptions we used, such as only 2 countries, 2 products, and 2
factors; or the absence of transportation costs -- those are not
the key assumptions, and we can make full use of this model without those assumptions).
I will very likely ask you to
interpret and to make use of our formula
G1 = (a1/b2)(C2/C1)
- a1/b1. There's no need to memorize that
set of letters and numbers: I'd give you that, and I'd tell you
that a & b are products, 1 & 2 are countries, etc. What you're responsible for is the interpretation of these ratios, and of each term of the
right-hand side -- and being able to use the formula.
Be able to define the key forms
of trade barriers.
Be able to speak to the different
arguments for trade barriers, from the online
notes, the Kletzer reading, and
the Clement et al. reading. The Davidson & Matusz reading and
the Kletzer reading do a better job than the online notes in
bringing together (a) economic theory, (b) political concerns, and (c)
empirical findings.
Know the three
key institutions of multilateral
trade liberalization, and the levels
of regional economic integration
which are allowed by the WTO despite the MFN provision of the
WTO. (Clement et al. pp. 47-54 and Dicken pp. 180-204 are very helpful).
copyright
James W. Harrington, Jr.
revised 17 October 2007