Maricopa Community Colleges  ECN212   19916-19925 
Official Course Description: MCCCD Approval: 02/26/91
ECN212 19916-19925 L+L 3 Credit(s) 3 Period(s)
The World Economy
An analysis of the economic interdependence among nations, with emphasis on international trade and finance. Consideration given to the role and function of the multinational enterprise. Prerequisites: ECN112 or permission of instructor.
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MCCCD Official Course Competencies:
ECN212   19916-19925 The World Economy
1. Describe the impact that the international economy has on a given country's economy. (I)
2. Relate the impact that international trade has upon the standard of living of people in a domestic economy. (I)
3. Identify the Law of Comparative Advantage and provide examples of its application. (II)
4. Define the importance of factor endowments as stated by the Heckscher-Ohlin Theory. (II)
5. Contract Free Trade and Protectionism with one another and give examples of each. (II)
6. Describe and provide examples of Multilateral Trade Agreements. (II)
7. Relate U.S. Trade Policy with the Theory of Economic Integration. (II)
8. Describe the specific processes involved in the foreign exchange market. (III)
9. Describe the adjustment mechanisms used by nations under flexible and fixed exchange rate systems. (III)
10. Describe the role of the international trade and finance in third world countries. (IV)
11. Describe the role of multinational corporations and the problems/opportunities it offers for countries. (V)
12. Describe the importance and function of international capital and labor flows. (VI)
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MCCCD Official Course Outline:
ECN212   19916-19925 The World Economy
    I. The International Economy and the National Interest
        A. Importance of International Economics
        B. International Trade and The Nation's Standard of Living
        C. International Politics and Economics
        D. The Multinational Enterprise
        E. Goals of Foreign Economic Policy
      II. International Trade
          A. The Law of Comparative Advantage
          B. The Hecksher-Olin Model
          C. Free Trade versus Protectionism
          D. Multilateral Trade Agreements
          E. U.S. Trade Policy
          F. Theory of Economic Integration
        III. International Payments
            A. Foreign Exchange Markets
            B. The Balance of International Payments
            C. Fixed Rate, Variable Rate Systems
            D. Adjustment Mechanisms
          IV. International Development
              A. Importance of Trade
              B. Developing Countries in the World Economy
              C. Trade Policies of Developing Countries
            V. International Resource Movements and Multinational Corporations
                A. The Nature and Structure of the Multinational Enterprise
                B. Public Policy Toward the Multinational Corporation
              VI. International Resource Movements
                  A. Debt versus Assistance: Policies of Developed Countries Toward Developing Countries.
                  B. International Capital and Labor Flows
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