Maricopa Community Colleges  ECN212   19926-20066 
Official Course Description: MCCCD Approval: 02/26/91
ECN212 19926-20066 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   19926-20066 The World Economy
1. Describe the impact that the international economy has on a given country's economy. (I)
2. Relate the impact that the 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. Contrast 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 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 used under flexible and fixed exchanged rates systems. (III)
10. Describe the role of international trade and finance in developing countries. (IV)
11. Describe the role of multinational corporations and 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   19926-20066 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 Corporation
        E. Goals of Foreign Economic Policy
      II. International Trade
          A. The Law of Comparative Advantage
          B. The Heckscher-Olin Model
          C. Free Trade versus Protectionism
          D. Multilateral Trade Agreements
          E. 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 Nations of the World Economy
              C. Trade Policies of Developing Nations
            V. Multinational Corporations
                A. The Nature and Structure of the Mutlinational Corporation
                B. Public Policy toward the Multinational Corporation
              VI. International Resource Movements
                  A. Debt versus Assistance: Policies of Developed Nations toward Developing Nations
                  B. International Capital and Labor Flows
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