NYU Stern School of Business

Undergraduate College


Fall 2010

Instructor Details

Wachtel, Paul


212 998 4030


KMEC 7-87


Paolo Cavallino


See Blackboard

See Blackboard

Studetns can also consult the TF for the 11:00 section - Karun Aulakh



Course Meetings

MW, 9:30am to 10:45am

KMC 3-90


Exam I Wednesday, October 6

Exam II Wednesday, November 17

Final Exam:

     Friday, December 17, 12:00-1:50 -- room to be announced

Schedule exception
    Class will not meet on: October 11


Course Description and Learning Goals

The objective of this course is to provide future decision-makers with a systematic understanding of critical aspects of the global business environment.  We start with the basic workings of the macro economy and then explain the role of international trade and finance.  We examine how the forces of globalization affect international business and the careers of Stern students.  The challenges presented by the financial crisis and the prospects for economic development are discussed

The course is divided into three parts:

In short, Economics of Global Business provides Stern students with an overview of global economic issues.  It serves as the basis for the International Studies Project and is a prerequisite for many elective courses in international business and economics.


Course Pre-Requisites

C30.0001 Microeconomics


Course Outline

August 30, 2010

C30.0011 Economics of Global Business 

Class Outline




Part I – Trade and trade policy

Class 1 – September 8

Introduction: Globalization and performance of national economies.

Classes 2 - 4  – September 13, 15, 20

Why do countries trade? 

Classes 5-7 – September 22, 27, 29

How governments interfere with trade and why

Class 8 -- October 4

Trade, growth and the environment

Class 9 – October 6  -

Exam I


Part II – Understanding the Modern Macro economy

Classes 10 -11 – October 13, 18

Introduction to macroeconomics and measurement

Classes 12 – 13 – October 20, 25

Gropwth and the economy in the long run

Classes 14 – 15 - October 27, November 1

Fluctuations in economic activity

Classes 16  - November 3

Fiscal policy and deficits

Classes 17-18 – November 8 and 10

Money and monetary policy

Class 19 – November 15

Financial crisis and Macroeconomics

            Guest lecturer: Mr. Seamus McMahon

Class 20 – November 17

Exam II


Part III – International finance and policy 

Class 21 – November 22

Balance of payments

Classes 22 - 23  – November 24, 29

Exchange rates, interest rates and inflation

Classes 24 – 26  --  December 1, 6 and 8

 Exchange rate regimes and policies

Classes 27 - 28 -- December 13, 15

International Macroeconomics: policy in the open economy


Final Exam --  Friday, December 17, 12:00-1:50,  Room to be announced



Required Course Materials


Thomas Pugel.  International Economics, 14th edition, McGraw-Hill Irwin, 2009.

Paul Krugman and Robin Wells, Macroeconomics, 2nd edition, Worth, 2009

Information about the availablitity of custom editions, ebooks and the usefulness of earlier editions can be found on Blackboard.


Additional readings

Course outline with links to additional readings can be found on Blackboard


Students should keep up with the Economic news by becoming regular readers of the Financial Times or the Wall Street Journal or The Economist.


Assessment Components

The course grade will be based on the following items with the weights shown:

First exam             25%

Second exam        25%

Final exam             40%

Class participation10%



At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges as a guide, the actual distribution for this course and your own grade will depend upon how well you actually perform in this course.



The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in grading, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.


Professional Responsibilities For This Course


Class attendance is essential to your success in this course and is part of your grade. An excused absence can only be granted in cases of serious illness, grave family emergencies, or religious observance. Job interviews and travel plans are not considered as valid reasons for absence from class.

Whenever possible, please notify me in advance if you do not expect to be in class, whatever the reason.



In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:



Late assignments will either not be accepted or will incur a grade penalty unless due to a valid reason with arrangements made in advance in of the due date. .


Classroom Norms


Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 

Collaboration on Graded Assignments
Students may not work together on any assignments or exams unless the instructor gives express permission. 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.


Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.


Recording of Classes

Your class may be recorded for educational purposes


Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.


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