This course applies simple economic analysis to the study of transitional economies, including countries in Eastern Europe, former Soviet Union and China. Emphasis will be on the study of economic system and firm from the perspective of economic organization. Topics include: historical review and reasons for reform, coordination and incentives, reform strategies (big bang versus gradualism), macroeconomic stabilization and price liberalization, capital market and financial reform, ownership, property rights and privatization, restructuring and management of state-owned enterprises, entrepreneur and evolution of private firms, foreign trade, income distribution and social security, and comparison of reform experience in Eastern Europe and in China. Students should have elementary knowledge of microeconomics and macroeconomics.