Portale di Ateneo - En.Unibs.it

Contents:

Introduction to International Economics.
An overview of World Trade.
Labor Productivity and Comparative Advantage: the Ricardian Model.
Specific Factors and Income Distribution.
Resources and Trade: the Heckscher-Ohlin Model.
The Standard Trade Model.
External Economies of Scale and the International Location of Production.
Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises.
The Instruments of Trade Policy.
Trade Policy in Developing Countries.
Controversies in Trade Policy.
National Income Accounting and the Balance of Payments.
Money, Interest Rates and Exchange Rates.
Price Levels and the Exchange Rate in the Long Run.
Output and the Exchange Rate in the Short Run.
International Monetary Systems.
Optimum Currency Areas and the European Experience.

Textbooks:

Paul Krugman, Maurice Obstfeld, Marc Melitz; International Economics: Theory and Policy (10th edition); Pearson; 2014; 1292074582;

Chapters 1-17, 19, 20.

Suggested readings:

Barbara Ingham; International Economics; Financial Times Management; 2004; 140587029X;

Paul De Grauwe; Economics of Monetary Union (10th edition); Oxford University Press; 2014; 978-0-19-968444-1.

Learning objectives:

This course provides instruments to understand the Theories of International Trade, to analyze the main international economic events over time. We will deal with the role of international economics institutions and trade policies, their evolution over time and across developed and developing countries. We will also discuss the role of interest rates and exchange rates in an open economy.
Finally, we will analyze the Optimum Currency Area theory, and discuss whether European countries are indeed an OCA.

Pre-requisites:

Students must have a good knowledge of Principles of Micro and Macroeconomics (undergraduate level), General Mathematics and English language. Proficiency in English is useful but not required.

Teaching methods:

It is advisable to attend each lecture, because the course requires students’ active participation. Students must solve simple homework and discuss it in class, almost every week. A final presentation of a joint/single project in English is required, in December. Groups of work will be defined by the teacher.

Other information:

Students must study the main textbook, being able to solve the exercises, and read part of the suggested books for in-depth analysis.
Slides will NOT be distributed to students.
More material, such as papers, scientific articles, news, etc. will be handed out in class.

Assessment method:

50% - Presentation of a project in English. Students will critically evaluate and discuss specific international economics issues, using a self-made video/ web page/ wiki/ slides to show in class. Projects can be joint or single-made. Presentations in December.

10% - Brief discussion of news appearing in international newspapers each week, about topics we discussed in class the week before. Students can also surf databases to build graphs or tables to describe the topic of their choice.

40% - Written test at the end of the course. Students will answer theoretical and technical questions about international economics.