International Economics

Objectives

• To understand the meaning of classical and modern theories of economic policies, in order to have arguments for interpreting the gains from international trade.
• To achieve a critical thinking on the effects of globalisation.
• To comprehend the role and operation of international financial markets.

Learning outcomes

• Know the main theories of international trade.
• Know the instruments of economic policy and the effects in international trade.
• Assess and interprete the effects of globalization.
• Understand economic system under fixed and variable exchange rates.
• Have a critical view over the economic framework of the European Union.
• Know how to solve graphic and numerical models over international economics.

Competencies

Specific skills

• Analyse and understand the functioning of the market, nationally and internationally, for business decision making.
• Make use of knowledge of world economic history to enable a critical interpretation of the current economomic and business climate characterised by dynamism and complexity.

Basic skills

• Students can apply their knowledge to their work or vocation in a professional manner and have competencies typically demonstrated through drafting and defending arguments and solving problems in their field of study.
• Students have the ability to gather and interpret relevant data (usually within their field of study) in order to make judgements that include reflection on relevant social, scientific and ethical issues.

Core skills

• Display professional skills in complex multidisciplinary contexts, working in networked teams, whether face-to-face or online, through use of information and communication technology.

Content

Block I. Theoretical approach

1. Classical theories in international trade
   • Theory of comparative advantage
   • Heckscher Ohlin Theorem
2. Modern theories in international trade
   • Models of imperfect competition
   • Economies of scale and growth

Block II. International trade and markets

3. The debate between open markets and protectionism
   • Barriers to international trade
   • The effect of barriers and tariffs
   • Free trade
4. The effects of globalization
   • Trade policy in emerging economies
   • Globalisation and democracy
   • Globalisation and inequality

Block III. International finance

5. Foreign exchange market
   • Money, interest rates and exchange rates
6. The Theory of Optimum Currency Areas
   • Economic integration and the Euro Zone
7. Financial globalisation
   • Opportunity and crisis

Evaluation

• Observation of active participation and cooperative work: 10%
• Completion of work assignments: 40%, 20% of which will be assessed from the delivery of the tasks and the other 20% from the presentation during seminar sessions.
• Written exams: 50% : 1st exercise on week 8 is 20%, and 2nd exercise on week 15 is 30%.

Grade from exams will be weighted, provided that scoring is at least 4.0.

Only one of the two exams can be retaken.

To pass the course, the average of all the parts weighted must be at least 5.0.

Methodology

The teaching-learning process implemented in this course is mainly active and participatory.

Cooperative work in small groups is required for every student in order to conduct the completion of weekly works and present them for reflection and debate in seminar sessions. Every group shall present their weekly work, at least once during the course.

Written exams will be mostly a confirming process of achieved understanding of concepts worked during the units and an opportunity to deliver interpretation and application of the new knowledge.

Bibliography

Bibliography

• Krugman, Obstfeld, Melitz (2018). International Economics: Theory & Policy (1292019557 ed.). Pearson.
• Rodrick, Dani (2012). The globalization paradox: Democarcy and the future of the World Economy (2147483647 ed.). W.W Norton & com.

Reading

Teachers will provide complementary bibliography and compulsory reading throughout the course via the Virtual Campus.