Course Overview
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Course Synopsis
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International economics describes the overall behavior of the international trade. This course discusses the basic theories of international economics like absolute advantage, comparative advantage and other concepts of international trade i-e opportunity cost, production possibilities frontier and community indifference curve. This also highlights the Heckscher-Ohlin theory, Protectionism, Balance of Payments, Exchange Rate and Economic integration. In the end, this course also focuses international trade organizations, agreements and current issue of the world economy which are very essential part of international economics.
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Course Learning Outcomes
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By the end of this course, you should be able to:
- Explain why nations or countries prefer international trade.
- Discuss International trade pattern and policies.
- Describe where investors will invest and why.
- Identify and analyze different theoretical models of international economics in light of ‘real world’ situations.
- Critically evaluate the character and effect of globalization, trade barrier etc.
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Course Calendar
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1
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Introduction to International Economics
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2
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Important Concepts in International Economics
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3
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Mercantilists' Views on Trade and The Law of Absolute Advantage
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4
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Law of Comparative Advantage
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5
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Comparative advantage and production possibility frontier (PPF) under constant costs
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6
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Opportunity Cost and Relative Commodity Prices
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7
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The Production Frontier with Increasing Costs
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8
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Equilibrium-Relative Commodity Prices and Gains from Trade with Comparative Advantage
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Quiz 1
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9
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Relative Commodity Prices with Trade and Small-Country Case with Increasing Costs
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10
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Forms of Gains in Trade and Trade Based on Differences in Taste
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11
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Partial Equilibrium Analysis and Origin of Offer Curve
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12
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Derivation of the Offer Curves and General Equilibrium Analysis
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13
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Equilibrium Analysis and Terms of Trade
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Assignment
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14
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Assumptions of Heckscher–Ohlin Theory
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15
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Factor Intensity and Factor Abundance
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16
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Heckscher–Ohlin Theory
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Quiz 2
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17
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The Factor–Price Equalization Theorem
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18
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The Specific-Factors Model, The Leontief Paradox and Factor-Intensity Reversal
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19
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Import Tariff and Partial Equilibrium Analysis of a Tariff
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20
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Effect of a Tariff on Consumer Surplus and Producer Surplus
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21
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Analysis of Tariff and The Rate of Effective Protection
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22
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Effects of a Tariff in a Small Country and Stolper–Samuelson Theorem
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23
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Effects of a Tariff in a Large Country and Optimum Tariff
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24
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Import Quotas and Import Tariff
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25
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Voluntary Export Restraints and Various Regulations
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26
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International Cartels and Dumping
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28
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Degree of economic integration and Trade-Creating Customs Union
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29
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Trade-Diverting Customs Unions and The Theory of the Second Best
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30
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Benefits of Customs Unions
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32
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Trade Development Link and Various Terms of Trade
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33
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Export Instability, Commodity Agreements, and Import Substitution versus Exports
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34
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Experiences of Developing Countries Related to Trade
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35
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Basic Concepts of Macroeconomics
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36
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Gross Domestic Product and Gross National Product
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37
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Current Account and Foreign Indebtedness
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38
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Types of Saving and Concept of Balance of Payments
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39
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Foreign Exchange Market and Foreign Exchange Rate
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40
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Cross-exchange rate and Arbitrage
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41
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Spot and Forward Rates
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42
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Foreign Exchange Swaps and Risks
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43
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Hedging and Speculation
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44
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The Gold Standard and the Interwar Experience
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45
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The Bretton Woods System and Present International Monetary System
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