International Economics

Module Aims

· To develop a theoretical understanding of the causes of world trade

· To obtain an understanding of the welfare implications concerning gains from free trade and costs of protectionism

· To develop an understanding of the global trading system

Learning Materials

· Lecture Handouts

· D. Salvatore, 2010, International Economics, 10th ed. Wiley.

· Paul R. Krugman and Maurice Obstfeld, 2009, International Economics—theory and policy, 8thed. Pearson

Learning Objectives

Knowledge: By the end of the course, students should know

(1) trade theories;

(2) economics instruments and trade policy

(3) the gains from trade and the welfare effects;

(4) the welfare effects of economic integration;

(5) how the world trading system works;

(6) the role of the WTO.

Skills: At the end of this module student should be able to

(1) identify the causes of world trade;

(2) describe the welfare effects of free trade;

(3) describe the process of international trade negotiation and the contributions of the WTO;

(4) explain the impact of CAP on world agricultural trade

(5) discuss whether euro area is an optimal currency area.

Assessment

An essay writing of 3000 words in the following topics:, Submit your essay either to the students office or directly to me (you can also email to me) .

According to a survey in the American Economic Review more than 90% of Economists considered Free Trade as the best trade policy. Using theory and diagrams examine the economic argument in support of free Trade and against Protectionism.

Make graphs and analyse the subject.

Indicative Module Syllabus

Week 1 An introduction and an overview of world trade

 Week 2-3 Trade theories

 Week 4 Trade, Balance of Payments and Exchange rates

 Week 5 Trade Policy (1): Economic instruments,

Week 6 Reading week

Week 7 Trade Policy (2): Political economy

Week 8 Trade Policy (3): trade policies in developing countries

Week 9 International negotiations and trade, WTO

Week 10 Economic integration: NAFTA and the EU

Week 11 European Monetary Union,

area

 Week 12 In-class test (Jan, 2012)