International Economics

Description:   
This course covers international trade and finance. We will investigate why nations trade, what they trade,  who gains from trade, and why countries restrict trade. We will examine the effects of trade on economic growth and wage inequality, multinationals and foreign direct investment, international trade agreements and current trade policy disputes. We will discuss aspects of the current debate on “globalization”,  international labor standards, interactions between trade and environmental concerns, and the role of non-government organizations. 

Textbook:  Krugman, Obstfeld, Melitz, International Economics: Theory and Policy.   Find it here.

Evaluation: HW for each chapter starting ch 2, answer any 5 end of chapter questions. Each of the 3 modules has a case study/project, due at the end of the module.

Module 0.  Review of economic principles
Review of basic micro  
Review of basic macro:
Module 1.  Economics and Trade  
1 . Globalization    ch 1

2.  Comparative advantage    ch 2

3.  Sources of comparative advantage and other theories     ch 3

Case 1: Mexico 

Module 2. Trade policies

5.  Industrial policies    ch 6

6.   Trade policies for developing countries   ch 7

7. Regional trade arrangements     ch 8

Module 3.  MNC, BOP & ER

8.  Movement of labor & capital by multinationals   ch 9

9. Balance of Payments  ch 10

10. Exchange rates   ch 11, 12

11. Exchange rate regimes and currency crises    ch 15

12. Macro policy in an open economy & International banking: reserves, debt risk   Ch 16-17

Final project

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Extra resources

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