Course Description

This course aims to provide students with a detailed understanding of the international dimensions of
economic activity and the inter‐relationship between national and international economic performance.
The modules show how the tools of micro and macroeconomic analysis can be used to evaluate
contemporary developments in the world economy and the forces influencing globalization. It also
provides a critical appreciation of problems related to the design of economic policy in an international
environment.

 

Course Objectives

A review of the development of trade theory from Ricardo to the present leads to a discussion of the
extent to which the theory describes the realities of international trade. Various national trade and
development models ‐ autarchy, import substitution and local content requirement policies are
critiqued. The widespread use of tariffs and of non‐tariff trade barriers is explored, and this in turn leads
to analysis of the relative lack of success of GATT and of the World Trade Organization, particularly in
the area of agricultural restrictions and price supports. The course has a strong research focus, and
students are required to prepare a paper and presentation on a current issue in world.

 

Learning Goals

At the end of this course, students will be:

• Understand the theory of international trade.
• Understand different trade policies.
• Understand different forms of trade integration.
• Understand international finance.

 

Bibliography

Textbook

Paul Krugman, Maurice Obstfeld, Marc Melitz. International Economics with MyEconLab: Global Edition,
9/E, Pearson, 2012, ISBN: 9780273754206

Additional documents will be provided by the professor for case studies.

Grading System

Grade	Percentage	Quality	Credit Points
A	93 ‐ 100	Outstanding	4
A-	90 ‐ 92		3.75
B+	87 ‐ 89		3.5
B	83 ‐ 86	Good	3
B-	80 ‐ 82		2.75
C+	77 ‐ 79	Satisfactory	2.5
C	70 ‐ 76		2
F	0 ‐ 69	Failure	0

Student's performance will be assessed by the work they do in the course – including participation in the
discussions that are a part of each lesson. Online course grading is based less on a final examination or
final essay, and more on completing the assignments and discussions throughout the course.
Course participation may include the following:

• Posting questions to the Professor within the UBIS online platform;
• Participating in discussion threads;
• Participating in WebEx meetings or Skype conference calls;
• Submitting assignments.

 

 

Course Outline

Session 1
Description	1. World Trade: An Overview 2. Labor Productivity and Comparative Advantage: The Ricardian Model 3. Specific Factors and Income Distribution
To read	Chapters2, 3, 4
To prepare	‐ Discussion Questions ‐ DQ1 & DQ2 ‐ Writing assignment # 1
Session 2
Description	1. Resources and Trade: The Heckscher‐Ohlin Model 2. The Standard Trade Model 3. Economics of Scale and the International Location of Production?
To read	Chapters 5, 6, 7
To prepare	‐ Discussion Questions – DQ3 & DQ4 ‐ Writing Assignment # 2
Session 3
Description	1. Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises 2. The Instruments of Trade Policy 3. The Political Economy of Trade Policy
To read	Chapters 8, 9, 10
To prepare	‐ Discussion Questions – DQ5 & DQ6 ‐ Writing Assignment # 3
Session 4
Description	1. Trade Policy in Developing Countries 2. Controversies in Trade Policy 3. National Income Accounting and the Balance of Payments
To read	Chapters 11, 12, 13
To prepare	‐ Discussion Questions – DQ7 & DQ8 ‐ Writing Assignment # 4
Session 5
Description	1. Exchange Rates and the Foreign Exchange Market: An Asset Approach 2. Money, Interest Rates, and Exchange Rates 3. Prices Levels and the Exchange Rate in the Long Run
To read	Chapters14, 15, 16
To prepare	 Discussion Questions – DQ9 & DQ10  Writing Assignment # 5
Session 6
Description	1. Output and the Exchange Rate in the Short Run 2. Fixed Exchange Rates and Foreign Exchange Intervention 3. International Monetary Systems: An Historical Overview
To read	Chapters 17, 18, 19
To prepare	‐ Discussion Questions – DQ11 & DQ12 ‐ Writing Assignment # 6
Session 7
Description	1. Optimum Currency Areas and the European Experience 2. Financial Globalization: Opportunity and Crisis 3. Developing Countries: Growth, Crisis and Reform
To read	Chapters 20, 21, 22
To prepare	‐ Discussion Questions – DQ13 & DQ14 ‐ Writing Assignment # 7
Session 8
Description	Conclusion and Final Project
To read	none
To prepare	Exam

 

Assessment

Discussion Questions / Participation
Percent of the final grade: 20%

Writing Assignments
Percent of the final grade: 20%

Midterm Exam
Percent of the final grade: 30%

Final Exam
Percent of the final grade: 30%

 

Academic integrity

Students are required to read UBIS Rules and Regulations on plagiarism and to acknowledge the
multiple forms that plagiarism takes along with the sanctions that can go as far as school exclusion.
Every infraction will be reported to the disciplinary board which will analyse the situation and
circumstances, and decide on the sanction to apply.

Academic dishonesty may take the forms of: 1. Plagiarism, i.e. copying the ideas or work of another
person without citing the source. This includes books, extracts of articles, tables, diagrams and material
from internet or other electronic sources. 2. Submission of work more than once, including work
submitted at a prior institution, unless prior approval has been obtained. 3. Cheating on an examination.
4. Submission of work that is not your own without citation. 5. Adding your name to work to which you
have not contributed or allowing another student to do the same. 6. Unauthorized or inappropriate use
of computers, calculators and other forms of technology in coursework, assignments or examinations.
All these can lead to disciplinary sanction.

Please refer to your student handbook for full details.