30468 - INTERNATIONAL ECONOMICS AND FINANCE
Course taught in English
Go to class group/s: 13
Class-group lessons delivered on campus
The course introduces students to theories allowing them to analyze and understand international trade patterns, trade policies, exchange rates and financial crises. The course is divided in four parts. The aim of the first part is to introduce students to the debate on globalization from the viewpoint of international good trade and capital flows. The aim of the second and third parts is to give students a better understanding of the causes and consequences of international trade and of the effects of trade policies respectively. The aim of the fourth part is to equip students with the main approaches to the analysis of international capital flows, exchange rates and foreign investment. Upon completing the course, students have acquired a conceptual framework to understand the complex issues raised by the economic interdependence of countries and to analyze them in a systematic way.
Globalization and its discontents:
- Key concepts and key facts.
- Opposite views.
Cause and Consequences of International Trade:
- North-South Trade: The Comparative Advantage Theory
- The Ricardian Model.
- The Specific Factors Model.
- The Factor Proportions Model.
- North-North Trade: Economies of Scale and Imperfect Competition
- The Instruments of Trade Policies.
- The Political Economy of Trade Policies.
International Factor Movements and Foreign investment:
- Exchange Rates.
- Balance of Payments.
- Applications and Policy Issues.
- Explain the economic models on international trade and describe their main insights regarding the sources and the patterns of trade.
- Discuss the role of trade policy intervention as well as the associated welfare gains and losses.
- Explain the economic models on international capital markets and describe their main insights regarding the international macroeconomic shocks interdependence.
- Discuss the role of macroeconomic policy intervention as well as the associated welfare gains and losses.
- Choose and apply the appropriate models to assess the effects of international trade and of various forms of trade policy intervention.
- Choose and apply the appropriate models to assess the gains and losses from international trade liberalization.
- Choose and apply the appropriate models to assess the effects of international capital flows.
- Choose and apply the appropriate models to assess the gains and losses from international capital market liberalization.
- Interpret the empirical evidence on the effects of globalization.
- Understand and critically contribute to the public debate on globalization.
- Make an informed argument about the effects of globalization on the distribution of gains and losses from globalization.
- Face-to-face lectures
- Exercises (exercises, database, software etc.)
- The learning experience of this course includes, in addition to face-to-face lectures, the solution in class of exercises assigned to students throughout the course.
- These exercises allow students to apply the analytical tools developed during the course, using them to address real world policy issues. Students are encouraged to bring their own views and to share their insights.
The written exam consists of exercises and open questions aimed at assessing students’ ability to use the analytical tools illustrated during the course, in particular their ability to choose, explain and apply the appropriate models in order to assess the effects of international trade and international capital flows with special emphasis on the gains and losses from alternative international trade and capital market policies.The exam papers is the same for all students, including those who attended the course in previous years. Mock exam questions will be discussed during the course. Two procedures are available for all students:
- Written Partial Exams. First Partial Exam: partial; Second Partial Exam: Final. The questions in each Partial Exam are two and compulsory (time=45 minutes). The grade of each question is 7.5/30; to pass each partial exam the grade has to be at least 9/30. The overall grade is the sum of the two partial grades (for example: first partial grade: 12/30; second partial grade: 14/30; overall grade: 26/30). Laude is possible when the exam is outstanding.
- Written General Exam. The questions of the General Exam are four and compulsory (time=90 minutes). The grade of each question is 7.5/30; to pass the exam the overall grade has to be at least 18/30. Laude is possible when the exam is outstanding.
- Class slides and readings – i.e. lecture notes as well as selected chapters of the textbook - represent the teaching materials of the course. The class slides are posted week by week on the website of the course; the lecture notes - the overall document is compulsory - are posted at the beginning of the corresponding part of the course; the textbook selected chapters is announced week by week. All class slides and readings are compulsory exam materials and have to be carefully prepared for the exam independently from the time allocated to them in class.
- P. KRUGMAN, M. OBSTFEL, M. MELITZ, International Economics: Theory and Policy, Pearson, 2018, 11th Edition.