Assignment:
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
1 An introduction and an overview of world trade
2-3 Trade theories
4 Trade, Balance of Payments and Exchange rates
5 Trade Policy (1): Economic instruments,
6 Reading 7 Trade Policy (2): Political economy
8 Trade Policy (3): trade policies in developing countries
9 International negotiations and trade, WTO
10 Economic integration: NAFTA and the EU
11 European Monetary Union,
area
12 In-class test (Jan, 2012)