The course gives the students an introduction to international economics. Among the topics are gains from and problems with international trade and economic globalization. The course gives an overview of main theories of international trade and international investments. The course also covers trade policy.
- Trade with goods and services
- International trade theory
- Imperfect competition and economies of scale
- Income effects related to trade
- International factor movements
- Trade policy
Learning outcome knowledge
The course introduces the students to the main concepts of international economics. Among the topics covered are the gains and problems of globalization, theories of comparative advantages, international trade and increasing returns, international factor movements and trade policy. The course introduces the students to economic theories in international economics as well as empirical regularities. It also places an emphasis on international trade policy issues. Do tariffs support or retard economic development? Do export subsidies harm other countries? Who gains and who loses from economic integration? Relationships between poor and rich countries are also discussed.
During the course students will:
- Achieve an understanding of sources of comparative advantages and of increasing returns as a reason for international trade.
- Acquire knowledge of effects of international trade for the exporting and the importing countries and for the internal income distributions in the integrating countries.
- Acquire knowledge about international capital movements and labour migration and their relationships with international trade.
- Written exam: 100%