International Economics

Summary module description:
International economics is concerned with economic interactions among sovereign nations, in terms of trade in goods and services as well as investment in financial and real assets. It tries to answer questions such as: why do nations trade; what are the gains from trade; are such benefits fairly allocated across various social groups; should trade be free or protected; how much should trade and financial relations among nations be regulated, integrated, coordinated; why do monetary regimes and exchange rates matter; how do globally operating financial markets and intermediaries contribute to international risk sharing, lending and liquidity; why do some nations tend to accumulate current account deficits and foreign debt whereas other are in surplus and are net lenders.

Aims:
Our key objective will be to understand, analyse and discuss solutions to a number of topical issues we face in modern world economic policy. The models of international trade and finance we shall be studying in this module will provide the basic analytical tools, together with a solid and coherent framework, to achieve such a goal.

Assessable learning outcomes:
Understand and interpret a range of theoretical explanations of trade flows.
Analyse the workings of the macroeconomy in an international context.

Additional outcomes:
Discuss and evaluate the benefits and problems of free international trade.
Analyse and assess trade, monetary, fiscal, and exchange-rate policies in the global economy.

Outline content:
Trade theory and policy: Classical theories of trade. ?New? explanations of trade. Tariffs and protectionism.
Open-economy macroeconomics: Theories of exchange rate determination. Policy issues.
Brief description of teaching and learning methods:
Lectures and seminars.

Summative Assessment Methods:
Written exam 70%
Project output other than dissertation 15%
Set exercise 15%

Other information on summative assessment:
One essay or one empirical project due mid-term, and one problem set due at the end of the term.

Formative assessment methods:

Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late, in accordance with the University policy.
where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Length of examination:
One 3-hour unseen written paper.
Part 3 examinations are held in the Summer term.

Requirements for a pass:
A minimum overall mark of 40%.