International Economics

Universidad Autónoma de Barcelona

Course Description

  • Course Name

    International Economics

  • Host University

    Universidad Autónoma de Barcelona

  • Location

    Barcelona, Spain

  • Area of Study

    Economics, International Economics

  • Language Level

    Taught In English

    Hours & Credits

  • Contact Hours

    45
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    INTRODUCTION TO THE COURSE
    International economics is divided into two broad subfields: international trade and international money. International trade focuses on real transactions in the international economy, that is, on those transactions that involve a physical movement of goods. On the other hand, international money focuses on financial transactions and refers to the monetaryside of the international economy. This course deals with the first aspect of international economics, i.e. the real transactions and focuses on two main aspects of it: international trade theory and evidence and international trade policy.

    CONTENTS

    Chapter 1. Introduction
    What Is International Economics About?
    International Economics: Trade and Money

    Part I. International Trade Theory

    Chapter 2. World Trade: An Overview
    Who Trades with Whom?
    The Changing Pattern of World Trade
    Do Old Rules Still Apply?

    Chapter 3. Labor Productivity and Comparative Advantage: The Ricardian Model
    The Concept of Comparative Advantage
    A One-Factor Economy
    Trade in a One-Factor World
    Misconceptions About Comparative Advantage
    Comparative Advantage with Many Goods
    Adding Transport Costs and Nontraded Goods
    Empirical Evidence on the Ricardian Model

    Chapter 4. Resources, Comparative Advantage, and Income Distribution
    A Model of a Two-Factor Economy
    Effects of International Trade Between Two-Factor Economies
    The Political Economy of Trade: A Preliminary View
    Empirical Evidence on the Heckscher-Ohlin Model

    Chapter 5. The Standard Trade Model
    A Standard Model of a Trading Economy
    International Transfers of Income: Shifting of the RD Curve
    Tariffs and Export Subsidies: Simultaneous Shifts in RS and RD

    Chapter 6. Economies of Scale, Imperfect Competition, and International Trade
    Economies of Scale and International Trade: An Overview
    Economies of Scale and Market Structure
    The Theory of Imperfect Competition
    Monopolistic Competition and Trade Dumping
    The Theory of External Economies
    External Economies and International Trade
    Economic Geography and Interregional Trade

    Chapter 7. International Factor Movements
    International Labor Mobility
    International Borrowing and Lending
    Direct Foreign Investment and Multinational Firms

    Part II. International Trade Policy

    Chapter 8. The Instruments of Trade Policy
    Basic Tariff Analysis
    Costs and Benefits of a Tariff
    Other Instruments of Trade Policy
    The Effects of Trade Policy: A Summary

    Chapter 9. The Political Economy of Trade Policy
    The Case for Free Trade
    National Welfare Arguments Against Free Trade
    Income Distribution and Trade Policy
    International Negotiations and Trade Policy
    The Doha Disappointment

    Chapter 10. Trade Policy in Developing Countries
    Import-Substituting Industrialization
    Results of Favoring Manufacturing: Problems of Import-Substituting Industrialization
    Trade Liberalization Since 1985
    Export-Oriented Industrialization: The East Asian Miracle

    Chapter 11. Controversies in Trade Policy
    Sophisticated Arguments for Activist Trade Policy
    Globalization and Low-Wage Labor
    Globalization and the Environment

    GRADING
    Mid-term exam (30%): to be written in class.
    Homeworks (20%): During the course there will be two assignments about some of the topics discussed in class.
    Final Exam (50%): to be written in class.