International Economics

Description

This course will offer an in-depth analysis of the key theories of international trade and investment and international macroeconomics. At the end of the course students will be able to identify the major tendencies characterising the global economy – such as the geographical fragmentation of the vertical production chain and offshoring – and their implications for international specialisation, employment and welfare. Students will also be able to understand and assess the effects of trade and macroeconomic policies and the functioning of multilateral trading system on countries’ position in the world economy and on firms’ internationalisation decisions. This course covers both international trade and international money. The first part of the course analyses international trade flows in perfectly competitive markets based on differences in technology (classical trade) or factor abundance (neoclassical trade), including the distributional and welfare implications of trade policy. The analysis of international trade then continues by investigating the impact of imperfect competition, economies of scale and product differentiation (new trade), including strategic trade policy. Selected aspects of applied trade policy are also investigated. The second part of the course begins by reviewing basic concepts in international money and then overviews various exchange rate theories, including the Dornbusch overshooting model. The analysis of international money then continues by examining the policy framework ? looking at the objectives, targets and instruments of international monetary policy, including target zones and financial crises.