In the face of recent developments in the world economy, international economics remains as important and controversial as ever. As world events and ideas progressed over the years, modes of analysis in international economics had to evolve to accommodate these new developments. This course will be studied in a way that links theories and models to events in the world economy and facilitates its assimilation by students.
This course covers new theories of foreign trade based on increasing returns and market structure as well as on classical comparative advantage, increasing regional integration activities, intertemporal analysis of international capital flows, commercial policy, exchange rates and exchange rate systems in open economy.
- Learning major international trade theories.
- Exploring international trade policies.
- Analyzing exchange rates and exchange rate systems.
- Mastering open economy macroeconomics.
- Studying the international monetary system and optimum currency areas.
- Evaluating the performance of global capital markets and policy problems
|1||Labor productivity and comparative advantage||Ch. 2
|2||Factor proportions and income distribution, Hecksher-Ohlin Model||Ch. 3, 4|
|3||The standard trade model||Ch. 2
Ch. 5 & articles
|4||Economies of scale, imperfect competition, and international trade||Ch. 6 & articles|
|5||International factor movements and foreign direct investment||Ch. 7 & articles|
|6||The political economy of trade policy||Chs. 8, 9 & articles|
|7||Trade policy in developing||Chs. 10, 11 & articles|
|8||National Income Accounting and the balance of payments||Ch. 12 & articles|
|9||Exchange rates and the foreign exchange market||Ch. 13 & articles|
|10||Money, interest rates, and exchange rates||Ch. 14 & articles|
|11||Price levels and the exchange rate in the short and long run||Chs. 15, 16 & articles|
|12||Fixed exchange rates and foreign exchange intervention||Ch. 17 & articles|
|13||The international monetary system||Ch. 18 & articles|
|14||Optimum currency areas||Ch. 20 & articles|
|15||Developing countries: Growth, crisis and reform||Ch. 22 & articles|
|Textbook||P. R. Krugman and M. Obstfeld, International Economics: Theory and Policy, Addison Wesley.|
|Additional Resources||An average of 3 articles for each topic and reading from current media for discussions.|
|Assignments||Every week a new assigment is prepeared by teacher and given to students|
|Exams||A term paper|
|Quizzes (attendance, presentation, etc.)|
|Contribution of Final Examination to Overall Grade||35|
|Contribution of In-Term Studies to Overall Grade||65|
|COURSE'S CONTRIBUTION TO PROGRAM|
|No||Program Learning Outcomes||Contribution|
|1||Demonstrate in-depth competency in the theory and application of the core areas of economics, including microeconomics, macroeconomics, and econometrics.||X|
|2||Demonstrate advanced understanding of fields’ economics.||X|
|3||Apply rigorous and advanced quantitative analysis in their research.||X|
|4||To be acquainted with pioneering and innovative theories and methods in economics, to be able to use them in analysis and research and to be able to contribute to becoming an information society.||X|
|5||To be able to critically analyze, synthesize and evaluate new and complex ideas.||X|
|6||To develop new ideas and methods by using high level mental processes like creative and critical thinking, problem solving, decision making.||X|
|7||To be able to find creative solutions for social, scientific and ethical problems in the context of the science and profession of economics and to be able to disseminate the values which support these solutions.||X|
|8||To be able to absorb new knowledge in economics systematically and to acquire high level skills in research methods in economics.||X|
|9||To be able to be part of academic networks to share his/her work and to criticize works of others.||X|
|ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION|
|Activities||Quantity||Duration (Hour)||Total Workload (Hour)|
|Course Duration (Including the Exam Week: 15 x total course hours)||15||3||45|
|Hours for off-the-classroom study (Pre-study, practice)||15||10||150|
|Quizzes (attendance, presentation, etc.)||3||3||9|
|Total Work Load||238|
|Total Work Load / 25 (s)||9.52|
|ECTS Credit of the Course||10|