We expect to cover the following topics in the module. These are not mapped to specific lectures, but are broad topics to be covered over the entire module in the given order.
• Introduction to the Macroeconomic perspective: Income, Inflation and Unemployment in a closed economy framework, overview of fiscal and monetary policy frameworks
• International Trade, Comparative and Absolute Advantages: Inter-country trade in the era of globalization, gains from trade, Hecksher-Ohlin framework
• Impact of Trade on Domestic Economy: The political economy of trade, instruments of trade policy, location of production, protectionism, dumping and other controversies
• The Open Economy, Exchange rates and International Capital Flows: Currency in open macro economy, currency markets and exchange rates, relation to interest rates
• Exchange rate management and its impact on economic fundamentals: price levels, output, stabilization policies
• International Monetary Regimes: Policy goals, trade balance, historical evolution to current standards, and moving forward
• Currency areas and the European Experience: Monetary unions, benefits and costs, optimum integration
• Globalization vs Protectionism and contemporary issues: Financial globalization and crisis, rise of protectionism and its implications, impact of international trade on the developing economy, regional versus global trade.
Total contact hours: 22
Private study hours: 128
Total study hours: 150
Main assessment methods
In class test (20%)
2 hour, end of year examination (80%)
Reassessment methods
100% examination.
Essential:
• Krugman, P. and Obstfelds, M. International Economics, 9th Edition, Pearson.
• Hendrik van den Berg, International Finance and Open Economy Macroeconomics, World Scientific 2010.
Recommended:
• Ebook: Principles of Economics, OpenStax: https://opentextbc.ca/principlesofeconomics/
• Anders Grath: The Handbook of International Trade and Finance, 4th Edition, Kogan Page 2016.
• Additional topic specific material will be supplied during lectures and seminars.
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- Demonstrate knowledge of the core principles of macroeconomics and a critical understanding of their development, including an appreciation of competing theoretical perspectives.
- Evaluate the effect of the prevailing trade environment on international business decisions, behaviour and performance and offer critical interpretation on how competing theories may interpret the outcomes differently.
- Demonstrate knowledge and critical understanding of international finance, currency markets and implications on international trade.
- Evaluate the impact of global and national policy changes on cross border trade and international business decisions.
- Demonstrate knowledge and critical understanding of the economic global context facing businesses.
The intended generic learning outcomes.
On successfully completing the module students will be able to:
- select, organise and synthesise complex information
- draw on concepts, theories and frameworks to construct complex arguments
- communicate to a variety of audiences using a variety of methods
- discuss and debate ideas from an informed perspective thereby contributing to (organisational) decision-making
- propose solutions to problems based on analysis and discussion/debate
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