Overview1. Introduction to methods of economic analysis
2.The Law of Comparative Advantage
3. Pure theory of international trade: The Heckscher-Ohlin Model
4. New Theories of International Trade: Factor movements, migration and strategic trade policy
5. Open Economy Macroeconomics I: Balance of payments and the Exchange Rate
6. Open Economy Macroeconomics II: Macroeconomic policy in the open economy
7. Economics of the EU I: Theory of Preferential Trade Areas
8. Economics of the EU II: Monetary coordination, optimal currency areas and the Euro
9. Trade and development I: Theories of economic growth
10.Trade and development II: International aspects and world trade policies
11. International Economic Institutions and policy coordination
12. International economic issues: Globalisation, climate change
This module appears in:
Method of assessment
1. One essay (50% of the final mark).
2. One final exam (50% of the final mark)
P Krugman and M Obstfeld, International Economics, Addison Wesley/Pearson Education, 2006
R Baldwin and C Wyplosz, Economics of European Integration, McGraw Hill, 2005.
A P Thirlwall, Growth and Development, Palgrave Macmillan, 2005.
The intended subject specific learning outcomes and, as appropriate, their relationship to programme learning outcomes
• provides students with an introduction to the methods of economics applied to international questions
• provides an understanding of the basic theories and empirical evidence relating to international trade, international finance and the economic basis of the European Union
• provides the students with an introduction to the relationship between trade and growth and the special problems faced by developing countries.
By the end of the module, students will:
• have acquired knowledge of the basic theoretical models available to explain the causes and consequences of international trade,
• have acquired knowledge of the basic questions of international finance, the determination of exchange rates and the role of monetary and fiscal policy in open economies,
• have acquired knowledge of the basic rationale for preferential trade areas and understand the application of this to the development of the European Union
• be able to understand the links between basic theoretical issues in international economics and their policy implications
• understand the particular issues relating to less developed and developing countries
• have the capacity to evaluate critically different explanations of the links between trade, growth and development and the politics and policies of the international community.
The intended generic learning outcomes and, as appropriate, their relationship to programme learning outcomes
As regards the student's skills, they will:
• develop the ability to construct logical economic arguments related to international issues,
• acquire the ability to relate empirical evidence to the relevant theory,
• become familiar with the tools of theoretical analysis and empirical modelling used in international economics,
• present economic arguments verbally as well as in written form.