EXC 3603 International Economics

APPLIES TO ACADEMIC YEAR 2012/2013

EXC 3603 International Economics Responsible for the course Per Botolf Maurseth Department Department of Economics Term According to study plan ECTS Credits 7,5 Language of instruction English Introduction The course gives the students an introduction to international economics. Among the topics are gains from and problems with international trade and economic globalization. The course gives an overview of main theories of international trade and international investments. The course also covers trade policy. Learning outcome The course introduces the students to the main concepts of international economics. Among the topics covered are the gains and problems of globalization, theories of comparative advantages, international trade and increasing returns, international factor movements and trade policy. The course introduces the students to economic theories in international economics as well as empirical regularities. It also places an emphasis on international trade policy issues. Do tariffs support or retard economic development? Do export subsidies harm other countries? Who gains and who loses from economic integration? Relationships between poor and rich countries are also discussed. Acquired knowledge During the course students will: Achieve an understanding of sources of comparative advantages and of increasing returns as a reason for international trade. Acquire knowledge of effects of international trade for the exporting and the importing countries and for the internal income distributions in the integrating countries. Acquire knowledge about international capital movements and labour migration and their relationships with international trade. Acquired skills After completing the course students will: Be able to handle analytically the main theories in international trade. Be able to discuss and analyse main topics and issues in the debates on globalization. Have skills to understand gains and losses from international integration and how these influence the internal income distributions in the trading countries. Be able to follow public debates on globalisation, international trade and economic integration. Reflection Students will gain insights into main dilemmas about trade policies, and will be able to reflect on why international trade is both a source of welfare and of conflict. This special field gives rich opportunities for reflecting on the debates related to the importance of international trade and economic integration. Prerequisites Intermediate microeconomics and macroeconomics Compulsory reading Books: Krugman, Paul R., Maurice. Obstfeld and Marc J. Melitz. 2012. International economics : theory & policy. 9th ed. Addison Wesley. Ch. 1-11 Articles: Mundell, Robert A.. 1957. International Trade and Factor Mobility. American Economic Review. 47. 321-334 Recommended reading Course outline Trade with goods and services International trade theory Imperfect competition and economies of scale Income effects related to trade International factor movements Trade policy Computer-based tools Internet-based assignments and cases may be used. Learning process and workload The course will be conducted as a combination of lectures and exercise solutions. Detailed information about the axercises will be given when sourse starts. Recommended workload in hours Activity Hours Participation in lectures 36 Participation in assignment reviews by lecturer 7 Work on mandatory exercises (approx. 1,5 hour per exercise) 8 Readings and self study 146 Examination 3 Total recommended use of time 200 Examination A 3 hour individual written exam concludes the course. Examination code(s) EXC 36031 - Written examination, counts 100% towards the final grade in EXC xx19 International Economics, 7,5 credits. Examination support materials A BI defined calculator TEXAS INSTRUMENTS BA II Plus™ and a bilingual dictionary are allowed Examination support materials at written examinations are specified under exam information in our web-based Student Handbook. Please note use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids Re-sit examination A re-sit examination is offered the next time course is taught. Additional information

© Copyright BI Norwegian Business School