EC315     
International Economics

This information is for the 2021/22 session.

Teacher responsible

Dr Keyu Jin 32L.1.17

Dr Isabela Manelici

Availability

This course is available on the BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Economics and Economic History, BSc in Economics with Economic History, BSc in Environmental Policy with Economics, BSc in Government and Economics, BSc in International Social and Public Policy and Economics, BSc in Philosophy and Economics, BSc in Philosophy, Politics and Economics, BSc in Politics and Economics and BSc in Social Policy and Economics. This course is available as an outside option to students on other programmes where regulations permit and to General Course students.

Pre-requisites

Students should have completed Microeconomic Principles I (EC201) or Microeconomic Principles II (EC202) or equivalent and Macroeconomic Principles (EC210) or equivalent.

Course content

International Macroeconomics: This section of the course offers an introduction to international macroeconomic theory and develops the main tools for macroeconomic policy analysis. We start by studying the balance of payments and the causes and consequences of global imbalances, followed by an in-depth study of the determination of exchange rates, money, and prices in open economies. We discuss the costs and benefits of different nominal exchange rate regimes and their sustainability, as well as examine the causes and consequences of debt and default, speculative attacks and financial crises.

International Trade: This section of the course offers an introduction to international trade theory and develops the main tools for trade policy analysis. We start by studying the patterns of trade distinguishing between inter-industry and intra-industry trade flows. We then proceed to an in-depth analysis of the causes and the effects of those flows based on the concepts of absolute and comparative advantage, relative factor abundance and relative factor intensity, increasing returns to scale and imperfect competition. Finally we discuss the gains and losses from trade, their distribution among people and firms, and their implications for the debate on trade liberalization vs. protectionism .

Teaching

15 hours of lectures and 10 hours of classes in the MT. 15 hours of lectures and 10 hours of classes in the LT.

This course is delivered through a combination of classes and lectures totalling a minimum of 50 hours across Michaelmas Term and Lent Term. This year, some or all of this teaching will be delivered through a combination of virtual classes, live streamed (recorded) lectures, and some flipped content delivered as short online videos.

Formative coursework

Students will be expected to complete a problem set weekly, and two of these each term will be collected at random for marking and feedback.

Indicative reading

Paul Krugman, Marc Melitz and Maurice Obstfeld; International Economics: Theory and Policy, 10th ed.

Assessment

Exam (100%, duration: 3 hours, reading time: 15 minutes) in the summer exam period.

Key facts

Department: Economics

Total students 2020/21: 118

Average class size 2020/21: 17

Capped 2020/21: No

Value: One Unit

Guidelines for interpreting course guide information

Personal development skills

  • Self-management
  • Problem solving
  • Application of numeracy skills