International Economics

This information is for the 2021/22 session.

Teacher responsible

Dr Swati Dhingra

Dr Thomas Sampson

Dr Dimitry Mukhin



This course is available on the MSc in Econometrics and Mathematical Economics, MSc in Economics and MSc in Economics (2 Year Programme). This course is available with permission as an outside option to students on other programmes where regulations permit.


Students must have completed Introductory Course in Mathematics and Statistics (EC400).

In exceptional circumstances, students may take this course without EC400 provided they meet the necessary requirements and have received approval from the course conveners (via a face to face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information ( regarding entry to this course.

Course content

A graduate course in international economics consisting of i) the fundamentals of trade theory and its application to policy and ii) international macroeconomics.

Trade: Comparative advantage and the gains from trade. Theories of comparative advantage. Factor endowments, the international location of production, and patterns of international trade. Empirical tests of trade models. Trade and the labour market. Intra-industry trade. Firm heterogeneity and selection into trade. Foreign direct investment. General equilibrium trade policy.

International macroeconomics: Intertemporal trade and the current account balance. Dynamics of small open economies. The real exchange rate and the terms of trade. Uncertainty and international financial markets. Monetary model of exchange rate determination: flexible and sticky prices. Introduction to currency crises models.


20 hours of lectures and 10 hours of seminars in the MT. 20 hours of lectures and 10 hours of seminars in the LT.

This course is delivered through a combination of classes and lectures totalling a minimum of 60 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

Two marked assignments per term.

Indicative reading

A full reading list will be distributed at the beginning of the course. Some important items are: R Feenstra, Advanced International Trade: Theory and Evidence, Princeton, 2004; A Dixit & V Norman, Theory of International Trade, Cambridge, 1980; E Helpman & P Krugman, Market Structure and Foreign Trade, MIT, 1985; M Obstfeld & K Rogoff, Foundations of International Macroeconomics, MIT Press, 1996.


Exam (50%, duration: 2 hours, reading time: 15 minutes) in the summer exam period.
Essay (50%, 6000 words) in the ST.

Course selection videos

Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.

Important information in response to COVID-19

Please note that during 2021/22 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the differing needs of students in attendance on campus and those who might be studying online. For example, this may involve changes to the mode of teaching delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Economics

Total students 2020/21: Unavailable

Average class size 2020/21: Unavailable

Controlled access 2020/21: No

Value: One Unit

Guidelines for interpreting course guide information