International Economics

This information is for the 2022/23 session.

Teacher responsible

Dr Justus Dainauskas 32L.1.26

Dr Isabela Manelici 32L.2.29.


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 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.


Students must have completed Microeconomic Principles I (EC201) or Microeconomic Principles II (EC202) or Microeconomics II (EC2A1) or Microeconomics II (EC2A3), or equivalent. They must also have completed Macroeconomic Principles (EC210) or Macroeconomics II (EC2B1) or Macroeconomics II (EC2B3) or  Macro-Finance (FM201), 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 .


15 hours of lectures and 10 hours of classes in the MT. 15 hours of lectures and 9 hours of classes in the LT. 1 hour of classes in the ST.

There will be a reading week in Week 6 of LT (no lectures or classes that week).

This course is delivered through a combination of classes and lectures totalling a minimum of 50 hours across Michaelmas Term and Lent Term. 

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.


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

Key facts

Department: Economics

Total students 2021/22: 80

Average class size 2021/22: 13

Capped 2021/22: No

Lecture capture used 2021/22: Yes (LT)

Value: One Unit

Guidelines for interpreting course guide information

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.

Personal development skills

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