Programmes

International Economics

  • Summer schools
  • Department of Economics
  • Application code SS-EC351
  • Starting TBC
  • Short course: Closed
  • Location: Houghton Street, London

Please note: This course will not be running as part of the 2021 programme. However, you may be interested in our confirmed courses.

Globalisation has seen the integration of world markets. Goods made in Asia can be sold in Europe at a fraction of the cost and technology has allowed activities to be outsourced for greater efficiency. As a result, governments have to carefully consider their trade policies and the macroeconomic landscape to ensure local social and economic goals are met.

This course provides an analysis of the economic relationships between countries, covering both trade and monetary issues. The first half of the course deals with international trade theory and policy. You will explore important topics such as why countries trade with each other and the effect of international trade on welfare and income distribution. You will also analyse the role of firm heterogeneity in international trade and the links between globalisation and inequality.

The second half of the course considers international macroeconomics. Covering key topics such as the balance of payments accounts, open economy income identities, the liquidity trap, and the effect of currency valuations, you will gain a comprehensive understanding of the current policy environment and its impact on international trade relations.

Reviewing significant historical events such as the Asian Crises in the 1990s and the collapse of the Exchange Rate Mechanism in 1992, you will be given frameworks for interpreting such events. By the end of the course you will be able to apply the theory and economic frameworks to analyse the macroeconomic landscape and the alternative policy options available to governments across the world.


Session: N/A
Dates: N/A


 

Programme details

Key facts

Level: 300 level. Read more information on levels in our FAQs

Fees:  Please see Fees and payments

Lectures: 36 hours 

Classes: 18 hours

Assessment*: Two written examinations

Typical credit**: 3-4 credits (US) 7.5 ECTS points (EU)


* Assessment is optional but may be required for credit by your home institution. You will need to check with your home institution that this course meets their credit requirements.  

For more information on exams and credit, read Teaching and assessment

Prerequisites

Intermediate microeconomics (to the equivalent of EC201) and macroeconomics (to the equivalent of EC202), as well as knowledge of single variable calculus.

The material covered is not mathematically complex, but it is taught in a formal and rigorous manner, which assumes a good familiarity with basic economic concepts.

Key topics

  • Introduction to patterns of trade

  • International macroeconomic issues

  • Currency valuation

  • International trade theory and policy

  • Balance of payments and Open Economy Identities

  • Asset Markets and the Nominal Exchange Rate

  • Output and Exchange rates

  • Financial Crises, deleveraging and the Liquidity Trap

  • Capital controls

  • The role of heterogeneous firms in international trade

Programme structure and assessment

This course is delivered as a combination of lectures, class discussions, class exercises and problem sets. Engaging with course material is a key feature of the course. You will get maximum benefit by exploring the literature before class, giving you an opportunity to put the theory into practice.

The course is assessed through two examinations: a mid-session take-home examination (40%) and a final take-home assignment (60%). In preparation for the examinations, you will be given problem sets, the solutions to which will be discussed in class. These will not contribute to your final grade.

Further details will be provided at the beginning of the course.

Course outcomes

  • Understand the effect of international trade on welfare and income distribution.

  • Analyse the role of firm heterogeneity in international trade.

  • Interpret the relationship between international trade and regional inequality.

  • Discuss price levels, output and exchange rates in the long and short run.

  • Analyse the liquidity trap, and the role of leveraging in financial crises.

  • Apply economic frameworks to interpret current macroeconomic issues.

  • Analyse the policy options available to governments using macroeconomic theory.

Is this course right for you?

This course is suitable if you are interested in gaining a comprehensive understanding of the relationship between international trade and economic growth. It is especially well suited to you if you want to pursue a career in research, government, policy development, or consulting. 

Your department

LSE’s Department of Economics is one of the largest and most prestigious in the world. It is the highest ranked faculty in Europe, according to the 2020 QS World University Rankings, with no fewer than 13 Nobel Prizes among current and former professors and alumni. The Department’s reputation is far-reaching, with research that has influenced responses to major global challenges, such as climate change, economic instability, development and growth, at a global level.

In our highly international faculty, students will learn from global thought-leaders and gain a thorough understanding of economic principles grounded in rigorous research. A long-standing commitment to remaining at the cutting-edge of developments in the field has ensured the lasting impact of the work of the Department on the discipline as a whole. This ensures that students are equipped with the necessary analytical skills to tackle the world’s most pressing problems.

Your faculty

Lecturers:

Dr Swati Dhingra
Associate Professor of Economics
Department of Economics

Dr Justas Dainauskas
LSE Fellow
Department of Economics

Reading materials

P. R. Krugman, M. Obsfeld and M. Melitz, International Economics, (10th edition), Pearson Education (2015).

*A more detailed reading list will be supplied prior to the start of the programme

**Course content, faculty and dates may be subject to change without prior notice

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How to Apply

Related Programmes

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Code(s) SS-EC307

Economics of European Integration

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