Chapter A : World Trade [30 Minutes]
Chapter 1 : Ricardian Model [240 Minutes]
Chapter 2 : Specific Factor Model [163 Minutes]
Chapter 3 : Hecksher Ohlin Model [109 Minutes]
Chapter 4 : Standard Trade Model [112 Minutes]
Chapter 5 : External Economies of Scale [85 Minutes]
Chapter 6 : Firms in Global Economy [143 Minutes]
Chapter 7 : The Instruments of Trade Policy [140 Minutes]
Chapter 8 : Free Trade [140 Minutes]
Chapter 9 : Controversies in Trade Policy [48 Minutes]
Chapter 10 : Equilibrium in Foreign Exchange Market [65 Minutes]
Chapter 11 : Open Economy [308 Minutes]
Chapter 12 : Fixed Exchange Rate [172 Minutes]
Chapter 13 : International Monetary System [84 Minutes]
Chapter 14 : International Globalisation [63 Minutes]
This course develops a systematic exposition of models that try to explain the composition, direction, and consequences of international trade, and the determinants and effects of trade policy. It then builds on the models of open economy macroeconomics developed in courses 08 and 12, focusing on national policies as well as international monetary systems. It concludes with an analytical account of the causes and consequences of the rapid expansion of international financial flows in recent years. Although the course is based on abstract theoretical models, students will also be exposed to real-world examples and case studies.
1. Introduction What is international economics about? An overview of world trade.
2. Theories of International Trade The Ricardian, specific factors, and Heckscher-Ohlin models; new trade theories; the international location of production; firms in the global economy — outsourcing and multinational enterprises.
3. Trade Policy Instruments of trade policy; political economy of trade policy; controversies in trade policy.
4. International Macroeconomic Policy Fixed versus flexible exchange rates; international monetary systems; financial globalization and financial crises.
1. Paul Krugman, Maurice Obstfeld, and Marc Melitz, International Economics: Theory and Policy, Addison-Wesley (Pearson Education Indian Edition), 9th edition, 2012.
2. Dominick Salvatore, International Economics: Trade and Finance, John Wiley International Student Edition, 10th edition, 2011.