International Economics (I)
academic staff: Qi jianhong, Sun shuqin, Linlin , Han qing,
PREREQUISITES: MICROECONOMICS
OBJECTIVES
The course aims to familiarize students with the theory of international trade and the policy of international trade. Students are advised to read widely, accessing relevant articles through the library and internet. The lectures, tutorials and progressive assessment exams are designed to provide structured learning of the key concepts, measures, models and policy debates relevant to the course. It is hoped that students will develop working knowledge of theoretical methods to analyze international economic problems and issues facing the world.
PROGRESSIVE ASSESSMENT
Coursework assignment (30%)
2 hour examination (70%)
RECOMMENDED TEXTbook
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
OTHER USEFUL TEXTBOOKS
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
TOPICS TO BE COVERED IN THE LECTURES/ CLASS SCHEDULE
Week 1: Introduction Importance of International Economics; Purpose of International Economic Theories and Policies; Current International Economic Problems.
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
R.N.Cooper, 1985.Economic Policy in an Interdependent World, Cambridge, Mass: MIT Press.
Week 2: The Law of Comparative Advantage
Ref:
Dominick Salvatore, 2004. International Economics, 8th Edition, John Wiley & Sons Inc.
Adam Smith, 1937.The Wealth of Nations, New York: The Modern Library.
David Ricardo, 1963.The Principles of Political Economy and Taxation, Homewood: Irwin, chapter 7.
Week 3: The Standard Theory of International Trade
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Week 4: Review: The Law of Comparative Advantage and The Standard Theory of International Trade
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Week 5: Supply, Demand, Offer Curves and the Terms of Trade
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Week 6: Factor Endowments and The Heckscher-Ohlin Theory
Mainly about H-O theorem
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
E.f.Hechscher, 1919. “The Effect of Foreign Trade on the Distribution of Income”,Ekonomisk Tidskrift, pp.497-512.
B.Ohlin, 1983. Interregional and International Trade, Cambridege, Mass: Harward University Press.
Week 7: Factor Endowments and The Heckscher-Ohlin Theory
Mainly about H-O-S theorem and Sector-Specific model
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
E.f.Hechscher, 1919. “The Effect of Foreign Trade on the Distribution of Income”,Ekonomisk Tidskrift, pp.497-512.
B.Ohlin, 1983. Interregional and International Trade, Cambridege, Mass: Harward University Press.
Week 8: Economies of Scale, Imperfect Competition and International Trade
Mainly about trade based on economies of scale, intra-industry trade
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Week 9: Economies of Scale, Imperfect Competition and International Trade
Mainly about product circle model and the effect of transportation cost on international trade
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Week 10: Economic Growth and International Trade
Mainly about factors growth and technical progress, Rybcznski Theorem
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Week 11: Economic Growth and International Trade
Mainly about the case of large nation’s growth
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Week 12: Trade Restrictions: Tariff
Mainly about the case of small nation
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Week 13: Trade Restrictions: Tariff
The case of large nation, Stolper-Samuelson Theorem
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Week 14: Trade Restrictions: Non-Tariff Barriers: quotas and dumping
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Week 15: Trade Restrictions: Non-Tariff Barriers: subsidies
Ref:
Dominick Salvatore, 2004. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2000. International Economics,8th Edition, Addison Wesley Longman, Inc...
W.M.Corden, 1971.The Theory of Protection, London: Oxford University Press.
J.N. Bhagwati, 1988.Protectionism, Cambridege, Mass: MIT Press.
Week 16: Economic Integration: Customs Unions and Free Trade Areas
Ref:
Dominick Salvatore, 2011. International Economics, 8th Edition, John Wiley & Sons Inc.
Paul R. Krugman and Maurice Obstfeld,2009. International Economics,8th Edition, Addison Wesley Longman, Inc...
Jacob Viner, 1950.The Customs Union Issue. NY: Carnegie Endowment for International Peace.
James Meade, 1955.The Theory of Customs Unions. Amsterdam: North Holland.
Week 17: Examination