INTERNATIONAL ECONOMICS

   

Course Description

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.

Course Outline

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.


THIS SECTION COMPRISES STUDY MATERIAL OF INTERNATIONAL ECONOMICS,
WHICH IS OF UTMOST IMPORTANT CONTAINING MAINLY IMPORTANT TOPICS.




THIS SECTION COMPRISES PREVIOUS YEAR QUESTION PAPERS.



Readings:

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.




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