International Economics (B-KUL-HME36A)
Aims
1.1 Describes the economic science viewpoint and applies it to complex economic problems.
1.3 Makes a substantiated economic optimum analysis of the strengths (benefits) and limitations (costs) of different market types and the impact of external effects, and assesses the desirability of government intervention in these different market types or conditions.
6.1 Explains patterns and consequences of international trade by relying on standard and new trade models.
6.2 Analyses the causes and effects of international movements of goods, services, capital and labor.
6.3 Analyses the welfare effects for consumers, businesses, workers and governments of policy instruments that regulate trade or factor movements.
6.4 Can engage in debates on protectionism and on the liberalization of trade or factor movements, and understands the role of interest groups in these debates.
6.5 Understands and applies economic analysis to ongoing debates and current global challenges regarding international trade and factor movements.
6.6. Critically analyses the key elements of the European integration process.
6.7. Analyses the main EU competencies in the area of international trade and investment and the impact of EU policies on businesses, consumers and workers.
7.1 Explains why multinational corporations establish branches abroad and identifies the location-specific advantages of foreign direct investment destinations.
8.2 Draws accurate and balanced conclusions from research results that involve descriptive statistics, significance tests, regression analysis, qualitative data and analsyis.
8.4 Adopts a critical stance towards research results in applied settings by being able to explain how results depend on assumptions, can distinguish between weak and strong evidence and can explain the problem of causal inference and the need for appropriate methods to evaluate the impact of business and economic policies.
8.5 Draws conclusions from quantitative and qualitative research results in a scientific fashion.
13.1 Shows social responsibility by following news developments and by critically reflecting on social issues.
13.2 Performs an analysis of the most important policy instruments a government has as its disposal to realize its economic efficiency and redistribution objectives, as well as of the government’s own choices.
Previous knowledge
Students are advised to have basic knowledge of economic concepts such as supply, demand, equilibrium, and basic knowledge in data analysis, such as interpreting regression coefficients.
Identical courses
This course is identical to the following courses:
HMB37A : Internationale economie
Is included in these courses of study
Activities
6 ects. International Economics (B-KUL-HME36a)
Content
1. International Trade Theory
- An overview of trade patterns. The gravity model of trade.
- Treories of trade based on comparative advantage (One Factor Ricardian model, Heckscher-Ohlin model, Specific Factor model).
- Terms of trade and economic welfare.
- Theories of trade based on economies of scale (External and Internal economies of scale, Infant industry argument, Dumping)
2. International Trade Policy
- Instruments of trade policy.
- Political economy of trade policy.
- Trade policy in developing countries.
- Current issues in trade policy (environmental degradation, workers' rights, social dumping, regulations on health and safety norms).
3. International migration
- An overview of migration patterns.
- An overview of research on international migration.
- Detailed analysis of selected research papers on international migration (ex: impact of migration on human capital and institutions in countries of origin; natives' perceptions of migration in countries of destination).
Course material
All the study material (slides, videos, papers to be read, review questions and exercises with solutions) is available on Toledo.
The first part of the course (international trade theory) is largely based on the textbook Krugman, P. R., Obstfeld, M., and Melitz, M. J. (2012). International Economics: Theory and Policy (9th edition). Harlow: Pearson. Buying the textbook is not compulsory.
Format: more information
Blended learning
The course is organized in a blended learning format. Students go through the course material (videos, slides and papers) independently at their own rythm. During on campus classes, the main theoretical points are reviewed by the professor, questions and exercises are solved with students' participation.
Evaluation
Evaluation: International Economics (B-KUL-H75088)
Explanation
Final exam
The final exam is written and closed book. It includes open questions such as explaining a theoretical concept or discussing an issue related to international trade or migration (2.5 points); multiple choice questions covering the entire course material (10 points), and exercises requiring some calculations and drawing graphs (10 points).
Bonus points
Students may obtain up to two bonus points for active participation in class. Active participation means preparing an oral presentation/debate, by groups of students. The list of possible topics for presentations will be provided by the lecturer.
Determination final result
The final result is the sum of final exam grade and bonus points. Note that a final result of 20/20 can be achieved without any bonus points - solely based on the final exam. If the sum of the exam grade and bonus points exceeds 20, the final result is 20.
Second exam opportunity: same type of exam. Bonus points can be transferred to the August/September exam session, but not to the next academic year.