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International Trade and Finance

  • Module code: EC6007
  • Year: 2018/9
  • Level: Year 6
  • Credits: 30.00
  • Pre-requisites: Completion of full-field requirements for any economics full field at level 5.
  • Co-requisites: None

Summary

The module analyses the essential theoretical and policy issues of international trade and finance. In doing so care is taken to link both international trade and finance theory with real world events.

Aims

The module aims to:

  • introduce students to the fundamental aspects of international trade;
  • introduce students to the fundamental aspects of commercial policy;
  • introduce students to the fundamental aspects of international finance;
  • introduce students to some of the issues in international economic policy coordination.

Learning outcomes

On successful completion of the module, students will be able to:

  • Demonstrate comprehension of the main analytical frameworks used to explain international trade, associated financial flows and other activities on international balance sheets.
  • Critically evaluate these frameworks and develop perspectives on their contributions to the understanding of international trade and finance and international economic relations.
  • Demonstrate an understanding of the interplay between these models, data, and policy making.

Curriculum content

Topics to be covered include:

  • The theory of comparative advantage and the case for free trade.
  • Classical and modern explanations of what goods and services nations will trade.
  • How trade affects income distribution.
  • Inter-industry intra-industry and intertemporal trade.
  • Tariffs and non-tariff barriers to trade quotas, voluntary export restraints, anti-dumping, and export subsidies.
  • Imperfect competition and strategic trade policy.
  • The political economy of trade policy.
  • Empirical studies of trade models.
  • The balance of payments.
  • Prices and the real exchange rate.
  • Money, interest rates and exchange rates; performance of different exchange rate regimes; currency crises.
  • Topics in international macroeconomics.

Teaching and learning strategy

The module consists of a weekly two hour lecture and a one hour seminar. Students will receive problem sets and assigned readings that will form the basis of the interactive element of the seminars. This will help students develop/practice problem solving techniques and apply/relate theory to practice.

Breakdown of Teaching and Learning Hours

Definitive KIS Category Indicative Description Hours
Scheduled learning and teaching Lecture 44 [22 x 2 hours]
Scheduled learning and teaching Seminar 22 [22 x 1 hour]
Guided independent study Preparation of problem sets 120
Guided independent study General independent study and exam revision 114
Total (number of credits x 10) 300

Assessment strategy

The assessment strategy involves: (a) a 'seminar portfolio' ie two (45 -50 minutes) seen class tests based on problem sets tackled in previous seminar classes  – the purpose of which is to act as a formal test of basic understanding and knowledge at the same time as helping students prepare for the questions in the exam; (b) a two hour exam - essentially a continuation of the problem sets, to ensure breadth of understanding, progress the problem solving skills of students and support the other learning outcomes of the module.

A two hour unseen end of year exam will make up the remainder of the assessment programme.

Mapping of Learning Outcomes to Assessment Strategy (Indicative)

Learning Outcome Assessment Strategy
Demonstrate comprehension of the main analytical frameworks used to explain international trade, associated financial flows and other activities on international balance sheets; Seminar portfolio (Formative/Summative), examination (Summative).
Critically evaluate these frameworks and develop perspectives on their contributions to the understanding of international trade and finance and international economic relations; Seminar portfolio (Formative/Summative), examination (Summative).
Demonstrate an understanding of the interplay between these models, data and policy making. Seminar Portfolio (Formative/Summative), examination (Summative).

Breakdown of Major Categories of Assessment

Assessment Type Assessment Name Assessment Weighting
PRC Portfolio of class tests 50
EXWR Two hour unseen examination 50
Total (to equal 100%) 100%

Achieving a pass

It IS NOT a requirement that any major assessment category is passed separately in order to achieve an overall pass for the module

Bibliography core texts

Feenstra, R.C. and  A.M.Taylor (2008). International Economics, New York: Worth Publishers.

Krugman, P., M. Obstfeld and  M. Melitz (2011). International Economics: Theory and Policy, 9/e, London: Pearson Addison-Wesley. 

Marrewijk, C. van (2002). International Trade & The World Economy, Oxford: Oxford University Press.

Bibliography recommended reading

Brenton, P., H. Scott and P. Sinclair (1997). International Trade, Oxford: Oxford University Press.

Caves, R., J. Frankel and R. Jones (2006). World Trade & Payments,  London: Pearson Addison-Wesley.

Husted, S and M. Melvin, M. (2010). International Economics, London: Pearson Addison-Wesley

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