International Economics
Preface
International Economics has come in two separate parts that reflect the microeconomics and macroeconomics. ‘International Trade’ is based on microeconomics reasoning in terms of comparative advantage, economies of scale and product differentiation. ‘International Finance’ is largely conceptualized in terms of ‘open-economy macroeconomics’ which set the focus on exchange-rate regimes, stabilization policies and financial capital flows. The history of economics is full of different attempts to bridge the gaps between international trade and finance.
The aim of “International Trade and Finance” course is to give students a comprehensive understanding of the relevant economic theory and empirical evidence. The lectures will introduce some key ideas on international trade and finance. I will provide a formal discussion of the Ricardian model of trade, which contains one of the great insights in Economics that what matters for the gains from trade to occur is comparative advantage and not absolute advantage. I will introduce the Heckscher–Ohlin model of trade where endowment differences among countries play a key role in determining the pattern of trade. An important result in this discussion is that international trade can produce winners and losers.
Increasing returns and trade are essential concept of this course. I will focus on the Krugman model or the model of trade based on internal economies of scale in production. It shows how countries can gain from trade even in a world where countries have identical endowments and technologies, provided that production functions exhibit increasing returns to scale and consumers have a love for variety. I will also develop a discussion of the various commercial policy instruments, such as tariffs, quotas and export subsidies, that countries use to intervene in trade. Next, we will study the economics of preferential trading agreements, and the concluding chapter provides a history of multilateral trading agreements under the aegis of GATT (General Agreement on Tariffs and Trade) and its evolution into the World Trade Organization (WTO).
Syllabus of International Economics
(国際貿易・国際金融)
Section 1: Introduction to International Economics
- Lecture 1: Basics of International Economics
- Lecture 2: Introduction to International Trade
- Lecture 3: Reasons of International Trade
- Lecture 4: International Trade Models
Section 2: International Trade Policy
- Lecture 5: The Instruments of Trade Policy
- Lecture 6: The Political Economy of Trade Policy
- Lecture 7: Trade Policy
- Lecture 8: Trade Policy in Developing Countries
Section 3: Open-Economy Macroeconomics
- Lecture 9: Globalization, Trade and the Environment
- Lecture 10: Macroeconomic Analysis of Trade Balance
- Lecture 11: National Income Accounting and the Balance of Payments
- Lecture 12: Money, Interest Rates, Exchange Rates
Section 4: International Macroeconomic Policy
- Lecture 13: Economic Geography
- Lecture 14: Developing Countries Growth, Crisis and Reform
- Lecture 15: International Trade and Biodiversity
Course logistic
Class schedule in the first quarter:
- Monday from 13:00 to 14:30
- Thursday from 13:00 to 14:30
Class room: A210, Eikokuji Campus, Kochi University of Technology
Grading
Your grade evaluation will depend on following three factors:
| Performance | Weight |
|---|---|
| a. Attendance | 10% |
| b. Answering the assignments | 40% |
| c. Final examination/ report (TBA) | 50% |
Assignment submission
Regarding the assignments, you must write between 10 and 200 words in English to get evaluated. Writing with logical explanation and examples are the main criteria of evaluation. If you can create exceptional arguments to support your discussion, I will provide bonus points for the assignment.
Quiz submission
There is no word limit for quiz submission. Most of the quizzes are short and instantaneous.
Instructor
Moinul Islam, Associate Professor, Research Institute for Future Design & School of Economics and Management, Kochi University of Technology, Japan.
Office room: 621, School of Economics and Management, Eikokuji Campus
Office hours: By appointment, please email