BX2134 - International Economics

This subject exposes students to the theory of international trade, the theory and practice of commercial policy and the theory of open-economy macroeconomics and how they are related to regional development. Students will learn the motives for countries or organizations to restrict or regulate international trade and study the effects of such policies on economic welfare. Students are also required to apply the international trade theories to analysing real world international trade issues. Topics covered will include both modern and traditional trade theories and their foundations, various trade barriers, international trade regulations and policies, balance of payments and exchange rate determination.

Learning Outcomes

• compare the major models of international trade and distinguish between them in terms of their assumptions and economic implications;
• describe the principle of comparative advantage and interpret it within different theoretical models;
• evaluate international economics theories and apply these to a range of policy debates;
• analyse and evaluate the main arguments for trade protection and free trade policies;
• identify the linkages between trade, labour and capital movements and their impact on the economic well-being;
• research and comment on the major recent developments in the world trading system and their effects on individual economies.

Subject Assessment

• Written > Examination (centrally administered) - (50%) - Individual
• Written > Test/Quiz 1 - (30%) - Individual
• Oral > Presentation 1 - (20%) - Group.

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.