International Economics

TThe goal of the course is to familiarize Students with main determinants of international trade and its impact on national economies.

1. Determinants of international trade;

2. Historical approach to trade theory: Mercantilism, classical theory, Ricardian model, Heckscher-Ohlin model

3. Contemporary theories of trade (Vernon's theory of product life cycle, Technological gap trade theory, Porter Diamond theory of National Advantage)

3. Foreign investments – FDI’s and portfolio investment

4. Internationalization of enterprises (forms, strategies and main dilemmas)

5. The instruments of trade policy (VER, Dumping, Tariffs, Import quotas, export subsidies)

6. Economic integration process (stages, economics of European integration process)

7. International financial markets (systematics, size, role)

8. Exchange rate and risk of international operations (exchange rate regimes, macroeconomic determinants of the exchange rate, foreign exchange cross rates)

9. Balance of Payments – “architecture”

10. Determinants of Balance of Payments and consequences of imbalance

P. Krugman, M.Obstfeld, M. Melitz International Economics. Theory and Policy, Ninth Edition (Addison-Wesley, 2012).

Feenstra, R. C., Taylor A. M., (2012). International econom-ics 2nd ed., Worth Publishers, New York

Baldwin, R., Wyplosz, C., (2012). The Economics of Europe-an Integration 4th ed., McGraw-Hill Higher Education

World Trade Report (2013). Factors shaping the future of world trade. World Trade Organization

The course aims to provide a framework for consistent reasoning about international flows of goods, factors of production, and financial assets, trade policy and monetary policy in open economy.

At each lecture students will be assessed by their activity and knowledge during discussions on practical problems (maximum 4 points per class).

At the end of the program there will be an exam - multiple-choice test (max. 100 points)