The course analyzes the fundamental elements of modern international economic theory and policy. Issues pertaining international trade and open macroeconomic policy formulation, and their consequences, will be addressed also in light of current global events, main geopolitical trendes, key security issues, as well as current economic and social trends. The objective is to understand the behavior of the main economic variables at a global level, paying attention to the aspects of international trade and open economy macroeconomics. International economic phenomena will be studied by taking into account theoretical and empirical standpoints. This course is inspired by the Fully Enquiry Based Learning model.

Students are assumed to be familiar with the basic concepts of Microeconomics and Macroeconomics.

Globalization: Opportunity and Crisis Major global geopolitical, security and macroeconomic trends. Global value chains Technology, trade and the international division of labor The globalization paradox De-globalization trends. International trade theory Absolute cost advantage Comparative advantage Specific factor model Heckscher–Ohlin model Standard model International trade policy The instruments of trade policy Trade Restrictions: tariffs Nontariff trade barriers and the political economy of protectionism International trade agreements and the World Trade Organization Economic integration: customs unions and free trade areas International trade, economic growth and development Trade policy, recent events and international affairs Free trade vs. Trade policies The balance of payments, foreign exchange markets, and exchange rates Balance of payments The foreign exchange market and exchange rates Exchange rate determination Foreign exchange war Global imbalances and debt sustainability The 2008 crisis: exacerbation of trade unbalances or excessively expansionary monetary policy? International Macroeconomics Policy Fiscal and monetary policy under fixed and flexible exchange rates The International Monetary System and the role of the International Monetary Fund and the World Bank Theory of optimum currency areas and the Euro The future of the Eurozone.

The following books are strongly recommended: Magnani Marco, The great disconnect, Hopes and fears after the excess of globalization, Bocconi University Press, 2024, ISBN 979-12-8062-314-0 Italian edition: Magnani Marco, Il grande scollamento, Timori e speranze dopo gli eccessi della globalizzazione, Bocconi University Press, 2024, ISBN: 979-12-8062-315-7 Krugman P., Obstfeld M., Melitz M.: International economics, theory and policy (11th ed, Pearson)

Lectures (often interactive), team work, class presentations, public speaking, Oxford debate, possible guest speakers.

For students attending the course: - Attendance, participation, individual contribution to class discussions, midterm exam and other class activities: 30% of the grade. Attendance to class will be monitored according to Luiss policy. Midterm will cover the first part of the course (international trade theory and policy). Exact date of the midterm will be announced on the first day of the course. - Final exam (written, with possibility of additional oral questions): 70% of the grade. The final exam is comprehensive (covers the whole course program). The final exam evaluation may also include, at the sole discretion of faculty, some oral follow up questions between the date of the written exam and the day in which grades are posted. Non-attending students Students will do the final written exam, in the examination session scheduled after the end of the semester and/or in the retake sessions, based on an extended course program. Format, number of questions and timing of the exam for non-attending students, may be different than those of the final exam for attending students. Extended course program is represented by all the topics covered in the two books recommended in the syllabus. The final exam evaluation may also include, at the sole discretion of faculty, some oral follow up questions. Final exam will account for 100% of the grade. *non-attending students are those who, at the beginning of the semester, have demanded to obtain this status to the Graduate School and whose requests have been accepted by the Dean. In addition, non-attending students are also those who have not met the minimum threshold of presence in class set by the School.

Instructor's approval of final paper's topic.