INTERNATIONAL ECONOMICS

The course analyzes the fundamental elements of modern international economic theory and policy. 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 perspectives. Issues pertaining to international trade and open macroeconomic policy formulation, and their consequences will be also addressed in institutional contexts.

Students are assumed to be familiar with the basic principles of Microeconomics and Macroeconomics. Moreover, an elementary knowledge of algebra and diagrammatic analysis is required.

Knowledge and understanding The course will offer key theoretical tools to compare theories of International Economics and to understand the pros and cons of them. The course provides advanced knowledge that will enable students to understand the processes, content, and consequences of different policies across countries and globally. Applying knowledge and understanding The students will be able to: - apply international trade theories to the current economic situation - examine international trade policies by comparing different approaches across countries in Europe, the USA, and Asia - look at how politics and institutions shape, constrain, and enable policy-making Making judgments Students will be able to analyze international economics theories, public policy, and governance models to demonstrate an in-depth, critical understanding of their scope and challenges. Throughout the whole course, students will be invited to critically analyze current events that influence international economics. Communications Skills This course will give students the possibility to acquire and understand major terms and concepts in order to communicate their ideas, proposals, analyses, and critical reasoning. This will be done through individual contribution in class, class discussions and simulations, and team-work among students. Learning skills This course will contribute to empowering learners giving them the tools to determine the benefits and challenges of certain policies and the impact of current events on international economics.

Open-economy macroeconomics The balance of payments, foreign exchange markets, and exchange rates Short-run output and foreign exchange interventions with fixed exchange rates Output and exchange rates in the short-run The International Monetary System Financial globalization Theory of optimum currency areas and the Euro International trade theory Interindustry trade: Ricardo, Samuelson-Ricardo-Viner, and Heckscher–Ohlin models Intraindustry trade: The Krugman model Firms in the global economy: Export decisions, outsourcing, and multinational enterprises International trade policy The instruments of trade policy

Krugman, P., Obstfeld, M., Melitz, M., International economics, theory and policy, Pearson, last edition Feenstra, R.C., Taylor, A.M., International Economics, Worth Publishers, last edition Additional information regarding the chapters needed to cover the course topics will be provided at the beginning of the course Reading lists will be provided

Lectures, class discussions and problem sets.

- Midterm exam (written): 35% of the grade -Project work 35% of the grade - Final exam (written): 30% of the grade

Interest in the subject