The course examines the fundamental principles of modern international economic theory and policy. Its primary objective is to develop an understanding of the behavior of key economic variables in the global economy, with particular emphasis on international trade and open-economy macroeconomics. International economic phenomena are analyzed from both theoretical and empirical perspectives, enabling students to assess their causes, dynamics, and implications. The course also explores issues related to international trade and open-economy macroeconomic policies, as well as their economic consequences, while paying close attention to the role of international institutions and the broader global governance framework.

Knowledge and Understanding The course will provide key theoretical tools to compare various theories of international economics and to evaluate their respective strengths and weaknesses. It offers advanced knowledge that will enable students to understand the processes, content, and consequences of different economic policies across countries and on a global scale. Applying Knowledge and Understanding Students will be able to: • Apply international trade theories to current economic situations • Examine international trade policies by comparing different approaches in Europe, the USA, and Asia • Analyze how politics and institutions shape, constrain, and enable policy-making • Understand international macroeconomic phenomena Making Judgments Students will be able to critically analyze international economic theories, public policy frameworks, and governance models, demonstrating a comprehensive understanding of their scope, applications, and challenges. Throughout the course, students will be encouraged to critically analyze current events and their implications for the global economy and international economic relations. Communication Skills The course will help students acquire and effectively use key terminology, concepts, and analytical frameworks to communicate their ideas, proposals, analyses, and critical reasoning. These skills will be developed through individual participation, class discussions, simulations, as well as individual and class solution of problem-sets. Learning Skills This course will empower students by providing them with the analytical tools necessary to assess the benefits and challenges of different policy approaches and evaluate the impact of current events on international economics. Students will develop the capacity for independent learning, critical thinking, and evidence-based decision-making.

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 and the instruments of commercial policy 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 Stabilization policies under different exchange rate regimes The International Monetary System Financial globalization Theory of optimum currency areas and the Euro

Krugman P., Obstfeld M. and M. Melitz, International Economics, Theory and Policy (Pearson, last edition) or Feenstra R.C. and A. M. Taylor, International Economics, (Macmillan International, last edition) Reading lists and notes will be provided during the course

Lectures, class discussions and solution of problem sets.

Assessment will consist of a final written examination and a final oral examination.

Instructor’s approval of the final dissertation proposal is required.