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 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 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 current economic situation - examine international trade policies through comparing different approaches across countries in Europe, USA and Asia - look at how politics and institutions shape, constrain and enable policy making Making judgments Students to 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, analysis 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 empower learners giving them the tools to determine benefit and challenges of certain policies and the impact of current events on international economics.

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 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

Krugman P., Obstfeld M., Melitz M., International economics, theory and policy (Pearson, last edition) Reading lists will be provided

Lectures, class discussions and problem sets.

- Midterm exam (written): 50% of the grade - Final exam (written): 50% of the grade if the midterm exam is passed. Students not attending the course will take the final written exam that will account for 100% of the grade. The midterm examination takes place after the first part of the course.

Instructor's approval of final dissertation’s proposal.

Some topics developed in the course are connected to the objectives of the UN 2030 Agenda for Sustainable Development (SDGs).