Közgazdasági Intézeti Tanszék
SYLLABUS
International economics
Course title:
International economics
Course code:
NEGA1K0EEMT
Status:
Core
Contact hours:
2
Credits:
3
Prerequisites:
Macroeconomics
Course unit leader:
Gyöngyi Csongrádi
Office number: B 106
e-mail address: csongradigy@gmail.com
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Tutor(s):
Aims and objectives
The International Economics course is about to deliver basic knowledge in relation
with the mechanisms of the world economy. The course will highlight sources of
comparative advantage, gains and losses from trade, the impact of trade on
economic growth, and effects of trade policy interventions such as tariffs, quotas,
voluntary export restraints, and export subsidies. In the second part of the course
macroeconomic notions will be emphasized as money, interest rates, exchange
rates and macroeconomic policy. Our goal is to allow students to understand
today’s global economic environment as we stress concepts and their application
rather than theoretical formalism. The course supposes a basic economic
background.
Learning outcomes
PSZK | H-1149 Budapest, Buzogány utca 10-12. | Telefon: (+36-1) 469-6692 | Fax: (+36-1) 469-6627 | www.bgf.hu
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Forecasting the effects of economic acts in an open economy.
Ability to analyse international factor movements.
Ability to analyse a country’s international position at the world capital
market.
Ability to analyse the changes of interest rates and ecxhanges rates.
Competence in recognition the consequences of recent economic changes.
Basic knowledge about the actors of international trade, and international
policy coordination.
Methodology
Lectures will be held during the third semester. Students will become familiar with
different theories of international economics and these theories will be supported
with graphs, data and case studies.
Course schedule
Course Topic
1
National Income Accounting and the Balance of Payments
2
Exchange Rates and the Foreign Exchange Market: An Asset
Approach
3
Money, Interest Rates, and Exchange Rates
4
Output and the Exchange Rate in the Short Run
5
Fixed Exchange Rates and Foreign Exchange Intervention
6
Macroeconomic Policy and Coordination Under Floating
Exchange Rates
7
Introduction
Labor Productivity and Comparative Advantage: The
Ricardian Model,
8
Specific Factor model
9
Resources, Comparative Advantage, and Income Distribution
10
The Standard Trade Model
11
Economies of Scale, International Trade
12
International Factor Movements
13
Instruments of Trade Policy
Pages
288-316
317-350
351-381
420-454
460-474
532-556
25-42
54-87
88-110
114-117
135-146
153-157
160-163
176-179
182-193
PSZK | H-1149 Budapest, Buzogány utca 10-12. | Telefon: (+36-1) 469-6600 | Fax:
(+36-1) 469-6610 | www.bgf.hu
Course policies
Students are expected to attend lectures.
Assignments
Exam requirements: oral exam in the exam period.
Queries:
1. Balance of payments and national accounting.
2. Exchange rates and foreign exchange markets.
3. Money market, interest rates and exchange rates.
4. Output market equilibrium in an open economy
5. Asset market equilibrium in an open economy
6. Fiscal policy in the short run. How to maintain full employment?
7. Monetary policy in the short run. How to maintain full employment?
8. Absolute and comparative advantage by the help of a numeric example.
9. International trade with one and two inputs. Foreign trade triangle.
10. How could tariffs and export subsidies effect the terms of trade?
11. International labour mobility. Foreign direct investments.
12. Import demand and export supply curves and the case of a tariff.
13. The welfare effect of tariffs.
The condition for signature: make a presentation.
Assessment and grading
The final mark will be composed of the 2 above mentioned assignments. Grading:
the average of the two assignements’ mark.
Compulsory readings
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Krugman, Obstfeld: International Economics, Therory & Policy, 8th Edition,
Pearson International Edition, 2009
Begg, Fisher, Dornbush: Ecnomics, McGraw-Hill Education (9th Edition)
Recommended readings
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Actual economic articles from the printed media or from the internet.
PSZK | H-1149 Budapest, Buzogány utca 10-12. | Telefon: (+36-1) 469-6600 | Fax:
(+36-1) 469-6610 | www.bgf.hu