International Economics
Lecture 1: Introduction
University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Overview
• Aim of the course
• Structure of the course
• Some basic concepts…
• Textbook
• Online resources
• Assessment
Slide 1
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Aim of the course
• Critical thinking!
• To understand:
– Current major issues and debates in the
global political economy
– The major models used to understand
international trade, and how to apply
them
Slide 2
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Aim of the course
• To understand (cont.):
– What trade policy tools government has,
their effect, and how best to apply them
– A basic introduction to international
monetary policy
– The effects of foreign direct investment
(FDI) and international aid
…and all with at least a little enthusiasm! 
Slide 3
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Structure of the course
Intro
• Wks 1 and 2: Introduction / political economy
• Wks 2 to 6: Trade models and theorems
Trade
• Wk 7 and 8: Trade policy
• Second class in Wk 8: CLASS EXAM
• Wk 9: International monetary theory
Monetary
Case
studies
• Wk 10: FDI and international aid
• Wk 11 and 13: Case studies
• Last class in Wk 13: Revision!
Slide 4
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Some basic concepts…
• Economics:
– All about money?
– The economic problem: unlimited
wants versus finite resources
– Economics ≠ capitalism
– A social science: the ‘dismal science’
Slide 5
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Some basic concepts…
• Economics:
– All about money?
– The economic problem: unlimited
wants versus finite resources
– Economics ≠ capitalism
– A social science: the ‘dismal science’
Slide 6
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Some basic concepts...
• What is international trade?
• What do our trade models try to do?
• What is the purpose of trade policy?
• What is international monetary theory?
» Why is all this important???
Slide 7
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Textbook
9th Edition
Slide 8
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Online resources
• All material in the course will be made available at:
– http://michaelcornish.org/international-economics/
• This means:
– The course outline
– Lecture powerpoints
– Links to articles and .pdfs
– Anything else relevant or useful !
Slide 9
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Assessment
• Tutorial Participation: 5%
– Tutorials are every week, starting in Week 2
• Tutorial Hand-ins: 15%
– Due in tutorials every week, starting from Week 3
• Attendance at ‘Economics Inspired’ sessions: 5%
– Sessions are every week, starting in Week 2
Slide 10
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Assessment
• Class Exam: 10%
– Will be held in the second lecture in Week 8
– Will focus on trade models and will cover
everything in Weeks 2 to 6
• Group Assignment: 15%
– Details to be provided later in the semester
Slide 11
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Assessment
• Final Exam: 50%
– Will cover the entire course!
– No ‘double-pass’ required (i.e. it is
technically possible to pass the course
without passing the exam – but I wouldn’t
recommend this as a strategy!!)
– Details about time, date and location to be
provided as soon as they are confirmed
Slide 12
The University of Papua New Guinea
Lecture 1: Introduction
Michael Cornish
Some final words…
Slide 13
The University of Papua New Guinea
Lecture 1: Introduction
Slide 14
Michael Cornish
The University of Papua New Guinea