International Economics

Recommended Prerequisites

Principles of Macroeconomics, Macroeconomics, Principles of Microeconomics, Microeconomics             

Teaching Methods

In the lecture classes, presentation of the syllabus by the teacher combined with the lauching of questions/problems to encourage active participation of the student. In practical classes, lauching of questions/problems and resolution of practical exercises on the subjects already lectured with the active participation of student.     

Learning Outcomes

The curricular unit aims to familiarise student with the main issues of international trade and respective income distribution from theory of international trade. So, the student should be able to explain the theorems of classical and neoclassical theories of international trade and specify the differences between them; explain the effect of international trade on productive structures, well-being, relative prices and income distribution; analyse additional theories and extensions related to intra-industry trade, economic growth and international trade and international factor movements; address the main topics of trade policies; confront the current dynamics of international trade with theoretical models studied; express opinions on topics of international economy in an argued manner; learn and critically think with autonomy international trade issues.

Work Placement(s)

No

Syllabus

I. Introduction: countries and trade globalization

II. Classical theory

1. Adam Smith and absolute advantage

2. Ricardo and comparative advantage

3. Technical progress and international trade

4. Comparative advantage with more than two commodities

III. Neoclassical theory

1. General equilibium in an open economy

2. Factor endowments and the Heckscher-Ohlin-Samuelson theorem

3. Effects of international trade: the Lerner Samuelson and the Stolper Samuelson theorems

4. Leontief paradox

IV. Intra-industry trade

1. The Linder theory

2. The product cycle theory

3. Economies of scale and imperfect competition

V. Economic growth and international trade

1. Factor growth and the Rybczynski theorem

2. Economic growth effect on international trade

VI. International factor movements: FDI and migration

VII. Trade policy

1. The instruments and the impacts of trade policies

2. Pro and cons of policies

Head Lecturer(s)

Margarida Rosa Silva Baila Madeira Antunes

Assessment Methods

Assessment
Periodic or by final exam as given in the course information: 100.0%

Bibliography

Appleyard, Dennis; Field, Alfred (2016). International Economics. 9th ed. New York: McGraw Hill.

Carbaugh, Robert (2022). International Economics. 18th ed. Boston: Cengage Learning.

Dunn, Bill (2015). Neither Free Trade nor Protection. Cheltenham: Edward Elgar Publishing.

Kenen, Peter (2021). Essays in International Economics. New Jersey: Princeton.

Krugman, Paul; Obstfeld, Maurice; Melitz, Marc (2022). International Economics: Theory and Policy, Global Edition. 12th ed. Harlow: Pearson Education Limited.

Pugel, Thomas (2019). International Economics. 17th ed. New York: ‎McGraw-Hill Education.

Salvatore, Dominique (2019). International Economics. 13th ed. Hoboken: John Wiley & Sons.