Updated A.Y. 2018-2019
Grasping globalization required to understand what are the determinants of international trade and how production is organized across national boundaries. In the first part of the course we study the paradigms of foreign trade that were developed in the XIX and XX centuries (Ricardo, Heckscher and Ohlin) together with the “new” trade models which emphasize economies of scale, monopolistic competition and the role of multinational firms. We will examine who benefits and who loses from trade and the welfare effects of various trade policies.
In the second part of the course we study the financial aspects of foreign trade: the balance of payments, the determinants of the foreign exchange markets and the various international monetary systems which have appeared in the last two centuries with a final focus on the European Monetary Union and Brexit.
Students are expected to read the material for every class and participate in every lecture.
Schedule of Topics
Topic 1 World Trade Overview
Topic 2 The Ricardian Model
Topic 3 The Specific Factors Model
Topic 4 The Heckscher-Ohlin Model
Topic 5 The Standard Trade Model
Topic 6 External Economies of scale and Monopolistic Competition
Topic 7 International Trade policies
Topic 8 National Income Accounting, Current Account and Balance of Payment
Topic 9 Determination of FX in the Short-run and in the Long-run
Topic 10 Alternative International Monetary System: An Historical Overview
Topic 11 Optimal Currency Area and the European Experience
Topic 12 Financial Globalization: Opportunity or Crisis?
PLEASE FIND MORE INFORMATION ON THE COURSE ON THE SYLLABUS IN THE TEACHING MATERIAL SECTION