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GLOBAL INTERNATIONAL ECONOMICS

Module 1

Syllabus

EN IT

Learning Objectives


The Course is divided into two Modules (Introduction to International Economics and International Economics).

The first module provides students with an overview of the economic and financial links between a country and the world economy, using the balance of payments and the Keynesian income-expenditure model in an open economy as a reference.

In the second module, we start by the evidence that grasping globalization requires us to understand what the determinants of international trade are, and how production is organized across national boundaries. In the first part of the course, we study the models 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 module, we study the financial aspects of foreign trade: the determinants of the foreign exchange markets in the short and in long run, the determinants of output and FX in the short run, and the various international monetary systems which have appeared in the last two centuries with a final focus on the European Monetary Union.


For assessment purposes, the following scheme will be used:

Unsuitable: major deficiencies and/or inaccuracies in the knowledge and understanding of the topics; limited capacity for analysis and synthesis, frequent generalisations and limited critical and judgmental skills, the topics are set out inconsistently and with inappropriate language;

18-20: barely sufficient knowledge and understanding of the topics with possible generalisations and imperfections; sufficient capacity for analysis synthesis and autonomy of judgement, the topics are frequently exposed in an incoherent way and with inappropriate/technical language;

21-23: Routine knowledge and understanding of topics; ability to analyse and synthesise correctly with sufficiently coherent logical argumentation and appropriate/technical language

24-26: Fair knowledge and understanding of the topics; Good analytical and synthetic skills with arguments expressed in a rigorous manner but with language that is not always appropriate/technical.

27-29: Comprehensive knowledge and understanding of the topics; considerable capacity for analysis and synthesis. Good autonomy of judgement. Arguments presented in a rigorous manner and with appropriate/technical language

30-30L: Excellent level of knowledge and thorough understanding of topics. Excellent analytical and synthetic skills and independent judgement. Arguments expressed in an original manner and with appropriate technical language.

Through this course, students will be able to:

KNOWLEDGE AND COMPREHENSION SKILLS:
- Acquire and demonstrate mastery of the general concepts relating to the globalization of national economies, with particular reference to individual dynamics;
- Understand and apply the theories of international trade and finance;
- Identify the key theories and concepts for understanding the economic aspects of globalization

ABILITY TO APPLY KNOWLEDGE AND UNDERSTANDING:
- Apply theories relating to the individual and the organizational context to concrete work situations;
- Contextualise theories relating to international trade and finance.

AUTONOMY OF JUDGEMENT:
- Evaluate personal and work contingencies, considering critical success factors, to formulate strategies to improve the personal (current and/or future) work situation;
- Make relevant judgements on the appropriateness of possible professional opportunities.

COMMUNICATION SKILLS:
- Analyse and prepare written reports on case studies;
- Present concepts and make logical connections quickly.




LORENZO PECCHI

Prerequisites

introductory courses in microeconomics and macroeconomics-

Program

1st Module
Topic 1 The nation and the world economy
Topic 2 Balance of payments and international investment position
Topic 3 The Keynesian open economy model and its balance of payment implications
2nd Module
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 Determination of FX in the Short-run and in the Long-run
Topic 9 Output and Exchange rate in the short 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?

Books

The Economy. CORE Project (selected chapters). https://core-econ.org/the-economy/?lang=en

International Economics: Theory and Policy di Krugman-Obstfeld-Melitz.

Bibliography

1st Module
Lecture material handed over on line.
2nd Module
Lecture material handed over on line.
International Economics: Theory and Policy by Krugman-Obstfeld-Melitz
Understanding Global Trade by E. Helpman
The Globalization Paradox: Democracy and the Future of the World Economy by D. Rodrik.

Teaching methods

1st Module:
Students are expected to read the material for every class and participate in every lecture.
2nd Module:
Lectures will make use of oral presentations. Analysis will also be presented at the board, and used for open discussion. Interaction between teacher and student will be encouraged.

Exam Rules

Module I (Prof. Paesani) counts for 1/3 of the course grade. Module II (Prof. Pecchi) counts for 2/3 of the course grade.
Module 1. During the week of the mid-term a written exam for attending students (more than 80% of in class presence) will be administered. Non attending students and students who do not take or fail the mid-term will take a written exam at the end of the course.
Module 2. Students will be assessed on the results obtained on the homework to be done in groups and the final written exam which is done individually. Homework counts for 30 per cent and final exam for 70 per cent. If the grade of the final written exam is higher than the weighted average grade, the first will prevail over the latter. Students who have not attended at least 15 lectures for the 2 hours will be valued only on the written exam.

Attendance Rules

attendance is required from the very first lesson and students need to attend at least 80% of the course to be considered an attending student.

PAOLO PAESANI

Program

1st Module
Topic 1 The nation and the world economy
Topic 2 Balance of payments and international investment position
Topic 3 The Keynesian open economy model and its balance of payment implications
2nd Module
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 Determination of FX in the Short-run and in the Long-run
Topic 9 Output and Exchange rate in the short 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?