International Economics

The main goal of the course is to provide the student with a basic knowledge of economic theories of the world economy. After completing the course the student should be able to:

• explain the causes and effects of international trade and economic integration (1)
• explain the causes and effects of implementing different types of barriers to international trade like tariffs and quantitative restrictions in the form of quotas (2)
• explain the functions of the exchange market, the link between interest rates and exchange rates, and the link between prices and exchange rates (3)
• describe the general debate on different aspects of international economics (4)
• describe what determines a country’s comparative advantages (5)
• describe the welfare effects of different types of trade barriers (6)
• describe terms such as free trade areas, custom unions, balance of payments, current account (7)
• describe alternatives for companies regarding the management of exchange risk exposure in foreign trade (8)
• describe how exchange rate fluctuations affect foreign trade flows (9)
• describe the different types of exchange rate systems (10)

This course examines the causes and effects of international trade within the framework of different theories on the topic. Specifically, the concept of comparative advantages will be introduced and explained. Different types of trade barriers such as tariffs, quotas and other protectionist measures, and their effects are discussed and analyzed. The significance of international interest rate dependence and the role of the central bank are explained. The basic aspects of conducting economic policy in an open economy are described and analyzed.

The learning outcomes (1-10) are assessed by a written final exam 6 hp (U-VG) and a mid-term exam 1,5 hp (U-G).

Lectures and excercises.

The Swedish grades U–VG.

The maximum number of exam occasions is five.