International Economics

Not applicable.

The development of content will be based on a theoretical and theoretical-practical approach, either through exposure or through research and synthesis work. These approaches will be complemented, from an application perspective, by the analysis of cases and problem-solving.

Objectives:

1. To provide students with the fundamental theoretical body of international economics, based on the assumptions of Microeconomics.

2. Provide this theoretical body so that students can understand the problems and characteristics of open economy, applying it to the reality of economies in their current problems.

3. Encourage students to have a critical attitude.

4. Permanently frame currents and theoretical approaches in time and historical phenomena.

5. Provide political solutions to economic problems by integrating the relevant theory with empirical evidence and historical knowledge.

Skills:

Generally speaking, students should develop a range of skills, including the ability to:

– Articulate coherent arguments based on facts and data made available in international and national statistical bodies.

– Use inductive and deductive reasoning and lateral and critical thinking to solve problems.

– Critically evaluate and interpret contemporary and emerging issues in the global economy.

– Work independently, exhibiting individual initiative and self-organization.

– Work in pairs and groups, building skills of teamwork.

1. Introduction

• The evolution of the world economy
• What does international economics study?
• Foreign trade indicators
• Trade vs. International Finance

2. Trade policy

• Introduction to Demand and Supply 
• Well-being in International Trade
• Trade Policy Instruments
• Tariff and non-Tariff Barriers
• Trade Policy Controversies
• Externalities and Appropriation of Technology
• Effects of trade on workers, working standards and the environment

3. Trade Theory

• Labor Productivity and Comparative Advantage: Ricardo’s Model
• Opportunity costs and comparative advantage
• The one-factor economy
• Production possibilities
• Trade gains
• Relative wages and trade
• Fallacies on comparative advantage
• Transport costs and non-tradable goods
• Resources, Comparative Advantage and Yield Distribution: Heckscher-Ohlin.
• Production possibilities
• Change in the combination of production factors
• Relationship between the price of factors and goods and the use of productive factors and production
• Trade in the Heckscher-Ohlin model

Mobility of production factors, International Loans and Foreign Direct Investment

• International labour mobility
• Work poductivity and wage rates
• International capital mobility
• Intertemporal trade
• Foreign direct investment
• Multinational companies

NAO

Frank, R. H. (2021) “Microeconomics and Behavior”, McGraw-Hill, 10th ed.

Krugman, Paul R. e OBSTEFELD, Maurice (2018), “International Economics”, 1th edition, New York, Addison-Wesley^*.