International Economics

Introductory Macroeconomics.

Classes will be both theoretical and practical and will consist of the presentation of the syllabus content, analysis of texts and economic information, discussion of some topics related to international economics, and resolution of exercises from the practical notebook.

The resolution of autonomous training exercises by students will be promoted.

Texts and economic information will be made available in advance for further discussions in the classroom.

1. This subject aims at developing the student’s skills regarding the main theoretical body of the International Economics, supported by macroeconomic principles.

2. To supply a theoretical framework for students to be able to understand the empirical events in open economies.

3. To stimulate students to have a critical opinion on topics related to the course.

4. To give an overview of the theoretical evolution the discipline, connecting it with historical events.

• I. Introduction to the Global Economy

1. Production versus Exports

2. Geography and Composition of the World Trade

3. Measuring International Trade

• II. International Trade Theory

1. Classical Theories of International Trade: Absolute Advantage, and Comparative Advantage: Smithian and Ricardian Models

2. Resources, Comparative Advantage and Income Distribution: The Heckscher-Ohlin Model.

• III. International Trade Policy

1. The Instruments of Trade Policy

2. Controversies in Trade Policy

• IV. Open-Economy Macroeconomics

1. The Balance of Payments

2. Money, Interest Rates, and Exchange Rates

NAO

Main Bibliography:

Krugman, P.R., Obstfeld, M., and Melitz, M. (2023). International Economics: Theory and Policy, Global Edition (Ed. 12th). United Kingdom: Pearson Education Limited.

Complementary Bibliography:

Africano, A.P., Castro, F.B., Fonseca, M., Afonso, O., Forte, R., and Alves, R.H. (2023) Comércio Internacional, Teorias, Políticas e Casos Práticos (Reimpressão). Coimbra: Almedina.