78980 - International Economics (Advanced)

Learning outcomes

The course aims to give students a better understanding of causes and consequences of international trade and of the effects of trade policies; of the main approaches to international factor movements, organization of firms, and debates on globalization; of exchange rates and international capital markets; of the complex issues raised by the economic interdependence of nations

Course contents

The course is organized with a part of lectures taught online on MS TEAMS (20 hours) and another taught in presence (20 hours). The number of students allowed in class is determined on the basis of class capacity and by the health and safety provisions that deal with the pandemic emergency. In case more students want to attend classes in presence than permitted by the rules, a system of shifts will be organized so to allow students to participate. Regardless of the health-related conditions and the specific organization of the course, students will be able to follow the lessons of the entire course remotely on MS TEAMS.

Why do countries trade? What are the consequences of introducing a tariff on import? Why did the EU adopt a single currency? How to make sense of Brexit and Trump’s protectionism? This course aims at addressing these issues and many other relevant topics in both international trade and open economy macroeconomics. At the end of the course, students will have a sound foundation in international economics and they will be able to critically evaluate both micro and macro trade patterns, as well as policy issues.

The first module introduces the most important theories of international trade and their predictions for consumers, firms, and governments. In particular, it addresses issues such as determinants of trade flows, gains from trade, and motivation and consequences of protectionist policies. It also covers real-world areas of international trade, such as the EU, the Americas, and Asia.

The second module is organized in topics, including, among others, open macroeconomics, optimum currency areas, the European Union and the Euro experience, the historical and recent migration waves.

Introduction (S 1; KOM 1,2)

Comparative advantage, technology and Ricardian model (S 2, KOM 3)

Factor proportions and Heckscher-Ohlin model (S 3,4; KOM 4,5,6)

Economies of scale and new trade theory (S 4; KOM 7,8)

Trade policy and politics (S 5,6; KOM 9,10)

Integration, development and factor movements (S 7,8,9; KOM 10,11,12)

Balance of payment and exchange rate (S 10,11; KOM 13,14)

Optimum currency areas and European integration (S 15; KOM 20)

Globalization and financial crises (S 16; KOM 21, 22)

Regional cooperation in the European Union: the INTERREG programme. Case study: the Italy- Croatia 2014-2020 INTERREG Programme (readings from the instructor) 

 

Readings/Bibliography

D. Salvatore (2012), Introduction to International Economics. 3^rd Edition (4th Edition, 2019, as soon as available).

P. Krugman, M. Obstfeld and M. Melitz (2018), International Economics: Theory and Politics. 11^th Edition.

The course will be mostly based on Salvatore's textbook, which is easier and particularly recommended for students with a weaker background in economics. Students who already attended micro and macroeconomic courses and who look for a deeper analytical elaboration may find it useful to study Krugman, Obstfeld and Melitz’ textbook, which is more formalized.

In the analytical content (see above) the two handbooks are referred to by the authors' initials, S and KOM, followed by the corresponding chapter number.

Readings from the instructor.

Teaching methods

Frontal lessons and group discussions. Student's active class participation is encouraged.

This class will be offered in blended learning. The online part will be offered via the Microsoft Teams platform. Students are strongly advised to use a wired connection, because it is more stable than a WiFi one.

Assessment methods

This written exam will consist of 10 multiple choice questions and 4 open questions. Winter exams will take place online. The mode of the following exams will depend upon the evolution of the COVID-19 pandemic in Italy. Calculators will be allowed, while any use of cell phones will be strictly forbidden.

Students must have installed ZOOM on their PC and must access the virtual exam classroom using the link they will receive by mail and connect to the exam on EOL (https://eol.unibo.it/).

Any form of academic dishonesty will not be tolerated.

To take the exam, you are required to enroll on Almaesami. Class attendance is strongly recommended to improve the productivity of the time spent studying this subject.

The student has the right to refuse the passing grade obtained only once.

Teaching tools

Blackboard, slides and touch screen.

Office hours

See the website of Luciano Messori