25751 - INTERNATIONAL ECONOMICS

Conoscenze e abilità da conseguire

This course is intended to analyze the regulatory framework for trade and the regulatory issues relating to international markets and regional markets, such as U.S. and EU markets, and emerging markets in Africa and Asia. The students acquires knowledge: - about Institutional structures (GATT/WTO, NAFTA, EU, APEC, SADEC, CEDEAO) and Regulatory authorities; - about International dimensions of market regulation (tariffs and customs regulations, product safety and environmental restrictions, trademark and patent regulations); - about disputes settlement.

Contenuti

Why do countries trade? What are the consequences of introducing a tariff on import? Why did the EU adopt a single currency? This course aims to address these issues and many other relevant topics in international trade. At the end of the course students will have a sound foundation in international economics and they will be able to critically evaluate micro trade patterns, as well as policy issues.

The course introduces the most important theories of international trade and their predictions for consumers, entrepreneurs, and governments. In particular, it addresses issues such as the determinants of the patterns of trade, the gains from trade, and the most relevant trade barriers. It also covers real-world areas of international trade, such as the EU, the Americas, and Asia.

Content (approximatively 6 hours for each topic)

1) Introduction to Traditional Models of International Trade (Chapters 3, 4 and 5 of the textbook plus additional material provided by the instructor): the Ricardian model, the Specific-Factor model, the Heckscher-Ohlin model. Comparative advantage and inter-industry trade. Effects of trade on income distribution.

2) Imperfect Competition and New Theories of International Trade (Chapters 7 and 8 of the textbook): Internal and external economies of scale. Intra-industry trade. Monopolistic competition and trade. Firm Responses to Trade: Winners, Losers, and Industry Performance. Dumping. Outsourcing.

3) Trade Policy Instruments (Chapter 9 of the textbook plus additional materials provided by the instructor): tariffs, subsidies, and quotas. New instruments of trade protection: voluntary export restraints, antidumping duties, local content requirements, minimum quality standards.

4) Political Economy of Trade Policy (Chapters 10 and 12 of the textbook): Free Trade versus Protectionism. Some examples of current trade agreements: EU Customs Union, NAFTA, Mercosur. Recent controversies in trade policy and trade retaliation. Links between trade and the environment.

5) The Economics of European Integration Part I: the Common Market (materials provided by the instructor): the European integration process. The EU Customs Union. The Single European Act and the creation of a Common Market. The EU Competition Policy.

Testi/Bibliografia

Krugman, Obstfeld and Melitz (2015), International Economics: Theory and Politics. 10^th Edition. Chapters 3-5, 7-12.

For attending students, the textbook is recommended but not strictly necessary in order to prepare the exam. For students who decide not to attend classes, the textbook is compulsory.

Additional lecture notes will be provided by the instructors. These materials will be made available on the course website, along with additional complementary readings. The case studies provided by the instructors must be read before the class in order for students to actively engage in class discussion.

Class participation is highly recommended in order to successfully understand the course content.

Metodi didattici

The course will be taught using a wide variety of formats, including lectures, classroom discussions, and students’ presentations. Case studies will be used to evaluate students’ ability to apply the theoretical knowledge acquired during the course. Class attendance of at least 70% is compulsory.

A tutor is usually assigned to this course. He is responsible for coordinating the two components of the integrated course, and assisting students with related issues.

Modalità di verifica e valutazione dell'apprendimento

The exam combines inclass assessment (class participation and group presentation), valid for 1/3 of the total mark, and a final exam valid for 2/3 of the total mark. Class attendance of at least 70% is compulsory.

• In-class assessment (10 points max): Students will be evaluated based on a combination of class participation and group performance. Each group, composed by maximum 5 students (max. 1 Erasmus student per group), must select a topic among those proposed by the instructor (1 different topic per group). Each group will prepare a short presentation, which will be presented during the course. Powerpoint slides will be the standard of use for each presentation, and must be send to the instructor (a.mantovani@unibo.it) by no later than the day before the presentation. Each presentation must consist of a maximum of ten slides and must last no longer than 15 minutes. The contribution of each member of the group must be clearly outlined, as it will be factored into the in-class evaluation. Each group will appoint a leader, who will be responsible for coordinating the activities within the team. The leader will be awarded by one extra point, should the group meet the objectives of the presentation. However, should the group fail to, he/she will have one point deducted from the final mark. Finally, when preparing your powerpoint slides, make sure to include and quote all your sources. Plagiarism will not be tolerated. Additional information and specific readings will be proposed by the instructors.
• Final exam (20 points max): students will have to answer two questions out of the three proposed by the instructors. Students cannot select questions directly related to their presentation.

Further detailed information on the written exam will be given throughout the course. It is highly recommended that participants attend all lessons in order to successfully prepare for the exam which will be based on materials, exercises and discussions carried out in class.

List of preliminary topics for group presentations

• The role of ICT and infrastructures in expanding global trade relations.
• Who benefited the most from the entrance of China in the WTO?
• The impact of ASEAN – China Free Trade Agreement on European Economy.
• Minimum Quality Standard, Safety Regulations, and Local Content Requirements: Protectionism or Consumer Protection?
• Environmental Sustainability, Energy and Trade. Doing business across the pond: cultural and regulatory challenges.
• The impact of Corporate Social Responsibility on trade: fair business or just business?
• The importance of competition policy in promoting free trade.
• Doing business “across the pond”: cultural and regulatory challenges.
• Investing in an Accelerating Asia?
• Luxury goods industry. Where will the next destination for European firms be?
• EU Trade relations with Mercosur: what are the opportunities for European companies?
• How Russian Sanctions Impact Western Companies.
• The impact of Brexit on EU businesses.
• ...

Additional exam rules

• Students are required to register for the exam by using the online application procedure.
• Students can refuse a passing mark but only once. Each mark higher than 18/30 will automatically be registered by the instructor after the student’s second attempt.
• Participants will not be granted the possibility to integrate/substitute marks with oral examinations.
• For students who are authorized by the Degree Course Board to register for the exam without attending the lectures, the written exam will consist of three questions, each of them worth 10 points. The same modality applies to students who refuse a passing mark in previous exams.

Strumenti a supporto della didattica

The course will be taught using a wide variety of formats, including lectures, classroom discussions, and students' presentations. Moreover, case studies will be used to evaluate students' ability to apply the theoretical knowledge acquired during the course.

Orario di ricevimento

Consulta il sito web di Andrea Mantovani