25751 - International Economics

Learning outcomes

"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. At the end of the course, the students know: - institutional structures (GATT/WTO, NAFTA, EU, APEC, SADEC, CEDEAO) and Regulatory authorities; - international dimensions of market regulation (tariffs and customs regulations, product safety and environmental restrictions, trademark and patent regulations); - disputes settlement."

Course contents

Why do countries trade? What are the consequences of introducing a tariff on imports? How to make sense of Brexit and  protectionism? This course aims at addressing 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, 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.

Analytical content

Trade theory and policy

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)

Readings/Bibliography

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

Krugman, Obstfeld and Melitz (2018), International Economics: Theory and Politics. 11th 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 textbooks are referred to by the authors' initials, S and KOM, followed by the corresponding chapter number.

Teaching methods

The course will be taught using a combination of lectures, classroom discussions, and students’ presentations.

Assessment methods

For attending students sustaining the exam by February, the final grade will be based on students' presentations and on a written exam. Students' presentations may add between 0 and 2 points to the grade of the written exam, and must be sent to the lecturer by the day before the presentation in class.

For non-attending students, and for all students in exam sessions after February, the grade will be entirely determined be the written exam.

Additional exam rules

Students are required to register for the exam by using the online application procedure.

Marks: fail <18; pass 18-23; good 24-27; very good 28-30; outstanding 30 cum laude

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.

Teaching tools

Lecture slides made available through the online unibo platform

Office hours

See the website of Giulio Fella