Academic Year 2023/2024

  • Moduli: Laura Bottazzi (Modulo 1) Luca Bonacini (Modulo 2)
  • Teaching Mode: Traditional lectures (Modulo 1) Traditional lectures (Modulo 2)
  • Campus: Bologna
  • Corso: Second cycle degree programme (LM) in International Relations (cod. 9084)

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

This course is intended to use simple small open economy models to answer many important macroeconomic questions that arise in emerging markets and developing economies, particularly those regarding trade, monetary and exchange rate issues. We want to think in terms of simple models and grasp the fundamentals of open economy macroeconomics.

The course is divided in two parts. The first part 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, protectionist policies and real determinants of capital flows.

The second part  introduces the most important theories of international finance, and it is organized in topics, including , among others, open macroeconomics, currency crises and speculative attacks and financial crises.

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.

Preliminary knowledge of micro and macro theory is required.


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

slides provided by the professor

Teaching methods

Frontal lessons. Student's active class participation is encouraged. Models will be discussed and developed in class. Particular attention will be devoted to the understanding of model background and empirical implications as well as discussion on policy issues.

Assessment methods

Final written examination:

The written exam aims at testing the acquired knowledge of the theoretical concepts and the ability to interpret estimation results in the light of the underlying theory.

The written exam is closed book and it lasts h. 1.30. It is divided in two parts:

  • 1.True , False, Uncertain (answer with concise motivation): 8 questions, 30 points. These questions will cover the first part of the course
  • Open questions: 2 questions, 1 for each part of the course, 30 points.

In case online exams will be envisaged by the University of Bologna, the structure of the written exam is the same.

The maximum possible score is 30 cum laude, in case all answers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

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 and slides

Office hours

See the website of Laura Bottazzi

See the website of Luca Bonacini


Decent work and economic growth Reduced inequalities

This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.