25751 - International Economics

Learning outcomes

By the end of this course students are able to: - recognize the basic questions, models, and methods asked in the field of international economics; - master the use of different theoretical models explaining international trade and microfinance; - analyze how different assumptions based on the real world lead to the use of different theoretical models; - discuss international economic policies under the lens of different theoretical approaches.

Course contents

This course provides a comprehensive overview of international economics, focusing on the theories and policies that shape global trade and finance. Students explore fundamental questions such as who trades what with whom, how trade affects welfare and income distribution, and how firm-level dynamics influence global markets. The course combines classical and modern trade theories with recent research on heterogeneous firms, offering a deep understanding of how real-world assumptions shape theoretical models. In the second part, attention shifts to trade policy and international macroeconomics, examining the effects of trade barriers, economic integration, and political economy perspectives on globalization. By the end, students are equipped to analyze international economic policies through multiple theoretical lenses and assess their real-world implications.

Structure of the course (approx.):

1 Introduction to the course: rules, grading, structure, topics. World trade: an overview.

2 Labor Productivity and Comparative Advantage: The Ricardian Model.

3 Specific Factors and Income Distribution.

4 Resources and Trade: The Heckscher-Ohlin Model.

5 The Standard Trade Model.

6 External Economies of Scale and the International Location of Production.

7 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises.

8 In-class presentations. (part 1)

9 In-class presentations. (part 2)

10 First module revision, mock exam.

11 The Instruments of Trade Policies. (part 1)

12 The Instruments of Trade Policies. (part 2)

13 The Political Economy of Trade Policies.

14 Trade Policies in Developing Countries. Controversies in Trade Policies.

15 Guest 1: Trade Policies in Agricultural/Forestry Sector.

16 Guest 2: Evading Trade Sanctions.

17 Guest 3: Exchange Rates and the Foreign Exchange Market.

18 In-class presentations (part 1)

19 In-class presentations (part 2)

20 Second module revision, mock exam.

Readings/Bibliography

Krugman, P., M. Obstfeld and Marc Melitz: "International Economics: Theory and Policy", 11th edition. Pearson Eds.

Additional material distributed in class

Teaching methods

The main instructional approaches used in the course are:

- Lectures

- Guest Speakers

- Group Work

- Individual Essay Writing

- In-class Presentations

Assessment methods

Though not compulsory, class attendance and participation in team-work assignments is strongly encouraged.

Course evaluation will be different depending on the non-compulsory participation in team-work assignment, as detailed in the following:

Students participating in team-work assignments:

Midterm Exam 1: 50%

Midterm Exam 2: 50%

OR: Final Exam : 100%

Group Project + Presentation (Term 1): up to 2 extra points

Individual Essay + Presentation (Term 2): up to 2 extra points

Students who do not participate in team-work assignments:

Midterm Exam 1: 50%

Midterm Exam 2: 50%

OR: Final Exam : 100%

- Exam and group project structure:

Mid-term and Final Exams
Each mid-term and the final exam will be a 1-hour written, closed-book test consisting of:

· 9 multiple-choice questions (2 points each),

· 2 open-ended questions (6 points each), and

· 1 bonus question.

The maximum achievable score for a perfect exam is 31 points.
Answers must be concise and written directly on the question sheet, where space is limited.
Exams will be evaluated based on the correctness, completeness, and rigor of the answers.

Group Project
The group project consists of selecting a paper published on VoxEU and preparing a 15-minute in-class presentation. Groups should consist of 3–4 students.
Evaluation will be based on:

· Participation (each member must attend and contribute verbally),

· Clarity and structure of the presentation, focusing on the research question, methodology, and results

· Completeness and accuracy of answers provided during the presentation.

Individual Essay

Each student will write a one-page research proposal on a topic related to the course. The report should clearly identify the research question, methodology, and expected results. Students will present their proposal in class in a 5-minute presentation.

Evaluation will depend on the completeness of the written report and the precision and clarity of the presentation.

- Exam policy:

Written Exam. Students may take an optional first mid-term exam during the break at the end of the first sub-cycle (i.e., at the end of March), and a second mid-term exam at the end of the course. The grades of the two mid-term exams will be averaged to determine the final written exam grade.

Students who pass the first mid-term exam (i.e., obtain a grade greater than or equal to 18) may take the second mid-term exam during the June session. The second mid-term exam can be taken only once. Therefore, if a student fails the second mid-term or chooses to retake the full exam, they will from that point on be eligible only for the comprehensive final exams. To pass via mid-terms, students must achieve a minimum grade of 18 in both mid-term exams.

Extra credit. The combined grades (sum) obtained from the group project and the individual essay (up to a maximum of 4 points) will be added to the final exam grade, whether obtained through the mid-term exams or the comprehensive final exam. This extra credit is valid for the entire academic year and will be applied only to passing final grades (i.e., grades starting from 18).

Registration. Students must register in advance for each exam session, as a limited number of copies will be printed. Grades will be published on Virtuale approximately 7 to 10 days after the exam date, allowing students to decide whether to accept or reject the grade. Although students are strongly encouraged not to reject their grades, only one opportunity to reject is allowed. For example, if a student rejects the grade from the first mid-term exam, they cannot reject the grade obtained in the final exam.

Grading scale.

< 18: failed

18-23: sufficient

24-27: good

28-30: very good

30 e lode: outstanding

Extra. Students with disability or specific learning disabilities (DSA) are required to make their condition known to find the best possibile accommodation to their needs.

OFA: students with OFA in Math cannot sustain either total or partial exams.

Erasmus: at most 20 Erasmus and Overseas students, and 10 UADE students, selected in chronological order, will be admitted to the course and the exam.

Teaching tools

Tools, platforms, or resources used during the course:

- Learning platform: Virtuale (virtuale.unibo.it) contains the slides, extra materials, and evertything related to the extra assignments.

- Presentation software: PowerPoint

- Communication tools: Forum on Virtuale.

- Other digital tools/software: Wooclap.

Office hours

See the website of Lavinia Piemontese