25752 - International Finance

Learning outcomes

This integrated course aims to provide students with an advanced and interdisciplinary understanding of the relationship between the global economy, international finance, and labour regulation, highlighting how transnational financial and economic processes affect labour protection, public policy, and market governance. By the end of the course, students will be able to: 1. Critically analyse the impact of global economic dynamics on labour markets and regulatory systems, understanding the challenges that globalization poses to social justice and workers’ rights. 2. Interpret the functioning of international financial markets and capital flows, and assess the constraints these impose on national economic and social policies. 3. Integrate economic, legal, and policy perspectives to understand how international and national institutions contribute to regulating work and finance in a globalised context. 4. Identify and evaluate the main international standards and frameworks governing employment relations and financial systems, recognising the role of key global actors such as the ILO, IMF, and World Bank. 5. Develop interdisciplinary analytical skills linking macroeconomic transformations—such as global shocks, balance of payments imbalances, and financial crises—to their regulatory and social implications for labour.

Course contents

Module 1: Introduction to International Economics and Sustainability

Krugman/Obstfeld/Melitz:

Chapter 1: Introduction – Basic concepts of international trade.

Chapter 2: Trade Models: An Overview.

Activity: Class discussion focused on how trade can contribute to (or hinder) the achievement of the SDGs.

- Module 2: International Trade Theories and Sustainability

Krugman/Obstfeld/Melitz:

Chapter 3: Labor Productivity and Comparative Advantage: The Ricardian Model.

Chapter 4: Resources, comparative advantage, and income distribution.

Activity: Discussion on how trade theories can be adapted to promote more sustainable development, considering environmental and social costs. Discussion on how climate change can alter countries' comparative advantages (e.g., impact on agriculture) and how traditional theories may not consider these factors.

- Module 3: Trade Policy and Sustainability

Krugman/Obstfeld/Melitz:

Chapter 9: The instruments of trade policy.

Chapter 10: The Political Economy of Trade Policy.

Activity: Propose case studies on the impact of environmental policies on international trade, such as carbon taxes. Introduce the idea that trade policies can be used (or abused) to address (or exacerbate) climate change. Example: tariffs on carbon-intensive goods.

- Module 4: Globalization and Sustainable Development

Krugman/Obstfeld/Melitz:

Chapter 7: Firms in Global Economies: Exports, Outsourcing, and Multinationals.

Chapter 8: The International Integration of Production Processes.

Activities: Discussion on companies that promote sustainable value chains, discussion on the importance of corporate social responsibility.

*Briefly analyze how climate change can affect global value chains (risks, resilience) and whether globalization contributes to reducing global emissions.

- Module 5: International Organizations and Sustainability

Krugman/Obstfeld/Melitz:

Chapter 11: The International Trade Policy System: GATT and the WTO.

Chapter 12: Controversies in Trade Policy

Activity: Research and presentation on the role of a specific international organization in promoting sustainability, discussion on the challenges and opportunities of international cooperation.

Readings/Bibliography

International Economics, Krugman P., Obstfeld M., Melitz J.M., Pearson Ed, 11Edition

Teaching methods

Lectures, discussion, working group at the end of all the different modules.

Assessment methods

Attending Students:

Class Participation and Discussions (20%)
Group Work (30%)
Written Exam (50%)-Open-ended questions, analysis exercises, and case studies to check the understanding of the concepts and the ability to apply them.

Not attending Students:

Written Exam-Open-ended questions, analysis exercises, and case studies to check the understanding of the concepts and the ability to apply them on Krugman et al. book (parts 1, 2, 3).

Assessment criteria:

18-23: sufficient preparation and analytical skills, but limited to a small number of topics covered in the course, use of generally correct language;

24-27: technically adequate preparation, but with some limitations with regard to the topics covered, good analytical skills, although not particularly articulate, expressed in correct language;

28-30: excellent knowledge of a wide range of topics covered in the course, good analytical and critical skills, mastery of specific terminology;

30L: excellent, very in-depth and comprehensive knowledge of the topics covered in the course, ability to analyze critically and establish connections, mastery of specific terminology.

"Advice for students with SLDs or temporary or permanent disabilities: it is advisable to contact the relevant university office (https://site.unibo.it/studenti-con-disabilita-e-dsa/it) as soon as possible. The office will be responsible for proposing any adjustments to the students concerned, which must in any case be submitted, at least 15 days in advance, for approval by the teacher, who will assess the appropriateness of such adjustments, also in relation to the teaching objectives."

AI instruments support is not accepted

Teaching tools

Frontal teaching will be delivered with the support of PowerPoint presentations, as well as papers, readings and further material provided by the lecturers. Active participation in class activities and discussions is required.

Office hours

See the website of Sabrina Pedrini