25751 - International Economics

Course Unit Page


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

No poverty Decent work and economic growth Reduced inequalities

Academic Year 2019/2020

Learning outcomes

The aim is to provide basic knowledge of Open Macroeconomics and International trade issues. At the end of the course the students are expected to be able to use concepts currently employed in the economic debate, like, exchange rates, balance of payments, exports, FDI. They are expected to understand the rationales underlying the macroeconomic and trade policies in open economies and to analyse the main international economic events related to globalization.

Course contents

This class will cover the following topics:


Introduction to the global economy.


International trade theory

Comparative advantage, and the Ricardian model.

Factor proportions and Heckscher-Ohlin model.


International trade policy

Trade restrictions. Effects of a tariff in a Small and in a Large Nation. The optimum tariff and retaliation.

Nontariff trade barriers.


International trade and investment relations

Economies of scale and new trade theory.

Trade policy and politics.

Integration, development and factor movements.


Topics in international finance

Balance of payment and exchange rate.

Automatic adjustments and adjustment policies.

Optimum currency areas and European integration.

Globalization and financial crises.


Dominik Salvatore (2012), Introduction to International Economics, 3rd Edition, Wiley.

Further readings may be assigned.

Teaching methods

Traditional class-lectures, group discussions.

Assessment methods

During the term there will be two intermediate and a final learning assessments. The intermediate learning assessments will take place on November 4th and on December 20th. Students who will not obtain an average grade equal to 18/30 or higher in the two intermediate learning assessments will be required to take a comprehensive final exam.

After the end of the term there will be only final exams on the whole program (90 minutes). These exams will include 4-5 open questions. Calculators will be allowed, while any use of cell phones will be strictly forbidden.

Any form of academic dishonesty will not be tolerated.

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


Office hours

See the website of Luciano Messori