This course introduces students to the basic theories of international trade and trade policy with an emphasis on contemporary global policy issues. Students will examine why and how nations gain from international trade in goods, services and assets.
Simple models are used to analyse current issues in foreign trade with respect to commercial policies, tariff and non-tariff barriers, economic integration, regional trade arrangements, and new trade issues such as labour standards, human rights, and environmental protection. The political economy of agricultural price support, export subsidies, and other issues are examined.
The second, interrelated part of this course illustrates key models and issues in international finance. This includes analysis of global capital markets, international parity relations and foreign investment. The contentious nature of international trading rules, exchange-rate regimes, monetary unions, capital movements, financial crises, labour migration, and the roles of the World Trade Organisation, the International Monetary Fund and the World Bank are reviewed.
Availability2017 Course Timetables
- Semester 1 - 2017
On successful completion of the course students will be able to:
1. Demonstrate an understanding of the reasons behind the rapid increase in global trade and its differential implications for standards of living internationally.
2. Use economic models and principles, including trade models, to analyse the impacts of changes in commercial policies, trade and non-tariff barriers, and taxes and subsidies.
3. Analyse sector- and industry-specific implications for an economy of changes in the international trading system.
4. Use international finance theories and models to explain the evolution of global capital markets and policy issues.
5. Analyse the operations of global capital markets and their implications for domestic trade-oriented businesses with respect to production, investment and employment.
Lectures may include, but are not restricted to, the following topics:
- Trends and patterns of global trade and capital movements
- Factors behind the recent growth of world trade and foreign investment (direct and portfolio)
- Basic theories of international trade and theories of trade policy
- Trade strategies and economic growth
- Trade policy: instruments and issues
- Foreign trade risks and strategies to manage risks through derivatives
- Methods of foreign trade financing
- Issues in global and regional trade arrangements
- Exchange-rate determination, policies and issues
- Foreign investment analysis (portfolio and direct)
- Globalisation of capital markets
- Case studies: Africa, Asia, and other regions
ECON2001 and ECON2002
Tutorial / Laboratory Exercises: Tutorial In Class Exercises/Tests
In Term Test: Mid Semester In Lecture Examination
Essay: Research Essay
Formal Examination: Final Examination
Face to Face On Campus 2 hour(s) per Week for Full Term
Students are expected to complete 4 hours of guided learning via online preparation, lectures, interactive workshops, tutorials, discussion groups or self-directed learning and an additional 6 hours of independent study per week.