International Trade and Investment

Course code GECO6420Units 10Level 6000Faculty of Business and LawNewcastle Business School

The course provides a systematic analysis of a range of issues in international and investment. Topics include recent trends in international trade, classical and modern theories of international trade, strategic trade policy, preferential trading arrangements and regional groupings, the balance of payments, current account adjustment strategies, patterns of investment and the globalisation process, the role and operations of international organisations, the role of the government in trade restrictions and trade incentives, the international financial system, institutions and market practices, exchange rate quotation and behaviour, the relationships between spot and forward exchange rates, interest rates and expected inflation rates, the measurement of foreign exchange risk, managing foreign exchange exposure, and foreign currency futures and options.

Not available in 2014

Previously offered in 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005, 2004
ObjectivesThe major aim of this course is to equip students with the knowledge and technical skills needed to understand and analyse a range of issues in international trade and investment. The course is offered from the perspective of the manager of a company whose performance is affected by the international business environment. Hence there is an emphasis placed on blending theory, empirical evidence and management practice.
On successful completion of this course, you will be able to:
1. Discuss the globalisation of markets and production
2. Understand modern trade theories and the terms of trade
3. Apply trade models to real-world problems
4. Evaluate the operation and effects of tariffs
5. Understand non-tariff trade policies
6. Evaluate regional trading arrangements
7. Analyse the effect of international factor movements
8. Discuss the monetary aspects of international trade and the nature and significance of a nation’s balance of payments
9. Understand the nature and operation of the foreign exchange market
10. Identify relationships between currency movements and the determination of exchange rates
11. Evaluate exchange-rate adjustments and the balance of payments
12. Critically analyse macroeconomic policy in an open economy
Content1: Introduction to international finance and trade and globalisation of markets and production
2: Modern trade theories and terms of trade
3: Trade models and application
4: The operation and effects of tariffs
5: Non-tariff policies restrict the volume of international trade
6: Regional trading arrangements
7: International capital flows and multinational corporations
8: The monetary aspects of international trade: the nature and significance of balance of payments
9: The nature and operation of the foreign exchange market
10: Currency movements and determination of exchange rate
11: Exchange-rate adjustments and the balance of payments
12: Macroeconomic policy in an open economy
Replacing Course(s)na
Industrial Experience0
Assumed KnowledgeNil
Modes of DeliveryDistance Learning : IT Based
Internal Mode
Teaching MethodsLecture
Assessment Items
Examination: Class
Examination: Formal
Group/tutorial participation and contribution
Contact HoursLecture: for 3 hour(s) per Week for Full Term