The University of Newcastle, Australia
Not currently offered
Course code



10 units


6000 level

Course handbook


The rapid economic growth, which is a consequence of globalisation, has led to increased trade in goods and financial services and consequently capital flows and cross-border entry activities. This course provides a systematic analysis of a range of issues in international trade and policy. The course examines the fundamental issues pertaining to the traditional and modern theories of international trade, the role of factor endowments in influencing trade, theories of tariff protection, trade policies under various exchange rate regimes, foreign currency futures and options, regional trading blocs, bilateral and multilateral trade agreements, and the international monetary system. This course also examines the international trading environment and how it is being shaped by actions of nation states.


Not currently offered.

Learning outcomes

On successful completion of the course students will be able to:

1. Demonstrate a critical understanding of modern trade theories and the terms of trade

2. Evaluate the operation and effects of trade barriers

3. Analyse the effect of international factor movements

4. Demonstrate knowledge of the nature and operation of the foreign exchange market

5. Critically assess macroeconomic policy in an open economy


Topics include but are not limited to the following:

  1. Modern trade theories and terms of trade
  2. Trade models and applications
  3. The Theory of Tariff Protection & Other Barriers to Trade
  4. Trade and Growth & the Role of Factor Endowments
  5. International Capital and Labour Markets & the Role of Multinationals
  6. The Monetary Aspects of International Trade
  7. Balance of Payments and the Fundamentals of Exchange Rate Systems
  8. Exchange Rate Adjustments and the Balance of Payments
  9. Regional Trading Arrangements
  10. Commercial Policy and the WTO
  11. Macroeconomic Policy in an Open Economy
  12. International Financial Crisis and Implications for Trade


This course replaces GECO6420. If you have successfully completed GECO6420 you cannot enrol in this course.

Assessment items

Presentation: Presentation/Seminars

In Term Test: Mid Semester Test

Report: Essay/Written Assignment: Research Report

Formal Examination: Final Exam