MPE_IEEK International economics

Faculty of Economics and Administration
Autumn 2019
Extent and Intensity
2/0/0. 4 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Jan Čapek, Ph.D. (lecturer)
Guaranteed by
doc. Ing. Jan Čapek, Ph.D.
Department of Economics – Faculty of Economics and Administration
Contact Person: Mgr. Jarmila Šveňhová
Supplier department: Department of Economics – Faculty of Economics and Administration
Timetable
Wed 16:00–17:50 P312
Prerequisites
SOUHLAS
Previous completing of Macroeconomics 1, Microeconomics 1, and Economic Policy 1 is supposed.
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 1 student(s).
Current registration and enrolment status: enrolled: 0/1, only registered: 0/1
fields of study / plans the course is directly associated with
Course objectives
The course International Economics is divided into three parts: (i) international trade theory, (ii) international trade policy, and (iii) open-economy macroeconomics. In the part devoted to international trade theory, several trade models are presented. These models explain trade flows between economies as well as the impact of these flows on income distribution. In the part devoted to international trade policy the effects of trade policy instruments such as tariffs, quotas, etc., are discussed as well as their political-economy context. In the part devoted to open-economy macroeconomics, the exchange rate determination in the short and long run is explained as well as the connection of exchange rates with price levels, money supply, balance of payment, interest rates, inflation and output.
Learning outcomes
At the end of the course, students should be able to explain:

What are the current patterns of international trade and how have these patterns evolved over the time.

What are the welfare gains of international trade for an economy.

How and why international trade affects the income distribution in an economy. What are the causes of short run and long run consequences of international trade on income distribution. Who are the winners and losers of international trade.

What are the effects of different instruments of trade policy (tariffs, quotas, etc.) on the welfare of different groups in an economy and on the welfare of an economy as a whole. Under which circumstances can trade restrictions enhance the overall welfare in an economy.

What is the political-economy context of trade restrictions and what is the role of interest groups. Explain the concept of collective action in the context of interest groups and trade policy.

What are the effects of various events or policy actions on the exchange rate in the short run and long run.

How to use monetary and fiscal policy to counterbalance the business cycle in an open economy.
Syllabus
  • International Trade Theory
  • 1. Stylized Facts about International Trade
  • 2. Labor Productivity and Comparative Advantage: The Ricardian Model
  • 3. Specific Factors and Income Distribution
  • 4. Resources and Trade: The Heckscher-Ohlin Model
  • 5. The Standard Trade Model
  • 6. External Economies of Scale and the International Location of Production
  • 7. Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises
  • International Trade Policy
  • 8. The Instruments of Trade Policy
  • 9. The Political Economy of Trade Policy
  • 10. Trade Policy in Developing Countries
  • 11. Controversies in Trade Policy
  • Open-Economy Macroeconomics
  • 12. Exchange Rates and the Foreign Exchange Market: An Asset Approach
  • 13. Money, Interest Rates, and Exchange Rates
  • 14. Price Levels and the Exchange Rate in the Long Run
  • 15. Output and the Exchange Rate in the Short Run
Literature
    required literature
  • KRUGMAN, Paul R., Maurice OBSTFELD and Marc J. MELITZ. International economics : theory & policy. 9th ed. Boston: Pearson Addison-Wesley, 2012, 731 p. ISBN 9780273754091. info
Teaching methods
The course consists of lectures.
Assessment methods
Written test (multiple-choice). 60% of correct answers is needed to pass the exam.
Language of instruction
English
Further Comments
Study Materials
The course is taught annually.
The course is also listed under the following terms Spring 2016, Spring 2017, Autumn 2017, Autumn 2018, Autumn 2021.
  • Enrolment Statistics (Autumn 2019, recent)
  • Permalink: https://is.muni.cz/course/econ/autumn2019/MPE_IEEK