MPE_MEEK International Economics

Faculty of Economics and Administration
Autumn 2022
Extent and Intensity
2/0/0. 4 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Jan Čapek, Ph.D. (lecturer)
prof. Ing. Martin Kvizda, 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
Mon 12:00–13:50 P106, except Mon 12. 9., except Mon 31. 10.
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
there are 11 fields of study the course is directly associated with, display
Course objectives
The aim of International Economics is to acquaint students with (i) the theory of international trade, (ii) international trade policy and (iii) the macroeconomics of an open economy. In the section devoted to international trade, the student will get acquainted with the construction of several models of international trade. These models explain trade flows between countries and how these flows affect income distribution. The section on trade policy discusses the impacts of trade policy instruments such as tariffs, quotas, etc., and subsequently also the political and economic context of their use. The section devoted to the macroeconomics of the open economy explains the issue of determining the exchange rate in the short and long run. The connection between the exchange rate and price levels, the amount of money in circulation, the balance of payments, interest rates, inflation and the amount of production are discussed.
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 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 & External Economies of Scale and the International Location of Production
  • 6. Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises
  • International Trade Policy
  • 7. The Instruments of Trade Policy
  • 8. The Political Economy of Trade Policy
  • 9. Trade Policy in Developing Countries & Controversies in Trade Policy
  • Open-Economy Macroeconomics
  • 10. Exchange Rates and the Foreign Exchange Market: An Asset Approach
  • 11. Money, Interest Rates, and Exchange Rates
  • 12. Price Levels and the Exchange Rate in the Long Run
Literature
    required literature
  • KRUGMAN, Paul R., Maurice OBSTFELD and Marc J. MELITZ. International economics : theory and policy. Tenth edition, global editio. Boston: Pearson, 2015, 785 stran. ISBN 9781292019550. info
Teaching methods
The course consists of lectures.
Assessment methods
Written test + self-correction exercises during the semester.
Language of instruction
Czech
Further Comments
Study Materials
The course is taught annually.
The course is also listed under the following terms Spring 2010, Spring 2011, Spring 2012, Spring 2013, Spring 2014, Spring 2015, Spring 2016, Autumn 2016, Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2023, Autumn 2024.
  • Enrolment Statistics (Autumn 2022, recent)
  • Permalink: https://is.muni.cz/course/econ/autumn2022/MPE_MEEK