This course aims to provide an analysis of the economic relationships between countries, covering the trade and monetary aspects of the world economy. Students will be provided with a thorough background to the four major windows of the world economy such as international trade, international production, international finance and international development. Major topics include: world trade theories and policies, national income accounting and the balance of payments, foreign exchange market and exchange rate determination and monetary and fiscal policies in the open economy.

After completing this course, the student will be able to:

1. Describe the trade and monetary issues of the world economy.
2. Compare the different theories of international trade based on absolute and comparative advantage, inter-industry and intra-industry trade and the different theories of balance of payments and exchange rate determination.
3. Demonstrate analytical, computational and critical thinking skills to solve and interpret issues and cases related to international trade and finance.
4. Analyze trade and macroeconomic policies and their impact on the world economy

1. An introduction to international economics
2. World trade: an overview
3. Comparative advantage and the gains from trade
4. Comparative advantage and factor endowment: the Heckscher-Ohlin Model
5. Beyond comparative advantage: inter-industry and intra-industry trade
6. International trade policy: the instruments of trade policy
7. The political economy of trade policy
8. National income accounting and the balance of payments
9. Exchange rates and the foreign exchange markets
10. Money, interest rates and exchange rates
11. Price levels and the exchange rate in the long run
12. Output and the exchange rates in the short run

• International Economics: Theory & Policy by Krugman-Obstfeld-Melitz, 9^th Edition, (2012), New York USA: Pearson.
• An Introduction to International Economics: New Perspective of the World Economy, Kenneth A Reinert, 1^st Edition, (2012), Cambridge, UK: Cambridge University Press.

Giancarlo.Gandolfo (1987) International Economics Volume 1: The Pure Theory of International Trade, Berlin, Germany: Springer-Verlag Berlin Heidelberg.