25315 International Economics
UTS: Business: Finance and EconomicsCredit points: 6 cp
Subject level: Undergraduate
Result Type: Grade and marksRequisite(s): 25555 Macroeconomics: Theory and Applications AND 25622 Quantitative Business Analysis
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.
Handbook description
This subject addresses two areas of international economics: firstly, the pure theory of trade which examines basically why countries trade, and the benefits to be gained, examining associated issues such as commercial policy, real wages and customs unions; secondly, international investment issues particularly as these relate to the small open economy.
Subject objectives/outcomes
On successful completion of this subject students should be able to:
- identify the determinants of international trade and the exchange rates
- understand the impact of trade policy on other macroeconomic policy areas
- apply a basic 'tool kit' of economic models for analysing recent issues in world economy.
Contribution to graduate profile
This course extends the foundation knowledge in economics to a global context. It introduces students to the role of international trade in macroeconomic policy. It provides the framework to analyse issues relating to a nation's trade policy and to assess the impact of international trade on the world economy.
Teaching and learning strategies
The primary teaching strategy involves lecture materials being reinforced in the tutorials. The course is divided into two segments: model building and applications. In the first half of the course, models used in contemporary policymaking are examined. In the second half, these models are applied to policy-specific case studies.
Content
- The determinants of international trade
- The framing of trade policy
- International macroeconomic policy and its associated uncertainties
- The determination of exchange rates
- Critiquing foreign debt accumulation, and immigration
- The role of multinationals, debt forgiveness and aid in economic development.
Assessment
Assessment item 1: Assignment (Group)
| Objective(s): | 1-3 |
| Weighting: | 30% |
| Task: | Students will be required to explore relevant international economic issues, such as the effects of globalisation on domestic business and the impact of global poverty. This assignment will assure objectives 1-3. |
Assessment item 2: Mid-semester Examination (Individual)
| Objective(s): | 1, 2 |
| Weighting: | 20% |
| Task: | The mid semester exam assures objectives 1 and 2. Students will be required to demonstrate an understanding of the macroeconomic models in international economics. |
Assessment item 3: Final Examination (Individual)
| Objective(s): | 1-3 |
| Weighting: | 50% |
| Task: | The final examination will assure objectives 1-3 are satisfied. Students will be tested for their appreciation of key issues in international economics. They will be required to demonstrate proficiency in analysing the effects of economic policies examined in the course. |
Required text(s)
Krugman and Obstfeld, International Economics Theory and Policy, ISBN 0-321-27884-4 7th edn
(6th edition is also good. Although it is not the most recent, it includes an exposition of the Specific Factors Model)
Recommended text(s)
Todaro, Economic Development, ISBN 0-201-64858-X (this book is in the library, with some of it on the e-readings collection in the library)
Indicative references
Some lectures do not have preparatory readings — self-contained material is provided in the lectures. For Week 7, students might find it useful to look over Mundell-Fleming in notes from Macroeconomics 25555. Lecture notes can be purchased from the UTS Union shop (level 1, Building 5, Haymarket or level 3, the Tower).
More generally, the following reference is useful:
Faculty of Business (2006), Guide to Writing Assignments, (available from the Co-op Bookshop)
