Week |
Subject |
Related Preparation |
1) |
International Trade Theory
• Overview
• Labour Productivity and Comparative Advantage
• Income Distribution and the Gains from Trade
• External Economies and International Trade
• Firms in the Global Economy
• Tariffs & Quotas
• Export Subsidies |
Prereading |
2) |
The Political Economy of Trade Policy
• The Case for Free Trade
• Arguments Against Free Trade
• International Trade Agreements Trade Policy in Developing Countries
• The Infant Industry Argument
• Problems of Import Substitution |
Prereading |
3) |
Controversies in Trade Policy
• Arguments Against Globalisation
•Globalisation & the Environment |
Prereading |
4) |
International Monetary Systems: An Historical Overview
• The Classical Gold Standard
• Flexible Rates and Currency Controls
• Bretton Woods and the IMF • Flexible Exchange Rate Period
• The Case for Floating Exchange Rates
• Currency Boards |
Prereading |
5) |
Exchange Rates & Open-Economy Macroecenomics
• The Balance of Payments The Markets For Foreign Exchange
• Introduction to Foreign Exchange Rates
• Forward Exchange Rates
• Currency Futures and Options Markets |
Prereading |
6) |
International Parities & Determination of Exchange Rates
• The Purchasing Power Parity Principle
• Interest Parity
• Forecasting FX Rates |
Prereading |
7) |
Midterm Exam |
|
8) |
Fixed Exchange Rates & Foreign Exchange Intervention
• Stabilization Policies with a Fixed Exchange Rate
• Balance of Payments Crises & Capital Flight |
Prereading |
9) |
Optimum Currency Areas & the European Experience
• The Euro and the European Monetary Union
• Prons and Cons of a Monetary Union
• Currency Crises (Brazilian, Mexican, Argentinian, Asian, Turkish and Greek Financial Crises) |
Prereading |
10) |
Free Trade Areas and Customs Union |
Prereading |
11) |
Foreign Exchange Risk and Exposure International Investment
* Capital Budgeting (Project Finance) |
Prereading |
12) |
Institutional Structure of International Trade and Finance *The International Capital Markets: Regulation and Supervision *The Role of BIS |
Prereading |
13) |
The International Financial Institutions
* The Key Roles of the IMF and the World Bank
* IFC and IDA |
Prereading |
14) |
Instruments and Institutions of International Trade
* Payment and Guaranteeing Procedures (ECA’s, OPIC,MIGA)
* The Financing of International Trade
*Institutions Regulating International Trade |
Prereading |
Course Notes / Textbooks: |
• International Economics, Theory and Practice,Ninth Edition, Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz. Published by Pearson.
|
References: |
• International Financial Management, Cheol S. Eun and Bruce G. Resnick, McGraw Hill, 6th edition
• The Economics of Money, Banking, and Financial Markets, Frederic S.Mishkin, Pearson 10th edition |