ECONOMICS
Bachelor TR-NQF-HE: Level 6 QF-EHEA: First Cycle EQF-LLL: Level 6

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
ECO3401 International Economics Fall 3 0 3 8

Basic information

Language of instruction: English
Type of course: Must Course
Course Level: Bachelor’s Degree (First Cycle)
Mode of Delivery: Face to face
Course Coordinator : Assoc. Prof. KAAN İRFAN ÖĞÜT
Course Lecturer(s): Assoc. Prof. KAAN İRFAN ÖĞÜT
Recommended Optional Program Components: None
Course Objectives: The purpose of this course is to introduce students to the theories of international trade. This course also provides an overview on international economic developments and current international issues on economic based like trade wars, external debt problems of developing countries, results of monetary and fiscal policies in open economy under the fixed, flexible and managed floating exchange rate regimes.

Besides the basic theoretical knowledge, the balance of payments accounts and foreign exchange markets will be examined on data.

Learning Outcomes

The students who have succeeded in this course;
- Understand concepts of international economics, trade, and finance.
- Understand the dynamics of exchange rate market and the determinants of the exchange rate.
- Analyze the result of fiscal and monetary policies on an open economy under the different exchange rate regimes.
- Download data, sketch graph and analyze the international economic condition of selected couıntries.
- Perceive role of the capital flows on emerging countries.

Course Content

The teaching methods of the course are Lecture and Problem Solving.
The first part of the course covers the trade theory, standard trade models and trade policy. The second part of the course includes foreign exchange markets, money and exchange rate policy in open economies.

Weekly Detailed Course Contents

Week Subject Related Preparation
1) National Income Accounting Saving-Investment Relationship in a Closed Economy. Saving-Investment Relationship in an Open Economy. Twin Deficit
2) Balance of Payments
3) Foreign Exchange Market and Nominal Exchange Rates. Uncovered Interest Rate Parity Condition Carry Trade
4) Real Exchange Rate and Trade. Purchasing Power Parity Condition. Long - Run Relationship Between Exchange Rate and Inflation Rate
5) Short - Run Relationship Between Exchange Rate and Inflation Rate: Exchange Rate Pass-Through Effect on Inflation Open Economy Phillips Curve.
6) Open Economy Macroeconomics I: Exchange Rate Regimes: Monetary Fiscal Policies Under Fixed and Exchange Rate Regimes
7) Open Economy Macroeconomics II Mundell – Fleming Model and Trilemma Managed Floating Exchange Rate Regime and Sterilized Intervention. Interest Rates - Exchange Rates Relations: Taylor’s Rule and Fear of Floating
8) Midterm Exam
9) Real Exchange Rate and Trade Exchange Rate Elasticities of Exports and Imports. Marshall Lerner Condition and J Curve Effect.
10) International Trade Theory I
11) International Trade Theory II
12) Trade, and Industrialization Policies
13) Global Value Chains and New Industrialization Policies
14) International Financial Crises.

Sources

Course Notes / Textbooks: - Gerber, J. International Economics: 2018. Pearson seventh edition.
- Krugman, P., M. Obstfeld and M. Melitz. International Economics: Theory and Policy. Boston, Mass.; London: Pearson/Addison-Wesley, 2018. Pearson eleventh edition.

References:

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Project 1 % 10
Midterms 1 % 40
Final 1 % 50
Total % 100
PERCENTAGE OF SEMESTER WORK % 40
PERCENTAGE OF FINAL WORK % 60
Total % 100

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 13 3 39
Study Hours Out of Class 14 10 140
Project 1 18 18
Midterms 1 1 1
Final 1 2 2
Total Workload 200

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) As a world citizen, she is aware of global economic, political, social and ecological developments and trends.  5
2) He/she is equipped to closely follow the technological progress required by global and local dynamics and to continue learning. 1
3) Absorbs basic economic principles and analysis methods and uses them to evaluate daily events.  4
4) Uses quantitative and statistical tools to identify economic problems, analyze them, and share their findings with relevant stakeholders.  2
5) Understands the decision-making stages of economic units under existing constraints and incentives, examines the interactions and possible future effects of these decisions. 4
6) Comprehends new ways of doing business using digital technologies. and new market structures.  1
7) Takes critical approach to economic and social problems and develops analytical solutions. 3
8) Has the necessary mathematical equipment to produce analytical solutions and use quantitative research methods. 2
9) In the works he/she contributes, observes individual and social welfare together and with an ethical perspective.   1
10) Deals with economic problems with an interdisciplinary approach and seeks solutions by making use of different disciplines.  2
11) Generates original and innovative ideas in the works she/he contributes as part of a team.  1