INTERNATIONAL FINANCE
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	Spring	3	0	3	8

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Departmental Elective
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)	To correctly identify the problems and to be able to ask the correct questions	1
2)	To have the ability for problem solving and to utilize analytical approach in dealing with the problems of finance	2
3)	To understand and grasp the full details of theoretical arguments and counter arguments	2
4)	To be fully prepared for a graduate study in finance and to have lifelong learning awareness	2
5)	To be able to apply theoretical principles of finance to the realities of practical business life	2
6)	To develop solutions for managerial problems by understanding the requirements of international financial markets	4
7)	To think innovatively and creatively in complex situations	4
8)	To be able to make decisions both locally and internationally by knowing the effects of globalization on business and social life	5
9)	To have the competencies of the digital age and to use the necessary financial applications	2
10)	To be able to use at least one foreign language both for communication and academic purposes	1
11)	To understand the importance of business ethics and to take decisions by knowing the legal and ethical consequences of their activities in the academic world and business life	2
12)	To develop an objective criticism in business and academic life and having a perspective to self-criticize	2