Skip to Main Content
Sign In

International Economics (VT IME) - Lecture

International Economics (VT IME) - Lecture

Module Coordinator/Lecturers
Project Description
Following a short introduction to international economics, the module provides an understanding of the basic principles of international trade, trade policy and international finance. In detail the contents of the module include:

  • Definition and scope of international economics
  • Fundamentals of international trade theory and policy
  • actors and patterns in world trade
  • trade models (Ricardian, Heckscher-Ohlin, Standard)
  • imperfect competition and international trade
  • international factor movements
  • international trade policy instruments, arguments and controversies
  • Exchange rates and open economy macroeconomics
  • national income and balance of payments
  • money, interest and exchange rates
  • International monetary system and policy
  • policy goals and options
  • international coordination
Learning Objectives
The students will develop an understanding of of the basic principles of international trade, trade policy and international finance.
Furthermore, they will test theories of international economics to explain past developments in world trade and finance. This will enable them to judge the applicability of theoretical approaches in international economics to evaluate and predict future behavior of market participants
Learning Outcomes The students...
Professional Competence
  • illustrate patterns and trends in international trade
  • outline theories of international trade theory and policy
  • summarize models of exchange rate determination
  • describe international financial markets
  • explain on theoretical grounds why countries trade and why governments may restrict international trade
  • classify national income and balance of payments accounts
  • apply an appropriate theoretical approach to explain real phenomena in international economics
  • apply a theoretical approach to determine the short-run and long-run behavior of exchange rates
  • differentiate effects of various policy intervention on international trade patterns and volumes
  • point out the effects of changes in international exchange rates
  • distinguish government financial intervention with monetary policy
  • identify challenges in international trade and monetary policy
  • forecast international trade dynamics under given policy frameworks
  • develop scenarios for the short-run and long-term behavior of exchange rates and monetary regimes
  • test theories of international economics to explain past developments in world trade and finance
  • judge the applicability of theoretical approaches in international economics to evaluate and predict future behavior of market participants
Methodological Competence
  • illustrate the principles of methods, rules, and postulates employed by international economics as a discipline
  • comprehend basic assumptions and their effects on the modeling process of international trade theories
  • understand the effects of certain internal and external parameter changes on the employability of different theoretical approaches
  • apply the Gravity, the Ricardian, the Heckscher-Ohlin and the Standard Trade Model to explain patterns and volumes in international trade
  • apply the Asset, the Monetary, and the Real Exchange Rate approach to the determination and behavior of exchange rates
  • constitute a constructive generic framework; that may be broken down in sub-processes or changed in sequences to best capture real economic phenomena
  • compare employability of different theoretical approaches for the explanation of underlying economics and compare outcomes
  • create a set of criteria to assess different theoretical approaches
  • construct a table of different theoretical results when analysing real phenomena depending on the assumptions and explanatory variables used in each theory
  • explain the reasoning behind different theoretical approaches and their limitations to explain real world phenomena
  • evaluate political actions as an outcome of different theoretical approaches in international economics
Social Competence
  • listen to elaborations by instructor and fellow students;
  • perceive social interactions and introduction of interactive routines
  • give answers when asked;
  • participate in interactive practice;
  • collaborate in teams to solve problems;
  • coordinate contents and critique with fellow study team
  • discuss and compare fellow student´s contributions to case studies and analysis of real phenomena;
  • give constructive feedback
  • identify ideologies and differentiate from pure theory;
  • challenge and reflect own arguments on theoretical grounds
  • prepare and present a critique (essential arguments, central categories, limitations etc.) of theoretical analysis, highlighting open and contradictory issues of the topic
Personal Competence
  • manage cognition, presence and awareness during lecture and seminar
  • self-evaluate contributions
Assessment Methods
  • Final Exam (90 min)
Module number:
6210870
Courses:
28 L / 21 h
Self-study:
99 h
Scheduled Semester:
5