Unit information: International Economics in 2016/17

Unit name	International Economics
Unit code	ECON30074
Credit points	20
Level of study	H/6
Teaching block(s)	Teaching Block 1 (weeks 1 - 12)
Unit director	Dr. Correia
Open unit status	Not open
Pre-requisites	Intermediate Economics 1 (EFIM20008) and either Econometrics (EFIM20011) or Applied Quantitative Research Methods (EFIM20010)
Co-requisites	None
School/department	School of Economics
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

The unit explains the macro- and micro-economic implications of an economy being part of an international economy.

In the first part it explores theories of why we observe the movements in foreign exchange rates that we do; why such movements can be volatile; why there have been many currency crises in recent years; how government macroeconomic policy operates in an international setting; when countries might join a currency union.

In the second part it explores classical and modern theories of why international trade occurs; does it benefit everyone; does it exploit poor countries; will the growth of Asian economies harm the UK economy; what should government policy towards international trade be.

Intended Learning Outcomes

• To increase student understanding of why international trade occurs

• To increase student awareness of the characteristics of trade patterns

• To increase student understanding of how exchange rates are determined

• Generally to increase student understanding of how an economy’s macroeconomic policy and performance are affected by developments in the international economy

• To increase student understanding of why trade occurs and how it affects the distribution of income within an economy

• To increase student understanding of why governments adopt the trade policies they do and of what policies they should adopt.

Teaching Information

• Lectures (20)

• Classes (8)

Assessment Information

Summative Assessment:

This is a three-hour closed book exam, consisting of two parts and seven questions from which students choose three. Students must show knowledge of both parts but have to weight their exam either towards Part 1 or Part 2. Part 1 consists of three questions, two essay questions and one question requiring four short answers to concepts/theories. Part 2 consists of four essay questions.

Formative Assessment:

Students will write two essays which will form the basis of class discussions. The typical essay length is 2,000 – 2,500 words. These essays too will require the student to demonstrate some of the six learning outcomes; which ones will depend upon the question.

Reading and References

P. Krugman and M. Obstfeld International Economics: Theory and Policy (Addison-Wesley)