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Module

ECO2008 : International Economics

  • Offered for Year: 2020/21
  • Module Leader(s): Dr Brian Varian
  • Lecturer: Dr Sara Maioli
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semesters
Semester 1 Credit Value: 10
ECTS Credits: 5.0

Aims

The module should provide an understanding of:
1. The determinants of international trade, including the implications of imperfect competition
in international markets;
2. The cases when a protectionist policy towards international trade may be appropriate;
3. The fundamental determinants of the balance of payments and exchange rates;
4. Alternative exchange rate arrangements and international policy co-ordination.

The aim of the module is to familiarise students with issues and models that underpin international trade theory and the determination of exchange rates. In the first half of the module, simple models will be developed that focus on key issues that help explain the existence of trade, such as comparative advantage and resource availability; consideration will also be given to the implications of the use of policy instruments, such as quotas, tariffs or subsidies. The second half of the module considers flexible and sticky price models of exchange rate determination in a world of either fixed or floating exchange rates. The responses of the economy to policy initiatives differ in these alternatives paradigms and these will be considered together with the issue of currency crises and optimal currency areas.

Outline Of Syllabus

The Ricardian Model
The Specific Factors Model
The Heckscher-Ohlin Model
The Standard Trade Model
Imperfect Competition and Modern Trade Theory
Tariffs, Subsidies and Quotas and Welfare
Exchange Rates, National Income Accounting and the Balance of Payments
An Asset perspective on Exchange Rate determination
The Flexible Price Model
The Sticky Price Model
Fixed and Floating Exchange Rate regimes
Managed Floats, currency crises and policy issues
Optimum Currency Areas

Teaching Methods

Please note that module leaders are reviewing the module teaching and assessment methods for Semester 2 modules, in light of the Covid-19 restrictions. There may also be a few further changes to Semester 1 modules. Final information will be available by the end of August 2020 in for Semester 1 modules and the end of October 2020 for Semester 2 modules.

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion115:0015:00N/A
Structured Guided LearningLecture materials181:0018:009 1-hour asynchronous lectures
Guided Independent StudyDirected research and reading124:0024:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching51:005:005 synchronous seminars
Structured Guided LearningStructured research and reading activities101:0010:005 1-hour asynchronous research, reading and audio-visual activities
Scheduled Learning And Teaching ActivitiesDrop-in/surgery80:304:008 30-minute synchronous drop-in surgery/Moderated discussion/Q&As
Guided Independent StudyIndependent study124:0024:00N/A
Total100:00
Teaching Rationale And Relationship

* lectures and structured guided learning provide an overview of the main topics and their treatment in the current literature.
* seminars provide students with an opportunity to reinforce learning and monitoring progress by solving problems related to the issues raised in the lectures and in the structured guided learning.

Assessment Methods

Please note that module leaders are reviewing the module teaching and assessment methods for Semester 2 modules, in light of the Covid-19 restrictions. There may also be a few further changes to Semester 1 modules. Final information will be available by the end of August 2020 in for Semester 1 modules and the end of October 2020 for Semester 2 modules.

The format of resits will be determined by the Board of Examiners

Exams
Description Length Semester When Set Percentage Comment
Written Examination991A10024 hr take home exam
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MPractice questions are available
Assessment Rationale And Relationship

The exam tests analytical skills through the application of theories and the solutions to analytical problems.

Reading Lists

Timetable