INTERNATIONAL ECONOMICS AND POLICY
Stampa
Enrollment year
2019/2020
Academic year
2020/2021
Regulations
DM270
Academic discipline
SECS-P/02 (POLITICA ECONOMICA)
Department
DEPARTMENT OF ECONOMICS AND MANAGEMENT
Course
INTERNATIONAL BUSINESS AND ENTREPRENEURSHIP
Curriculum
International Management
Year of study
Period
1st semester (28/09/2020 - 22/12/2020)
ECTS
6
Lesson hours
44 lesson hours
Language
English
Activity type
WRITTEN TEST
Teacher
Prerequisites
Knowledge of the main concepts from microeconomics (consumer behaviour and demand theory; market equilibrium with perfect competition, monopoly and monopolistic competition) and macroeconomics (national accounting, IS-LM model). Knowledge of the basic concepts of statistical inference.
Learning outcomes
The course provides the tools to analyse international trade and international macroeconomics.
After this course the student will be able to understand and interpret the global scenario with respect to trade policies, exchange rate policies and macroeconomic policies in general. Furthermore, the 9 ECTS course will give the students insights on the behavior of multinational enterprises.
The course aims to contribute to the awareness and knowledge of the 17 sustainable development goals (SDG) promoted by the UN by 2030, with special attention to the contribution that economic theory brings to the attainment of the goals:
1. No Poverty
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
16. Peace, Justice and Strong Institutions

Course contents
6 ECTS: part A and B

9 ECTS: part A, B and C

Part A
- International trade theory:
• The gravity model
• The Ricardian model
• The Hecksher-Ohlin model
• The Krugman model
- The instruments of trade policy

Part B
- The balance of payments
- National accounts in open economies
- Exchange rates and prices
- Exchange rates and interest rates
- Exchange rate and trade balance
- Models of exchange rate determination
- Fixed exchange rates regimes
- The Mundell-Fleming model
- Currency crises

Part C
- Empirical evidence on foreign direct investments (FDIs)
- The theory of multinational enterprises (MNEs):
• Horizontal foreign direct investments
• Vertical foreign direct investments
• The boundaries of the firm
- The determinants of FDI
- The effects of MNEs on host countries
- The effects of MNEs on home countries
Teaching methods
6 ECTS : Lectures will take place in part in presence on the premises of the University, if possible given the concurrent health conditions, according to the rules set by the University. Lectures will be available on-line as synchronous sessions for those not present in the classroom and will be made available on the KIRO web page of the course later.

9 ECTS: Includes also students’ presentations on related topics.
Reccomended or required readings
6 ECTS:
Part A: Krugman P., Obstfeld, M., Melitz, M. International Economics. Theory and Policy, Pearson, Ninth ed.

Part B: Krugman P., Obstfeld, M., Melitz, M. International Economics. Theory and Policy, Pearson, Ninth ed and additional instructor’s notes

Additional references on current events (i.e. articles from newspapers) will be discussed in class, see the "Course Material" tab in KIRO.

9 ECTS only:

Part C: Barba Navaretti, G., Venables, A. J. Multinational Firms in the World Economy, Princeton University Press
Assessment methods
Written exam. Three open questions, divided in sub-points. Each question gets 10 points max. Time: 1h

up to 2 additional points can be earned through participation in class and will be considered only once, the first time the student sits for the exam, in the first two exam dates.

9 ECTS only: up to 4 additional points can be earned through a compulsory paper presentation during the course and will be considered only once, the first time the student sits for the exam, in the first two exam dates (January or February).
Further information
Sustainable development goals - Agenda 2030