To develop an understanding of various issues related to international economics.
• Analytical Tools – production possibility curve, community indifference curve, price line, offer curves.
• Mercantallism
• Absolute Cost Theory
• Comparative Cost Theory
• Opportunity Costs Theory (in terms of constant costs and increasing costs)
• Offer curves - Mill’s Doctrine, equilibrium relative commodity price with trade
• Terms of trade- Meaning and different concepts of terms of trade.
• Factor Endowment Theory – H O Theorem, Factor Price Equalization Theorem
• Empirical testing of HO model – Leontief’s Paradox
• Factor intensity reversal
• Trade based on dynamic technological differences
• Growth of factore of production - The Rybczynski Theorem
• Technical progress
• Growth and Trade - the small country case
• Growth and Trade - the large country case - Immeserizing Growth
• Growth, Changes in taste and trade in both nations