International Economics-I

Paper Code: 
ECO 313
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To examine the various theories related to international trade.
  2. To analyze the concept of tariffs and non-tariff barriers.
  3. To acquaint the students with the theory of Economic Integration, particularly Customs Union.

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 313

International Economics-I

CO38: Students will examine the various theories of international trade like Mercantilism, Absolute advantage, Comparative advantage and Opportunity cost theory

CO39: Students will comprehend the tariffs and various non tariff barriers to trade.

CO40: Students will compare different forms of economic integration, particularly customs union.

Approach in teaching: Interactive Lectures, Discussion,  Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and  Semester end examinations.

 

9.00
Unit I: 
International Trade Theory -I

Inter-regional and international trade; Theories of international trade – Mercantilism, Theory of absolute advantage, Theory of comparative advantage and Opportunity cost theory (constant and increasing opportunity costs case); Emperical tests of Ricardian Model.

 

9.00
Unit II: 
International Trade Theory -II

Offer Curves – Meaning; General Equilibrium Analysis- Equilibrium Relative Commodity Prices with trade; Terms of trade: Definition & various concepts; Heckscher - Ohlin Theory; Empirical tests of H-O model & Leontief Paradox.

 

9.00
Unit III: 
International Trade Policy -I

Free Trade versus Protectionism; Tariff – Meaning, Classification, partial & general equilibrium analysis, Stolper Samuelson theorem, Rate of effective protection, Optimum tariff.

 

9.00
Unit IV: 
International Trade Policy -II

Quotas – types and effects; Import Quota versus Import Tariff; Other non tariff barriers;

New Protectionism – Strategic Trade Policy.

 

9.00
Unit V: 
International Trade Policy -III

Economic Integration – Various forms; Trade Creating and Trade Diverting Customs Union; Static and Dynamic Effects of Customs Union; European Union; EFTA; NAFTA; SAARC.

 

Essential Readings: 
  • Salvatore, D.L., International Economics, Prentice Hall, Upper Saddle River, N.J.
  • Vaish, M.C. & S. Singh, International Economics.
  • Cherunilam Francis, International Economics, Tata McGraw Hill Education Private Ltd, New Delhi
  • Kindleberger, C.P., International Economics, R.D. Iruim, Homewood.
  • Sodersten, B.O., International Economics, McMillan Press Ltd. London.
  • Chacholiades, M., International Trade- Theory & Policy, McGraw Hill, Kogabusha, Japan.

 

Academic Session: 
2021-22
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