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.

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 DivertingCustoms Union;Static and Dynamic Effects of Customs Union; European Union; EFTA; NAFTA; SAARC.

Essential Readings: 
  1. Salvatore, D., International Economics: Trade and Finance, Wiley; Eleventh edition 2014.
  2. Cherunilam, Francis, International Economics, Tata McGraw-Hill Publishing Company Limited, New Delhi, 2001. 
References: 

1.      Appleyard, Dennis R., International Economics, McGraw Hill Education (India) , Chennai,  8th edition, 2016.

2.      Rana K.C and Verma K.N., International Economics, Vishal Publishing Company, latest edition.

Academic Session: 
2022-23
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