International Economics- I

Paper Code: 
24ECO 321
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To make students comprehend the various analytical tools related to international economics.
  2. To help the students understand the various theories related to international trade.
  3. To help them analyze the impact of economic growth on trade.

 

Course Outcomes: 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

24ECO 321

International Economics-I

(Theory)

Students will-

CO73: comprehend the classical version of the need of nations to trade and related aspects

CO74: comprehend later version of trade theories and various related aspects

CO75: examine the development of trade theories post Heckscher Ohlin theory.

CO76: analyze the impact of growth, in terms of factor growth and technical progress, on trade. 

CO77: examine the implications of international factor movements on trade

CO78:contribute effectively in course-specific interaction.

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

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments, Quiz and Semester end examinations.

 

12.00
Unit I: 
Theories of International Trade –I
  • Analytical Tools – production possibility curve, community indifference curve, price line, offer curves
  • Mercantilism
  • Theory of Absolute Advantage
  • Theory of Comparative Advantage and its empirical tests
  • Opportunity Costs Theory (in terms of constant costs and increasing costs).

 

12.00
Unit II: 
Theories of International Trade –II
  • Offer Curves – Mill’s doctrine, Equilibrium relative commodity price with trade
  • Terms of trade – meaning and different concepts;
  • Factor Endowment Theory – H O Theorem, Factor Price Equalization Theorem;
  • Empirical tests of HO model – Leontief’s Paradox
  •  Factor intensity reversal.

 

12.00
Unit III: 
Post H-O theories of Trade & Intra industry Trade
  • The Imitation Lag Hypothesis
  • The Product Cycle Theory
  • The Lindar Cycle; The Krugman Model; The Reciprocal Dumping Model
  • The Gravity Model
  •  Intra Industry Trade – Reasons.

 

12.00
Unit IV: 
Economic Growth and Trade
  • Trade based on dynamic technological differences
  • Growth of factors of production –The RybczynskiTheorem
  • Technical progress
  • Growth and Trade – the small country case
  • Growth and Trade – the large country case
  • ImmeserizingGrowth
  • Growth, Change in tastes and trade in both nations.

                                     

12.00
Unit V: 
International Factor Movements
  • International capital movements-Reasons, FDI and FII
  • Analytical effects of international capital movements
  •  Potential benefits and costs of FDI to a host country
  • Labour movements between countries and its economic effects.

 

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: 

Suggested Readings:

  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.

E Resource:

  • Ohlin, B. (1967). Interregional and International Trade, Harvard Economic Studies, Cambridge University Press, Vol.39, 1967.

Journal:

  • Foreign Trade Review, SAGE Journals.

 

Academic Session: 
2024-25
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