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International Economics-I
Paper Code:
ECO 313
Credits:
3
Contact Hours:
45.00
Max. Marks:
100.00
Objective:
- To understand the theories governing international trade; and
- To study the various concepts and issues related to international economics.
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:
