INTERNATIONAL ECONOMICS - I

Paper Code: 
ECO 321
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are-

  1. To make them understand 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 (COs):

Course

Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 321

International Economics-I

CO33: Analyze the classical as well as modern trade theories.

CO34: Understand the implications of economic growth in terms of factor growth and technical progress on trade. 

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;
  • 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: 
Economies of Scale, Imperfect Competition and International trade
  • HO model and new trade theories;
  • Economies of scale and international trade;
  • Imperfect competition and international trade.
12.00
Unit IV: 
Economic Growth and Trade - I
  • Trade based on dynamic technological differences;
  • Growth of factors of production –The Rybczynski Theorem;
  • Technical progress
12.00
Unit V: 
Economic Growth and Trade - II
  • Growth and Trade – the small country case;
  • Growth and Trade – the large country case – Immeserizing Growth;
  • Growth, Change in tastes and trade in both nations.
Essential Readings: 
  1. Appleyard, Dennis R., International Economics, McGraw Hill Education (India) , Chennai,  8th edition, 2016.
  1. Salvatore, D., International Economics: Trade and Finance, Wiley; Eleventh edition 2014.
  1. Cherunilam, Francis, International Economics, Tata McGraw-Hill Publishing Company Limited, New Delhi, 2001.
  1. Rana K.C and Verma K.N., International Economics, Vishal Publishing Company, latest edition.
  1. Soderston, Bo, International Economics, Macmillan Press Ltd., London, 1991.
  1. Chacholiades, M., International Trade: Theory and Policy, McGraw Hill, Kogakusha, Japan, 1990.
  1. Krugman, Paul .R. and  Obstfeld , Maurice, International Economics: Theory and Policy, Pearson Education 6th  edition, 2004.
Academic Session: 
2019-20
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