INTERNATIONAL ECONOMICS - I

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

To develop an understanding of various issues related to international economics. 

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. Salvatore, D. (1997), International Economics, Prentice Hall, Upper Saddle River, N.J., New York.
  2. Cherunilam Francis – International Economics, 5th ed, Tata McGrawhill Companies.
  3. Soderston Bo & Geoffrey Reed – International Economics, Macmillan, London.
  4. Rana K.C and Verma K.N., International Economics (latest edition), Vishal Publishing Company.
  5. Soderston, Bo (1991), International Economics, The Macmillan Press Ltd., London.
  6. Bhagwati, J. (Ed.) (1981), International Trade, Selected Readings, Cambridge, University Press, Massachusetts.
  7. Chacholiades, M. (1990), International Trade: Theory and Policy, McGraw Hill, Kogakusha, Japan.
  8. Krugman, P.R. and M. Obstfeld (1994), International Economics: Theory and Policy, Glenview, Foresman.
Academic Session: 
2017-18
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