International Economics-I

Paper Code: 
ECO 313
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To understand the theories governing international trade; and
  2. To study the various concepts and issues related to international economics.
12.00
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.
12.00
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.
12.00
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;
12.00
Unit IV: 
International Trade Policy -II
  • Quotas – types and effects;
  • Import Quota versus Import Tariff.
  • Other non tariff barriers;
  • New Protectionism – Strategic Trade Policy;
12.00
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: 
  1. Salvatore, D.L., 1997, International Economics, Prentice Hall, Upper Saddle River, N.J.
  2. Vaish, M.C. & S. Singh, 1995, International Economics.
  3. Rana & Verma, International Economics, Vishal Publishing Co.
References: 
  1. Cherunilam Francis, International Economics (5th edition), Tata McGraw Hill Education Private Ltd, New Delhi.
  2. Mithani, D.M., Money, Banking, International Trade & Public Finance, Himalaya Publisher.
  3. Sundaram, K.P.M., Money, Banking, & International Trade, Sultan Chand.
  4. Kindleberger, C.P., 1973, International Economics, R.D. Iruim, Homewood.
  5. Sodersten, B.O. 1991, International Economics, McMillan Press Ltd. London.
  6. Lindert, International Economics, All India Traveller Book Seller.
  7. Chacholiades, M., International Trade- Theory & Policy, McGraw Hill, Kogabusha, Japan.
Academic Session: 
2016-17
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