International Economics-I

Paper Code: 
ECO 313
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

 

The objectives of this course are –

 

  1. To help the students understand the various theories related to international trade.
  2. To make them understand the concept of tariffs and other non-tariff barriers.
  3. To acquaint them with the theory of Economic Integration, particularly Customs Union.

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 313

International Economics-I

CO38: Understand the various theories of international trade.

CO39: Comprehend the tariffs and various non tariff barriers to trade.

CO40: Gain knowledge of the different forms of economic integration, particularly customs union.

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

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and  Semester end examinations.

 

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); Empirical 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: 
  1. Salvatore, D.L., International Economics, Prentice Hall, Upper Saddle River, N.J.
  2. Vaish, M.C. & S. Singh, International Economics.
  3. Cherunilam Francis, International Economics, Tata McGraw Hill Education Private Ltd, New Delhi
  4. Kindleberger, C.P., International Economics, R.D. Iruim, Homewood.
  5. Sodersten, B.O., International Economics, McMillan Press Ltd. London.
  6. Chacholiades, M., International Trade- Theory & Policy, McGraw Hill, Kogabusha, Japan.

 

Academic Session: 
2020-21
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