International Economics-I

Paper Code: 
ECO 313
Credits: 
4
Contact Hours: 
60.00
Objective: 

1. To understand the theories governing international trade; and

2. To study the various concepts and issues related to international economics.

7.00
Unit I: 
International Trade Theory -I
  •  Inter-regional and international trade; 
  • Theories of absolute advantage, comparative advantage and opportunity cost;
  • (constant and increasing opportunity costs case);
  • Emperical tests of Ricardian Model
10.00
Unit II: 
International Trade Theory -II
  •  Offer Curves; 
  • General Equilibrium Analysis- Equilibrium Relative Commodity Prices 
  • Terms of trade: Definition & various concepts;
  • Heckscher - Ohlin Theory; 
  • Empirical tests of H-O model & Leontief Paradox
10.00
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: 
2018-19
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