International Economics I

Paper Code: 
ECO 321
Credits: 
4
Contact Hours: 
60.00
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.
•    Mercantallism
•    Absolute Cost Theory
•    Comparative Cost Theory
•    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 of terms of trade.

•    Factor Endowment Theory – H O Theorem, Factor Price Equalization Theorem

•    Empirical testing 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 factore 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, Changes in taste and trade in both nations

Essential Readings: 
1. Appleyard, Dennis R., International Economics, McGraw Hill Education (India) ,                Chennai, 8th edition, 2016.
2. Salvatore, D., International Economics: Trade and Finance, Wiley; Eleventh edition          2014.
3. Cherunilam, Francis, International Economics, Tata McGraw-Hill Publishing Company      Limited, New Delhi, 2001.
4. Rana K.C and Verma K.N., International Economics, Vishal Publishing Company,            latest edition.
5. Soderston, Bo, International Economics, Macmillan Press Ltd., London, 1991.
6. Chacholiades, M., International Trade: Theory and Policy, McGraw Hill, Kogakusha,        Japan, 1990.
7. Krugman, Paul .R. and Obstfeld , Maurice, International Economics: Theory and              Policy, Pearson Education 6th edition, 2004.

 

Academic Session: 
2018-19
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