INTERNATIONAL ECONOMICS

OBJECTIVE

The objective of this paper is to study the issues in International trade and
Global Institutions with the help of Sound Economic Theories and Applications.

UNIT I : Introduction

Globalization of the World Economy – International trade and the Nation’s

Standard of Living – The International flow of goods and Services – The
Gravity Model – The International Flow of Labor and capital – International
Economic Theories and Policies

UNIT II : International Trade Theory

World Trade - An Overview - Labor Productivity and Comparative Advantage

- The Ricardian Model - Specific Factors and Income Distribution - Resources
and Trade - The Heckscher-Ohlin Model - The Standard Trade Model - External
Economies of Scale and the International Location of Production Firms in the
Global Economy - Export Decisions – Outsourcing and Multinational
Enterprises

UNIT III : International Trade Policy

The Instruments of Trade Policy – Basic Tariff Analysis – The Effects of Trade
Policy - The Political Economy of Trade Policy – Free trade and Efficiency –
National Welfare Arguments against Free Trade – International Negotiations
and Trade policy - Trade Policy in Developing Countries – Import substituting
Industrialisation - Controversies in Trade Policy – Globalization and its
discontents – Globalization and the Environment

UNIT IV : Exchange Rates and Open-Economy Macroeconomics

National Income Accounting and the Balance of Payments - Exchange Rates

and the Foreign Exchange Market An Asset Approach – Money - Interest Rates
and Exchange Rates - Price Levels and the Exchange Rate in the Long Run -
Output and the Exchange Rate in the Short Run - Fixed Exchange Rates and
Foreign Exchange Intervention
UNIT V : International Macroeconomic Policy

International Monetary Systems – Classifying Monetary Systems – The Open

Economy Trilemma – The Brettonwoods System and the International
Monetary fund - Optimum Currency Areas and the European Experience - The
Euro and the Economic Policy in the Euro Zone - Financial Globalization -
Opportunity and Crisis - Developing Countries – Growth – Crisis and Reform

PRESCRIBED BOOKS

1.Paul Krugman, Maurice Obstfeld, Marc Melitz : International Economics :

Theory and policy (2014), Tenth edition, PEARSON.

2.Dominick Salvatore : International Economics (2016) Eleventh edition,

WILEY.

SUGGESTED READINGS

1.BO SODERSTEN AND GEOFFREY REED : International Economics (1994)

Third edition, MACMILLAN PRESS LTD.

2.Robert M.Dunn, Jr and John H.Mutti : International Economics (2004) First

edition, Routledge.

3.Joseph E.Stiglitz and Andrew Charlton : Fair Trade for All (2005) First
edition, Oxford University Press.

4. Joseph E.Stiglitz, Jose Antonio Ocampo, Shari Spiegel, Ricardo FFrench –

Davis, Deepak Nayyar : Stability with Growth (2006) First edition, Oxford
University Press.

5. Joseph E.Stiglitz : Globalization and It’s Discontents (2002) First edition,

PENGUIN INDIA.