Teaching starts Spring

Language of instruction English

Learning outcomes Upon successful completion of this course the student should have acquired a broad insight in the theory of international economics (trade and macro) supported by empirical evidence; an overview of the global spread of production and consumption; an understanding of the magnitude and character of foreign direct investments; an understanding of how the composition of international trade is influenced by growth of technology and the overall development of the global economy; an insight into how development with decreasing trade barriers combined with a regionalization of international markets affects the distribution of income, production and consumption within and between countries. In international macroeconomics students will acquire basic knowledge and understanding of the theory of exchange rate determination and regimes from pure float to managed float to fixed rates; the linkage between exchange rates, interest rates, and other important macroeconomic variables such as the inflation rate and output; basic knowledge of monetary policy.

Course contents The lectures cover neoclassical and more recent theories about international trade and macroeconomics. The first part - international trade - provides a theoretical framework for analyzing trade and trade policy. We will cover both traditional theories grounded in comparative advantage, and modern theories, imperfect competition. In trade policy we will have a look at tariffs and import quotas, and trade institutions like the WTO. In the second part - international macroeconomics - the balance of payments, money, interests, and exchange rates will be discussed. Especially, the cost and benefits of different types of exchange rate systems. Under the heading international macroeconomic policy we take a closer historical look at the international monetary system staring in 1870 and ending with studying optimal currency areas and the European experience.

Teaching methods The course will mainly consist of lectures each week, but some student activities e.g. presentations of articles and solution to problems must be expected. Topics covered in class as well as in the written materials will form the basis for the exam. The students are expected to attend class.

Examination requirement A number of approved mandatory assignments. Information about these assignments will be presented in Fronter at the beginning of the semester.

Assessment methods and criteria 4-hour written individual examination constitutes 100% of the final grade. Graded marks.

Type of course Theoretical

Level of course Second cycle i.e. master level

Year of study Normally fourth year

Name of lecturer/contact person Student Adviser Anne Line Omsland.