Study Guide

Teaching methods

Course description (contents):
State of world's economy, globalization, major institutions.
Trade theories (mercantilism, absolute advantage, comparative advantage, factors endowment) and gain from specialization and trade.
Consumer and producer surplus, trade barriers.
Economic integration and its impact on trade.
Balance of payment and balance of trade, exchange rate systems and exchange rate determinants.

Course objectives:
Student become familiar with the economic backgrounds of foreign trade and most common trade theories.
Student is able to use and apply economic analytical tools in international trade.
Student is familiar with the role of governments and international organizations which distort trade between nations, and the economic consequences of trade barriers.
student will become familiar with the balance of payment and its significance, as well as the foreign exchange market and exchange rate mechanism.
Modes of Learning: Lectures, literature, guided exercises, group work

Student evaluation and grading: Evaluation will be 100% on final examination.

Qualifications

Principles of Economics.

Materials

Hubbard, O´Brien. Economics 3/E, or newer. Parkin. Economics 10/E or newer. Prentice Hall. (only Selected chapters).
Other material and web sources will be provided by instructor.