Economic Analysis in Global Market

Aims
This course aims to provide students with an overview of the theories to analyse different phenomena in the global economy and to develop their ability to apply these theories to explain real-world events. The course comprises three themes. The first discusses the structure of world trade, related economic theories and efforts from different international bodies to organize trade. The second theme turns to the landscape of international financial markets by looking at capital flows around the world and the theories to explain them. Lastly, the debate on, and theories of, exchange rate arrangements across countries will also be discussed. Throughout the coverage of these topics, heavy reference will be made to recent major economic events round the world.

Contents

• The geography of trade
• Theories of comparative advantage
• The political economy of trade
• International financial markets
• Macroeconomic policy in an open economy
• Exchange rate regimes
• International monetary systems
• Globalization: Opportunity and crisis

Assessment
There will be one midterm test and one individual term paper accounting for 40% of the total course score. The final examination will account for the remaining 60%. Students are required to submit assignments via the Online Learning Environment (OLE).

Set Book(s):
Krugman, P R, Obstfeld, M and Melitz M J (2018) International Economics: Theory and Policy, 11th edn, Pearson.