Global Economics I
Code
1113
Academic unit
null
Department
null
Credits
7,5
Teacher in charge
Luís Campos e Cunha
Teaching language
English
Objectives
The course is about trade theory and the theory of economic policies in an open economy. Students taking this course should be able to understand, with a critical view, trade policies or economic policies in a open economy. These might come from international agreements as well as from the EU or national levels.
Prerequisites
Mandatory Precedence:
- 1102. Microeconomics
Subject matter
0- Review of Microeconomics: General equilibrium and welfare; Pareto-optimal conditions.
I- Introduction to IT
II- Commodity Trade without production
III- The Classical approach to trade (Ricardo): Labor theory of value; Determinants of trade; differences in technology; comparative advantage.
IV- The Neo-classical approach to trade (HOS Model)
V- The Modern Approach to trade: Scale Economies and Imperfect Competition.
VI- Empirical Tests
VII- Specific Factors Model
VIII- Gains from Trade and Income Distribution
IX- Tariffs and Other Policy Instruments
X- Public Policies in Open Economy, Distortions
XI- Immiserizing Growth
XII- International Factor Mobility
Bibliography
[HM] Husted, Steven and M. Melvin, International Economics, 8th edit, Pearson [FT] ?suggested textbook? R. Feenstra and A. Taylor, International Economics, 2nd edit, Worth. [CFJ] Caves, Richard, J. Frankel and R. Jones, World Trade and Payments, 10th edit, Pearson International Edition. [HS] Heffernan, S. and Sinclair, P. Modern International Economics, 1990, Blackwell. [KO] Krugman and Obstfeld, International Trade, theory and policy, 9th edt, Pearson [BPS] Bhagwati, Panagariya and Srinivasan, Lectures on International Trade, 2nd, MIT Press.
Teaching method
Two lectures per week of 1h20m. One lab class per week of 1h20m.
Evaluation method
There will be a midterm and a final exam (both mandatory), with weights of 30% and 55%, respectively. The remaining 15% will be allocated to a small group work.
In order to pass the class, a course grade of at least 9.5 is required plus a minimum final exam grade requirement of 8.0.
In addition, active class participation will be valued. Students that participate actively and continuously along the semester, both in the theoretical and practical sessions, will be granted the following bonus: when computing the final grade the average will be rounded upwards to the nearest integer (e.g. an average of 14.1 will be rounded to a final grade of 15). The students eligible for this bonus will be announced at the end of the semester.
The rules for the resit exam are the following: if you don?t attend the final exam, you can decide on keeping the grades of the midterm and the essay, with the respective weights of 30% and 15%, respectively, and the resit exam counting for 55%. However, this decision needs to be communicated by e-mail before the resit exam. In the absence of any e-mail, your resit exam will count necessarily 100%. If you attended the final exam, your resit exam will always count 100%.
Moreover, in case your resit exam counts for 100%, it will include additional questions in order to cover more of the first part of the course. Finally, the bonus mentioned above only continues to apply if you are doing the resit exam with a weight of 55%.