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; Pareto-optimal conditions.
Varian H., Intermediate Microeconomics, Norton, 8th edition, chap 31;
Perloff James, Microeconomics with Calculus, Pearson, 2nd edition, chap 10.
I Introduction to International Trade.
[FT chap 1] [HM chaps 1 and 2] or [CFJ chap 1] or [KO chaps 1 and 2] or [HS chap1].
II Commodity Trade without production.
[HM chaps 1, 2] or [CFJ chap 2]; See also references for topic 0.
III The Classical approach to trade (Ricardo).
[FT chap 2] [HM chap 3] [BPS chap 2 to 2.4].
IV The Neo-classical approach to trade (HOS Model).
[FT chap 4] or [HM chaps 4] or [CFJ chap 4 and 6] or [KO chap 5 and 6] or [HS chap 2].
V Modern Approaches to trade: Scale Economies and Imperfect Competition.
[FT chap 6] or [HM chaps 5] or [CFJ chaps 7 and 12] or [KO chap 7] or [HS chap 4].
VI Empirical Tests.
[HM chap 5] [KO several sections].
VII Specific Factors Model.
[FT chap 3] or [HM chap 4] or [CFJ chap 5] or [KO chap 4].
VIII Gains from Trade and Income Distribution.
[HM chap 6] or [CFJ chap 2] or [KO chap 4].
IX Tariffs and Other Policy Instruments.
[FT chap 8] or [HM chaps 6 and 7] or [CFJ chap 10] or [KO chap 9] or [HS chap 3].
X Public Policies in Open Economy, Distortions.
[HM chap 7] or [CFJ chap 11] and [BPS chap 28] or [KO chap 9].
XI Immiserizing Growth.
[HM chap 10] or [CFJ chap 3] and [BPS chap 29].
XII International Factor Mobility.
[HM chaps 10] or [CFJ chap 9].
Bibliography
Suggested textbook: [FT] R. Feenstra and A. Taylor, International Economics, 3rd/2nd edition, Worth. Other relevant sources: [HM] Husted Steven and M. Melvin, International Economics, 8th edition, Pearson. [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 edition, 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
Midterm and final exam (both mandatory), weighting 30% and 55%, respectively;
The remaining 15% will be allocated to a group assignment;
Minimum final exam grade requirement of 8.0 and course passing grade of 9.5.
Doing the exam in the normal period
If you have a reason, validated by the services, for having missed the midterm, you may take the final exam in the normal period for 100% of the grade.
Students who are just improving their grade are entitled to take the final exam in the normal period for 100% of the grade.
Otherwise, your final exam will amount to 55% of your final grade.
Doing the exam in the resit period
- Following the rules of the university, you can do the final exam (for 100% of the grade) in the resit period if you did not pass the course through the traditional regular method. Note you must enroll for this exam in the undergraduate office.
If you attend the final exam in the normal period, your resit exam will count 100%.
Students who are just improving their grade are entitled to take the final exam in the resit period for 100% of the grade.
If you do not attend the final exam in the normal period, you can decide on keeping the grades of the midterm and the group work. Your resit exam will then count 55% of your grade. However, this decision needs to be communicated by e-mail to both the Instructor and Teaching Assistant before the resit exam. In the absence of any e-mail, your resit exam will necessarily count 100%.
Exams counting 100% of the grade
Exams counting 100% will have an extra group and additional time.
Group work
The group work is mandatory for all students who are not doing the exams for 100% of the grade and it is not possible to carry over grades from previous semesters.