International Economics 1
Academic Study board for cand.-negot. studies
Teaching language: English
EKA: H770014102
Assessment: Second examiner: None
Grading: 7-point grading scale
Offered in: Odense
Offered in: Autumn
Level: Bachelor
Course ID: H770014101
ECTS value: 5
Date of Approval:
Duration: 1 semester
Version: Archive
Course ID
ECTS value
Course Title
Number of lessons
Course Responsible
Lecturer
Overall description learning objectives
The described goals with regard to knowledge, skills and competencies are supported by the specific teaching and working methods described below. At the same time, the teaching and working methods are organised in accordance with the form of examination, as described under Examination Regulations, which is considered to constitute the most appropriate framework for testing the student's achievement of the subject's objectives.
Learnings objectives - Knowledge
After completing the course (International Economics 1 + 2) the student must:
in a closed economy with fixed prices:
- Be able to describe the assumptions and the behavioural relationships that form the basis of the IS-LM model
- Be able to describe the effects of stabilisation policy on the target variables of the economy in an IS-LM model
in a closed economy with flexible prices:
- Be able to describe the supply side of the economy and the connection between inflation and unemployment.
- Be able to describe the effects of stabilisation policy on the target variables of the economy in an AD-AS model.
- Be able to describe determinants of economic growth.
in an open economy:
- Be able to describe the assumptions that form the basis of the Ricardian model.
- Be able to describe the model’s supply relations, trade flows and welfare gains in international trade.
- Be able to describe the assumptions that form the basis of the Heckscher-Ohlin model.
- Be able to describe the model’s supply relations, trade flows and welfare gains in international trade as well as the importance of trade for factor remuneration in the countries.
- Be able to describe the models’ ability to explain international trade flows.
- Be able to describe the assumptions that form the basis of recent trade theories.
- Be able to describe intra-industry trade as a result of internal economies of scale and imperfect competition.
- Be able to describe international trade as a result of external economies of scale, including as a result of ‘learning by doing’.
- Be able to describe the effects of trade policy interventions such as tariffs, quotas and subsidies on international trade flows and welfare; account for trade policy issues under the WTO.
- Be able to describe supply and demand in international currency markets and currency exchange rate setting in the short term.
- Be able to describe the exchange rate setting in the long term while including the purchasing power parity theorem.
- Be able to describe the relationship between national commodity markets, national money markets and the foreign exchange markets in an AA-DD model.
- Be able to describe the effects of national monetary and fiscal policy interventions on exchange rates and employment in the short and long term in economies with floating exchange rates and with fixed exchange rates.
- Discuss the advantages and disadvantages of different exchange rate regimes.
Learning objectives - Skills
After completing the course (International Economics 1 + 2) the student must:
in a closed economy with fixed prices: Be able to analyse the effects of stabilisation policy on the target variables of the economy in an IS-LM model.
in a closed economy with flexible prices: Be able to analyse the effects of stabilisation policy on the target variables of the economy in an AS-AD model.
in an open economy:
- Be able to analyse the models’ ability to explain international trade flows.
- Be able to explain intra-industrial trade as a result of internal economies of scale and imperfect competition.
- Be able to explain international trade as a result of external economies of scale, including as a result of ‘learning by doing’.
- Be able to analyse the effects of trade policy interventions such as tariffs, quotas and subsidies on international trade flows and welfare.
- Be able to explain WTO-related trade policy issues.
- Be able to explain supply and demand in international currency markets and currency exchange rate setting in the short term.
- Be able to explain the long-term exchange rate setting while including the purchasing power parity theorem.
- Be able to explain the connection between national commodity markets, national money markets and the foreign exchange markets in an AA-DD model.
- Be able to analyse the effects of national monetary and fiscal policy interventions on exchange rates and employment in the short and long term in economies with floating exchange rates and with fixed exchange rates.
Learning objectives - Competences
After completing the course (International Economics 1 + 2) the student must:
- Be familiar with relevant societal conditions and be able to identify connections from these to economic theory.
- Be able to discuss the models’ ability to explain international trade flows.
- Be able to discuss the effects of national monetary and fiscal policy interventions on exchange rates and employment in the short and long term in economies with floating exchange rates and with fixed exchange rates.
Content
The course focuses on cyclical developments as well as on economic policy such as fiscal policy, monetary policy and structural policy and the impact of these on a global economy and in the context of the international monetary system.
Furthermore, the subject sheds light on economic theories for international trade and the effects of trade policy.
Economic aspects of the international trading system are described and seen in the context of the role of trade policy institutions in a global economy.
Emphasis is placed on the treatment of a national economy that is monetarily and genuinely integrated into the international economy.
The following subject matters are reviewed: national accounts and index figures, foreign trade and balance of payments, population and labour market conditions, the current economic development. Models for the demand side commodity and money market, the total demand curve, the supply schedule and the total market for production and employment in the closed economy.
The foreign exchange market and fiscal and monetary policy in an open economy with a floating and fixed exchange rate. The international monetary system and the IMF.
In addition, the following topics will be covered: International trade theories, protectionist instruments, the international trade system and the WTO.
Arguments for and against free trade are reviewed together with the income distribution aspects of trade.
Forms of instruction and work
The teaching takes the form of lectures. Before each lecture, students must read the relevant parts of the examination syllabus, for which they must make notes. Students are encouraged to form study groups. Practical activities are offered in the form of practical assignment classes.
The teaching is organised in such a way that it supports the humanities model for active learning and activating teaching, cf. the programme regulations item Didactic, pedagogical basis and contact with the research environment. At the start of the course, the lecturer informs the students about how the teaching and learning activities are organised.
The teaching in the subject activates the student in the following teaching rooms/study rooms:
- Teaching rooms where the lecturer has planning responsibility and is present
- Study rooms where the lecturer has planning responsibility but is not present
- Teaching rooms where the lecturer is present, but students have planning responsibility for specific sub-activities
- Study rooms where students have planning responsibilities and the lecturer is not present
Supplementary information for the completion of the lessons – the (on average) 3 weekly lessons are conducted as 2 hours of joint lectures and 2 hours of practical assignment lessons with a student teacher every other week.
Workload
5 ECTS corresponds to 140 working hours. The working hours are divided into teaching and working methods as described in the Humanities model, and which are mentioned under the item ‘Teaching and working methods’, as well as the examination and preparation for this. At the start of the course, the lecturer provides an indicative distribution of the workload.
Teaching language
Syllabus
Examination regulations
Examination regulations
Name
Examination regulations
Timing
At the end of the semester.
Tests
Final examination
EKA
H770014102
Name
Final examination
Description
At the end of the semester, a midterm exam is held – a supervised written exam using the student’s own computer and digital submission.
Form of examination
Written examination on premises
Assessment
Second examiner: None
Grading
7-point grading scale
Identification
Student Identification Card - Exam number
Language
English
Duration
3 hours.
Examination aids
All aids are allowed, but not communication with others.
Assignment Release
Hand-out on SDU´s digital platform. Submission date is published as part of the overall list of examinations.
Assignment Submission
Submission on SDU´s digital platform required.
ECTS value
5
Additional information
Assessment criteria:
Considering the method of assessment and the current study level, specific emphasis will be put on the extent to which the student´s performance meets the learning objectives as well as to what extent the student masters the general competence objectives mentioned in the currculum, section Aim of Programme, including any professional profile and specialistions.
The grade will be awarded according to the extent of the fulfilment of the learning objectives as described in the Grading Scale Order (karakterbekendtgørelsen).
The mark for the entire course is the average of the marks from the midterm exam and the final exam. Both exams must be passed in order to be included in the overall mark. The final exam weights 2/3 and the midterm exam 1/3.
Several students may contribute to the assignment: No.
Reexamination takes place in the same way as the ordinary examination.
Timetable for the course
Further information
Fall 2023
Lecture - Tuesday kl. 8-10
Practical lessons:
Class 1 - Thursday kl. 10-12
Class 2 - Thursday kl. 16-18
See further information either above or in the calendar function in Itslearning.