International Economics 1

This course provides an overview of essential topics, concepts and models related to International Economics. After completing the course International Economics 1 the student should be able to understand the role that international trade has for an open economy such as Denmark. Based on the definitions, concepts and models learned the student should be able to conduct independent, theory-guided and empirical analyses in areas such classical and new trade theory as well as strategic trade policy. The student should also be able to describe the working of international institutions relevant for international trade as the World Trade Organization (WTO) and the International Monetary Fund (IMF).

After participating in the course, the student should:

• Be able to describe main patterns of international trade flows and identify factors influencing import and export flows as described in the gravity model of trade.
• Be able to describe patterns of international trade on the basis of productivity differences (Ricardian model, Specific Factor model). 
• Be able to describe factors giving rise to specialization and international trade in 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 welfare gains from international trade in classical trade models.
• 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.

After completing the course, the student must:

• Be able to analyse global trade flows based on the principles of the gravity model of trade.
• Be able to analyse the ability of classical trade models (Ricardo, Specific Factor, Heckscher-Ohlin) 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 familiar with real-world phenomena in international trade.
• Be familiar with relevant societal conditions and be able to identify connections from these to economic theory.
• Be able to discuss the different models’ ability to explain international trade flows. 
• Be able to discuss socio-economic causes and consequences of trade disputes and trade wars.

The teaching takes the form of 2 weekly lectures and 2 practice hours weekly by instructors. 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 organized 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 organized.

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 4 weekly lessons are conducted as 2 hours of joint lectures and 2 hours of practical assignment lessons with a student teacher.

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.