Course Co-ordinator: Dr W D McCausland

Pre-requisite(s): EC 2003 and EC 2503.

This course covers both international trade and international money.

The first part of the course analyses international trade flows in perfectly competitive markets based on differences in technology (classical trade) or factor abundance (neoclassical trade), including the distributional and welfare implications of trade policy. The analysis of international trade then continues by investigating the impact of imperfect competition, economies of scale and product differentiation (new trade), including strategic trade policy. Selected aspects of applied trade policy are also investigated.

The second part of the course begins by reviewing basic concepts in international money and then overviews various exchange rate theories, including the Dornbusch overshooting model. The analysis of international money then continues by examining the policy framework ? looking at the objectives, targets and instruments of international monetary policy, including target zones and financial crises.

1 three-hour lectures per week (Friday 14:00-17:00), and 8 one-hour tutorials over the duration of the course.

Note this course starts in 2012/13 and continues every two years thereafter.

1st Attempt: 1 three-hour examination (80%); continuous assessment (20%) consisting of a graded tutorial presentation (10%) and an essay (10%, maximum word count 2,000).

Resit: 1 three-hour written examination (100%).