SFB11615 International Economics (Spring 2018)

The course is connected to the following study programs

Compulsory for students on the Business Administration Programme, specializing in
- International Business
- International Communication

Optional for students on the Business Administration Programme, specializing in
- Economic Analysis
- Project Management and Corporate Consulting

Optional for other students on the Business Administration Programme.

Prerequisites

Microeconomics, Macroeconomics or equivalent.

Lecture Semester

6th semester (spring).

The student's learning outcomes after completing the course

This subject will enable the student to achieve the following learning outcomes.

Knowledge
The student will have gained knowledge of
- core theories and models that explain trade between countries
- the effects of free trade on production, income, growth and welfare
- trade policy instruments such as customs tariffs and quotas, and their effects on production, trade and economic welfare
- theories and models of economic integration such as customs union and currency union
- exchange rate regimes and exchange rate determination
- stabilization policies in open economies under various exchange rate regimes
- Norway's foreign trade and integration with the global economy

Skills
The student can
- collect data and indicators for foreign trade and international competitiveness
- analyze various issues in a small, open economy using mathematical and graphic presentations of models for international trade and trade policy
- assess important factors that affect the competitiveness of individual companies, industries, and of countries as a whole
- discuss causes and effects of current shocks in the global economy and of different stabilization policies by using macroeconomic models

General competence
The student
- gets a better understanding of ongoing world economic problems and dilemmas and be able to reflect critically about current topics in international economic relations.
- understand the importance of international conditions to companies, economic outcome and economic policy in a small open economy like Norway

Content

- Introduction to core elements in international trade
- Review of classical, neoclassical and modern trade theory
- The effects of different trade policy instruments
- Movement of capital and labour between countries
- Exchange rate systems, determination of exchange rates, and Norwegian exchange rate policy
- International trade agreements such as EU, EEA, and GATT
- Globalisation in the global economy, and national competitiveness
- Selected topics for current discussions on balance of payments, globalisation, and trade policy.

Forms of teaching and learning

Lectures. Group work with exercises. Supervision and feedback.

Workload

The course will give the student approximately 280 hours of work.

Coursework requirements - conditions for taking the exam

One written assignment (group work) must be approved by "pass" before students can obtain permission to take the final exam.

Examination

Four hours written examination
Aids allowed: approved calculator, mother tongue - English - mother tongue dictionary.
Grades: A - F.
An updated list of accepted resources that may be used during the exam will be available on the Studentweb before the exam.

The students have the right to complain on the grades given on the written examination.

If a student gets F, the re-sit exam might be arranged in June, in case three students sign up for the re-sit. If less than three apply for re-sit, the next exam will be a regular exam next Autumn. Students must be aware of that content, requirements and textbook may have changed, and it is a student's responsibility to check it and get updated. Students have to sign up for the exam within the deadline.

Course evaluation

To improve the course, we need the evaluations from the students. The course is evaluated by the students and the evaluations from the students are treated by the staff and the faculty's committee for quality of education.

Literature

The reading list was last updated 05.12.2016. Changes can be made before semester start.

Krugman, Paul; Obstfeld, Maurice; Melitz, Marc (2015). International Economics: Theory and Policy. 10^th edition. Global Edition. Pearson Education Limited.