module specification

This a core one semester module delivered on MSc International Trade and Finance course and as an option on other courses in the subject area. The focus of the module is on the international trade and economic theory. The topics that will be covered in the module include the benefits and reasons for international trade, patterns of international trade, reasons for protectionism, trade barriers, welfare effects of international economic policies, forms of regional economic integration, balance of payments, and determinants of exchange rates. The module will draw on the current research and empirical studies, and examine theoretical and contemporary policy issues and current debates in the international economy. It will also consider the issues and controversies that surround these activities, and illustrate the links between the theoretical concepts and practical realities.

The module also aims to develop a number of transferable skills of students, e.g. strategic thinking, problem solving, oral and written communication skills, subject research, quantitative and analytical skills.

Note: If there are not sufficient student numbers to make a module viable, the School reserves the right to cancel such a module. If the School cancels a module it will use its reasonable endeavours to provide a suitable alternative.

N/A

International trade theories (LO1, 2, 3, 4):

• Mercantilism to Absolute advantage to Comparative advantage. Ricardian model. Terms of trade. Gains from trade. Empirical evidence.
• Resources and trade: Heckscher-Ohlin model: Factor endowments and factor price equalization. Stolper-Samuelson theorem. Dutch disease. The Leontief paradox. Rybczynski theorem. Immiserising growth. Empirical evidence.
• Imperfect competition and intra-industry trade. Product differentiation. Economies of scale. International product life cycle. Overlapping demand hypothesis.

International trade policies (LO1, 2, 3, 4):

• Barriers to trade and financing. Tariffs and Import Quotas. Voluntary export restraints. Subsidies and Dumping. Embargoes. Foreign exchange controls. Technical and administrative barriers. DCR. Reasons for and against protectionism.
• Balance of Payments: Current, financial and capital accounts. The influence of macroeconomic factors on trade and trade policy.
• Economics of market integration: Trade blocs, free trade areas, customs unions and monetary integration. Trade creation and trade diversion. The EU and Brexit debate.
• Exchange rates: demand and supply of a currency, theories of exchange rate determination; exchange rate regimes
• Role of international trade organisations, e.g. GATT and WTO

Teaching is delivered through a weekly two-hour lecture and a one-hour seminar, with the total student contact time of 3 hours per week. Lectures will introduce some key topics related to international trade concepts, theories and policies. Each lecture session will be given a clear context and will then introduce new concepts, ideas and applications. This is an effective way for students to discover the interactive nature of international economics theory and explore international trade concepts in real world issues and problems. Lectures are designed to be lively and interactive. Students are encouraged to take part in thought-provoking debates and discussions. Participating in debates, in conjunction with note taking, reinforces students’ understanding of international economics topics and help improve their oral communication and analytical skills.

Seminars will provide an opportunity for students to discuss theoretical and contemporary international trade problems based on the lecture topics. For each seminar session students are given a set of questions and other activities. Students are expected to complement 'formal' learning activity with further reading and research, and prepare the answers to the seminar questions before attending their seminar. The seminars are students centred and the emphasis is on student participation and engagement. These sessions are designed to strengthen students’ abilities to discuss and solve realistic international problems using economic analysis, provide an economic interpretation of empirical findings, evaluate international policy issues and develop peer learning through participation.

Student learning is further supported by the virtual learning environment - Weblearn, where students can find additional learning material including lecture slides, reading list, details of assessment and feedback.

On successful completion of this module students will be able to:

1. understand the theoretical foundations the international trade
2. have critical awareness of theoretical and contemporary issues and controversies that surround international trade
3. critically evaluate international economic policies, processes and relations
4. apply analytical and quantitative techniques to critically assess international trade patterns and policies

There will be one piece of summative assessment for this module – an unseen exam. The final 3-hour exam will assess the student's knowledge and critical understanding of the international trade topics and theories covered throughout the module, as well as the ability to evaluate related policy issues, analyse, problem-solve and write coherent answers in a time constrained setting.

As well as the summative assessment described above, there will be a number of formative assessments with instant formative feedback to monitor student progress and to help students prepare for the final exam.

Formative Assessment during the module will involve:

• In-class questioning and problem-solving activities during lecture time

• Seminar questions /exercises and self-evaluation at the end of each class.

• Students acting as learning resources for one another through in-class discussion and working in small groups

Reading List Talis Link:

https://bblearn.londonmet.ac.uk/webapps/blackboard/content/launchLink.jsp?course_id=_42743_1&tool_id=_2924_1&tool_type=TOOL&mode=cpview&mode=reset

Core Texts:

Pugel, T. (2020). International economics, 16th ed., Aldgate, McGraw-Hill

Sawyer, C. W and Sprinkle, R. L. (2020) Applied International Economics, 5th ed, Harlow, Pearson

Other Texts:

Appleyard, D. and Field, A. (2017) International Economics, 9th ed, McGraw Hill

Carbaugh, R.J. (2019) International Economics, 7th ed, Boston, Cengage Learning

Feenstra, R. and Taylor, A. (2017) International Trade, 4th ed, Macmillan International

Gerber, J. (2018) International Economics, 7th ed, Harlow, Pearson

Husted, S. and Melvin, M. (2013) International Economics, 9th ed. Harlow, Pearson

Krugman, P. & Obstfeld, M. (2018): International Economics, 11th ed. Harlow, Pearson.

Marrewijk, C. (2017) International Trade, Oxford University Press

Salvatore, D. (2016) International Economics: Trade and Finance, 11th ed, Wiley

Journals:

Journal of International Economics

Journal of Political Economy

Journal of Financial Economics

Journal of International Trade and Economic Development

Review of International Economics

World Trade Review

The International Trade Journal

The Economist

Websites

Bank for International Settlements (BIS) www.bis.org

European Union (EU) http://www.europa.eu

International Monetary Fund (IMF) https://www.imf.org/external/index.htm

Office for National Statistics (ONS) https://www.ons.gov.uk/releases/ukbalanceofpaymentsthepinkbook2020

Organisation for Economic Co-operation and Development (OECD) http://www.oecd.org

World Bank https://www.worldbank.org/

World Economic Forum https://www.weforum.org/

World Trade Organisation (WTO) https://www.wto.org/