module specification

This module introduces students to the fundamental aspects of the theories of international trade and finance, policy analysis and the controversies that surround these activities. It will examine the costs and benefits of these two fundamental activities in the global economy and consider the extent to which government policies in these areas can improve economic outcomes. The module will draw on up-to-date analyses and empirical studies and will examine theoretical and contemporary policy issues in this regard in the international economy.

The division of labour and the gains from trade. From Absolute advantage to Comparative advantage. Ricardian model. Empirical evidence. Relative wages.
Specific factors and income distribution. LO1,LO3
Resources and trade: Heckscher-Ohlin model: Standard trade model. Factors and factor price equalization. Dutch disease. LO1,LO2,LO3
The Leontief paradox. Stolper-Samuelson theorem. Rybczynski theorem. Immiserising growth. Empirical evidence. Gains from Trade. LO1,LO2
Economies of scale and the international location of production.  LO1,LO2,LO3

External economies and international trade. Gravity Model. LO1,LO2
Exchange rate determination. International capital Flows. Exchange rate management. Borrowing and Lending. Uncovered interest parity. Purchasing Power Parity. Flexi-price monetary model. Dornbush model. Portfolio balance model. 
Barriers to trade and financing. Imperfect competition and intra-industry trade. Dumping.
International factor movements: Labour. Multinationals. Foreign direct investment. LO1,LO2,LO3
Balance of Payments and Trade Policy: Tariffs and subsidies. Import quotas. General equilibrium analyses: elasticity, absorption and inter-temporal approaches.
GATT and the WTO.
Controversies in trade policy. LO3

Students’ learning is centred on direct contact time with the teaching team, and reflective independent learning. The direct contact time takes place through lectures and seminars. Students are expected to complement this 'formal' learning activity with further reading of the material suggested in the teaching sessions, solving realistic internatiional problems using economic analysis, research, writing, planning and preparation for the coursework and final exam.

Student weekly contact time is normally 3 hours. Lectures are typically of 2 hours duration and deliver core subject knowledge in macroeconomics. They also provide time for interactive workshops.  The module emphasises the development of trade theory and its application, with a view to enabling students to become conversant with international policy issues.

Seminars are typically 1 hour in duration and emphasise the solution of international trade problems based on the lecture topics. The emphasis is on student participation and engagement. These sessions strengthen students’ abilities to provide an economic interpretation of empirical findings, analyse policy debates and develop peer learning through participation.

Inititative and independence are developed through the module so that students are required to take greater responsibility for their work. Professional and transferable skills are developed in lectures and seminars and reinforced through independent directed learning and assessment. Module learning activities will enable the students develop  analytical, communication, presentation, problem solving, collaboration practised in group workshops and team work through group presentations.

Equality is promoted by treating all students with dignity and as of equal worth, while also raising aspirations and supporting achievement for people with a student body with diverse learning requirements, entitlements and backgrounds.

On successful completion of this module students will be able to:
1. critically evaluate international trade and finance, covering theory, policy and application;
2. develop a range of specialist skills effectively to the analysis of international economic processes and relations, including the use of quantitative techniques;
3. appraise evidence and assimilate, structure, analyse and evaluate qualitative and quantitative data to understand and critically evaluate policy issues in the subject; demonstrate planning, communication, self-management and time-management skills.

Formative and summative feedback will be provided in lectures and seminars, where the assessment instruments and criteria will be explained and discussed.
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

Examples of past good practice in assessment will be placed on Weblearn and linked clearly to the assessment criteria to be used in the assessment. Through this process students will have access to examples of best practice and see the grading criteria in operation. The development of coursework will be reviewed and discussed in seminar time.

The coursework will require students to reflect on theoretical approaches to international trade so as to produce a critical analysis of a key policy issue or question. In the coursework the student will demonstrate a specialist’s understanding of the underlying economic principles. The coursework will also test the student’s ability to apply a range of specialist skills to the analysis of international economic relations, including the application of analytical or quantitative techniques. 

The final exam will both assess the student’s critical understanding of international trade theory and the ability to critically evaluate related policy issues and problem-solve in a time-constrained setting.

Core Texts:
Krugman, P. & Obstfeld, M. (11th ed.): International Economics, 2018, Pearson.
Caves, R.E., Frankel, J.A. and Jones, R.W. (10th edition) World Trade and Payments, 2007, Pearson.
Valdez, S. & Molyneux. P. (2016) 8thed. An Introduction to Global Financial Markets. London: Palgrave.

Other Texts:
Salvatore, D. (11th  edition) International Economics, 2014, Wiley
Appleyard, D. and Field, A. (8th edition) International Economics, 2013, McGraw Hill
Irwin, D.A., (4th edition) Free Trade under Fire, 2015, Princeton University Press
Edwards, L and Lawrence, R. Rising Tide: Is Growth in Emerging Economies Good for the United States?, 2013, Peterson Institute for International Economics

Journals:
Journal of International Economics
International Review of Financial Analysis
American Economic Review
Review of International Economics
Journal of Political Economy
Economic Journal
Journal of Financial Economics
e.g.
Kearney Brian. C, Lucey. M:  2004, International equity market integration: Theory, evidence and implications. International Review of Financial Analysis
Volume 13, Issue 5, Pages 571-583

Websites:
https://www.ecb.europa.eu/home/html/index.en.html
https://data.worldbank.org
http://www.oecd.org
http://www.imf.org/en/data