| Institute of Food and Resource Economics | |||||||||||||||||||||
| Earliest Possible Year | BSc. 1 year | ||||||||||||||||||||
| Duration | One block | ||||||||||||||||||||
| Credits | 7.5 (ECTS) | ||||||||||||||||||||
| Course Level | Joint BSc and MSc Compulsory BA-course in Agricultural Economics Common course for all other studies | ||||||||||||||||||||
| Examination | Final Examination oral examination Portfolio Examination Written Exam in Lecturehall Some Aid allowed Use of study note card is allowed. Description of Examination: 1. Five or more problem sets (exact number will be announced at course start)one of which is a midterm assignment, 75% of all assigned work is required to be completed. 2. A final 2-hour written exam. Weight: Written final 2-hour exam: 45% Course work: 55% 7-point scale, internal examiner Dates of Exam: 21 June 2008 | ||||||||||||||||||||
| Organisation of Teaching | Lectures and exercises | ||||||||||||||||||||
| Block Placement | Block 4 Week Structure: A | ||||||||||||||||||||
| Teaching Language | English | ||||||||||||||||||||
| Optional Prerequisites | Micro Economics | ||||||||||||||||||||
| Areas of Competence the Course Will Address | |||||||||||||||||||||
| Competencies in basic science This course gives a basic theoretical understanding of alternative models of trade, the gains from trade, comparative advantage, and the strategic role governments may play in affecting trade. This course also gives a basic understanding of how exchange rates are formed, how monetary policy affects international financial conditions, and the role of currency areas such as the European Union. Importantly, students in this course will apply qualitative analysis tools to predict market outcomes within the context of the theory we cover. Competencies in applied science This course develops the students' ability to quantify the accuracy of alternative models of trade relative to observed historical data. This course also gives insight into the accuracy of models of monetary policy and exchange rate formation. Student's participating in this course will be asked to perform basic statistical tests to compare the accuracy of various theoretical models discussed. Competencies in ethics and values This course fosters the students' ability to reflect on the logic and interaction between objective or positive microeconomic issues and subjective or normative economic values. | |||||||||||||||||||||
| Course Objectives | |||||||||||||||||||||
| The course introduces theories of international economics and their application. The trade section presents models of why countries trade & explores why governments may restrict free trade. We also discuss the motivation for multinational firms to globalize operations. The finance section introduces models of exchange rate determination, describes government financial intervention with monetary policy, and shows how one may assess costs and benefits of joining a monetary union such as the EU. | |||||||||||||||||||||
| Course Contents | |||||||||||||||||||||
| This survey course explores the theoretical foundations of International Trade and Finance. The first part of the class focuses on why nations trade, what they trade, and how free trade and it's newest incarnation outsourcing, can be beneficial or detrimental to trading countries. We will also discuss what governments can do to influence trade flows and how government policy can be used as a strategic tool by a country to achieve its own international objectives; the political debate surrounding such policies are also surveyed. The second part of the class will focus on trade in capital, exchange rates, and monetary systems. We will discuss interest rate and monetary policies and the effects that these policies have on financial transactions and a country's output. We will also survey of past monetary systems and discuss contemporary issues concerning optimal currency areas and the European Union experience. | |||||||||||||||||||||
| Teaching And Learning Methods | |||||||||||||||||||||
| The teaching is based on lectures that presents the central elements of the curriculum of international economics. In following theoretical exercises the students will work in groups with both practical and theoretical problems. Furhtermore there will be a degree of self studies. | |||||||||||||||||||||
| Learning Outcome | |||||||||||||||||||||
| Stipulated in "Areas of Competence the Course Will Address" | |||||||||||||||||||||
| Course Litterature | |||||||||||||||||||||
| Paul Krugman and Maurice Obstfeld, International Economics: Theory and Policy, Pearson International Edition, Seventh Edition, (Pearson, Addison-Wesley). Readings: The course may also cover a selection of W.S. Journal, Economist, and New York Times articles to be provided pending available course time. | |||||||||||||||||||||
| Course Coordinator | |||||||||||||||||||||
| Hugh Kelley, huk@foi.dk, Institute of Food and Resource Economics/International Economics and Policy Division, Phone: 35336863 | |||||||||||||||||||||
| Study Board | |||||||||||||||||||||
| Study Committee NSN | |||||||||||||||||||||
| Course Scope | |||||||||||||||||||||
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