In this course, the study of international economic relations is central. These relations involve the exchange of goods and services, factors of production, financial flows across borders. International trade and financial flows are a strong force in international relations and politics. Wars have been fought over trade disputes and the phrase: “money makes the world go round” comes to life when we study the vast flows of capital in international transactions. We benefit from trade and specialization. But exactly how, who and how much is a much more involved issue.
This course provides an introduction to trade flows, international specialization, and exchange. We address neoclassical and modern trade theory before analyzing trade policy, international macroeconomics, and financial relations. Having established the link between financial and real economic variables, we turn to exchange rates, currency trading, and the global monetary system. In all these topics we pay special attention to the differences between developing and developed economies. Students who take this course build on their knowledge of macro- and microeconomics, zooming in on the international aspects of both. Gains from trade and specialization are typically considered microeconomic topics, while international financial relations are macroeconomic in nature.

 

Format
Instruction centers on an intermediate level textbook. The first part of the course focuses on  trade theory and policy. In the second part attention is shifted to macroeconomics and international financial relations. During the course students work in a team of three students on a project. The project is about a pressing and urgent policy issue related to globalization. Aim of the team’s output is to persuade, convince policymaker(s), like government(s), central bank(s), European Commission, or other players like NGOs, trade unions, public etc. project. Output should be based on data collection, sound economic analysis, expertise, but most of all the output should be inspiring and convincing.