Course syllabus - International Economics

Objectives

The aim of this course is to provide the students with analytical tools for understanding foreign trade, trade policies, the current external balance, as well as monetary and fiscal policies in an open economy.

Learning outcomes

After completed course the student shall be able to explain and analyze
- why some goods and services are produced cheaper in some countries
- why a country's welfare increases if it participates in free trade, by exporting the goods and services in which it has a comparative advantage
- why various trade policies, such as tariffs and quotas lead to welfare losses and income redistribution
- why trade and economic unions create and divert trade
- why an open economy cannot pursue the same macroeconomic policies to influence its national product or level of employment
- why a country's exchange rate is influenced (and influences) by relative prices, interest rates and other variables
- under which conditions monetary and fiscal policies improve the internal and external balances

Course content

The classical and neo-classical foreign trade theory. Socio-economic benefits of free trade. Impact of various barriers (customs duties, quotas, subsidies, etc.). Trade and economic unions. Different exchange rate theories (purchasing power parity, as well as interest rate parity). Monetary and fiscal policies under flexible and fixed exchange rates.

Requirements

Studies in Mathematics of 3 years from Upper Secondary School with a Science profile and a TOEFL test result, minimum score 575 with a TWE score of at least 4,5 (PBT) or 90 with a TWE score of at least 20 (iBT)/IELTS test result with an overall band score of minimum 6,5 and no band score below 5,5.

Examination

Examination (TEN1), 7.5 credits, marks Pass (G) or Pass with distinction (VG)

In addition, grades may also be given according to the ECTS grading scale.

A student who has a certificate from MDU regarding a disability has the opportunity to submit a request for supportive measures during written examinations or other forms of examination, in accordance with the Rules and Regulations for Examinations at First-cycle and Second-cycle Level at Mälardalen University (2020/1655). It is the examiner who takes decisions on any supportive measures, based on what kind of certificate is issued, and in that case which measures are to be applied.

Suspicions of attempting to deceive in examinations (cheating) are reported to the Vice-Chancellor, in accordance with the Higher Education Ordinance, and are examined by the University’s Disciplinary Board. If the Disciplinary Board considers the student to be guilty of a disciplinary offence, the Board will take a decision on disciplinary action, which will be a warning or suspension.

Grade

Pass with distinction, Pass, Fail

Interim Regulations and Other Regulations

The course is a replacement of the former courses in international economy, ENA018 and NAA104.