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Course syllabus - Trade Theory and International Finance

Scope

7.5 credits

Course code

NAA113

Valid from

Autumn semester 2014

Education level

First cycle

Progressive Specialisation

G1N (First cycle, has only upper-secondary level entry requirements).

Main area(s)

Economics

School

School of Business, Society and Engineering

Ratified

2014-02-03

Status

This syllabus is not current and will not be given any more

Literature lists

Course literature is preliminary up to 8 weeks before course start. Course literature can be valid over several semesters.

    • Ratified date: 2014-08-12
    • Latest update: 2014-08-12

    Books

    Mankiw, N. Gregory

    Macroeconomics

    8. ed. : New York : Worth, cop. 2013 - xxxvi, 623 s.

    ISBN: 978-1-4641-2167-8 (hft.) LIBRIS-ID: 13592110

    Husted, Steven L.; Melvin, Michael

    International economics

    9. ed., International ed. : Upper Saddle River, N.J. : Pearson Education, 2012 - 408 s.

    ISBN: 978-0-273-76828-9 LIBRIS-ID: 13563931

    Other Materials

    Kompletterande material som finns inom Blackboard.

    Akademin för ekonomi, samhälle och teknik,

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.

Tuition

Lectures and exercises.

Requirements

English B, Mathematics C or English 6, Mathematics 3b/3c.

Examination

Examination (TEN1), 6 credits, marks Pass (G) or Pass with distinction (VG)
Assignment (INL1), 1.5 credits, mark Pass (G)

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 and overlaps with NAA110 International Economics.