International Economics (F)

Course content

The course studies causes and consequences of international trade. We seek to answer questions such as: Why do countries trade? What do they trade? Who gains and who loses from trade? What is the impact of trade policy on welfare? The course also considers aspects of the globalization debate: Is wage inequality affected? What are the implications of multinationals and outsourcing? Within the topic of international monetary economics the course covers theories of optimum currency areas.


BSc programme in Economics -prioritized elective at the 3.year 
MSc programme in Economics – elective course

The course is part of the Financial line in Economics symbolized by "F".

MSc programme in mathematics-economics

Learning outcome

The purpose of the course is to give an introduction to traditional and new trade theories and selected topics in international monetary economics. The aim is that the students, after participating in the course International Economics, will be able to:


  • understand and describe why international trade arise

  • understand and describe trade patterns under perfect and imperfect competition

  • understand and describe the extent to which there are welfare gains from trade

  • understand and describe the theory of optimum currency areas


  • analyze and calculate how trade affects behavior of firms and consumers and how trade affects welfare

  • analyze and calculate how trade policy affects firm behavior and analyze and calculate welfare implications of trade policy


  • understand and describe aspects of the globalization debate such as the impact of globalization on wage inequality, the role of multinational corporations, and labor market consequences of outsourcing

  • describe and analyze in a clear and correct written language


Lectures. The students will write one term paper.

Required readings:

Barba Navaretti, G. and A. Venables (2004), Multinational Firms in the World Economy, Princeton University Press, p. 1-22, 49-64.

Brander, J. and P. Krugman (1983), A 'Reciprocal Dumping' Model of International Trade, Journal of International Economics, 15, p. 313-321.

Brander, J. and B. Spencer (1985), Export Subsidies and International Market Share Rivalry, Journal of International Economics, 18, p. 83-100.

Feenstra, R.C. (2016), Advanced International Trade, Theory and Evidence, 2nd edition, Princeton University Press. Selected parts of chapters 1, 2, 3, 4, 5, 7, 8, and 9.

Krugman, P. (1979), Increasing Returns, Monopolistic Competition, and International Trade, Journal of International Economics, 9, p. 467-476.

Rose, A. (2000), One Money, One Market: The Effect of Common Currencies on Trade, Economic Policy 30, p. 8-45.

Additional readings will appear here.

Supplementary readings:

Brainard, S. L. (1997), An empirical assessment of the proximity-concentration trade-off between multinational sales and trade, American Economic Review 87, pp. 520-544.

Dragusanu, R., D. Giovannucci and N. Nunn (2014), The Economics of Fair Trade, Journal of Economic Perspectives 28, p. 217-236.

Friberg, R. and M. Ganslandt (2006), An empirical assessment of the welfare effects of reciprocal dumping, Journal of International Economics 70, pp. 1-24.


Basic micro- and macro theory of the first two years. Knowledge of basic Ordinary Least Squares (OLS) regressions.

3 hours of lectures per week for 14 weeks

Time and venue:
To see the time and location of lectures please press the link/links under "Se skema" (See schedule) at the right side of this page (17F means Spring 2017).

You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F17; [Name of course]”
-Select Report Type: List
-Select Period: "Forår/Spring – Week 4-29”
Press: “ View Timetable”

7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
at the computers of the University. The exam assignment is given in English and can be answered in English or in Danish. Language must be chosen at the course or exam registration.
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Criteria for exam assessment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must be able to demonstrate in an excellent manner that he or she has acquired and can make use of the knowledge, skills and competencies listed in the learning outcomes.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • English
  • 206