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.

The purpose of the course is to give an introduction to traditional and new trade theories and selected topics in international monetary economics.


MSc programme in Economics – elective course

Bacheloruddannelsen i økonomi – Prioriteret valgfag på 3. år

The Danish BSc programme in Economics - prioritized elective at the 3rd year

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.

After completing the course, the student should 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

  • conduct empirical analyses of questions related to the globalization debate

  • describe and analyze in a clear and correct written language


Lectures. One lecture week will be dedicated to writing and discussing a short empirical 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 and either SAS or Stata software packages is also required.

3 hours lectures a week from week 6 to 20 (except holidays).

The overall schema for the BA 3rd year can be seen at https:/​/​​polit_ba/​undervisning/​Lektionsplan-F18/​Sider/​default.aspx
or the Master at https:/​/​​ECONOMICS_MA/​COURSES/​COURSECATALOGUE-F18/​Pages/​default.aspx

Timetable 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 (E means Autumn, F means Spring).

You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F18; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
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 must be answered in English.
Without aids
Marking scale
7-point grading scale
Censorship form
No external censorship
The course can be selected for external assessment.
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 with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material 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