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?
  • How would various policy changes discussed in the news affect trade, welfare and inequality?
Education

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:

Knowledge:

  • understand and describe why international trade arises

  • understand and describe trade patterns under perfect and imperfect competition

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

 

Skills:

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

  • Analyze and calculate how trade policy affectsfirm behaviour and analyze and calculate welfare implications of trade policy

 

Competences:

  • 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.
  • Under, discuss and evaluate current policy proposals in light of the theory presented in the class.

 

Lectures and exercise classes.

Students will be required to right a short memo (1-2) pages using the models of the class to discuss current events.

  • 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.

 

Micro- and macro theory of the first two years. Especially with the mathematical formalities of microeconomics. Note, this is not an easy class. Understanding of differentiation, calculus etc. is taking as a given.

Schedule:
3 hours lectures a week from week 6 to 20 (except holidays).
2 hours exercise class a week from week 6/7 to 21 (except holidays).


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

You can find the similar information partly in English at
https:/​/​skema.ku.dk/​ku1819/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F19; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”

The overall schema for the 3rd year and Master courses can be seen at KUnet:
MSc in Economics => "courses and teaching" => "Planning and overview" => "Your timetable"
BA i Økonomi/KA i Økonomi => "Kurser og undervisning" => "Planlægning og overblik" => "Dit skema"

ECTS
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
The exam assignment is given in English and must be answered in English.
____
Aid
Without aids
Marking scale
7-point grading scale
Censorship form
No external censorship
The exam 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
  • Class Exercises
  • 28
  • Preparation
  • 133
  • Exam
  • 3
  • English
  • 206