International Economics

1
International Economics

• Associate Professor Ivar Bredesen
• Room PE-540
• ivar.bredesen_at_sam.hio.no

2
International Economics

• International Economics - economic
  interdependence among nations
• Flow of goods, services and payments between a
  nation and the rest of the world, and the effects
  on the nations welfare

3
Economic interdependence
4
Trade is growing fast
5
International Economics

• Specific subjects
• International trade theory. The basis for trade
  and the gains from trade
• International trade policy. The reasons for and
  the effects of trade restrictions
• Balance of payments. A nations total receipts and
  total payments to the rest of the world

6
International Economics

• Specific subjects, contd.
• Foreign exchange markets. Exchange of one
  national currency for another
• Open economy macroeconomics. Stabilisation
  policies in the open economy

7
International Economics

• Current International Economic Problems
• Trade protectionism in Industrial Countries
• Excessive fluctuations and large disequilibria in
  exchange rates
• Financial crises in emerging market economies
• High structural unemployment in Europe
• Restructuring problems in Transition Economies
• Deep poverty in many developing countries

8
International Economics

• Basically, the course is divided into two parts
• International trade and trade policy
• Economic Integration in Europe
• It will be assumed that students master basic
  microeconomics and macroeconomics

9
International Economics
10
International Economics

• Required reading
• Salvatore
• Chapter 1 3, 5 10
• Baldwin and Wyplosz
• Chapter 4 7, 13 18
• There is some overlap between some chapters in
  Salvatore and Baldwin