Question Paper - 2019,2020 , 2021 , 2022
Internal Exam Question sets-Link
Course Started from 25th August 2022.
Course Completed on 17th December, 2022
Content/ Syllabus: Unit wise course content distribution
Unit -1 Introduction of International Economics - Basis of Trade – gains from trade Notes
Unit-2 Theories of International Trade -
Theory of Trade Adam Smith -Absolute Cost Advantage theory, The Ricardian comparative cost advantage theory - Notes
Additional Readings
An Introduction to International Economics with a view on Classical thinking on trade
The Law of Comparative Advantage - Salvatore ,
Videos
The H-O Model-assumptions- Comparative advantage in H-O Model- Physical definition explanation of factor abundance and Price definition explanation of factor abundance, comparison of Comparative Advantage in the two (HO and Ricardo). Commodity and Factor prices under trade- factor price equalization theorem, Stolper-Samuelson Theorem- gains from trade and income distribution in free trade, factor intensity reversal and factor Prices-Leontief paradox, Rybczynski theorem, Demand Reversal.
Readings, Notes and Videos (H-O Model)
CLASS TASK 2.A - Complete notes Submission - 19th November,2022- Link
Class task 2.B.2 - Question Bank -Submission Date 19th Nov, 2022 -Link
CLASS TASK 2.B - Question Bank- Updated with Course Coverage- Link (2.B.1 - Submission Link & date 10pm, 8th Oct, 2022) -Link
CLASS TEST- 03/09/2022 - SET A & B
Class task- 2.1 - Submission link (submit before 10 am, 14th September,2022)
Introduction and Absolute cost advantage theory (Notes submission date- 28th August by 10 am) Submission Link
Unit -3. Trade Intervention Theory - Offer Curve, Metzler Paradox, Tariff and income distribution – tariffs terms of trade and domestic prices, tariffs and national income, the optimum tariff, Tariff - Small and Large Country case- Various effects of tariffs – quotas and quantitative trade restrictions -effects of quotas and quantitative trade restrictions and balance of payments- trading state, the infant industry argument. Problems of international reserves and liquidity and of development finance.
Readings, Notes and Videos
Offer Curve-Trade Triangle Approach -Video
Quota and its various effect, Equivalence of quota & tariff under static Market condition. -Video
Non Equivalence of quota & tariff under Changing Market condition - Notes, Video
Infant Industry Argument- Notes
International reserves and liquidity Problem and solution - Notes
Class task -3 Submission Link (Submission time and date by 10 am,21st Dec, 2022 )
Unit -4. Balance of Payments and Problems of Adjustment - The mechanism of adjustment under fixed exch. Rates – automatic adjustment under Gold Standard- expenditure reducing policies and Expenditure switching policies –devaluation, the elasticity approach (Marshall Lerner Condition) and absorption approaches – direct controls- mechanism of adjustment under flexible exchange rate and uncertainty, speculation and the stability of exchange rate and inflation- costs and benefits of flexible exchange rates.
Flexible exchange rate system Part 1 , Classroom Board Workout
Merits and Demerits of Flexible Exchange rate system Part 2
Class task 4.A - Class notes Submission (Submission date 19th November,2022)- Link
Class task 4.B - Question set (Submission date, 10 pm, 10th Oct, 2022) - Submission Link
References/ Suggested Readings
1. Krugman, Obstfeld and Melitz: International Economics: Theory and Policy, 10th Edition, Pearson.
2. Salvatore: International Economics: Trade and Finance, 11th Edition, Wiley India Pvt. Ltd.
3. D.M Mithani: International Economics, 8th Edition, Himalaya Publishing House.
4. Soderstein and Reed: International Economics, 3rd Edition, Palgrave Macmillan.
5. M.L Jhingan: International Economics, 7th Edition, Vrinda Publications Pvt. Ltd
Internal evaluation
First Criteria Assignment marks for unit 2 = 2 marks and for unit 3 and 4 = 1 marks each = 4 marks. Final Internal exam Subjective/Objectives will be decided later on - 6 marks
2nd Criteria Assignment marks for unit 2 = 2 marks and for unit 3 and 4 = 1 marks each = 4 marks. Final Internal exam Subjective/Objectives will be decided later on - 6 marks (2 additional marks) , Attendance 75 percent= 2 marks, Class participation and presentation = 2 marks. Second criteria includes 4 incentive marks