Course started on 10th August,2023
Course Completed on 2nd Dec, 2023
Student Survey Link, Submit by 4th Dec , 2023
Question Paper - 2019,2020 , 2021 , 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.
Videos
Introduction to Classical trade theory and Adam Smith Absolute Cost Advantage Theory , Class task 1.1 (8th Aug, 23)
Notes
Comparative Cost Advantage (Opportunity Cost Representation)
No Comparative advantage and trade, Doctrine of CA and UDC's
Readings
An Introduction to International Economics with a view on Classical thinking on trade
The Law of Comparative Advantage - Salvatore ,
Class task 1.2 (Submit by 6th Sep, 2023)
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, Leontief paradox,factor intensity reversal, Rybczynski theorem, Demand Reversal.
Readings, Notes and Videos (H-O Model)
Heckscher Ohlin Model Reading - Salvatore , Krugman , Giancarlo Gandolfo
Notes
Lecture 1&2 - Heckscher Ohlin Model-Introduction and Model Development
Lecture 3 - Heckscher Ohlin Model-Physical definition and determining CA
Lecture 4.1- Heckscher Ohlin Model-Price definition, ---Physical vs Price Criteria
Unit -3. Trade Intervention Theory - Tariff and income distribution, Offer Curve, Metzler Paradox – 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
Lecture 2,3,4 - Offer curve -Metzler Paradox & SST Criticism
Offer Curve-Trade Triangle Approach -Video
Metzler Paradox - Video, Notes
Tariffs and National Income - Video, Notes
Welfare effect of Tariff Small Country Case-Notes , Video
Welfare effect of Tariff Large Country Case - Notes, 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 2.1 Complete notes submission- 10 am, 15th Oct, 2023
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 , Board Workout
Merits and Demerits of Flexible Exchange rate system Part 2
Class task 3 Complete Notes Submission of unit-4 by 3rd Dec, 2023
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
Continuous Assessment (Internal Exam): 10 Marks
1. Attendance - 04 marks
attending less than 60 % - 0 marks
attending at least 60% but less than 75% - 2 marks
Students with over 75% but less than 90% attendance - 3 marks
With 90% attendance and more - 4 marks
2. Class Tasks/Homework and Presentation - 04 marks (Incentive)
Unit 2 = 2 marks
Unit 3,4 - 1 marks each x 2 = 2 marks
3. Exam- Subjective/Objective type - 06 marks
Internal Exam carries 06 marks
4. Extra Incentive marks- 02 marks
Class participation, active involment in department activities, presentation etc
End Semester Examination: 40 Marks
The end semester examination shall be conducted based on written test.
Question Pattern: Students have to answer 01 question carrying 10 marks out of given 03 questions
; 03 questions carrying 5 marks each out of given 05 questions;.
05 questions carrying 2 marks each out of given 08 questions;
05 questions carrying 1 mark each out of given 08 questions.