Syllabus

International Economics Course 2021 -Link

1. Introduction

Basis of Trade – gains from trade

Lecture 1 - Basis and Gain from trade - Notes

2. Theory of Trade

The Ricardian theory – generalization of Ricardian model- the H-O Model, comparison of Comparative Advantage in the two ( HO and Ricardo) Commodity and Factor prices under trade- factor price equalization (Stolper-Samuelson Theorem), factor intensity reversal and factor Prices-Leontief paradox, gains from trade and income distribution. Offer Curve, Rybczynscki theorem, Metzler Paradox.

Video lecture

Lecture -1 : Introduction to International Economics, classical and neo-classical trade theories overview and Absolute cost advantage theory -Link

Reading

1. Absolute and Comparative Cost Advantage - Salvatore

2. Question and Answer set 1

3. Heckscher Ohlin Model Reading - Salvatore , Krugman

Lecture 2 International Economics: It’s Concept & Parts - Notes

Lecture 3- Absolute cost advantage theory - Video , Solution

Lecture 4 - Comparative cost advantage theory of Trade -Ricardo - Notes1 , Notes2, Notes3

Lecture 5 - The H-O Model - Technical Notes1, Technical Notes 2, Notes1, Notes 2 , Note3, H-O Model in Physical term

Lecture 6 - FPE and SST theorem - Notes

Lecture 7 - Factor Intensity Reversal - Notes

Lecture 8 - Leontief Paradox - Notes

Lecture 9-Rybczynscki Theorem - Notes

Lecture 10 -Offer Curve - Notes

Lecture 11 The Stopler Samuelson theorem - Free trade, tariff and Metzler Paradox - Income distribution - Notes ,Video

3. Trade Intervention

Theory of Tariff and income distribution – tariffs, terms of trade and domestic prices, tariffs and national income, the optimum tariff, other 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.

Lecture 12 The Stopler Samuelson theorem - with tariff and Metzler Paradox - Income distribution - Notes start after free trade , Video

Lecture 13 Tariffs and National Income - Notes

Lecture 14 - The optimum tariff -Notes

Lecture 15 - Introduction to tariffs in Partial equilibrium setting - Video

Lecture 16 - Cost and Benefits/other effects of tariffs- Video

Lecture 17 - Quota effect on Welfare, Are quota & tariff equivalent in their Economic impact - Video

Lecture 18 - The Choice between Import tariff and Quota - Notes

Lecture 19 - Infant Industry argument - Notes

Lecture 20 - Problem of International reserves, liquidity and dev. of finance - Notes

4. Balance of Payments and Problems of Adjustment

• The mechanism of adjustment under fixed exchange Rates – automatic adjustment under Gold Standard- expenditure reducing and Expenditure switching policies –devaluation, the elasticity 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.

Lecture 21 - Balance of trade versus Balance of Payment - Notes

Lecture 22- Introduction to Foreign exchange rate system - Notes

Lecture 23 - Fixed Exchange rate and mechanism of adjustment under Gold Standard - Notes

Lecture 24 -Expenditure changing and Expenditure switching policies- Notes

Lecture 25 - The Elasticity and Absorption approach - Notes

Lecture 26 - Flexible Exchange rate system- Notes

Lecture 27 - Merits and Demerits of fixed and flexible exchange rate system - Notes

Lecture 28 - Short notes - Important - Notes

Students Profile(Official use) , Curriculum Plan , Online Class Attendance, Class test 1 (13th Nov,2020) , Internal Marks, Internal evaluation criteria

15/02/2021 - Students are advice to follow University reading list especially Krugman and Soderstein. Additionally you people can look at Salvatore. Lecture notes provided here are indicative, for concept development students are advice to go through reading for external exam.

Internal Exam -07/02/2021 Internal exam pdf submission Final Internal marks

References:

1. Soderstein, Bo: International Economics, 2ndEdition

2. Kennen, P: International Economics

3. Caves, Frankel and Jones: World Trade and Payments

4. Krugman and Obstfeld: International Economics