Course Details

Course Information Package

Course Unit CodeABSE280
Course Unit Details
Number of ECTS credits allocated5
Learning Outcomes of the course unitBy the end of the course, the students should be able to:
  1. Demonstrate the ability to understand the Importance of International Economics; The Law of Comparative Advantage
  2. Appraise how Demand and Supply works in trade and the Terms of Trade
  3. Evaluate the Factor Endowments and the Heckscher – Ohlin Theory, and the assumptions of the theory.
  4. Apply the workings of Trade Restrictions such as Tariffs, the partial equilibrium analysis of a Tariff; and also the Non-tariff Trade Barriers and the New Protectionism.
  5. Evaluate the centrifugal and centripetal forces in the world economy and assess the impact of institutional differences on international trade and international business
  6. Examine how exchange rates are affected by fluctuations in economic growth, inflation, interest rates, and expectations.
  7. Explain the meaning of the Balance of payments and compare and contrast the effects of fixed versus flexible exchange rates on a nation’s macroeconomic performance.
  8. Understand and assess the theory of economic integration and explain origins, evolution, and treaties of the European Union.
Mode of DeliveryFace-to-face
Recommended optional program componentsNONE
Course Contents The Importance of International Economics; International Trade and the Nation’s Standard of living.
The Law of Comparative Advantage. The Basis for and the Gains from Trade Under Constant Costs.
Demand and Supply, Offer Curves, and the Terms of Trade.
Factor Endowments and the Heckscher – Ohlin Theory. Assumptions of the Theory.
Factor Intensity, Factor Abundance, and the Shape of the Production Frontier. Heckscher – Ohlin Theorem.
Neutral, Labour - Saving and Capital-Saving Technical progress. Growth and trade – the small country case and the large country case.
Trade Restrictions: Tariffs. Partial Equilibrium Analysis of a Tariff.
Non-tariff Trade Barriers and the New Protectionism.
Import Quotas and their effects on the economy.
The Exchange rate. Fixed vs. floating exchange rate systems.
The Balance of Payments
The international monetary system.
Theory and practice of international economic integration
Recommended and/or required reading:
  • Krugman P., & Obstfeld., International Economics: Theory and Policy, 6th Edition, Addison – Wesley Publishing
  • Salvatore D., International Economics, 7th Edition, John Wiley & Sons
Planned learning activities and teaching methodsThe taught part of the course is delivered to the students by means of lectures and is further enriched through discussions, presentations and assignments
Assessment methods and criteria
Mid-term exam20%
Final Exam60%
Language of instructionEnglish
Work placement(s)NO

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