International economics
Associate Professor Dietrich Fausten
6 points * Two 1-hour lectures and one 1-hour tutorial per week * Second semester * Clayton * Prerequisites: ECO2020 and ECO2030
Objectives On completion of this subject students should understand the essential features of international trade and asset exchanges; the effects of international commodity and capital flows, and of protectionist policies, on domestic economic welfare and other objectives; the foreign exchange market and the specific roles of exchange rates in asset markets and commodity markets; the implications of international interdependence for the conduct of national stabilisation policies; and, thus, be able to form factual assessments and constructive criticism of public policy and debate concerning open economy issues.
Synopsis Investigation of economic interaction between countries in the context of international exchanges of commodities and assets. Major topics include the real gains from international trade, interindustry and intraindustry trade, tariff policies, international factor movements, nominal and real exchange rates, foreign debt, structural reform and adjustment policies in the open economy.
Assessment Class test: 20% * Examination (2 hours): 80% * If performance in the final exam is superior to the test then the final exam attracts a weight of 100%.
Prescribed texts
Caves R E and others World trade and payments: An introduction 6th edn, Harper Collins, 1993