ECG9121

Economics of international trade

Ms Carol Jeffs

6 points · Distance: approximately 12 hours per week · Second semester · Gippsland · Prerequisites: ECG9102 and ECG9120

Objectives The objective of this intermediate subject is to draw upon skills developed in microeconomics and macroeconomics to enable students to understand and critically evaluate contemporary policy debates in international trade and finance. Students will develop the ability to use powerful analytical tools to predict the impact of global economic, political and social policies on Australia as a small open economy. They will recognise the positive welfare effects of worldwide unrestricted trade.

Synopsis The subject consists of three parts. The first one is devoted to the pure theory of international trade. It explains the concept of bases for trade and gains from trade, considers the impact of trade upon income distribution and the impact of economic growth on changes in trade. The second part covers trade policy matters, including tariffs, quotas, subsidies, import discrimination and other national policies affecting trade. The last one explains the mechanisms of the foreign exchange market. Determination of exchange rates, the balance of payments, modern foreign exchange policies and the threat of unstable exchange rates, international lending and the world debt crisis are considered from both the theoretical and current affairs perspective.

Assessment Assignment work 30% · Examination 70%

Prescribed texts

Salvatore D International economics 5th edn, Macmillan, 1995

Back to the 1999 Business and Economics Handbook