Authorised by Academic Registrar, April 1996
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 Weeks 1 - 5 The pure theory of international trade. Trade and income distribution, economic growth and changes in trade, bases for trade and gains from trade. Weeks 6 - 8 Trade policy. Tariffs, quotas, subsidies, import discrimination and other national policies affecting trade. Weeks 9 - 13 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.
Assessment Two assignments (each 2500 words): 30% + Examination (3 hours): 70%