International Economics

Code:

LGE211

Acronym:

EI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2004/2005 - 2S

Active?	Yes
Web Page:	http://www.fep.up.pt/disciplinas/LGE211/
Responsible unit:	Grupo de Economia
Course/CS Responsible:	Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
GES	369	Official Curricular Structure since 2004	2	3		-

Objectives

The course aims to provide the instruments that will allow students to understand the current process of internationalisation. Students are also expected to be able to evaluate the impact of both proteccionist and liberalising trade policies.

Program

1. Introduction
Recent trends in the world economy. International Economic Institutions. Measuring international trade and investment.

2. The political economy of international trade
Instruments of trade policyand their impact. Costs and benefits of free trade.

3. Economic integration
Static and dynamic effects of economic integration.
Economic integration in Europe. WTO: origins, organisation, future. Multilateralism and Regionalism.

4. International trade theory
The classical and neoclassical approaches. New trade theories. International trade under imperfect competition. The competitive advantage of nations.

5. Multinationals and FDI
Motivations, benefits and costs of FDI
Theories of FDI and the multinational corporation

Main Bibliography

- Appleyard, Dennis R. and Alfred J. Field (2001), International Economics, 4th edition, McGraw-Hill.

- Hill, Charles W. L. (2002), International Business: Competing in the Global Market Place, 4th edition, Irwin McGraw-Hill.

Complementary Bibliography

- Chacholiades, Miltiades (1990), International Economics, McGraw-Hill. (off print)

- Dunning, John H. (1993), Multinational Enterprises and the Global Economy, Addison-Wesley.

- Krugman, Paul R. and Maurice Obstfeld (2002), Economia Internacional, Makron Books.

Teaching methods and learning activities

The course combines the presentation of theories and instruments with in-class discussion of real life examples. Students are strongly encouraged to participate in the discussion and to contribute with their own examples.

Evaluation Type

Calculation formula of final grade

* Option 1: Weighted average: 40% first test and 60% second test.

* Option 2: mark of final exam.

Special provisions for Erasmus students (see below)

Special assessment (TE, DA, ...)

Erasmus students can opt for an alternative evaluation regime, under which they are required to write 2 essays and a final exam. The final mark will be the weight average of the essays (2*30%) and the exam (40%).

The date of the exam is the same for all students (June 1st 2005), but different exam papers will be given to students opting for this alternative and for those choosing the general evaluation rules.