International Economics

Code:

LGE211

Acronym:

EI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2005/2006 - 2S

Active?	Yes
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	306	Official Curricular Structure since 2004	2	3		-

Objectives

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

Students attending this course need to have basic knowledge on Microeconomic theory (see syllabus for LGE102 Microeconomics I).

Program

1. Introduction
Recent evolution of the world economy. Globalization and regional integration. International institutions. Measuring the internationalisation of economies.

2. International trade theory
Classical and neoclassical theories. ‘New’ trade theory. International trade under imperfect competition. The competitive advantage of nations.

3. International trade policy
Instruments of trade policy and their impact. Costs and benefits of free trade. Economic integration theory.

4. Multinational enterprises and foreign direct investment:
FDI motivations and entry modes. FDI theory. The internationalization of the firm. The impact of FDI.

Main Bibliography

• Appleyard, Dennis R., Alfred J. Field and Steven L. Cobb (2006), International Economics, 5th edition, McGraw-Hill.

• Hill, Charles W. L. (2005), International Business: Competing in the Global Marketplace, 5th edition, McGraw-Hill.

Complementary Bibliography

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

• Ietto-Gillies, Grazia (2005), Transnational Corporations and International Production: Concepts, Theories and Effects. Edward Elgar.

• Krugman, Paul R. and Maurice Obstfeld (2005), International Economics, 7th edition, Pearson International. Tradução da 6ª edição: Economia Internacional, Pearson Education do Brasil, 2005.

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: Average of two tests.

* Options 2 and 3: mark of exam.

Observations

Class TP4 will be taught in English.
(Monday, Wednesday, Friday, 11h30-13h00, Room 256)