International Economics

Code:

LGE211

Acronym:

EI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2006/2007 - 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	258	Official Curricular Structure since 2004	2	3		-

Objectives

The course aims to provide future managers with the theoretical and empirical instruments that will them 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. Measuring the internationalisation of economies. The straucture of Portuguese and world trade.

2. International trade theory
Classical and neoclassical theories. The role of demand and of innovation. 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. Globalization and regional integration. WTO: past and present.

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.

• Krugman, Paul R. and Maurice Obstfeld (2005), International Economics, 7th edition, Pearson International.

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

• Porter, Michael E. (1998), The Competitive Advantage of Nations, 2nd edition, Free Press.

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.

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

Distributed evaluation with final exam

Calculation formula of final grade

* Option 1: The final mark will be the highest between:
(i) average of two tests
(ii) average of two tests + 10% of average of two mini-tests( the latter average must not be bellow 10/20).

* Option 2: mark of exam.

* Options 3 (Erasmus students only): highest between:
(i) average of the four assessments;
(ii) average of two tests.

Special assessment (TE, DA, ...)

* Erasmus students:
Two essasy plus two tests. Mark will be the highest between:
(i) average of the four assessments;
(ii) average of two tests.
Students must attend 80% of the classes.

Observations

One class will be taugh in English.