Student guide Faculty of Economics A.Y. 2008/09

International Economics
Aim of the course
To introduce students to the major topics of international economics. The course format continually refers back between the theory and empirical facts. The theory is used to achieve simplification and "cleanness" of thinking when dealing with problems that are by nature highly complex, while the reference to empirical data constitutes the framework and raison d'être of the course.
1. Introduction: the principal features of the globalisation process;
2. Causes and consequences of international trade:
2.1 the principle of comparative advantage: the relative productivity difference;
2.2 the principle of comparative advantage: differences in relative supply of factors of production.
3. International trade and income distribution: the short and long run;
4. International trade and economic growth;
5. Imperfect competition and economies of scale as causes of foreign trade;
6. Economic geography and international trade;
7. International movement of factors of production:
7.1 movements of the production factor labour;
7.2 movements of the production factor capital: foreign direct investment and other forms of corporate internationalisation.
8. Role of government in international trade:
8.1 introduction: trade policy instruments;
8.2 the debate on the advantages of free trade;
8.3 protectionism and developing countries;
8.4 trade policies and industrial policies: interrelations and experiences of the industrialised countries.
The examination procedure will be communicated by the lecturer during the course and posted on the office notice board.
Reading list
Krugman, P., Obstfeld, M., Economia Internazionale, Milano, Hoepli, 1995, second ed. (translation from the English of the third edition).