Academic management

It is a compulsory course in the Bachelor of Economics. Part of the module Spanish, International and Sectorial Economics, and is taught in the third year of the degree, in the first half.

 International Economics consists of two blocks of traditional economic analysis of relations between countries: trade and international finance. In the first block of microeconomic analysis tools will be used to study the effects of international trade, as have been approached by the various theories. In the second section the focus will be on analyzing, from a macroeconomic point of view, the main theories in order to explain the way the exchange rate of a country works.

 International Economics thus has an important theoretical load, although issues applied to economic reality were also analyzed.

 

The requirements are the corresponding for a third year course Grade: have successfully taken advantage of the previous studies of the two previous years. Particularly, International Economics is closely related to: World Economy, Economy of the European Union, and the subjects about micro and macroeconomics.

Generic Skills

CG1.- Capacity for analysis and synthesis
CG2.- Learning capability
CG3.- Oral fluid capacity and written communication in the language

CG4. Knowledge and understanding of other languages, mainly English
CG5.- Ability to search and analysis of information sources in the workplace
CG7.- Ability to work autonomously
CG9.- Ability to work in a context of international
CG10.- Critical capacity and self
CG12.- Capacity for applying knowledge in practice

CG15. Lidership skills
CG19.- Concern for quality and a job well done
CG20.- Having values and ethical behavior

Specific Skills

ECO_CE3.- Identify and implement appropriate for the analysis of economic information quantitative tools
ECO_CE4.- Understanding the institutional environment and its impact on economic activity
ECO_CE5.- Understanding the behavior of economic agents and to assess its influence on the structure and functioning of markets
ECO_CE6.- Understand how an economy works at the aggregate level and assess the impact of changes in agents' behavior or in the institutional framework
ECO_CE8.- Understand and appreciate the international dimension of the economy
ECO_CE9.- Understand and appreciate the interrelationships of economic agents
ECO_CE10.- Analyze and evaluate economic policies
ECO_CE13.- Understand the role of financial markets and asset valuation principles
ECO_CE15.- transmit information, ideas, problems and solutions of the economic sphere to both specialist and non-specialist audience
ECO_CE16.- Issue reports advice on specific situations (international, national or regional) economy or sectors of the same

Learning outcomes

RA1: Understand the main issues of International Economics
RA2: Apply the basic concepts and methods of economics to understand the International Economy
RA3: Learn to use the tools most appropriate economic analysis for International Economics
RA4: Improve your ability to obtain and interpret for themselves the information and materials needed to understand the International Economy

RA2.5. Reinforce its abilities to work with software tools, that would allow the student to understand the national and international and sectorial economic reality (individually and in teams)

RA2.6. Reinforce its abilities to use information technologies as measn to communicate in an international working environment

RA8: Improving its ability to transmit information and advice on matters of International Economics
RA9: Assume the need to increase their autonomy to face the analysis of International Economics

Part I. International Trade

Chapter 1. The Ricardian model
   1.1. The Ricardian model and comparative advantage
   1.2. Extensions of the Ricardian model

Chapter 2. The standard trade model
   2.1. Instruments for analysis and autarkic equilibrium
   2.2. Exchange and wellness

Chapter 3. The Hecksher-Ohlin model
   3.1. Choice of factors and goods prices
   3.2. The Heckscher-Ohlin trade and effects

Chapter 4. New theories on international trade
   4.1. Economies of Scale and International Trade
   4.2. Imperfect competition and international trade
   4.3. Company responses to trade

Chapter 5. Trade policy
   5.1. The instruments of trade policy in competitive markets
   5.2. Trade policy and monopoly
   5.3. The political economy of trade policy


Part II. International Monetary Economics

Chapter 6. The foreign exchange market and exchange rates: an approach
   6.1. The exchange rates and the foreign exchange market: The Basics
   6.2. Interest rates and arbitration
   6.3. Equilibrium in the foreign exchange market and its variations

Chapter 7. Monetary variables and exchange rates
   7.1. The money supply and the exchange rates in the short term
   7.2. The money and the price level in the short and long term
   7.3. Inflation and the dynamics of exchange rates

Chapter 8. A general model of the types of long-term exchange rates
   8.1. The purchasing power parity (PPP) and the monetary approach to the exchange rate
   8.2. Empirical evidence on PPP
   8.3. Towards a general model of the types of long-term exchange rates


References:

Basic:

KRUGMAN, P.R., OBSTFELD, M., MELITZ, M.J. (2014): International Economics. Theory and Policy, 10th edition. Pearson, Edinburgh.

KRUGMAN, P.R., OBSTFELD, M., MELITZ, M.J. (2022): International Economics. Theory and Policy, 12th edition. Harlow, England.

Complementary:

FEENSTRA, R. C. and TAYLOR, AM (2011): International Trade. W.H. Freeman and Company, New York.
FEENSTRA, R. C. and TAYLOR, AM (2012): International Macroeconomics. Worth Publishers, New York.

 

 

Bibliographic Guide for detailed chapters:
 

Note: KOM refers to manual Krugman, Obstfeld and Melitz, and FT to manuals Feenstra and Taylor.

 

Class work:
- Lectures. The teacher will interactively conceptual content related to each agenda item. For this purpose, it shall provide to the students about transparencies that will be essential to monitor the lectures.
- Classroom Practices. These classes are aimed at students and teacher interaction for reprocessing concepts. These classes are intended primarily for modeling by the teacher, and the subsequent practice of the students of economic reasoning, argumentation and reasoned critical analysis, and the use of economic language and technical vocabulary for International Economics.
- Assessment sessions: students will demonstrate their knowledge in ongoing evaluation sessions (which can be done in lectures or in classroom practices) and a final exam.

Non-contact work:

In the non-contact tasks students have to perform to good tracking for International Economics include individual work and self-study, and will include:
- Previous reading of the slides provided by the teacher to follow the lectures
- Doing exercises and analysis of case studies
- Reading and analysis of texts
- Personal study and preparation of assessment tests

Eventually, in case of sanitary restrictions on the acces to the Faculty, more online activities could be included, as lectures, meetings, etc. Under this situation, students will be informed both by email and through the Virtual Campus.

The evaluation of International Economics Course is based on :

- The continuous evaluation, which can not be recovered in exams or in the ordinary and the extraordinary
- The final exam, to be held on the date fixed by the center

The continuous assessment activities are organized as follows:
-There will be various monitoring tests and tasks proposed by the teacher, carried out over the period of the course teacher, made ​​or raised in the lectures, practical or group tutorials. Weight in: 40%.
-All follow-up tests and assignments will be weighted in the final grade lower than 10%. As a guide, the number of tests and assignments can be five with a maximum score of 0.8 points each.

In the final exam all matter of the course is evaluated through both theoretical and practical issues, which may take the form of tests, exercises, etc. Follow-up tests of continuous assessment not release matter, that is, in examining all the contents of all issues are evaluated.

The final grade in all calls will be the sum of the marks obtained in continuous assessment and final examination. The continuous assessment tests will not be repeated in the extraordinary calls, but your score will be kept in these calls.

To pass the subject either in the ordinary or extraordinary calls, a minimum grade of 2 points (over 6) are needed in the the exam.  In the improbable case that the sum of the continuous evaluation (max 4 points) and the exam (max 6 points) results on 5 or more points BUT the requested minimum grade from the exam is not met, the final grade will be 4.9 (fail).  

For those students who applied for the differentiated assessment, the day of the exam they will also take additional tests equivalent to 40% of the continuous assessment.

Online evaluation methods could be applied, in case sanitary restrictions meassures deter the access to the Faculty.

We kindly remind you that the Ethical Code of the Faculty applies (Universidad de Oviedo - Código ético (uniovi.es)

Basic:

KRUGMAN, P.R., OBSTFELD, M., MELITZ, M.J. (2014): International Economics. Theory and Policy, 10th edition. Pearson, Edinburgh.

KRUGMAN, P.R., OBSTFELD, M., MELITZ, M.J. (2022): International Economics. Theory and Policy, 12th edition. Harlow, England.

Complementary:

FEENSTRA, R. C. and TAYLOR, AM (2011): International Trade. W.H. Freeman and Company, New York.
FEENSTRA, R. C. and TAYLOR, AM (2012): International Macroeconomics. Worth Publishers, New York.