Programa

International Economics

Licenciatura Bolonha em Economics

Licenciatura Bolonha em Management

Programa

Ch 1: Gains from trade in the Ricardian model -The major trade flows across the globe -1st way of understanding the Ricardian gains from trade -2nd way of understanding the Ricardian gains from trade -Gains from trade resulting from economies of scale Ch2: Is there a mechanism that leads countries to fully employ their workforces in the sectors of comparative advantage? - A model with two goods: the relative wage must fall between the relative productivities in the two goods -Five notes -International Financial Investors (IFI) -Flexible rates with the Southern trade deficit financed: a) The South?s Central Bank b) Loans of Northern banks -Fixed rates with the Southern trade deficit financed a)The South?s Central Bank b) Loans of Northern banks Ch 3: Applications of the Ricardian model with 10-goods -Two possible causes of trade deficits -The doctrine of the immaculate transfer -Trade imbalances in the Eurozone, 1995-2013 a) The emergence of the imbalances, 1995-2010 b) The subsequent adjustment to the imbalances, 2011-2013 Ch 4: The Hecksher-Ohlin (HO) model -Problem with the Ricardian model -The unit production cost of a good -The HO theorem -Note about the HO theorem -The HO theorem only holds if there are obstacles to labour and capital international mobility -The Leontieff Paradox -The HO theorem with skilled and unskilled labour -The international fragmentation of production by multinationals -The HO theorem with land and labour -The HO theorem with slaves -The HO theorem with labour and capital (Ohlin?s example) -Consequences of specialization a) On nominal rents and wages: the Lerner-Samuelson theorem. b) On the prices of the exported and the imported goods c) Gains from trade d) On the purchasing power of landlords and workers: the Stopler-Samuelson theorem. Ch. 5: INTRA-industry trade -Trade caused by consumers? love for variety -Trade caused by dumping Ch. 6: The Infant-Industry Argument and Import-Substituting Industrialization ? Less Developed Countries -The Infant-Industry Argument -Objections to the Infant-Industry Argument -The Effective Rate of Protection Ch. 7: Trade Policies -The small-country case a) The free-trade situation b) The effect of a tariff c) The effect of a quota d) The effect of a Voluntary Export Restraint e) The effect of a subsidy to an import-competing industry f) The effect of a subsidy to an export industry -The large-country case a) The effect of a subsidy to an export industry: partial and general equilibrium b) The Common Agricultural Policy of the EU c) The effect of a tariff: partial and general equilibrium d) The effects of biased economic growth: general equilibrium Ch. 8: Trade liberalization in the real world -The political economy of protectionism -Evolution of tariffs since WW2 -Rules of the GATT/WTO -Agriculture, textiles and services -The novelty brought by the WTO (1994) Ch. 9: Economic Integration -Five stages/types of economic integration -Free Trade Area vs. Customs Union -Two effects of a Customs Union: trade creation and trade diversion Ch. 10: Monetary Integration -Effects on the ability of a country to cope with shocks in domestic demand -Effects on the ability of a country to cope with shocks in foreign demand