ECO 3200 - INTERNATIONAL TRADE AND FINANCE

credits: 3.0
This course is a one semester survey of international trade and international finance. Various models of international trade will be studied ranging from traditional (factor and resource based) to contemporary (increasing returns and imperfect competition). Other topics will include immigration and foreign direct investment (movement of labour and capital between countries), barriers to trade such as quotas and tariffs and the political economy of international trade. Various issues in international finance will be discussed including monetary and asset market theories of exchange rate determination and balance of payments accounts. The choice of exchange rate regimes will be studied as well as the effectiveness of international monetary policy. Objectives: A) Analyze various models of international trade, including traditional (factor and resource based) and contemporary (increasing returns and imperfect competition); B) Analyze models of international movements of factors; C) Analyze the effects of trade barriers; D) Develop an understanding of issues pertaining to the political economy of international trade; E) Analyze models of exchange rate determination, including asset market and monetary theories; F) Understand the balance of payments account; G) Analyze different exchange rate regimes (fixed vs. floating); H) Analyze the effectiveness of international monetary policy. Method of Instruction: Lecture, discussion, in-class problems, and online problems. Method of Evaluation: Tests, homework problems, and research project. Meets *GLP Distribution Requirement.

Prerequisite(s): ECO 2020 - PRINCIPLES OF MACROECONOMICS