B.A. Economics
6th Semester Syllabus
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MJC-10 : International Economics
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Unit 1: Introduction
◦Nature and scope of International Economics
◦Trade surpluses and deficits
◦The economic basis of trade
◦Terms of trade
◦Gains from trade
◦Instruments of trade policy and their impact on international trade
◦Trade barriers (quantitative and qualitative): tariffs
◦Subsidies and quotas
◦Free trade vs. protection: case for free trade
◦Case for protection
Unit 2: Theories of International Trade
◦Absolute and Comparative advantage
◦Opportunity cost theory
◦Ricardian and Heckscher-Ohlin Model
◦Leontief's Paradox
◦Immiserising Growth and the Transfer Problem
Unit 3: Exchange rate and BoP
◦Concept and types of Exchange rate
◦Theories of Exchange rate determination
◦Fixed vs. flexible exchange rate
◦Factors affecting exchange rate
◦Impact of exchange rate on economy
◦Market for foreign exchange
◦Review of Balance of Payment (BoP) accounting
◦Components of BoP: current and capital account
◦Disequilibrium of BoP: causes and methods of correction
◦Adjustment mechanisms
◦Internal and external balance
◦Elasticity
◦Absorption and Monetary Approach to BoP
Unit 4: International Institutions
◦WTO, IMF, World Bank, ADB, New Development Bank: Objectives, principles and functions
Reference Books:
- Paul Krugman, Maurice Obstfeld, and Marc Melitz, International Economics: Theory and Policy, Addison-Wesley (Pearson Education Indian Edition), 9th edition, 2012.
- Dominick Salvatore, International Economics: Trade and Finance, John Wiley International Student Edition, 10th edition, 2011.