International Finance and International Trade

Instructor： Sun Cheng & XIAO Xiaolin(Sylvia)

Course Overview

• In the first part of the course we will examine the causes and consequences of international trade. We will investigate why nations trade, what they trade, and who reaps the gains (and bears the costs) from international trade. We will explore the effects of trade on economic growth and development and on wage inequality, and examine patterns of foreign direct investment and international labor migration as well as trade in goods and services. Finally, we will analyze countries' motives for restricting and regulating international trade, along with the effects of such policies on economic welfare.
• The second part of the course covers advanced topics in open-economy macroeconomics and in international finance. Topics treated include: real and nominal exchange rates, inflation and long run exchange rates, national income accounting in an open economy, globalization and growth, short run open economy, exchange rates regimes, and exchange rates crises.
  

资料链接

Detailed Course Plan

• 1st week, Defining and quantifying international trade; basic macro and micro building blocks
• 2nd week, Comparative and absolute advantage; the Ricardian model
• 3rd week, The specific factors model and income distribution.
• 4th week, Resources and trade: the Heckscher-Ohlin model
• 5th week, The Standard Trade Model
• 6th week, External economies of scale and the international location of production.
• 7th week, Instruments of trade policy; trade policy in developing countries.
• 8th week, Mid-term Exam
• 9th week, Nominal Exchange Rates
• 10th week, Real Exchange Rates
• 11th week, Money, Inflation and Long Run Exchange Rates
• 12th week, National Income Accounting in an Open Economy
• 13th week, Globalization and Growth
• 14th week, Short-Run Open Economy Macroeconomics
• 15th week, Exchange Rates Regimes and Crises
• 16th week, Final exam
  

References & Readings

• Paul R. Krugman, Mayrice Obstfeld and Marc J. Melitz. 2014. International Economics: Theory and Policy, Pearson Press.
• Feenstra, R. (2004), Advanced International Trade. Theory and Evidence. Princeton University Press.
• Helpman, H. and P. Krugman (1985), Market Structure and Foreign Trade, Cambridge, MIT Press (reference)
• Helpman, H. (2011), Understanding global trade, Hardvard University Press.
• G.Gopinath, E Helpman, K Rogoff. (2014), Handbook of International Economics
• Old versions for Handbook of International Economics.
• Robert C. Feenstra , Alan M. Taylor. 2011. International Economics. Second Edition,Worth Publishers