Course detail

International Economics

FP-mePAcad. year: 2021/2022

This course aims to provide an up-to-date and understandable analytical unified framework for understanding traditional insights as well as the newest findings and approaches in international economics. In analysing both the real and monetary sides of the subject, the approach will help the student to gain and retain the underlying logic of international economics.

Language of instruction

Czech

Number of ECTS credits

Mode of study

Not applicable.

Guarantor

prof. Ing. Marek Zinecker, Ph.D.

Department

Institute of Economics (ÚE)

Learning outcomes of the course unit

At the end of the curricular unit the students will be able to understand international trade theories and how policies and events affect an open economy.

Prerequisites

Knowledge in macroeconomics, microeconomics and international trade.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course contains of two-hour lectures that explain principles, problems and methodology of the discipline, and two-hour practical seminar. The practical exercises promote the practical knowledge of the subject presented in the lectures and also are concerned on handling numerical tasks.

Assesment methods and criteria linked to learning outcomes

Student obtains credits if he/she receives at least 18 points out of 30 possible points awarded for practical seminars. The points will be awarded for a final writtten test, from which the student must obtain at least 9 points. Another requirement represents an assignment and its presentation (the student must obtain at least 8 points).
The requirement to final examination is the knowledge of the course and obtained credit. The final exam is written (a written test). It takes into account a comprehensive knowledge of international economics, in all material respects. The maximum number of possible points is 70. Each student must obtain at least 35 points. In the overall assessment, the points of the seminars and examination are added. Students may request an oral verification.

The scale of the resulting classification:
(student may gain from exercise 30 points and max.70 points of the test, a total of 100 points)
A: 90-100 points
B: 80-89 points
C: 70-79 points
D: 60-69 points
E: 50-59 points
F: less than 50 points

Course curriculum

1. International Trade Theories – Classical Country-Based Trade Theories
2. Modern Firm-Based Theories.
3. International Mobility of Production Factors.
4. International Investment Theories.
5. Trade Policy: Main issues. Benefits of International Trade.
6. Trade Policy: Main Instruments and their Effects.
7. Arguments for Restricting International Trade.
8. International Flows of Goods and Capital. National Income Accounting and the Balance of Payments.
9. Prices for International Transactions: Real and Nominal Exchange Rates. Theory of Exchange-Rate Determination based on Purchasing-Power Parity.
10. Optimum Currency Areas and the European Experience
11. Equilibrium in the Open Economy: Money, Interest Rates, and Exchange Rates.
12. Fiscal and Monetary Policy in an Open Economy.
13. International Economic Integration

Work placements

Not applicable.

Aims

The course focuses on the understanding main concepts linked to the trade and monetary issues of international economics. Applications are also discussed while using relevant case studies.

Specification of controlled education, way of implementation and compensation for absences

Attendance is not mandatory.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Griffin, W. R., Pustay, M. W. (2015). International Business. Pearson. ISBN 978-1-292-01821-8. (EN)
Krugman, P. R., Obstfeld, M. (2015). International Economics. Theory and Policy. Pearson. ISBN 978-1-292-01955-7.
Mankiw, N. G. (2015). Principles of Macroeconomics. Cengage Learning, ISBN 978-1-285-16591-2.
Neumann, P., Žamberský, P., Jiránková, M. (2010). Mezinárodní ekonomie. Grada Publishing. ISBN 978-80-247-3276-3. (CS)
Soukup, A. (2012). Mezinárodní ekonomie. Nakladatelství Aleš Čeněk. ISBN 978-80-7380-392-6.

Recommended reading

Çolak, G., Durnev, A., & Qian, Y. (2017). Political Uncertainty and IPO Activity: Evidence from U.S. Gubernatorial Elections. Journal of Financial and Quantitative Analysis, 52(6), 2523-2564. doi:10.1017/S0022109017000862
Kim, Chansog (Francis & Pantzalis, Christos & Park, Jung. (2014). Political Geography and Stock Returns: The value and risk implications of proximity to political power.
Laura A. Wellman, 2017. "Mitigating political uncertainty," Review of Accounting Studies, Springer, vol. 22(1), pages 217-250, March.
Rodolphe Desbordes, Gary Koop (2016). Should we care about the uncertainty around measures of political-economic development? Journal of Comparative Economics, Volume 44, Issue 3, pp. 752-763. (EN)
Savor, P., & Wilson, M. (2013). How Much Do Investors Care About Macroeconomic Risk? Evidence from Scheduled Economic Announcements. Journal of Financial and Quantitative Analysis, 48(2), 343-375. doi:10.1017/S002210901300015X
Scott R. Baker, Nicholas Bloom, Steven J. Davis; Measuring Economic Policy Uncertainty, The Quarterly Journal of Economics, Volume 131, Issue 4, 1 November 2016, Pages 1593–1636, https://doi.org/10.1093/qje/qjw024 (EN)

Elearning

eLearning: currently opened course

Classification of course in study plans