Formation/Cours

Concepts of Microeconomics, including consumer theory, producer theory, market equilibrium, monopoly and monopolistic competition as well as concepts of Macroeconomics (including exchange rates and model of short run open economy). (Nevertheless, this concepts will be reviewed in class)

This course aims at expanding the students knowledge and understanding of: economic tools, international trade theory and policy, exchange rates determination and exchange rates policy, foreign exchange market, balance of payments and international financial investment.

Upon completion of this course, students are expected to understand economic theory and its predictions. In addition to learning content, students shall also develop an ability to use these theories.

Introduction

The Theory of International Trade:

• The Basic Theory Using Demand and Supply


• Comparative Advantage


• Factor availability and Factor Proportions are key


• Who Gains and Who Loses from Trade?


• Scale Economies, Imperfect Competition, and Trade

Trade Policy:

• Analysis of a Tariff


• Non-Tariff Barriers to Imports


• Arguments For and Against Protection


• Pushing Exports (time permitting)

Understanding Foreign Exchange:

• Payments among Nations


• The Foreign Exchange Market


• Forward Exchange and Financial Investment


• What Determines Exchange Rates?


• Government Policies & Foreign Exchange Market (time permitting)