Developing ability to use the tools of economic theory for the analysis of international economics phenomena, specifically trade, in aggregate terms. Particular use of basic knowledge in microeconomics for welfare analysis to discuss the effect of trade. The foundations and historical development of modern trade theory with special emphasis on comparative advantage theory lays down the initial fundamentals of the course. A brief discussion of the sources of trade and thus growth and development for nations is followed by policy issues and global effects. Regulations and barriers on trade are also outlined while industrialization and trade policy are dealt simultaneously for a broader understanding of how trade policies are in cyclical relation with those of industrial. Further discussions in the course are made on the role of international investments and issues of currency politics with specific reference to developing nations. Finally, a broader and more critical thinking of why nations fail and how they succeed will be at the heart of our discussion in the class.
Course Content
This course contains; The International Economy and World Trade: An Overview,Foundations of Trade Theory: Historical Development and Micro Analysis of Comparative Advantage,Comparative Advantage Extended and The Case for Trade,Sources of Comparative Advantage: Factor Endowments, Technology, Industry and Trade Policy,Tariffs and A Comparative Welfare Effect Analysis,Non-Tariff Trade Barriers: Mechanisms and Regulations,Trade Wars, Macro Policies and International Economic Order,Trade Regulations, Policies and Industrial Development ,Trade Policies for the Developing Nations,Multilateralism and Regional Trade Agreements,Cross-Country and Multinational Investments,A Brief Introduction to The Balance-Of-Payments,Exchange Rate Systems, Currency Politics and Crises: A Crash Course,Exchange Rate Systems, Currency Politics and Crises.
Dersin Öğrenme Kazanımları
Teaching Methods
Assessment Methods
1. Will be able to explain the Theory of Comparative Advantage
10, 16, 6, 9
A, E
3.1.Describe the Heckscher-Ohlin theorem and its relevance in explaining international trade patterns.
4. Will be able to evaluate New Trade Theories
10, 16, 6, 9
A, E
5. Will be able to assess Trade Policy Implications
10, 16, 6, 9
A, E
2. Will be able to analyze Trade Patterns and Welfare Effects
10, 16, 6, 9
A, E
3. Will be able to examine the Heckscher-Ohlin Model and its Applications
10, 16, 6, 9
A, E
1.1. Explain the concept of absolute and comparative advantage in international trade.
1.2. Illustrate the benefits of specialization and trade based on comparative advantage.
2.1. Evaluate the impact of trade on the distribution of income and welfare of participating countries.
2.2. Examine the effects of trade on production, consumption, and prices of goods and services.
3.2. Analyze how factor abundance and factor intensity influence trade patterns.
4.1. Assess the role of economies of scale and imperfect competition in explaining trade patterns.
4.2. Analyze the implications of product differentiation and technological advancements on international trade.
5.1. Analyzes the effects of tariffs, quotas, and subsidies on international trade.
5.2. Evaluates the role of trade agreements and their impact on global trade patterns.
The International Economy and World Trade: An Overview
2
Foundations of Trade Theory: Historical Development and Micro Analysis of Comparative Advantage
3
Comparative Advantage Extended and The Case for Trade
4
Sources of Comparative Advantage: Factor Endowments, Technology, Industry and Trade Policy
5
Tariffs and A Comparative Welfare Effect Analysis
6
Non-Tariff Trade Barriers: Mechanisms and Regulations
7
Trade Wars, Macro Policies and International Economic Order
8
Trade Regulations, Policies and Industrial Development
8
Trade Policies for the Developing Nations
9
Multilateralism and Regional Trade Agreements
10
Cross-Country and Multinational Investments
11
A Brief Introduction to The Balance-Of-Payments
12
Exchange Rate Systems, Currency Politics and Crises: A Crash Course
13
Exchange Rate Systems, Currency Politics and Crises
Resources
Robert Carbaugh, International Economics, 16th Edition, Cengage, 2018.
Krugman et al, International Economics, Pearson 11th Global Edition, 2018. (Supp.)
ADDITIONAL RESOURCES
Gerber, J. (2017) International Economics, 2017
Salvatore, D. (2015) International Economics, 12ed
Jeffry A. Frieden, Currency Politics, Princeton University Press, 2015.
Daron Acemoglu, Why Nations Fail, Crown Publishing, 2013.
Murat A. Yülek, How Nations Succeed, Springer, 2018.
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
Defines the theoretical issues in the field of International Trade and Finance (ITF).
X
2
Describes the necessary quantitative and statistical methods in the field of ITF.
X
3
Uses at least one computer program in the field of ITF.
X
4
Sustains proficiency in a foreign language required in ITF.
X
5
Prepares trade and finance projects and leads teams.
X
6
Constantly updates himself / herself by following developments in science and technology with an understanding of the importance of lifelong learning through critically evaluating the knowledge and skills that s/he has got.
X
7
Uses theoretical and practical expertise in the field of ITF.
X
8
Follows up-to-date technology using a foreign language at least A1 level, holds verbal / written communication skills.
X
9
Adopts organizational / institutional and social ethical values.
X
10
Within the framework of community involvement, adopts social responsibility principles and takes initiative when necessary.
X
11
Uses and analyses basic facts and data in various disciplines (economics, finance, sociology, law, business) in order to conduct interdisciplinary studies.
X
12
Gains expertise in global trade, export and import transactions, customs clearance and financing of foreign trade.
X
Assessment Methods
Contribution Level
Absolute Evaluation
Rate of Midterm Exam to Success
50
Rate of Final Exam to Success
50
Total
100
ECTS / Workload Table
Activities
Number of
Duration(Hour)
Total Workload(Hour)
Course Hours
14
3
42
Guided Problem Solving
0
0
0
Resolution of Homework Problems and Submission as a Report
1
30
30
Term Project
2
5
10
Presentation of Project / Seminar
0
0
0
Quiz
0
0
0
Midterm Exam
1
25
25
General Exam
1
40
40
Performance Task, Maintenance Plan
0
0
0
Total Workload(Hour)
147
Dersin AKTS Kredisi = Toplam İş Yükü (Saat)/30*=(147/30)
5
ECTS of the course: 30 hours of work is counted as 1 ECTS credit.
Detail Informations of the Course
Course Description
Course
Code
Semester
T+P (Hour)
Credit
ECTS
INTERNATIONAL ECONOMICS
-
Fall Semester
3+0
3
5
Course Program
Prerequisites Courses
Recommended Elective Courses
Language of Course
English
Course Level
First Cycle (Bachelor's Degree)
Course Type
Required
Course Coordinator
Prof.Dr. Rana ATABAY KUŞÇU
Name of Lecturer(s)
Prof.Dr. Mehmet BABACAN
Assistant(s)
Aim
Developing ability to use the tools of economic theory for the analysis of international economics phenomena, specifically trade, in aggregate terms. Particular use of basic knowledge in microeconomics for welfare analysis to discuss the effect of trade. The foundations and historical development of modern trade theory with special emphasis on comparative advantage theory lays down the initial fundamentals of the course. A brief discussion of the sources of trade and thus growth and development for nations is followed by policy issues and global effects. Regulations and barriers on trade are also outlined while industrialization and trade policy are dealt simultaneously for a broader understanding of how trade policies are in cyclical relation with those of industrial. Further discussions in the course are made on the role of international investments and issues of currency politics with specific reference to developing nations. Finally, a broader and more critical thinking of why nations fail and how they succeed will be at the heart of our discussion in the class.
Course Content
This course contains; The International Economy and World Trade: An Overview,Foundations of Trade Theory: Historical Development and Micro Analysis of Comparative Advantage,Comparative Advantage Extended and The Case for Trade,Sources of Comparative Advantage: Factor Endowments, Technology, Industry and Trade Policy,Tariffs and A Comparative Welfare Effect Analysis,Non-Tariff Trade Barriers: Mechanisms and Regulations,Trade Wars, Macro Policies and International Economic Order,Trade Regulations, Policies and Industrial Development ,Trade Policies for the Developing Nations,Multilateralism and Regional Trade Agreements,Cross-Country and Multinational Investments,A Brief Introduction to The Balance-Of-Payments,Exchange Rate Systems, Currency Politics and Crises: A Crash Course,Exchange Rate Systems, Currency Politics and Crises.
Dersin Öğrenme Kazanımları
Teaching Methods
Assessment Methods
1. Will be able to explain the Theory of Comparative Advantage
10, 16, 6, 9
A, E
3.1.Describe the Heckscher-Ohlin theorem and its relevance in explaining international trade patterns.
4. Will be able to evaluate New Trade Theories
10, 16, 6, 9
A, E
5. Will be able to assess Trade Policy Implications
10, 16, 6, 9
A, E
2. Will be able to analyze Trade Patterns and Welfare Effects
10, 16, 6, 9
A, E
3. Will be able to examine the Heckscher-Ohlin Model and its Applications
10, 16, 6, 9
A, E
1.1. Explain the concept of absolute and comparative advantage in international trade.
1.2. Illustrate the benefits of specialization and trade based on comparative advantage.
2.1. Evaluate the impact of trade on the distribution of income and welfare of participating countries.
2.2. Examine the effects of trade on production, consumption, and prices of goods and services.
3.2. Analyze how factor abundance and factor intensity influence trade patterns.
4.1. Assess the role of economies of scale and imperfect competition in explaining trade patterns.
4.2. Analyze the implications of product differentiation and technological advancements on international trade.
5.1. Analyzes the effects of tariffs, quotas, and subsidies on international trade.
5.2. Evaluates the role of trade agreements and their impact on global trade patterns.
The International Economy and World Trade: An Overview
2
Foundations of Trade Theory: Historical Development and Micro Analysis of Comparative Advantage
3
Comparative Advantage Extended and The Case for Trade
4
Sources of Comparative Advantage: Factor Endowments, Technology, Industry and Trade Policy
5
Tariffs and A Comparative Welfare Effect Analysis
6
Non-Tariff Trade Barriers: Mechanisms and Regulations
7
Trade Wars, Macro Policies and International Economic Order
8
Trade Regulations, Policies and Industrial Development
8
Trade Policies for the Developing Nations
9
Multilateralism and Regional Trade Agreements
10
Cross-Country and Multinational Investments
11
A Brief Introduction to The Balance-Of-Payments
12
Exchange Rate Systems, Currency Politics and Crises: A Crash Course
13
Exchange Rate Systems, Currency Politics and Crises
Resources
Robert Carbaugh, International Economics, 16th Edition, Cengage, 2018.
Krugman et al, International Economics, Pearson 11th Global Edition, 2018. (Supp.)
ADDITIONAL RESOURCES
Gerber, J. (2017) International Economics, 2017
Salvatore, D. (2015) International Economics, 12ed
Jeffry A. Frieden, Currency Politics, Princeton University Press, 2015.
Daron Acemoglu, Why Nations Fail, Crown Publishing, 2013.
Murat A. Yülek, How Nations Succeed, Springer, 2018.
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
Defines the theoretical issues in the field of International Trade and Finance (ITF).
X
2
Describes the necessary quantitative and statistical methods in the field of ITF.
X
3
Uses at least one computer program in the field of ITF.
X
4
Sustains proficiency in a foreign language required in ITF.
X
5
Prepares trade and finance projects and leads teams.
X
6
Constantly updates himself / herself by following developments in science and technology with an understanding of the importance of lifelong learning through critically evaluating the knowledge and skills that s/he has got.
X
7
Uses theoretical and practical expertise in the field of ITF.
X
8
Follows up-to-date technology using a foreign language at least A1 level, holds verbal / written communication skills.
X
9
Adopts organizational / institutional and social ethical values.
X
10
Within the framework of community involvement, adopts social responsibility principles and takes initiative when necessary.
X
11
Uses and analyses basic facts and data in various disciplines (economics, finance, sociology, law, business) in order to conduct interdisciplinary studies.
X
12
Gains expertise in global trade, export and import transactions, customs clearance and financing of foreign trade.
