COURSE CODE: BFIN 415E TITLE: INTERNATIONAL ECONOMICS Credit Units 3 Number of 42 Purpose of the course To introduce the learner(s) to international economics and related international economic issues. Course Description The pure advantage theory of international trade, comparative advantage, gains from trade, tariff and non- tariff barriers to trade, the balance of payments, international factor movement and trade growth, customs union, international commodity agreements, theory of exchange rate determination and case studies of international economic policy, international monetary systems. Course objectives Instruction in this course should result in students achieving the following objectives: (i) Explain the theory of absolute (pure) and Comparative advantages (ii) Describe barriers to international trade (iii) Explain the concept of balance of payment (BOP) (iv) Describe the concept of economic integration (v) Explain the international monetary system Learning Outcomes At the completion of this course, the student should able to: 1) Clearly understand the principles of pure advantage and comparative theory of international trade 2) Understand the different gains from trade and types of barriers to trade and arguments for and against existence of protectionism 3) Design and plan for Balance of Payment accounts, and account for the causes of balance of payment accounts and suggest measures to solve BOP problems in Kenya 4) Understand the levels of economic integration, benefits of joining an economic integration and challenges of being a member of an economic block. 5) Understand the operations of the International monetary systems including IMF and World Bank. Learning and teaching methods
Lecturers, class discussions and seminars, field practical/visits. Instructional materials and equipment BigBlueButton, web conferencing platform, videos, voice recordings, phones, LMS, smart board, Lecture notes, whiteboard, laptop and LCD. Course Assessment Continuous assessment tests (sit in) 20%; assignments/presentations (10%); Final examination (70%) Recommended Reading for Students 1) Mudida, R. (2003). Modern economics. 2) Pugel, T. A. (2016). International Economics, 16th. 3) Copeland, L. S. (2008). Exchange rates and international finance . Pearson Education. 4) Krugman, P., Melitz, M., & Obstfeld, M. (2012). International Economics: Theory and Policy, Global Edition . Pearson. 5) Carbaugh, R. J. (2013). International Economics. 14. Aufl., South-Western (Cengage Learning) . 6) Feenstra, R. C., & Taylor, A. M. (2014). International Trade (Vol. 3). New York: Worth Macmillan , 189-190. 7) Krugman, P. R. (2008). International economics: Theory and policy, 8/E . Pearson Education India. 8) Salvatore, D. (2019). International Economics . John Wiley & Sons. 9) JAMES. GERBER. (2017). International Economics Plus Pearson Mylab Economics with Pearson Etext . PEARSON EDUCATION Limited. 10) Reinert, K. A. (2020). An introduction to international economics . Cambridge University Press. COURSE OUTLINE Week 1 Topic 1: Introduction a). Meaning and importance of international trade (gains from trade) b). Theory of Pure and comparative advantage
Week 2 Topic 2: Protectionism a). Meaning of protectionism b). Tariff and non-tariff barriers c). Arguments for and against Protectionism Week 3 Topic 3: Balance of Payment (BOP) a). Meaning of Balance of payment, balance of trade and terms of trade b). Items to be included in the balance of payment c). Balance of payment accounts d). Causes and control of disequilibrium in the balance of payment Week 4 Topic 4: economic Integration/ International trade agreements a). Meaning of economic Integration b). Forms/levels of Integration c). Benefits of Integration d). Challenges to Integration Week 5: CAT 1 Week 6 Topic 5: Exchange Rate Determination a). Meaning of Exchange rate b).Exchange rate Regimes c). Determinants of exchange rates Week 7 Topic 5: Exchange rate Determination continues d). Markets for foreign exchange - Eurocurrency market -International capital Market - Domestic market e). Exchange rate Exposures Week 8 Topic 6: International Factor movement and growth a). Meaning b). Theories explaining international factor movement and growth - Heckscher-Ohlin Theorem (O-H)
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