The microeconomics of international trade and the macroeconomics of the world economy. The focus is on recent trends in, and likely prospects for, the global economy.
Countries and their markets are interlinked as a result of international trade in goods and services, financial capital flows, foreign currency transactions and migration. This paper examines the economics behind these linkages. In particular, it considers: why trade takes place, the determinants of the pattern of trade, who stands to gain or lose from trade, the effects of government trade policy, the effectiveness of monetary and fiscal policy under fixed and floating exchange rate regimes, the evolution of the international monetary system over time, and the economics of monetary union.
|Paper title||The Global Economy|
|Teaching period||Second Semester|
|Domestic Tuition Fees (NZD)||$2,047.25|
|International Tuition Fees (NZD)||$5,209.25|
- Limited to
- More information link
- View more information about the Master of International Studies
- Teaching staff
- Associate Professor Alan King
Dr Murat Ungor
Readings are taken from a range of textbooks (as well as other sources) including:
- Caves, R.E., Frankel, J.A., & Jones, R.W. (2007) World Trade and Payments: An Introduction, Addison-Wesley: Reading MA.
- Feenstra, R. C., Taylor, A. M. (2014) International Trade, Worth Publishers: New York, NY.
- Krugman, P.R. & Obstfeld, M. (2006) International Economics: Theory and Policy, Addison-Wesley: Reading MA.
- Pilbeam, K. (2006) International Finance, Palgrave Macmillan: Houndmills.
- Yarbrough, B.V. & Yarbrough, R.M. (2006) The World Economy: Trade and Finance, Dryden Press: Fort Worth.
- Graduate Attributes Emphasised
- Global perspective, Lifelong learning, Communication, Critical thinking, Self-motivation.
View more information about Otago's graduate attributes.
- Learning Outcomes
After completing the paper, the successful student will be able to:
- Identify and explain the factors influencing the pattern of international trade;
- Identify and explain the advantages and/or costs of international trade for a country as a whole and specific groups within it;
- Identify and explain the effects of trade policy and evaluate the merits of such policies;
- Understand the structure and politics of international trade negotiations and associated institutions such as the World Trade Organization (WTO);
- Identify and explain the relationships that exist between key macroeconomic variables in an open economy;
- Analyse the effects on an economy of macroeconomic policy changes in a range or contexts; and
- Identify and explain the merits of alternative regional and international monetary arrangements.