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    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.

    The first part of the paper studies why countries trade with each other, what goods and services they trade, who gains and who loses from international trade, and how governments intervene to regulate cross border trade flows. We will focus specifically on the policy dimensions of international trade, that is, policies that alter international trade in some way. The second part of the paper explores why it is that most of the world’s economies appear to be trapped at low standards of living for most of their citizens. We will also ask what policies, if any, are likely to encourage the economic development of these countries and what developed countries can do to help developing countries (e.g. foreign aid).

    About this paper

    Paper title The Global Economy
    Subject International Studies
    EFTS 0.25
    Points 30 points
    Teaching period Semester 2 (On campus)
    Domestic Tuition Fees ( NZD ) $2,223.25
    International Tuition Fees Tuition Fees for international students are elsewhere on this website.
    Limited to
    Teaching staff

    Dr Murat Ungor
    Professor Stephen Knowles


    Readings are taken from a range of textbooks (as well as other sources) including the following recommended texts:

    Banerjee, A. and E. Duflo (2011) Poor Economics: A Radical Rethinking of the way to Fight Global Poverty, Public Affairs, New York.
    Easterly, W. (2001) The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics, MIT Press, Cambridge, Massachusetts.
    Feenstra, R. C., Taylor, A. M. (2017) International Trade, Worth Publishers: New York, NY.
    Krugman, P.R. & Obstfeld, M. (2006) International Economics: Theory and Policy, Addison-Wesley: Reading MA.
    Todaro, M. P. and S.C. Smith (2020) Economic Development, 13th ed., Pearson Addison Wesley, Essex, England.
    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

    Students who successfully complete the paper will:

    • Demonstrate a detailed knowledge and understanding of international and development economics
    • Communicate knowledge and ideas relating to international and development economics to others
    • Apply established theories and models of international and development economics to both hypothetical and real-world scenarios
    • Analyse complex problems relating to international and development economics and generate solutions


    Semester 2

    Teaching method
    This paper is taught On Campus
    Learning management system


    Stream Days Times Weeks
    A1 Tuesday 10:00-11:50 29-35, 37-42
    Friday 10:00-11:50 29-35, 37-42
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