ECN422 International Economics
The course will focus on new developments in the theory and empirics of international trade, FDI and globalisation. Starting with a generalisation of well-known trade theories, the course will cover topics like:
- Comparative advantage and trade
- Imperfect competition, economies of scale and trade
- New economic geography and the location of production
- The role of firms' productivity, selection and international trade
- FDI and multinationals
- Global production networks
- Trade and wages
- Trade and the environment
- The political economy of trade policy
Globalisation affects countries, regions, industries, firms and individuals in many ways. International trade and foreign direct investments (FDI) are key features of the globalisation process, and recent research on trade and investments aims at improving our understanding of how such globalisation processes work and affect us. The objective of this course is to give students insights into and knowledge of theory and empirics of international trade and FDI, as a basis for better understanding of how international markets affect key issues like trade and productivity, location of firms and industries, and determination of wages and other factor prices. Furthermore, topics like trade and growth, trade and inequalities and trade and the environment will be discussed.
Upon completion of this course, the candidates should
- Have a thorough knowledge of modern theory of international trade and FDI
- Be familiar with empirical analyses of international trade and investment issues
- Understand the global and regional political economy of trade and trade policy issues
- Understand the implications of globalisation for key policy challenges like e.g. environment policies or wages and inequalities.
- Be able to use insights, results and methods from trade theory and empirics to analyse the effects of globalisation and trade policy issues for e.g. specific markets, firms or regions.
Lectures, class discussions and group presentations in class.
Basic trade theory, for example from an undergraduate course in international economics (like SAM030 - Internasjonal handel og økonomisk vekst - in the bachelor programme at NHH) or from a textbook like Krugman and Obstfeld, International Economics, Theory and policy, 8th edition (or newer) Addison-Wesley 2008, chs. 1- 11, or (in Norwegian) Norman and Orvedal, En liten, åpen økonomi, Gyldendal Akademiske, 2010.
This course is the same as SAM466, and you will not get credit for both courses.
Requirements for course approval
Participation in group assignments, including class presentation and written hand-in. Pass grade required.
Group assignment: 40 per cent of grade (A-F) and final written exam: 60 per cent of grade (A-F).
Grading scale A - F.
Required readings will consist of articles and chapters from textbooks. A complete list of required and recommended readings will be given on It´s learning.
Autumn. Not offered Autumn 2019.
Armando J. Garcia Pires, Department of Economics.