Course Contents

1. International Trade Policy  The Instruments of Trade Policy  The Impact of Trade Policies a. Partial Equilibrium Analysis (Small & large country case) b. General equilibrium analysis (Small & large country case)  Economic Integration: Custom Unions and Free Trade Areas 2. International Monetary Economics  Balance of Payment account  Foreign exchange markets and exchange rates  Exchange rate determination a. Monetary Approach b. Portfolio Balance Model  Automatic Adjustment to External Equilibrium c. The price adjustment mechanism d. The income adjustment mechanism 3. Macroeconomics policies in the open economy  Adjustment policies a. Expenditure changing and expenditure switching policies for internal and external balance b. Mundell Fleming model c. Fiscal & monetary policies for internal & external balance

Course Synopsis

This course is designed to equip students with elementary concept of international trade theories and to provide strong foundation in international economics to deal with changing global scenario.

Course Learning Outcomes

 After the completion of this course students will be able to identify, formulate and solve practical economics problems relating to international trade.  Students will be able to recommend policy options for foreign trade with reference to international scenario.