Week |
Subject |
Related Preparation |
1) |
• Syllabus.
• Illustrate the questions that international economists study.
• Describe the characteristics of national economies.
• List the major exporting and importing countries.
• Explain the direction of international trade
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2) |
• Understand the methodological preliminaries.
• Explain the general equilibrium model.
• List the assumptions of the autarky model.
• Understand the solution of the model.
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3) |
• Explain the historical conditions of mercantilism.
• Explain the critique of mercantilism.
• Explain absolute advantage as a basis for trade.
• Illustrate absolute advantage theory.
• Discuss gains from trade.
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4) |
• Explain comparative advantage as a basis for trade.
• Illustrate comparative advantage theory.
• Illustrate the general equilibrium solution of the classical model.
• Discuss gains from trade.
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5) |
• Understand the basic assumptions of Hecksher-Ohlin (HO) Model.
• Define factor endowment and factor intensity.
• Explain the HO Theorem.
• Illustrate the equilibrium in the HO Model
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6) |
• List new HO theorems.
• Understand Rybczynski theorem.
• Explain factor price equalization theorem.
• Describe the Stolper-Samuelson theorem.
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7) |
• List the tests of the HO model.
• Define the input-output table
• Summarize the Leontief paradox.
• Discuss the implications of the Leontief paradox.
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8) |
• Explain product cycle theory
• Define intra-industry trade.
• Define internal and external economies of scale.
• Explain the New Trade Theory.
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9) |
• Explain the direction of international trade
• Explain absolute advantage as a basis for trade.
• Explain comparative advantage as a basis for trade.
• Understand Rybczynski theorem.
• Explain factor price equalization theorem.
• Describe the Stolper-Samuelson theorem.
• Summarize the Leontief paradox.
• Define intra-industry trade and market imperfections like economies of scale
• Explain the New Trade Theory.
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10) |
• Define BOP Accounting.
• List the current account entries.
• Describe the measures of the current account.
• Calculate the current account balances.
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11) |
• List the financial account entries.
• Define different types of capital flows.
• Compare different types of capital flows.
• Define the relation between current account, financial account and international reserves.
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12) |
• List and explain the reasons for holding foreign exchange.
• Describe the foreign-exchange market.
• Define spot market.
• Describe forward market.
• Define futures market.
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13) |
• Explain the changes of foreign exchange in different foreign exchange regimes.
• Discuss the effects of changes in foreign exchange rate on current account balance.
• Define the Marshall-Lerner condition
• Explain the exchange rate pass-through.
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14) |
• Explain the elasticities approach to the current account.
• Define elasticities and J curves.
• Describe the evidence from devaluations.
• Explain the absorption approach.
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15) |
• Final Exam
• Explain absolute advantage, comparative advantage and factor endowment.
• Define intra-industry trade and market imperfections like economies of scale.
• Explain the New Trade Theory.
• List the current account and financial account entries.
• Describe the measures of the BOP.
• Define the types of foreign-exchange market.
• Explain the theories of current account.
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