International Economics Associate Professor Ivar Bredesen Room PE-540 ivar.bredesen@sam.hio.no

International Economics International Economics - economic interdependence among nations Flow of goods, services and payments between a nation and the rest of the world, and the effects on the nations welfare

Economic interdependence

Trade is growing fast

International Economics Specific subjects International trade theory. The basis for trade and the gains from trade International trade policy. The reasons for and the effects of trade restrictions Balance of payments. A nations total receipts and total payments to the rest of the world

International Economics Specific subjects, contd. Foreign exchange markets. Exchange of one national currency for another Open economy macroeconomics. Stabilisation policies in the open economy

International Economics Current International Economic Problems Trade protectionism in Industrial Countries Excessive fluctuations and large disequilibria in exchange rates Financial crises in emerging market economies High structural unemployment in Europe Restructuring problems in Transition Economies Deep poverty in many developing countries

International Economics Basically, the course is divided into two parts International trade and trade policy Economic Integration in Europe It will be assumed that students master basic microeconomics and macroeconomics

International Economics

International Economics Required reading: Salvatore Chapter 1 – 3, 5 – 10 Baldwin and Wyplosz Chapter 4 – 7, 13 – 18 There is some overlap between some chapters in Salvatore and Baldwin