International Economics

Paper Code: 
EMI 523
Credits: 
4
Contact Hours: 
60.00
12.00
Unit I: 
Importance of Trade and Trade Theories:

Importance of the study of international economics; Inter-regional and international trade; Theories of absolute advantage, Comparative advantage and opportunity cost; Heckscher - Ohlin theory of trade - its main features, assumptions and limitations.

12.00
Unit II: 
Gains from Trade :

Gains from trade - Their Measurement and Distribution: Trade as an engine of economic growth; concepts of terms of trade and their importance in the theory of trade.

12.00
Unit III: 
Tariffs and Quotas:

Types of t¬ariffs and quotas; Their impact in partial equilibrium analysis; Free trade and policy of tariffs in relation to economic growth with special reference to India.   

12.00
Unit IV: 
Balance of Trade and Balance of Payments:

Concepts and components of balance of payments; Equilibrium and disequilibria in balance of payment; consequences of disequilibrium in balance of payments; Various Measures to correct deficit in the balance of payments; Relative merits, Demerits and limitation of devaluation; functions of IMF, World Bank and GATT/ WTO; Reform of the International Monetary system and India. Regional Trade agreements - SAARC & ASEAN.

Unit V: 
Foreign Trade in India :

Recent changes in the composition and direction of foreign trade : causes and  effects of persistent deficit in balance of payments; Measures adopted by the government to correct the deficit; Need for and rationale of trade reforms in India (Including partial and full Convertibility of rupee); recent export and import policies of India; Role of Multinational corporations in India.

 

*A minimum of one case study will be discussed per unit of the syllabi.

References: 

Text Books:

  1. Kenan, P.B. (1994), The International Economy, Cambridge University Press, London.
  2. Kindleberger, C.P. (1973), International Economics, R.D. Irwin, Home Wood.
  3. Krugman, P.R. and M. Obstgeld (1994), International Economics: Theory and policy, GJenview, foresman.
  4. Salvatore D.L. (1997), International Economics, Prentice Hall, Upper Saddle River, N.J.

Suggested  readings:

  1. Aggrawal, M.R. (1979), Regional Economic Co-operation in South As ia, S. Chand and Co New Delhi.
  2. Bhagwati, j. (Ed.) (1981), International Trade Selected Readings, Cambridge University Press, Mass.
  3. Crockett, A. (1982), International Money: Issue and Analysis ELBS and Nelson, London.
  4. Greenway, D. (1983), International Trade Policy, Macmillan Publishers Ltd., London.
  5. Heller, H.R. (1968), International Monetary Economics, Prentice  Hall, India.
  6. Joshi, v. and I.M.D. Little (1998), India's Economic Reforms, 1999-2001, Oxford University Press.