Drew University Moodle

This course includes topics central to both international trade and international finance, in other words, the flows of goods, services, and money across borders. The determinants of international trade, patterns of specialization and gains from trade in classical and neoclassical (Ricardian, Hecksher-Ochlin, factor-price equalization) models and new trade theories will be covered in order to study the effects of trade and trade policy (tariffs and quotas) on production and consumption patterns, factor prices, income distribution, economic growth and development. In the second half of the course, the focus will shift to theory and practice of international macroeconomics and finance. In particular, the course will cover issues pertaining to the balance of payments determination, and the functioning of foreign exchange markets and international capital markets. A special focus will be devoted to financial crises and contagion in the context of global economic and financial interactions and policy coordination under the international monetary system. Prerequisites: ECON 301 and ECON 302