CODE 73599 ACADEMIC YEAR 2023/2024 CREDITS 10 cfu anno 3 SCIENZE INTERNAZIONALI E DIPLOMATICHE 8768 (L-36) - GENOVA SCIENTIFIC DISCIPLINARY SECTOR SECS-P/01 LANGUAGE Italian TEACHING LOCATION GENOVA SEMESTER 1° Semester PREREQUISITES Propedeuticità in ingresso Per sostenere l'esame di questo insegnamento è necessario aver sostenuto i seguenti esami: International and Diplomatic Sciences 8768 (coorte 2021/2022) MACROECONOMICS 57133 2021 TEACHING MATERIALS AULAWEB OVERVIEW The International Economics Program provides students with a firm grasp of the theory and tools of economics, finance, and the functioning of the international economic system. These skills are an important component of modern training in international affairs. In addition, the advanced courses in the program can be used to prepare interested students for a variety of careers in international economic and financial analysis as well as in business. AIMS AND CONTENT LEARNING OUTCOMES This course provides an analysis of the economic relationships between countries, covering both trade and monetary issues. AIMS AND LEARNING OUTCOMES The course is aimed at providing students that did not take International Economics in the First-cycle degree/Bachelor with some basic theoretical tools. In the part of the course devoted to international trade the focus is on what are the reasons explaining trade patterns among countries and what are the gains from trade. The most important instruments of trade policy are analyzed, and the costs and benefits of protectionist trade policies are assessed. Moreover, multinational enterprises organizational and production choices are explained, in order to understand their functioning. In the part of the course devoted to international monetary economics, the focus is on the mechanisms that determine the exchange rate between currencies, and on the relationship between exchange rates, money supply and interest rates. PREREQUISITES Microecomomics and Macroeconmics. TEACHING METHODS lectures and exercises SYLLABUS/CONTENT The general traditional model. Overview. The general traditional model: assumptions; autarkic equilibrium; free-trade equilibrium; gains from trade in consumption and production; the direction of trade; the excess demand curve (net imports). The Ricardian model. The concept of opportunity-cost. The Ricardian model of trade: assumptions: the linear production possibility frontier; definition of autarkic equilibrium; the free-trade equilibrium; the excess demand curve in the Ricardian model; gains from trade. The Heckscher-Ohlin model. Overview. The model: assumptions; production in a small open economy; factor prices and commodity prices; the Stolper-Samuelson theorem; international equilbrium; integrated equilibrium; the theorem of equalization of factors prices; the Rybczynski theorem; the Heckscher-Ohlin theorem; international trade and income distribution. Models with increasing returns to scale and imperfect competition. Determinants of international trade in the new theories. Market power. Pro-competitive effect (Markusen). Selection effect. Variety effect (Dixit and Norman). Trade policy. Efficiency and equity. What is protectionism in trade? Protectionism in trade: demand, supply and trade with a single industry; the effect of an import tariff - the case of a small economy; the effect of an export subsidy - the case of a small economy. Trade policy: arguments in favor of protectionism. Overview. Traditional arguments in favor of protectionism: the argument of a big economy (effect on the terms of trade); the argument of the infant industry; the argument of increasing returns to scale; the argument of internal market distortions. Multinational enterprises and Foreign Direct Investment. Definitions. Stylized facts. Advantages (and disadvantages) of multinationals. Location choice: horizontal and vertical FDI. Internalization choice: outsourcing and licensing. Exchange Rates and the Foreign Exchange Market: An Asset Approach Money, Interest Rates, and Exchange Rates Price Levels and the Exchange Rate in the Long Run RECOMMENDED READING/BIBLIOGRAPHY Krugman, Obstfeld, Melitz Economia internazionale Vol. I, Person Suggested reading Pittaluga G.B., Economia Monetaria, Milano Hoepli ultima edizione. Pittaluga G.B., Seghezza E. Building trust in the international monetary system, Springer Further material will be available on Aulaweb. TEACHERS AND EXAM BOARD ELENA SEGHEZZA Ricevimento: Wednesday, 10.00 to 12.00 in the teacher's office located on the 5th floor of the West Tower in the Albergo dei Poveri, Piazzale Brignole 3 canc.. In order to avoid overlaps and waits, please notify your request for an appointment in advance by email to seghezza@unige.it Exam Board ELENA SEGHEZZA (President) GIOVANNI BATTISTA PITTALUGA GIULIA BIANCHI (Substitute) ANDREA VINDIGNI (Substitute) LESSONS LESSONS START I semester. In the week starting September 12 Class schedule INTERNATIONAL ECONOMICS EXAMS EXAM DESCRIPTION Written and oral exam ASSESSMENT METHODS Frontal lessons Exam schedule Data appello Orario Luogo Degree type Note 09/01/2024 11:00 GENOVA Scritto 23/01/2024 11:00 GENOVA Scritto 21/05/2024 11:00 GENOVA Scritto 11/06/2024 12:00 GENOVA Scritto 05/07/2024 11:30 GENOVA Scritto 11/09/2024 12:00 GENOVA Scritto FURTHER INFORMATION Periodically consult the aula web Agenda 2030 - Sustainable Development Goals No poverty Zero hunger Quality education Gender equality Decent work and economic growth Industry, innovation and infrastructure Reduce inequality Responbile consumption and production