1. University of Papua New Guinea International Economics Lecture 1: Introduction

2. The University of Papua New Guinea Slide 1 Lecture 1: Introduction Michael Cornish Overview Aim of the course Structure of the course Some basic concepts… Guest lecturers Assessment Textbook

3. The University of Papua New Guinea Slide 2 Lecture 1: Introduction Michael Cornish Aim of the course Critical thinking! To understand: –Current major issues and debates in the global political economy –The major models used to understand international trade, and how to apply them

4. The University of Papua New Guinea Slide 3 Lecture 1: Introduction Michael Cornish Aim of the course To understand (cont.): –What trade policy tools government has, their effect, and how best to apply them –A basic introduction to international monetary policy –The effects of foreign direct investment (FDI) and international aid …and all with at least a little enthusiasm!

5. The University of Papua New Guinea Slide 4 Lecture 1: Introduction Michael Cornish Structure of the course Wks 2 to 4: Introduction / political economy Wks 5 to 8: Trade models and theorems Wk 9 and 10: Trade policy Wk 10 and 11: International monetary theory Wk 12: FDI and international aid Wk 13: Revision! Trade Intro Monetary

6. The University of Papua New Guinea Slide 5 Lecture 1: Introduction Michael Cornish Some basic concepts... What is international trade? What do our trade models try to do? What is the purpose of trade policy? What is international monetary theory? »Why is all this important???

7. The University of Papua New Guinea Slide 6 Lecture 1: Introduction Michael Cornish Guest lecturers Mr. Paul Flanagan (Aust. National University) –Undertakes analysis on PNG’s economic prospects, focusing on the 2015 PNG Budget Strongly suggest you read: http://www.businessadvantagepng.com/papua-new-guinea- 2015-budget-analysis-dealing-with-debt-and-deficits/http://www.businessadvantagepng.com/papua-new-guinea- 2015-budget-analysis-dealing-with-debt-and-deficits/ http://www.abc.net.au/news/2014-12-02/papua-new-guinea- economy-set-to-grow-15-per-cent-in-2015/5933664http://www.abc.net.au/news/2014-12-02/papua-new-guinea- economy-set-to-grow-15-per-cent-in-2015/5933664

8. The University of Papua New Guinea Slide 7 Lecture 1: Introduction Michael Cornish Guest lecturers Also read: –http://devpolicy.org/papua-new-guineas-vanishing- lng-export-boom-20141220/http://devpolicy.org/papua-new-guineas-vanishing- lng-export-boom-20141220/ Detailed brief: –http://devpolicy.org/policy_briefs/PB10VanishingPN GLNGexportboom.pdfhttp://devpolicy.org/policy_briefs/PB10VanishingPN GLNGexportboom.pdf

9. The University of Papua New Guinea Slide 8 Lecture 1: Introduction Michael Cornish Guest lecturers Homework: –Write down one question to ask Mr. Paul Flanagan for the question and answer session after his lecture –Bring your written question to the first tutorial (Wk4) – it will count for tutorial participation for Week 3! Hopefully I can get more guest lecturers for us… Don’t worry, I will put all these links up online!

10. The University of Papua New Guinea Slide 9 Lecture 1: Introduction Michael Cornish Online resources All material in the course will be made available at: –http://michaelcornish.org/international-economics/http://michaelcornish.org/international-economics/ This means: –The course outline –Lecture powerpoints –Links to articles and.pdfs –Anything else relevant or useful !

11. The University of Papua New Guinea Slide 10 Lecture 1: Introduction Michael Cornish Textbook 9th Edition

12. The University of Papua New Guinea Slide 11 Lecture 1: Introduction Michael Cornish Assessment Tutorial Participation: 10% –Tutorials every week (except not today, and not on Easter Friday) –Tutorial questions handed out on Mondays Individual Assignment: 15% –Details in Course Outline –Due Monday 13th April (Wk 5) by 1pm

13. The University of Papua New Guinea Slide 12 Lecture 1: Introduction Michael Cornish Assessment Group Assignment: 25% –Details to be provided after individual assignment is submitted Final Exam: 50% –Details about time, date and location to be provided as soon as they are confirmed

14. The University of Papua New Guinea Slide 13 Lecture 1: Introduction Michael Cornish Some final words…

15. The University of Papua New Guinea Slide 14 Lecture 1: Introduction Michael Cornish