1. International Economics
Associate Professor Ivar Bredesen
Room PE-540

2. 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

3. Economic interdependence

4. Trade is growing fast

5. 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

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

7. 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

8. 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

9. International Economics

10. 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