1. EU and the World Economy: Trade, factor mobility and Institutional Framework (2cfu) A.A. 2006/2007 Nicola Coniglio University of Bari February 25, 2008 – February 29, 2008

2. Plan of the lectures Contents:  the nature of global interactions;  Measuring global interactions: the balance of payment;  International Organizations: a brief overview;  Economics of trade and protectionism;  International Capital Mobility and production structure (FDI);  Brief overview of exchange rate regimes

3. Lecture 1: Global Interactions Learning goals: The scope and importance of global and regional economic interactions (globalization: key concepts). The main channels of global interactions: trade in goods and services, labor mobility, international capital mobility, global firms and fragmentation of production, international aid. How global interaction are measured? (Balance of payment) Readings: *Brakman S., Garretsen H., van Marrewijk C., van Witteloostuijn A. (2006), Nations and Firms in the Global Economy, Cambridge University Press – Chapters 1-2 *Lecture notes / Other readings (mainly from The Economist) * Compulsary readings

4. Lecture 2: The institutional framework Learning goals: The structure and functioning of global institutions such as the International Monetary Fund, World Bank, World Trade Organization. EU external relations: trade policy and economic cooperation Readings: * Van Marrewijk (2002), International Trade and the World Economy, Oxford University Press – Chapter 12 *Lecture notes / additional readings * Compulsary readings

5. Lecture 3: The economics of Trade and Protectionism Learning goals: Understand why countries trade and what are the welfare effects of trade. A brief overview of trade policy and its welfare effects. A discussion on the causes and consequences of protectionism. Ability to use databases and other useful tools concerning international trade flows. Readings / Tools: *Brakman S., Garretsen H., van Marrewijk C., van Witteloostuijn A. (2006), Nations and Firms in the Global Economy, Cambridge University Press – Chapters 3-4-10 *Lecture notes / trade flows and tariffs databases (Istat / United Nations / WTO) / WTO’s trade policy reviews

6. Lecture 4: International Capital Mobility Learning goals: Why capital flows across countries? Causes and consequences. Measuring international capital mobility. The economic role of Foreign Direct Investments. Readings: *Brakman S., Garretsen H., van Marrewijk C., van Witteloostuijn A. (2006), Nations and Firms in the Global Economy, Cambridge University Press – Chapters 6 - 10 *Lecture notes / UNCTAD, World Investment Report 2006 Readings from ”The Economists”

7. Lecture 5: Selected Issues on the economics of Exchange Rate Learning goals: Basic concepts: exchange rates, the structure of foreign exchange markets. The main instruments. The determination of exchange rates. Readings: *Cross S. (1998), The Foreign Exchange Market in the United States, Federal Reserve Bank of New York Other readings