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Trade and Finance in the Global Economy



Ec, En, ID

Admission Requirements

Principles of Economics recommended. Similarly tagged 100-level or 200-level courses. Students that do not meet this prerequisite should contact the instructor regarding the required competencies before course allocation.


Countries are increasingly eliminating their trade barriers and international trade now truly spans the globe. Products and services come from everywhere and go everywhere. This, as well as the liberalization of large financial flows, makes countries very dependent on what happens in the international economy. At the end of this course, students will have an understanding of both the basic principles of international trade and finance as well as the recent developments in trade and finance. These will include, among other things, regional and global integration, the consequences of international financial crises on the development of economies, the interaction of economic policies in individual countries and the impact of international institutions, such as the WTO and the IMF, on the processes of globalization. Students will be able to understand, apply and discuss fundamental economic arguments on international economic issues.

Course Objectives

In this course, the student will gain a thorough acquaintance with the principles of international economics. He will understand the benefits and costs of international trade and finance, as well as the recent developments in trade and finance. At the end of this course, the student:

  • understands the important current issues in the field of International Economics

  • has a command of the core elements in this field of expertise;

  • is able to collect, interpret and process information in the field of International Economics

Mode of Instruction

Each week consists of two seminars:

During the first seminar, the main issues in the required reading will be identified and discussed. Based on an interactive setting, the focus will be on understanding the concepts and theories in international economics.

In the second seminar, students will apply their knowledge. Each week the homework consists of preparing study problems. In class the students will discuss the solutions for the problems. Applying the concepts and theories, and explaining this to each other increases the knowledge and understanding of economics.


The assessment of this course is based on three elements:

  • Unweighted averages of scores on weekly multiple choice tests (online). There will be 7 tests, but the lowest result will be deleted. (A failure to submit before the deadline will result in a zero score.) (40%) Prepare 25 multiple choice questions. (You lose a point for every wrong answer.)

  • Unweighted average of scores on class assignments and class participation. (A failure to submit before the deadline will result in a zero score.) (30 %) Students are on a weekly basis expected to prepare the reading material and the study questions. Based on these preparation, students are able and expected to participate in class, i.e. to discuss the concepts, theories and the solutions for the study problems.

  • Term paper (30 %) Topic to be announced.


Thomas A. Pugel, International Economics, 15th Edition, McGrawHill, 2009

Additional material will be made available through Blackboard

Contact Information


Weekly Overview

Week 1: The Benefits of International Trade.
Week 2: A Reappraisal of International Trade.
Week 3: Trade Policies.
Week 4: Trade Cooperation.
Week 5: Balance of Payments and Exchange Rates.
Week 6: International Financial Architecture and Financial Crises.
Week 7: Open Macro-economic Policies.

Preparation for first session

Textbook: chapters 1, 2, 3