International Economics

The subject of International Economics at the third cycle studies implies deepening of the knowledge acquired in the undergraduate and master studies in all subjects in this area. The goal is that students at this level of study consolidate, but also more specifically apply additionally acquired knowledge in terms of independent understanding and critical observation of modern international trade and financial flows.

After successful completion of this subject the student will be able to: - understand modern trends in the international economy, - understand the standards and theories of superstructure of international trade, - classify restrictions in international trade and understand the reasons of the application of protectionist measures, - understand the imbalances of balance of payments and sub-balances, and global trade imbalances of individual countries - sum up the ways of determining the exchange rate and adjustment mechanisms, - understand and explain the impact of fiscal and monetary policy to the internal and external balance - examine the various aspects of coordination of macroeconomic policies among leading countries and the impact on the rest of the world

Standard theory of international trade, availability of factors, economies of scale, imperfect competition and international trade; economic growth and international trade - the case of small and big country, graphical and analytical analysis. Restrictions in international trade, customs and new protectionism; political economy of protectionism; regionalism; The Uruguay Round, unsolved problems of international trade policy and the Doha Round; international trade and economic development, import substitution and export orientation; international resource movements and multinational corporations. Balance of payments, sub-balances and global imbalances, the method of reporting on international transactions; foreign exchange rate and the foreign exchange market - interest arbitration, Eurocurrency and offshore markets. Determination of the exchange rate; mechanism of price adjustment under fixed and flexible exchange rate - slip, J curve, Marshall-Lerner condition. Adjustment policies: fiscal and monetary policy in terms of fixed and flexible exchange rate; coordination of macroeconomic policies of countries - case studies; perspectives of the modern international monetary system.

Lectures, consultations, independent presentations of students on the basis of analysis of case studies; independent written papers of students and organizing workshops.

Study research pre-exam paper and taking final oral exam.

Reinert, A.K. (2012). Аn Introduction to International Economics: New Perspectives on the World Economy. 02nd ed. Cambridge University Press Krugman, P. and Obstfeld, M. (2009). International economics, Theory and Policy. Belgrade: Datastatus. Salvatore, D. (2009). International Economics. Belgrade: Publishing Center of the Faculty of Economics