• Explain basic terminology from International Economics (e.g. "comparative advantage", “factor abundance", “factor intensity” etc.) in a comprehensive and intuitive way.
• Describe and rationalize the main assumptions behind trade models such as Ricardian model, Hechscher-Ohlin model, and imperfect competition model.
• Perform policy experiments (e.g. the impact of introducing tariffs).
• Illustrate diagrammatically these models and perform analysis of the pattern of trade, gains of trade and effect on the income distribution from trade.
• Solve algebraically simple trade models (e.g. imperfect competition models.) in order to determine the equilibrium economic variables (e.g. price, average costs, quantity, profit, etc.).
• Describe and rationalize the main assumptions behind the main models of Open-Economy Macroeconomics, such as models based on PPP, the uncovered interest parity, etc. Illustrate diagrammatically these models, perform policy experiments (like changing the Money Supply) and interpret verbally what happens when equilibrium changes from one to another.

This course offers introduction to international economics.
In the first part of the course, we study International Trade
theories that focus on the behavior of the “real” economic
variables; In the second part of the course, we study
International Finance theories with addition of “monetary”
variables. We also develop a theoretical framework that
allows us to understand the interaction between
“monetary” and “real” variables.