English   Danish

2014/2015  BA-BINBO1324U  International Economics

English Title
International Economics

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Course period Fourth Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in International Business
Course coordinator
  • Battista Severgnini - Department of Economics (ECON)
Main academic disciplines
  • Economics, macro economics and managerial economics
Last updated on 04-08-2014
Learning objectives
After having attended the course the students should be able to:
  • Explain basic terminology from International Economics in a comprehensive and intuitive way.
  • Describe and rationalize the main assumptions behind trade models.
  • Perform policy experiments.
  • Illustrate diagrammatically these models and perform analysis of the pattern of trade, gains of trade and effect on the income distribution from free trade.
  • Solve algebraically simple trade models in order to determine the equilibrium economic variables.
  • 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 and interpret verbally what happens when moving from one equilibrium to another.
International Economics:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period May/June and August, the regular exam takes place in June. The make-up and re-examination takes place in August.
Aids allowed to bring to the exam Closed Book: no aids
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
The Make-up and Re-examination takes place according to the same rules as the regular exam.
Description of the exam procedure
No aids allowed other than basic language dictionaries (e.g. from mother tongue to English and vice versa and English/English) and non-programmable calculators as specified on the BSc IB study homepage on E-campus.
Course content and structure

The aim of the course is to enable the students to understand and explain the determinants of international trade and monetary economics. Moreover, the students should understand the scope for economic policy in open economies and the role played by institutions.

This course offers a detailed introduction to international economics. The first part of the course deals with International Trade Theory providing the tools necessary for an analysis of the “real” economic variables (relative prices as well as the amount of goods produced, consumed and traded).

In the second part of the course the focus is on the “monetary” variables. We develop a theoretical framework that allows us to understand the interaction between “monetary” and “real” variables. Furthermore, we analyze a brief history of the international monetary system and of the single European currency.

Finally, we study the macroeconomic causes and consequences of the global financial crisis and recession of 2007-2009 and the problems related to the European sovereign debt and the Euro


Teaching methods
Lectures and Exercises
Student workload
Lectures 42 hours
Exercises 12 hours
Preparation for class and exams 171 hours
Expected literature
Paul R. Krugman,Maurice Obstfeld and Marc Melitz, International Economics: Theory and Policy, Pearson International Edition, latest edition

Additional optional readings will be posted on the website of the course.
Last updated on 04-08-2014