• Explain basic concepts in International Economics (e.g. "comparative advantage", “factor intensity”, “interest rate parity”, BoPs, PPP, UIP, etc.)
• Understand the basic assumptions and their justification behind the main trade models and their main predictions. These models include, but are not limited to, the Ricardian model, the Hechscher-Ohlin model ,- and the imperfect competition model
• Perform simple policy simulations of major trade policy tools (e.g. the impact of introducing tariffs), and illustrate them diagrammatically
• Understand what determines exchange rate in both short and long run
• Understand the dynamics of macroeconomic policies (both fiscal and monetary) when the exchange rate is in play, and perform simple policy simulations of these dynamics(like what happens when money supply changes)
• Understand different exchange rate regimes, and describe the evolution of the international monetary systems including the Economic and Monetary Union of the EU.

This course offers detailed introduction to international economics, and it includes two parts: international trade and international finance. In the first part, we study the classic trade theories, which explains why international trade took place, what are the benefits of international trade, and in what patterns countries trade with each other. We also study basic trade policy tools and their implications. In the second part, we study the balance of payments, the basics of exchange rates and how they are determined, how fiscal and monetary policies will be different when exchange rates come into play. We also study exchange rate regimes and the history of international monetary systems.