• Identify and apply the relevant theories and models to international trade and economics topics.
• Define and discuss key concepts in the analysis/discussion of the relevant theories and models.
• Discuss and critically reflect on the strength and the weaknesses of relevant theories and models applied.
• Present and explain supporting arguments in the analysis of topics addressed in the course

International economics is largely about international trade, but it is also about investing abroad and entering a foreign market and thus becoming international and competitive in the world market. We will tackle both of these aspects in this course. For instance, we will discuss the classical and modern theories of trade that explain the dynamics of international trade at the industry level. However, we will also discuss why sometimes investing abroad is better than trading. In this respect we will debate why some firms across different industries will prefer the strategy of going international and enter a foreign market.

An important aspect of whether you trade or enter a foreign market is competitiveness. Consequently, competitiveness will be discussed as a comparative concept of the ability and the performance of firms within an industry or a country to sell and supply goods in a given market (based on the trade models). However, we will also tackle competitiveness in terms of firm resources and growth opportunities and how these resources influence the dynamics of competition and thus competiveness in the market.

Responsible/sustainable business standards are often perceived to be a constraint to developing country exports thus conferring a competitive advantage to multinationals and developed economies. In this course, students learn about responsible/sustainable management practices based on efficient production methods and the utilization of country and firm comparative advantages. For instance, students learn how efficient production methods can facilitate an improvement in a country’s trade competitiveness, which in turn, benefits citizens in a number of ways, regardless whether the trading nation is rich or poor. 

Furthermore, in relation to responsible management, it is of paramount importance for students to learn that when investing abroad, companies directly impact stakeholders both at home and in the target country(-ies). Foreign investment necessitates consideration of ethical business behaviors, cultural considerations, and trust relationships, which is why it is a consistent important theme for class discussion.

Textbook ( custom made book from):

International Economics: Theory and Policy, by Krugman, Obstfeld and Melitz, Prentice Hall.

International Business, by Mike Peng and Klaus E. Meyer , Cenage Learning.