SYLLABUS
Module I – Introduction to International Economics: Subject matter and importance of International Economics - Internal trade and International trade - Importance of International trade – International trade and economic development – Basic concepts - Terms of trade.
Module II --- Theories of International Trade: Mercantilist approach to trade - Classical Theory: Absolute and Comparative Cost Advantage theories - Hecksher – Ohlin Theory and Leontief Paradox.
Module III: Theory of Commercial Policy:
Free trade - Arguments for and against free trade – Protection - Arguments for and against
protection - Methods of Trade Restriction : Tariff and non-tariff trade barriers - Types of tariffs –
New protectionism - export subsidy and countervailing duties - Dumping and anti-dumping
duties – Economic Integration – WTO, EU, NAFTA, ASEAN, SAARC.
Module IV --- Foreign Exchange: Foreign exchange market – functions - Defining foreign exchange and exchange rate – Exchange rate concepts – exchange rate changes (devaluation, revaluation, depreciation, appreciationovervaluation and undervaluation) – Different systems of exchange rate determination - fixed and flexible exchange rate – Hybrid exchange rate systems – Managed floating – Theories of exchange rate – Mint Parity theory – Purchasing Power Parity Theory – Balance of Payments Theory - Components of Foreign exchange .
Module V --- Balance of Payments: Defining Balance of Trade and Balance of Payments - Structure of balance of payments – Equilibrium and disequilibrium in BOP – Measures to correct BOP disequilibrium – India‘s BOP since 1991 – International financial flows – Foreign Direct Investment and Porfolio Investment – Currency Convertibility – IMF-Role and Functions.
Reference:
1. Salvatore, Dominick, ‗International Economics‘, Weily India, New Delhi.
2. C.P. Kindle Berger, ‗International Economics‘
3. Bo Soderstein and Geoffrey Reed, ‗International Economics‘, Macmillan 4. Carbaugh, ‗International Economics‘, Cengage Learning
4. Francis Cherumilam - ‗International Economics‘
5. Mannur, H.G. ‗International Economics‘
6. Errol D‘Souza, ‗Macro Economics‘, Pearson Education 2008 (For BOP in India)
7. RBI Bulletin, Various issues