INTERNATIONAL ECONOMICS
[Link] Bich Ngoc (B)
Department of International Economics
School of Trade&International Economics
hngocktqt@[Link]/ [Link]@[Link]/ Tel: 0936500505
National Economics University
Email: bichngocktqt@[Link]/ [Link]@[Link]/ Tel: 0936500505
G LO B A L T R A D E
“the world is flat”
Course descriptions
Understand the theory and principles of international economics
SYLLABUS OF INTERNATIONAL ECONOMICS
Understand, evaluate and suggest solutions for international economics issues
The course includes two parts: part 1 deals with international trade theory and policy; part 2 examines
measurement of a nation’s balance of payments, exchange rate determination, open-economy macroeconomics
and international monetary system.
Learning resources
Textbook: Dominick Salvatore (2013), International Economics, 11th edition, John Wiley & Sons, Inc
Reference books:
Paul [Link], Maurice Obstfeld, Marc Melitz (2015), International Economics: Theory and Policy (10th Edition),
Prentice Hall
Course goal
Understand the basis and gains from international trade as the pattern of trade
Identify obstructions to the flow of trade
Identify the stages and benefits of economics integration
Understand the motives and effects of international investments
Interpret a nation’s balance of payment and related accounts
Explain how exchange rate is determined in the short run and long run
Know how to explain the effectiveness of national macroeconomic policy in open economies
PART 1: International trade theory
W1 – W4
W5 – W7
(Chapter 2 – 7)
PART 2 : International Trade policy (Chapter Course
schedule
8,9) + Mid-term test
W8-9 Chapter 10: Economic integration
W10-11 Chapter 11: International Direct Investment
W12 Part 3: Balance of payment, foreign
exchange, exchange rate
W13-15 Group Presentation and Review
Course requirement & Expectation
STUDENTS LECTURE
80% attendance of class section time Attendance: 10%
Quiz: 20%
Must complete assignment, Group Assignment: 20%
quiz, group assignments in Final exam (open –book): 50%
class and at home
Rules REWARDS & PUNISHMENTS
On time, Proactive, Read textbooks and required Bonus points will be assigned to students who distinguish
reading & do exercises before class themselves by active and productive participation in class
discussions.
Students will be held to the highest standards of academic honesty
No cheating of any sort will be tolerated during exams and students
suspected of such behaviour will be subject to the appropriate
university procedures.
CHAPTER 1
INTRODUCTION TO INTERNATIONAL ECONOMICS
“WE LIVE IN A GLOBAL ECONOMY"
Give some examples or evidences to prove that the statement above is right
“THE RAPID GLOBALIZATION PROVIDES
MANY OPPORTUNITIES AND CHALLENGES
FOR NATIONS AND PEOPLE"
Discuss about the statement. Which are the opportunities and challenges for nations and people?
Globalization revolutions
The Second Revolution The Forth Revolution
• Rapid increase of What do you know about
international trade
• World war II the 4th Revolution?
• Great Depression in
USA in 1929 lead to the
heavy trade protection
1870 - 1914 1945 – 1980 Since 1980 2018 – present
The first revolution The third Revolution
• Industrial Revolution in • The tremendous
Europe development of
• Explore new lands to food telecommunication
and material production • Massive international
(America, Australia, New capital flows
Zealand, South Africa) • Global financial and
• End with the breakout of economic crisis
World War I in 1914 (Asia in 1997, USA in
2007 affected to entire
world economy)
International flow of goods, services, labor and capital
❖ Interdependence in the world economy is reflected in the flows of goods, services, labor and capital
across national boundaries
❖ The economic interdependence among nations has been increasing over the years (the more rapid
growth of world trade than world production).
❖ The interdependence among nations is measured by the ratio of their import and export of goods and
services to their GDP (Gross domestic product)
❖ The increase in the independence among nation lead to the effect of nations’ policies on others (and vice
versa)
❖ International flow of goods and services is considered ”international trade” (ex: export, import, re-export,
re-import)
International flow of labor (people) include activities as migration, travelling, studying aboard, export or
import labor)
International flow of capital is reflected in financial or portfolio capital move to markets where interest
rates are higher, foreign direct investment (FDI)
The subject matter of International economics
❖ International economics deal with the economic and financial interdependence among nations. It
analyzes the international flow of goods, services, labor and capital among nations, the nations’ policies
to regulate these flows, and their effects on the nation’s welfare.
❖ In details, international economics deals with international trade theory, international trade policy, the
balance of payment and foreign exchange markets, open-economy macroeconomics.
• International trade theory analyze the basis and the gain from trade, the patterns of trade
• International trade policy analyze the instruments of trade policy, the reasons and effects of trade
restrictions
• The balance of payments measures a nation’s total receipt from and total payments to the rest of
the world
• Foreign exchange markets are the institutional framework for the exchange of one national
currency for others
• Open-economy macroeconomics deals with the mechanisms of adjustment in balance-of-
payments disequilibria (deficits and surpluses)
QUESTION FOR REVIEW
1. Answer the question for review in page 18 – 19 (15min)
2. Brainstorming and discussion about “ Current international economics
problems and challenges facing in the world today” (Optional Reading:
World Trade report 2022)
3. Choose Group for short presentation (10 min)