INTERNATIONAL
ECONOMICS
[Link] 3 YR
BY [Link] SHARMA
Unit I: Introduction to International
Economics
• 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 -Terms of
trade.
Unit II: Theories of International Trade:
• Mercantilist approach to trade –
• Classical Theory: Absolute and Comparative Cost advantage
theories
• Heckscher - Ohlin Theory
• Leontief Paradox.
Unit III: Foreign Exchange Foreign
exchange market
• Foreign Exchange Foreign exchange market - functions - Defining foreign
exchange and exchange rate - Exchange rate concepts - exchange rate changes
(devaluation, revaluation, depreciation, appreciation- over valuation and
undervaluation).
• Different systems of exchange rate determination - fixed and flexible exchange
rate, Hybrid exchange rate systems.
• International Economics 4 floating, Theories of exchange rate, Mint Parity theory.
• Purchasing Power Parity Theory, Balance of Payments Theory - Components
Foreign exchange.
Unit IV: Balance of Payments:
• 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- of
• International financial flows - Foreign Direct Investment and
Portfolio Investment - Currency Convertibility - IMF-Role and
Functions.
Reference Books: -
• 1. Salvatore, Dominick, International Economics, Weily India,
NewDelhi.
• 2. C.P. Kindle Berger, International Economics.
• 3. Francis Cherumilam- International Economics
• 4. RBI Bulletin, Various issues.
THANK
YOU