International Economics

Introduction

By Dr. Nguyen Binh Duong

Faculty of International Economics
 COURSE MATERIALS
1. Required text
• Krugman P. and M. Obstfeld, International Economics,
Theory and Policy, 6th edition, Addison-Wesley, 2003.

1. Recommended books are:

 International Economics, by Thomas A. Pugel and Peter H.
Lindert, 2000, McGraw - Higher Education.
 Kinh tế học quốc tế, Từ Thúy Anh, Nhà XB Tài Chính
 Additional readings
• Papers in International Economics
• The Economist magazine
• World Trade Organization
• United Nations Conference on Trade and
Development
• The World Bank’s Trade and Development Center
• International Trade Center
 COURSE GRADING
Grades will be based on the final exam, a course
(group) assignment and class participation.
• Final Exam will count for a total of 60% of your
grade.
• Assignment is worth 30% of your grade.
 Class participation: 10%.
 Assignment
 Topic: free ( trade, investment…)
 Length: about 15 pages
 Team work : from 1 to 5 students
 Deadline: 22/09/2020
 Hard copy: in the class on 22/09
 Soft copy: binhduong280779@gmail.com
 Chapter1:
Introduction to international economics

What Is International Economics About?

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 Chapter1:
Introduction to international economics

What Is International Economics About?

• International economics is about how

nations interact through trade of goods
and services, through flows of money
and through investment.

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 3 research subjects of
International economics?

• Trade in goods and services

• International Investment
• International Finance

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 Why do we trade?
Countries (or firms in different countries) trade with
each other because they benefit from it! Specifically,
we trade
• to get goods and services that cannot be produced at
home
• to get cheaper goods and services than those
produced at home
• to achieve economies of scale: static gains
• to grow faster: dynamic gains
 Why Do We Trade?
The classical theory of IT is concerned with three questions:
1. What are the gains from trade?
Where do the gains come from, and how are they divided
among the trading countries?
2. What is the structure/pattern of trade?
Which goods/services are exported, and which are
imported?
3. What are the terms of trade?
At what prices are the exported and imported goods
exchanged?
Characteristic of International trade

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Characteristic of International trade

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 Why? International trade increases
so fast
- New technology and innovation
- Trend of globalization