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ECO344

Introduction to International Economics

This course introduces students to the fundamental concepts and theories of international economics. It explores the gains from trade, differences in technology, and the factor model. Students will learn about government policies as determinants of trade and understand the Heckscher-Ohlin theorem. The course also covers topics such as endowment changes, factor prices, and the analysis of competitive equilibrium, providing a comprehensive overview of international economic principles and practices.

About this course

Difficulty
Intermediate
Study hours
20 hours
Maths
Intermediate
Content
Theoretical, case study, problem solving
Practical work
No
How it is assessed
  • Assignments
  • Tutor Marked Assignments
  • Final Examination

One paragraph, so you can see how it reads

ECO344 · Unit One: Global Economy

The presentation schedule included in your course materials gives you the important dates for this year for the completion of tutor-marking assignments and attending tutorials. Remember, you are required to submit all your assignments by the due date. You should guide against falling behind in your work.

What you should be able to do

  1. Understand the fundamental concepts of international economics.
  2. Analyze the gains from trade and the factors affecting them.
  3. Apply the Heckscher-Ohlin theorem to explain trade patterns.
  4. Evaluate the impact of government policies on international trade.
  5. Assess the effects of endowment changes and factor prices on trade.
  6. Comprehend the analysis of competitive equilibrium in international markets.

What it prepares you for

Careers
  • Trade Analyst
  • Economic Consultant
  • Policy Advisor
  • International Economist
  • Market Research Analyst
Where it is applied
  • International Trade
  • Government and Public Sector
  • Financial Services
  • Consulting
  • Research and Development

Where it gets hard

The units students slow down on, and what makes each one heavy.

  • Module 3: Differences in Technology

    Unit 3: The Heckscher-Ohlin Model

    The Heckscher-Ohlin model requires understanding of complex interactions between factor endowments and production functions, making it challenging to grasp intuitively.

  • Module 3: Differences in Technology

    Unit 4: The Stolper-Samuelson and Rybczynski Theorems

    The Stolper-Samuelson theorem involves intricate relationships between commodity prices and real factor rewards, demanding careful analysis and comprehension.

A suggested way through it

Suggested

13 weeks, about 26 hours in total. Yours will differ.

  1. Week 1Module 1: Economy and Global Trade
    • Unit 1: Global Economy · 2 hours

      Read Unit 1: Global Economy, focusing on the history of trade and the importance of international economic issues.. Understand the concepts of the Global Economy and international trade theory.. Identify the advantages and disadvantages of international trade..

  2. Week 2Module 1: Economy and Global Trade
    • Unit 2: Supply and Production Possibilities · 2 hours

      Study Unit 2: Supply and Production Possibilities, focusing on production functions and returns to scale.. Analyze equilibrium for a single producer and understand the objectives of trade policy.. Practice drawing and interpreting production possibility frontiers..

  3. Week 3Module 1: Economy and Global Trade
    • Unit 3: Goods and Factor Model · 2 hours

      Read Unit 3: Goods and Factor Model, focusing on the two-good, two-factor model.. Understand the shape of the production possibility frontier and the concept of Competitive Equilibrium.. Explore increasing returns to scale and the basis for trade..

  4. Week 4Module 1: Economy and Global Trade
    • Unit 4: General Equilibrium in a Closed Economy · 2 hours

      Study Unit 4: General Equilibrium in the Closed Economy, focusing on general equilibrium analysis.. Understand general equilibrium in the open (trading) Economy and the Excess Demand function.. Analyze the shape of excess demand curves and international general equilibrium..

  5. Week 5Module 2: The Theory of Gains from Trade
    • Unit 1: Gains from Trade · 2 hours

      Read Unit 1: Gains from Trade, focusing on the gains from trade and the gains from trade theorem.. Understand the factors affecting gains from trade.. Review the advantages and disadvantages of international trade..

  6. Week 6Module 2: The Theory of Gains from Trade
    • Unit 2: Gain from Exchange · 2 hours

      Study Unit 2: Gain from Exchange, focusing on the gains from exchange and specialization.. Understand the distribution of gains with heterogeneous tastes and endowments.. Analyze the concepts of cooperation and conflict in trade..

  7. Week 7Module 2: The Theory of Gains from Trade
    • Unit 3: Cause and Consequences of trade · 2 hours

      Read Unit 3: Cause and Consequences of trade, focusing on the No-trade Model.. Understand Methodological considerations and Consequences/Effect of international trade.. Analyze Theoretical Issues in International Factor Movements..

  8. Week 8Module 3: Differences in Technology
    • Unit 1: Model of Production Function Differences · 2 hours

      Study Unit 1: Model of Production Function Differences, focusing on the Model of Production Function Differences.. Understand Absolute and Comparative Advantage and the Production Possibility Frontier.. Analyze Excess Demand and international equilibrium..

  9. Week 9Module 3: Differences in Technology
    • Unit 2: Role of Wages In The Ricardian Framework · 2 hours

      Read Unit 2: Role of Wages in the Ricardian Framework, focusing on Wage Theory.. Understand the Role of Wages and Model of Wages in Ricardian Framework.. Analyze the impact of wages on international trade..

  10. Week 10Module 3: Differences in Technology
    • Unit 3: The Heckscher-Ohlin Model · 2 hours

      Study Unit 3: The Heckscher-Ohlin Model, focusing on the Effects of Endowment Differences.. Understand Factor Endowments and Factor Intensities.. Analyze the Heckscher-Ohlin Model and its implications..

  11. Week 11Module 3: Differences in Technology
    • Unit 4: The Stolper-Samuelson and Rybczynski Theorems · 2 hours

      Read Unit 4: The Stolper-Samuelson and Rybczynski Theorems, focusing on the Stolper Samuelson Theorem.. Understand the Rybezynski Theorem and trade theory with many goods and factors.. Analyze the factor-content theorem and its applications..

  12. Week 12Module 4: The Factors Model and Government Policies as Determinants of Trade
    • Unit 1: The Specific Factors Model · 2 hours

      Study Unit 1: The Specific Factors Model, focusing on Productivity of Labour.. Understand Determination of Marginal Productivity and Commodity Prices and Factor Prices.. Analyze Exchange Rate Policies and their impact on trade..

  13. Week 13Module 4: The Factors Model and Government Policies as Determinants of Trade
    • Unit 2: Endowment Changes and Factor Prices · 2 hours

      Read Unit 2: Endowment Changes and Factor Prices, focusing on Factor Endowment Changes, Factor prices and Outputs.. Understand Factor endowments and Factor Prices and Endowment Changes and Outputs.. Analyze The pattern of trade and its determinants..

Preparing for the exam

What to do
  • Review all key concepts and definitions from each unit.
  • Practice solving numerical problems related to trade models.
  • Create diagrams illustrating the effects of trade policies.
  • Focus on understanding the assumptions and limitations of each theory.
  • Prepare detailed notes summarizing the main points of each module.
  • Allocate study time evenly across all units, giving extra attention to challenging topics.
  • Create flashcards for key terms and concepts to aid memorization.

Questions students ask about this course

What is ECO344 about?

This course introduces students to the fundamental concepts and theories of international economics. It explores the gains from trade, differences in technology, and the factor model. Students will learn about government policies as determinants of trade and understand the Heckscher-Ohlin theorem. The course also covers topics such as endowment changes, factor prices, and the analysis of competitive equilibrium, providing a comprehensive overview of international economic principles and practices.

How many units does ECO344 have?

ECO344, Introduction to International Economics, has 14 units across 4 modules, over 190 pages of course material. You can read it one unit at a time.

How many credit units is ECO344?

ECO344 carries 3 credit units, at 300 level in Social Sciences.

Is ECO344 hard?

ECO344 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical, case study and problem solving work.

How long does ECO344 take to study?

About 20 hours of study, spread across its 14 units.

How is ECO344 assessed?

ECO344 is assessed by Assignments, Tutor Marked Assignments and Final Examination.

What can I do with ECO344?

Trade Analyst, Economic Consultant, Policy Advisor, International Economist and Market Research Analyst.

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