Available in 2013
|Callaghan Campus||Semester 1|
Previously offered in 2012, 2011, 2010
This course introduces students to the basic theories of international trade and trade policy with an emphasis on contemporary issues. Students will examine why and how nations gain from international trade in goods, services and assets. Simple models are used to analyse current issues in foreign trade with respect to commercial policies, tariff and non-tariff barriers, economic integration, regional trade arrangements, and new trade issues such as labour standards, human rights, and environmental protection. This will involve an understanding of global capital markets, international parity relations and foreign investment. The contentious nature of international trading rules, exchange rate regimes, capital movements, and labour migration, and the roles of the World Trade Organisation, the International Monetary Fund and the World Bank are reviewed. The political economy of agricultural price support, export subsidies, and other issues are also analysed. Students are also introduced to debates over foreign trade risks, strategies for risk management and various methods of foreign trade financing.
|Objectives||On successful completion of this course, students will be able to:
1. Demonstrate an understanding of the reasons behind the rapid increase in global trade and its implications for standards of living across the world.
2. Use economic/trade models and principles to analyse changes in commercial policies, trade and non-tariff barriers, and taxes and subsidies.
3. Identify implications of changes in international trading system for different sectors of the economy, especially businesses engaged in international trade.
4. Analyse the operations of global capital markets and their implications for domestic trade-oriented businesses with respect to production, investment and employment.
5. Recognise different methods of trade financing (and associated risks) and the use of different strategies for risk management, especially through financial derivatives
|Content||Lectures may include, but are not restricted to, the following topics:
1. Trends and patterns of global trade and capital movements
2. Factors behind the recent growth of world trade and foreign investment (direct and portfolio)
3. Basic theories of international trade and trade policy
4. Trade strategies and economic growth
5. Trade policy: instruments and issues
6. Foreign trade risks and strategies to manage risks through derivatives
7. Methods of foreign trade financing
8. Issues in global and regional trade arrangements
9. Exchange rate determination, policies and issues
10. Foreign investment analysis (portfolio and direct)
11.Globalisation of capital markets
12.Case studies: Africa, Asia, and other regions
|Replacing Course(s)||This course will replace ECON2470,ECON2520, ECON3470 and ECON3060.|
|Transition||No transition arrangements are necessary.|
|Assumed Knowledge||ECON1001 and ECON1002|
|Modes of Delivery||Internal Mode|
|Contact Hours||Lecture: for 2 hour(s) per Week for Full Term
Tutorial: for 1 hour(s) per Week for 12 weeks
|Timetables||2013 Course Timetables for ECON3003|