Revision 3
The course starts with an overview of international trade theories including the distribution of international resources. It discusses the effect of free international trade and specialization on the price level, the availability of economic resources, industrialization, and income distribution across different market forms. Next, the course describes the link between free international trade and economic well-being. It also examines the impact of trade policies including quantitative restrictions such as tariff and other types of restrictions on trade and development. Next, the course outlines the experience of developing countries with international trade theories, the economic and political issues in Europe as well the effect of the European economic integration on stabilization policy. Finally, the course highlights the international Monetary System, the optimal currency area as well as international resource movements. Diagrams are often used to present the different theories and models.