International Economics

Università Cattolica del Sacro Cuore

Course Description

  • Course Name

    International Economics

  • Host University

    Università Cattolica del Sacro Cuore

  • Location

    Milan, Italy

  • Area of Study

    Business, Economics, International Economics

  • Language Level

    Taught In English

    Hours & Credits

  • ECTS Credits

  • Recommended U.S. Semester Credits
  • Recommended U.S. Quarter Units
  • Overview

    The aim of this course is to introduce students to some of the main topics in international economics. The course covers: trade based on comparative advantage (differences in productivity or factor endowments); trade based on economies of scale and product differentiation; international factor movements; trade policy; current account and balance of payments; law of one price and purchasing power parity; exchange rates; currency areas.

    1. Stylized facts on globalization.
    2. Trade based on comparative advantage: Ricardian and Heckscher-Ohlin model.
    3. Trade based on economies of scale and product differentiation.
    4. International migration and transfers.
    5. Multinational firms and foreign direct investment.
    6. Instruments of trade policy.
    7. Main issues in trade policy.
    8. Current account and balance of payments.
    9. Law of one price and purchasing power parity; long-run determinants of the real exchange rate.
    10. Short-run determinants of the real exchange rate: monetary shocks, sticky prices, and the nominal exchange rate.
    11. Output and the exchange rate.
    12. Fixed exchange rates and balance of payments crises.
    13. Optimum currency areas and the Euro.

    P. KRUGMAN-M. OBSTFELD-M. MELITZ, International Economics: Theory and Policy, Pearson, 10th Edition, 2015.
    Lecture notes available on Blackboard.


    Mid-term exam (90 minutes, written test with open questions) and final exam (90 minutes, written test with open questions).

Course Disclaimer

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.

Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.