Introduction to International Economics(ECON217)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| ECON217 | Introduction to International Economics | 3 | 2 | 0 | 0 | 2 | 2 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | French |
| Course Type | Compulsory |
| Course Level | Bachelor Degree |
| Course Instructor(s) | Alper ACAR aacar@gsu.edu.tr (Email) |
| Assistant | |
| Objective | This course aims to provide students with the fundamental theoretical and empirical tools required to understand and analyze the mechanisms of international trade. It designed to explain the structure of global trade, national specialization, the impact of commercial openness on resource allocation and factor earnings, as well as the theoretical foundations of trade policies (free trade vs. protectionism) and contemporary economic geography. |
| Content | The course covers all major international trade theories. It opens with traditional neoclassical trade models (the Ricardian model based on comparative advantage and the Heckscher-Ohlin-Samuelson model based on factor endowments). It then explores new trade theories by incorporating the roles of innovation and the product life cycle, internal and external economies of scale, monopolistic competition, intra-industry trade, economic geography, and global value chains. Finally, a significant portion of the course covers recent models incorporating firm heterogeneity (Melitz model) and evaluates the microeconomic and macroeconomic effects of trade policy instruments (tariffs, quotas, strategic protectionism). |
| Course Learning Outcomes |
Upon successful completion of this course, students will be able to: 1) Analyze and differentiate traditional international trade models (Ricardo, HOS) and explain the determinants of comparative advantage. 2) Evaluate the impact of technology, economies of scale, and product differentiation on intra-industry trade patterns. 3) Understand and model the effects of geography, transport costs, and firm heterogeneity on export decisions and aggregate productivity. 4) Rigorously analyze the welfare effects induced by tariff and non-tariff barriers on consumers, producers, and the state. 5) Apply these theoretical tools to critically evaluate contemporary issues and friction in the global economy. |
| Teaching and Learning Methods |
- Lectures: Theoretical presentation of concepts, formal model derivations, and graphical analysis. - Problem Sets: Resolution of theoretical problems and modeling exercises (autarky vs. free trade, surplus calculations, Grubel & Lloyd index, etc.). - Quizzes |
| References |
Krugman, P. R., Obstfeld, M., & Melitz, M. J. Économie internationale. Pearson France. Guillochon, B., Kawecki, A., Peltrault, F., & Venet, B. (2016). Économie internationale. Cours et exercices corrigés. Dunod. |
Theory Topics
| Week | Weekly Contents |
|---|---|
| 1 | Introduction: Current State and Outlook of the World Economy |
| 2 | The Ricardian Model |
| 3 | The Heckscher-Ohlin-Samuelson (HOS) Model |
| 4 | Technology as a Factor of International Trade |
| 5 | International Trade and Economies of Scale |
| 6 | Product Differentiation and Trade |
| 7 | Geography and International Trade |
| 8 | Trade in Intermediate Goods and International Fragmentation of Production |
| 9 | Firm Heterogeneity and International Trade |
| 10 | Protectionism under Competition |
| 11 | Arguments for Protectionism |
| 12 | Strategic Trade Policy |
| 13 | Practice Problems |
| 14 | Practice Problems |
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 1 | 40 |
| Contribution of final exam to overall grade | 1 | 60 |
| Total | 2 | 100 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Assignments | 0 | 0 |
| Presentation | 0 | 0 |
| Midterm Examinations (including preparation) | 1 | 40 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 0 | 0 |
| Term Paper/ Project | 0 | 0 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Make-up | 0 | 0 |
| Total | 1 | 40 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | Demonstrate a basic knowledge of different economic theories and main discussions driving current theoretical approaches | X | ||||
| 2 | Demonstrate ability to use basic qualitative and quantitative methods to asses different economic questions of applied fields | X | ||||
| 3 | Show a sound understanding of current economic discussions and problems | X | ||||
| 4 | Have an effective and clear communication in written and oral formats in different public and professional contexts. | X | ||||
| 5 | Demonstrate basic knowledge of the world economic history and a sound knowledge of the Turkish economic history | X | ||||
| 7 | Demonstrate knowledge of standard quantitative techniques and empirical models used in economics | X | ||||
| 8 | Show ability to apply basic economic theory to an applied topic | X | ||||
| 9 | Show a basic understanding of analytical methods, both theory- and model-based | X | ||||
| 10 | Show ability to use economic concepts to discuss current economic issues | X | ||||
| 11 | Reason logically and work analytically | X | ||||
| 12 | Show awareness on social aspects of the economics in different applied and theoretical fields | |||||
| 13 | Identify appropriate economic models to analyse problems | X | ||||
| 16 | Show understanding of basic statistical and econometric concepts and ability to apply basic concepts to own empirical work | |||||
| 17 | Demonstrate a sound knowledge of the current economic issues in Turkey and a general knowledge of the issues in the world economy | |||||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 3 | 42 |
| Working Hours out of Class | 14 | 3 | 42 |
| Assignments | 0 | 0 | 0 |
| Presentation | 0 | 0 | 0 |
| Midterm Examinations (including preparation) | 1 | 14 | 14 |
| Project | 0 | 0 | 0 |
| Laboratory | 0 | 0 | 0 |
| Other Applications | 0 | 0 | 0 |
| Final Examinations (including preparation) | 1 | 16 | 16 |
| Quiz | 0 | 0 | 0 |
| Term Paper/ Project | 0 | 0 | 0 |
| Portfolio Study | 0 | 0 | 0 |
| Reports | 0 | 0 | 0 |
| Learning Diary | 0 | 0 | 0 |
| Thesis/ Project | 0 | 0 | 0 |
| Seminar | 0 | 0 | 0 |
| Other | 0 | 0 | 0 |
| Make-up | 0 | 0 | 0 |
| Yıl Sonu | 0 | 0 | 0 |
| Hazırlık Yıl Sonu | 0 | 0 | 0 |
| Hazırlık Bütünleme | 0 | 0 | 0 |
| Total Workload | 114 | ||
| Total Workload / 25 | 4.56 | ||
| Credits ECTS | 5 | ||