Početna Graduate StudiesMasters degreeGraduate Academic International Studies – MA in Political Science – International StudiesModule: International PoliticsInternational Economy – Theory and Policy

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International Economy – Theory and Policy

  • Study programme/study programmes: Graduate academic international politics – master
  • Type and level of studies: 2nd cycle studies
  • Name of the course: International Economy – Theory and Policy
  • Teacher (Surname, middle initial, name): Prof. Svetlana Lj. Adamović
  • Status of the course: Compulsory
  • Number of ECTS: 5
  • Teaching methods:Lectures; seminar papers.
  • Number of classes: 2+1

Aim and outcome of the course

The course International Economy – Theory and Policy (at graduate studies) implies that students mastered the preceding course (International Economic Relations) and that therefore they are able to analyze on a higher level of knowledge the manner in which countries (depending on development, size etc) can get involved into world economy, and the manner in which international transactions reflect to these countries’ economies.

The aim is for students to get introduced with contemporary theories of international trade, with main instruments of trade policy and to analyze their economic effects on certain countries. The course shall study in more details the manner of regulation of problems of trade policies within the WTO, customs and non-customs barriers, theories of trade blocks and regional trade arrangements, trade policy of developing countries, systems of exchange rates as well as balance of payments theory and practice.

By mastering the syllabus student gains the following general capacities: of analysis, synthesis and prediction of solution and consequences; mastering the methods, procedures and processes of research; development of critical and self-critical thinking and approach. By mastering the syllabus student gains the following course-specific capacities: profound knowledge and understanding of the discipline of international economy; monitoring and application of news in profession; usage of information technologies in mastering the knowledge in the field of international economy.

Students should be able to clearly read and analyze reports and recommendations of certain international economic institutions (World Development Report, IMF Survey, World Trade Report, IMF World Economic Report etc) and to creatively develop their own approaches in finding possibilities for improvement of the level of competence of Serbian economy and the position of Serbia in world economy.

Content of the course
Theoretical teaching
Importance of international economy, introduction of offer and demand curve into international economy and four questions to which answers should be offered by international trade (why countries trade and what determines their export and import articles, how international trade influences production and consumption of participating countries, do participants in general win/lose, as well as the impact of international trade to distribution of income); Heckscher-Ohlin theory of trade and disposition over factors of production; Stolper-Samuelson theorem; Customs – concept, kinds, effects on overall welfare in the state (advantages for producers, advantages for consumers); Non-customs barriers – import quotas (effects of trade and effects of welfare), policy of state procurement, state regulation, maritime traffic and restriction for cargo freight; What is better – quotas or customs? Arguments pro and contra introduction of customs and non-customs barriers – improvement of domestic production and employment, assistance to “emerging industries”, assistance to “dying industries”; Export support policy – damping, subvention of export and the WTO attitude; Theory of international economic integration; Forms of economic integrations and theory of trade blocks, i.e. trade blocks and trade blockade; Regional trade arrangements – trade creation vs. trade diversion); Foreign policy and environment – does foreign trade liberalization leads to increase of external effects; Foreign trade and economic development: strategy of economic growth – substitution of import and expansion of export orientation; Theory and systems of exchange rates; Theory and policy of balance of payment adjustment (trade balance and adjustment of income, adjustment of exchange rate)
Practical teaching: Exercises, Other modes of teaching, Study research work
a) basic:
1. Pelević Branislav, Uvod u međunarodnu ekonomiju, Ekonomski fakultet, Belgrade, 2003 (pp: 77-119, 121-135, 265-
277, total 68) 2. Đurić, Prekajac, Vidas-Bubanja, Međunarodna ekonomija, Institut ekonomskih nauka, Belgrade,
2000 (pp: 27-42, 229-263, 275-308, total 82) 3. Kovačević Radovan, Međunarodna ekonomija, Institut za spoljnu trgovinu, Belgrade, 1999. (pp: 17-79, 247-274, 319-353, 461-483, total 145) 4. Svetlana Adamović, Visoka tehnologija i strategija razvijenih industrijskih zemalja, Dečje novine, Gornji Milanovac, 1991 (pp. 248)
б) additional literature (relevant chapters):
1. Robert Carbaugh, International Economics, South Western College, 2004 2. Dennis Appleyard, Alfred Field Jr ,
International Economics: Trade Theory and Policy, McGraw-Hill UK, 2001 3. Dominick Salvatore, International Economics, John Wiley and Sons (WIE), 2003 4. Steven Husted, Michael Melvin, International Economics, Pearson Education, 2000
5. Peter B. Kenen, The International Economy, Cambridge University Press, 2000 6. Richard E. Caves, Jeffrey A. Frankel, Ronald W. Jones, World Trade and Payments, Pearson Education, 1998 7. Mordechai E. Kreinin, International Economics: A Policy Approach, Thomson Learning, 2002 8. Pugel, International Economics, McGraw-Hill UK, 2003 9. Paul R. Krugman, Maurice Obstfeld, International Economics Theory and Policy, Pearson Education, 2002 10. Kovač, Oskar, Teorija i politika platnog bilansa, Belgrade