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International Economics

International trade theory and policy. Labour productivity and comparative advantage: the Ricardian model. Specific factors and income distribution. Resources and trade: the Heckscher-Ohlin model. The standard trade model. External economies of scale and the international location of production. Instruments of trade policy. International movement of factors. Firms in the global economy. Exchange rates and open-economy macroeconomics. National income accounting and the balance of payments. Exchange rates and the foreign exchange market. Money, interest rates, and exchange rates. Fixed exchange rates and foreign exchange intervention.