Unit Code: ECN704

Unit Name: International Trade and Finance

Description: The course commences with a detailed treatment of theories of international trade and trade policy. Financial aspects are introduced through a discussion of the operation of the foreign exchange market, leading to an analysis of balance of payments equilibrium and the operation of macro policies in open economies. Attention then turns to trade problems of developing countries and the analysis of corrective policies-both internal and international. Finally a number of key issues are examined in detail; these include international lending and the debt crisis, the role of multinational corporations, foreign aid, regional cooperation, and deregulation. 1.2 Learning Targets/Outcomes On successful completion of this course, students will be able to: Level Credits 1.2.1 Analyze the basis of trade 7 1 1.2.2 Analyse the basis of Comparative advantage 7 1 1.2.3 Evaluate the nature of the growth process and the effects of growth on small and large countries 7 1 1.2.4 Examine the importance of the Foreign Exchange Market 7 2 1.2.5 Criticize the process of balance of payment equilibrium 7 1 1.2.6 Evaluate the limitations of the Balance of Payment model 7 2 1.2.7 Analyze the world debt situation and policy options 7 2 1.2.8 Validate Fiscal and Monetary Policy Mix 7 1 1.2.9 Compare Exchange Rate markets and their impact on Trade 7 1 1.3 Analyze essence of Monetary Approach 7 2 1.3.1 Evaluate the relevance and effectiveness of International Monetary System 7 1

Learning Target Outcomes:

Prerequisite: ECN601

Prerequisite Sentence: or consent from HOD.

Credit Point: 15

Offered In: Semester 2