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Code 1113
Course Global Economics I
Semester First and Second
ECTS Credit Units 7,5
Course taught in English Yes
Available for Exchange Students Yes
Requirements Mandatory Precedence:
1102. Microeconomics
Regents Luís Campos e Cunha
Course Aim The course is about trade theory and the theory of economic policies in an open economy. Students taking this course should be able to understand, with a critical view, trade policies or economic policies in a open economy. These might come from international agreements as well as from the EU or national levels.
Program content
  1. Review of Microeconomics: General equilibrium and welfare; Pareto-optimal conditions.
  2. Introduction to IT
  3. Commodity Trade without production
  4. The Classical approach to trade (Ricardo): Labor theory of value; Determinants of trade; differences in technology; comparative advantage.
  5. The Neo-classical approach to trade (HOS Model)
  6. The Modern Approach to trade: Scale Economies and Imperfect Competition.
  7. Empirical Tests
  8. Specific Factors Model
  9. Gains from Trade and Income Distribution
  10. Tariffs and Other Policy Instruments
  11. Public Policies in Open Economy, Distortions
  12. Immiserizing Growth
  13. International Factor Mobility