International Economics

Home/ International Economics
Course TypeCourse CodeNo. Of Credits
Foundation ElectiveSBP2MB9462

Semester and Year Offered: Second Year

Course Coordinator and Team: Kritika Mathur

Email of course coordinator: kritika[at]aud[dot]ac[dot]in


Aim: This course gives an overview of the determinants of trade between nations, and helps the participants to understand the mechanism behind real and financial flows between nations. Participants will be familiarised to the working of key international institutions and trading blocs

Course Outcomes:

Upon successful completion, participants will have the knowledge and skills to:

  1. Demonstrate knowledge of the main economic theories and models of international trade
  2. Apply economic reasoning to issues of the day surrounding globalization
  3. Understand open-economy macroeconomics and the determinants of exchange rates and the balance of payments
  4. Identify and appraise investment opportunities in the international environment
  5. Assess risk relating to exchange rate fluctuations and develop strategies to deal with them
  6. Express well considered opinion on issues relating to international bond market and international taxation

Brief description of modules/ Main modules:

  1. Unit 1: An Introduction to International Economics
  2. Unit 2: Introduction to International Financial System
  3. Unit 3: Foreign Exchange Determination and Markets and Parity Conditions
  4. Unit 4: Measurement and Management of Foreign Exchange Exposure and International Capital Budgeting
  5. Unit 5: International Bond Market and International taxation

Assessment Details with weights:

  • Class Assignments 30%
  • Mid semester 30%
  • End semester 40%

Reading List:

  1. Salvatore, D. (2009). International Economics (10th Edition).John Wiley and Sons.
  2. Sodersten, B.O and Reed G. (1999). International Economics, McMillan, London.
  3. Krugman, Paul R., Obstfeld, M. and Melitz, M. (2014). International Economics: Theory and Policy (10th Edition). Pearson Education.
  4. Shapiro, A.C. (2012). Multinational Financial Management (9th Edition). WileyIndia Private Limited.
  5. 5. Levich, R.M. (1998). International Financial Markets: Prices and Policies (2nd Edition). McGrawHill Education.


  • Additional Readings and Cases for each session will be circulated prior to the commencement of the course.