In the face of recent developments in the world economy, international economics remains as important and controversial as ever. This course will be studied in a way that links theories and models to events in the world economy and facilitates its assimilation by students.

This course covers new theories of foreign trade based on increasing returns and market structure as well as on classical comparative advantage, increasing regional integration activities, intertemporal analysis of international capital flows, commercial policy, exchange rates and exchange rate systems in open economy.