Information Package / Course Catalogue
International Economic Theory
Course Code: İKP511
Course Type: Area Elective
Couse Group: Second Cycle (Master's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

To give information about the reasons for foreign trade and theories that regulates international economic relations, by examining the international dimension of the economic relations.

Course Content

Introduction to Neoclassical Trade Theory, Gains from Trade in Neoclassical Trade Theory, The Basis for Trade: Factor Endowments and The Heckscher-Ohlin Model, Post Heckscher-Ohlin Theories of Trade and Intra Industry Trade, Economic Growth and International Trade, International Factor Movements, The Instruments of Trade Policy, The Impact of Trade Policies.

Name of Lecturer(s)
Prof. Ahmet Can BAKKALCI
Learning Outcomes
1.To understand the causes of international trade
2.To demonstrate theoretical substructure of international trade
3.To evaluate the objectives and instruments of foreign trade policy
4.To determine the general framework of international monetary relations
5.To assess macroeconomic international relations
Recommended or Required Reading
1.Halil Seyidoğlu, Uluslar arası İktisat, Teori,Politika ve Uygulama, 17.Baskı, Güzem Can Yayınları, 2009
2.Dominick Salvatore, International Economics, Sixth Edition, John Wilw and Sons Inc, 1999
3.Paul Krugman, Maurice Obstfeld, Marc Melitz, International Economics Theory and Policy, Ninth Edition, Addison-Wesley, 2012
Weekly Detailed Course Contents
Week 1 - Theoretical
Emergence of International Trade Theory, Mercantilism, Classical Liberalism and A. Smith, Analysis of International Trade Theory, Theory of Absolute Advantage, The Model of Comparative Advantage
Week 2 - Theoretical
Opportunity Costs and Foreign Trade, Transformation Curves, Fixed Costs and Foreign Trade, Increasing Costs and Foreign Trade, Diminishing Costs and Foreign Trade
Week 3 - Theoretical
Models of Supply and Demand, Terms of Trade, Law of Reciprocal Demand, Offer Curves, Useful of Offer Curves, Shifts of Offer Curves
Week 4 - Theoretical
Social Indifference Curves, Closed Economy Equilibrium, Open Economy Equilibrium, Benefits of International Trade
Week 5 - Theoretical
Theory of Factor Endowments, Heckscher-Ohlin Theory, Theorem of International Factor Prices Equalization, The Stolper-Samuelson Theorem, The Specifics Factors Model
Week 6 - Theoretical
Tests of Factor Endowments Theory, Leontief Paradox, Skilled Labor Theorem, Theorem of Technological Gap, Product Cycle Model, Theorem of Similarity in Preferences, Economies of Scale Theorem, The Monopolistic Competition Theorem, Intra-Industry Trade and Inter-Industry Trade, Measurement of Intra-Industry Trade, Transports Costs and Foreign Trade
Week 7 - Theoretical
Analyses of Economic Growth and International Trade, Increases in Factor Supply and International Trade, The Rybczynski Theorem, Technological Development, Unbiased Technological Development, Labor-Saving Technological Progress, Capital-Saving Technological Progress, Immiserizing Growth, Terms of Trade and Less Developed Countries, Economic Development and Comparative Advantages
Week 8 - Intermediate Exam
Midterm Exam
Week 9 - Theoretical
Policies of Foreign Trade, Objectives of Foreign Trade Policy, Instruments of Foreign Trade Policy, Historical Foreign Trade Policies
Week 10 - Theoretical
Protectionism in Foreign Trade, Causes of Protectionism, National Security, Infant Industry Argument, Strategic Trade Policy, Protectionism against Damping, Improvement of Balance of Payment Deficits, Decreasing Unemployment, Improvement of Terms of Trade, Arguments Based on Personal Interest
Week 11 - Theoretical
Tariffs, Economic Effects of Tariffs, Economic Effects According to Partial Equilibrium Analysis, Rant Effects of Tariffs, Macroeconomic Effects of Tariffs
Week 12 - Theoretical
Terms of Trade and Optimum Tariffs, Reflection of Tariffs, Effective Protection Rates, Specific International Trade Regime, Tariffs in Turkey
Week 13 - Theoretical
Import Quotas, Import Bans, Exchange Control, System of Multiple Exchange Rate, The new protectionism Voluntary Exports Restrictions, Standards of Health, Security and Environment, Administrative Regulations
Week 14 - Theoretical
Exports Subsidies, Variable Levy on Imports, Exports Taxes, Cartels and Monopoly of Exports
Week 15 - Theoretical
Globalization, World Trade Organization (WTO), GATT, Polices and Principles of GATT, GATT Meetings, Tasks and Activities of WTO, Types of Economic Integration, Free Trade Association, Custom Unions (CU), Economic Effects of CU, Economic Union, The Second Best Theory, Economic Integrations and Less Developed Countries
Week 16 - Final Exam
Final Exam
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory144398
Midterm Examination110111
Final Examination120121
TOTAL WORKLOAD (hours)130
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
OÇ-1
4
3
4
3
4
3
4
OÇ-2
4
3
4
3
4
3
4
OÇ-3
4
3
4
3
4
3
4
OÇ-4
3
4
3
4
3
4
3
OÇ-5
3
4
3
4
3
4
3
Adnan Menderes University - Information Package / Course Catalogue