Production considerations, the concept of comparative advantage, and the resulting factor rewards are introduced. Trade distortions are introduced and studied from the point of view of protectionism and its consequences. Fixed and flexible exchange rates and the concept of balance of payments are also covered. ECO 202 or equivalent. The course consists of applied economic theory.
Attention is given to international-trade policies and the international monetary system.
The textbook is Yarbrough and Yarbrough, The World Economy. The abstract idea of economic efficiency is used to develop conceptual frameworks for the interpretation of economic growth, environmental decay, and international conflict. International economics is an evolving social inquiry about subject matter that is itself in motion. It is impossible to proceed without some discussion of research. Generalizations are tentative statistical inferences and theoretical hypotheses.