The gains from specialization and trade are studied, as are explanations of trade patterns among countries, policies affecting trade such as tariffs, quotas, tax breaks, subsidies, cartels and price stabilization plans. Topics on labor migration and multinational corporations are covered. The focus is on foreign exchange markets, balance of payments analysis and effects of international trade and capital flows on the domestic economy. Policies to correct payment deficits, gold, international liquidity and international financial institutions are studied. The study of labor supply, labor demand, wage determination, resource allocation and income distribution.
Emphasis is on public policy.
The conduct and performance of market structures is analyzed. Structures include perfect competition, monopolistic competition, oligopoly and monopoly. Special attention is given to the study of strategic behavior in industry. Game theory is introduced. Public policy against monopoly practices is reviewed.