INTERNATIONAL ECONOMICS RTMNU B.COM SIXTH SEM

Syllabus

International Economics

UNIT-I: Introduction to International Economics

· Introduction to International Economics Subject Matter and Importance of International Economics.

· Internal Trade and International Trade.

· Importance of International Trade.

· International Trade and Economic Development – Terms of Trade.

UNIT-II: Theories of International Trade

· Mercantilist Approach to Trade –

· Classical Theory: Absolute and Comparative Cost Advantage Theories –

· Heckscher – Ohlin Theory

· Leontief Paradox.

UNIT-III: Foreign Exchange Foreign Exchange Market

· Foreign Exchange Foreign Exchange Market – Functions – Defining Foreign Exchange and Exchange Rate – Exchange Rate Concepts – Exchange Rate Changes (Devaluation, Revaluation, Depreciation, Appreciation – Over Valuation and Undervaluation).

· Different Systems of Exchange Rate Determination – Fixed and Flexible Exchange Rate, Hybrid Exchange Rate Systems.

· International Economics 4 Floating, Theories of Exchange Rate, Mint Parity Theory.

· Purchasing Power Parity Theory, Balance of Payments Theory – Components of Foreign Exchange.

UNIT-IV: Balance of Payments

· Balance of Payments Defining Balance of Trade and Balance of Payments –

· Structure of Balance of Payments – Equilibrium and Disequilibrium in BOP –

· Measures to Correct BOP Disequilibrium – India’s BOP Since 1991 –

· International Financial Flows – Foreign Direct Investment and Portfolio Investment – Currency Convertibility – IMF – Role and Functions.