This module will cover the following content:

The macroeconomic perspective in the open economy

Exchange rates and international capital flows

Exchange rate management and its impact on economic fundamentals (price levels, output, stabilization policies).

Currency in open macro economy, currency markets and exchange rates, relation to interest rates.

International trade, comparative and absolute advantages.

Inter-country trade in the era of globalization, gains from trade, Hecksher-Ohlin framework, Krugman model

Economics of trade agreements, regional versus global trade.

Globalization vs protectionism and its impact of international trade

Trade finance instruments

Financial globalization and contemporary issues.

International institutional arrangements for international trade and finance (WTO, GATT, OECD, IMF, World Bank, IDA)

Element 1: The initial assessment is a 1-hour in-class test administered in Week 6, comprising a mix of multiple choice and short answer questions, weighted at 20% of the overall module mark, and assesses LO1.

Element 2: The 2000-word individual assignment is weighted at 80% of the overall module mark and assesses all LOs 1-3.

Lectures will be interactive and you are required to engage in study materials by answering the questions posed by the lecturer related to materials studied. Furthermore, you will be strongly encouraged to follow international trade and finance related news and associate them with the topics covered during lectures. By doing so, you will develop an understanding of the topics covered and expand on the knowledge gained in the lectures.

Tutorials will contribute to a thorough understanding of the module concepts and issues with the aim of testing your understanding and developing problem-solving skills. Specifically, this will include solving contemporary trade and finance related issues. Also, by using case studies you will explore how international trade theories are applied in real-world situations and this will help to apply your learning to the real world.

You will undertake formative assessments during the module to help you monitor your learning and provide you and us with ongoing feedback on your progress, that helps you prepare for the summative assessment at the end of the module.

Module Learning Outcome

1. Identify and explain concepts related to international trade and finance and its impact on the macroeconomic stability in which businesses operate.

University Learning Outcome

Knowledge and Understanding

Module Learning Outcome

2. Evaluate the theory and practice of modern international trade and finance focusing on modern developments in international markets and funding products, and their relationship to the needs of international business.

University Learning Outcome

Analysis

Problem Solving

Application

Module Learning Outcome


3. Critically evaluate and synthesise complex global issues in international trade and finance

University Learning Outcome

Application

Reflection

The University Library and Learning Resources - books and academic journals

The module VLE (LMS T & L material)

Learning support materials Online Tools, Internet

https://corporatefinanceinstitute.com/resources/economics/international-monetary-fund-imf/

https://www.wto.org/

The Economist | World News, Economics, Politics, Business & Finance

Financial Times (ft.com)

Businessweek - Bloomberg

https://unctad.org/statistics

Feenstra, R. C. and Taylor, A. M. (2020) International macroeconomics. 5th ed. Worth Publishers.

Krugman, P. R., Obstfeld, M. and Melitz, M. (2017) International finance: Theory and policy. 11th ed. UK: Pearson.

Krugman, P. R., Obstfeld, M. and Melitz, M. (2022) International economics: Theory and policy. 12th (Global) ed. UK: Pearson.

Cowdell, P. and Hyde, D. (2003) International trade finance. 8th ed. Global Professional Publishing.

None

The International Trade and Finance module focuses on the global macroeconomic perspective of international trade and the effect of the prevailing trade environment on international business decisions. Topics that will be covered in the module include the critical overview of international finance, currency markets and implications on international trade, the benefits and reasons for international trade, patterns of international trade, reasons for protectionism, trade barriers, forms of regional economic integration, balance of payments, and determinants of exchange rates.