University of Technology Sydney

20300 International Trade and Investment

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Business: Economics
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): 23115 Economics for Business
There are course requisites for this subject. See access conditions.

Description

This subject introduces students to models, frameworks and issues in international trade theory and policy including analytical tools for evaluating the welfare and income distributional consequences of various trade policies. These tools have application not only in academic research but also business and government decision making. The subject covers the main theories of international trade, the impact of trade on economic growth, determination of foreign exchange rates, multilateral trading systems and institutions, regional trade and cooperative agreements and the effects of trade policy interventions such as tariffs, quotas, and subsidies.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. analyse a diversity of issues in the international economy using economic tools
2. discuss the major instruments of trade policy such as tariffs and subsidies
3. explain multilateral trading systems and institutions, regional trade and cooperative agreements
4. review how the foreign exchange market works and its impact on direct foreign investment

Contribution to the development of graduate attributes

This subject introduces students to the classical theories of trade to demonstrate the overall benefits from trade. Focus is given to why countries trade certain goods and services and how this impacts on a nation’s economic welfare. The subject also provides students an ability to evaluate the effects of various trade policies, including tariffs, quotas, export subsidies, anti-dumping, economic integration and trade embargoes. By understanding the determination of foreign exchange rates, multilateral trading systems, cooperative agreements and direct foreign investment, students will be equipped with the knowledge and skills to evaluate the economic impacts of international trade when making business decisions, particularly in a regional context.

Teaching and learning strategies

The subject will be taught using a combination of large lectures and smaller tutorials. The lectures provide the structure of the topic area, discussion of the theory and some practical examples. Tutorials provide an opportunity to discuss ideas, issues and make practical application of the theory, as well as encouraging students to think in a creative manner to solve real world problems. Use is made of the UTS web-based communication tool Canvas, which will be used to share information, provide feedback and encourage interaction between staff and students.

Content (topics)

  • The theory of international trade
  • Economic growth and trade
  • Scale economies, imperfect competition and trade
  • Trade policy
  • The international trade environment
  • Foreign exchange in the context of trade
  • Direct foreign investment and multinationals

Assessment

Assessment task 1: Mid-semester Exam

Weight: 40%
Length:

Mid-term exam will last an hour and a half.

Assessment task 2: Final exam (Individual)

Weight: 60%
Length:

Two hours and ten minutes.

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Recommended texts

Pugel, Thomas., (2012) International Economics, 15th international edition, McGraw-Hill-Irwin, New York, USA.

References

  1. Krugman P. R. and Obstfeld, M. and Melitz, M., (2012) International Economics, 9th edn, Addison Wesley.
  2. Gerber, J (2010) International Economics. 5th edn, Prentice Hall.
  3. King, P. and King, S., (2008) International Economics and International Economic Policy: A Reader, 5th edition, Irwin McGraw-Hill
  4. Appleyard, D., Field, A. and Cobb, S., (2007), International Economics, 6th edn, McGraw-Hill.