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International Economics B (ECON203): Home

Guide to resources on international trade and international finance


This guide has been compiled to support students in their course work for ECON203 International Economics B. 

This guide is maintained by Melody Chin.

Course Description

This course provides a structured overview of international economics theories and policies. The first part of the course --- international trade --- looks at the real side of international transactions in goods and services. It takes you through the classical models of trade that focus on cross-country differences as the source of gains from trade and the new trade theories that rely on imperfect competition or increasing returns to scale as the rationale for trade. The discussions continue with the welfare analysis of trade policies (e.g. tariffs, quotas, and export subsidies) and a review of trade liberalization efforts at the multilateral level under GATT/WTO versus preferential trade agreements. The second part of the course --- international finance --- then looks into the monetary side of international transactions. It deals with the issues of trade surplus and deficit, international capital flows to finance these imbalances, and the accounting of a country’s overall balance of payments. Analytical frameworks of increasing generality are introduced to evaluate the stabilization policies that governments may use to correct internal (output) and external (trade) imbalances, and their effectiveness under alternative exchange rate regimes and different degrees of international capital mobility. A review of past international monetary systems (with their pros and cons) is provided at the end, finished off with a reflection on the currency crisis problems.

Library Services

The use of electronic resources must comply with the Appropriate Use of Electronic Resources Policy and Singapore Management University Acceptable Use Policy