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Principles of International Economics –
A European Perspective
Werner Neudeck August 3 – August 14 4 ECTS credits

This course covers both the (microeconomic) trade and the (macro-
economic) monetary aspects of international economics with European
applications.

In the first part we examine standard trade theories (Ricardo, Heckscher-
Ohlin, Krugman) and explain the gains from trade, the distributional impact
of trade (internationally and among groups within countries), and the
pattern of trade. The arguments for free trade and for trade restrictions are
evaluated and different trade policies are discussed. EU trade policy serves W. Neudeck
as an example. We also discuss the conflicts between trade creation and
trade diversion. Finally, we look into the economics of the internal market
of the EU and the economic consequences of migration and factor move-
ments.
The second part opens with a discussion of balance of payments accoun-
ting and analyses the determination of exchange rates and the develop-
ment of international financial markets. Stabilization policies and their
impact on output, employment, and prices in different exchange rate
regimes are examined in the final part of the course.

In short workshop sessions students will be invited to answer questions
and discuss various economic problems in short presentations.

Requirements: The final grade will primarily be based on two short written
examinations (together 80%) at the end of each week. Participation in
class and at least one presentation in the workshop (20%) are also required.

I have never experienced such an
intellectually inspiring environment.
Complementary to the academic
program I was pleasantly surprised
by the international and social
stimuli.

Philippe Brems, Belgium

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