International Economics 2600-ERSM1IE

1. Determinants of international trade;
2. Historical approach to trade theory: Mercantilism, classical theory, Ricardian model, Heckscher-Ohlin model
3. Contemporary theories of trade (Vernon's theory of product life cycle, Technological gap trade theory, Porter Diamond theory of National Advantage)
3. Foreign investments – FDI’s and portfolio investment
4. Internationalization of enterprises (forms, strategies and main dilemmas)
5. The instruments of trade policy (VER, Dumping, Tariffs, Import quotas, export subsidies)
6. Economic integration process (stages, economics of European integration process)
7. International financial markets (systematics, size, role)
8. Exchange rate and risk of international operations (exchange rate regimes, macroeconomic determinants of the exchange rate, foreign exchange cross rates)
9. Balance of Payments – “architecture”
10. Determinants of Balance of Payments and consequences of imbalance