The additional honours material builds on the content of the pass course by treating the theory of international trade and application of general equilibrium analysis to trade models in greater depth. Possible topics include: conditions and theorems of the standard 2x2 trade model with full factor mobility and with immobile factors; analysis of the effects of trade policies in the general equilibrium setting; incorporation of non-traded goods and the impact of external and internal shocks on the real exchange rate; short-run macroeconomic effects of trade policy and external economic shocks; imperfect competition and strategic trade policy.

On completion of the course, students should be able to: 
• Analyse the determinants, patterns and effects of international trade within a general equilibrium framework, where the interrelationships amongst product and factor markets in an economy are explicitly taken into consideration.
• Describe theoretical models in international economics and apply these theories to the real world issues.
• Explain the effect of government policies in international economics.
• Distinguish between the efficiency implications and distributional consequences of trade and trade policy.
•  Understand the role of politics in trade and vice versa.
• Assess the costs and benefits of trade policy from an economic point of view.

As for the pass course, but with a different examination at the end of the semester.

Lectures and tutorials as for the pass course plus one additional honours lecture per week.

ECON2101/2111 Microeconomics 2 (P or H) and ECON2102/2112 Macroeconomics 2 (P or H).

ECON3103 International Economics (P)

As for the pass course, with additional journal article references and web materials.

This course is for intending Economics IV Honours students and other students who want a greater level of challenge, a more extensive treatment of the theory of international trade than is possible in the pass course and, particularly, an introduction to the use of general equilibrium analysis and its quantitative application in the context of trade models.

Information presented here should be read in parallel with ECON3103 International Economics (P).

Please refer to Course Website