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International Economic Relations

Course developer

Prior knowledge

Ekon1012, Microeconomics

Ekon2109, Macroeconomics

Course abstract

The course provides basic knowledge for understanding international economic processes and using them in practice. The course deals with international labour division causing the international flow of goods, services, capital and labour as well as international economic integration under globalisation and related organisations. The course gives profound insight into foreign trade theory and policy and open economy macroeconomics: the national balance of payments and foreign exchange rates. The course also deals with such practical issues as international contracts, Incoterms, international payment settlement, international trade documents and international cargo insurance

Learning outcomes and their assessment

Students will be able to:
• Demonstrate the knowledge of the role of foreign trade and globalisation nowadays in a country with an open economy, causes of global and regional financial crises and international economic theories.
• Demonstrate the knowledge of foreign trade policies, incl. the EU common foreign trade policy.
• Demonstrate the knowledge of open economy macroeconomics: the balance of payments, exchange rates, interest rate parity and practical export and import matters: international trade contracts, incoterms, freight and cargo insurance, international payments.
• Able to understand and assess economic trends and political and policy decisions made at international level, predict the effects and make decisions at the enterprise, as well as organisation and institution levels in view of the risks caused by the context of globalisation and international developments.
• Apply international economic theories, foreign trade policy instruments and the most important open economy macroeconomic relationships and get involved in discussing relevant matters of international economic relations.
• Use information resources available on the Internet, incl. those in English.

• Comprehend problems in international economic relations at the enterprise, as well as organisation and institution levels and make responsible decisions at an export/import enterprise.

Course Content(Calendar)

1. International economics and international trade, international labour division (1 h - lecture; 1 h - practical).
2. International economic integration. Globalisation and crises (2.5 h - lectures; 2.5 h - practicals).
3. International trade theories (2 h - lectures; 2 h - practicals).
4. Tradables and nontradables (1 h - lecture; 1 h - practical).
5. Foreign trade and the development of the national economy, the role of goods with high value-added in foreign trade (1 h - lecture; 1 h - practical).
6. Free trade policy and protectionist policy, its instruments. Trade regimes (1 h - lecture; 1 h - practical).
7. EU foreign trade policy (1 h - lecture; 1 h - practical).
8. Balance of payments. The current and capital accounts (1 h - lecture; 1 h - practical).
9. Foreign exchange and global monetary systems (1 h - lecture; 1 h - practical).
10. Global and Latvian foreign exchange markets (1 h - lecture; 1 h - practical).
11. International capital migration. Interest rate parity (1 h - lecture; 1 h - practical).
12. Incoterms and international prices on goods (1 h - lecture; 1 h - practical).
13. International trade agreement, international cargo insurance, international payments (1 h - lecture; 1 h - practical).

14. International mercantile and stock exchanges (0.5 h - lecture; 0.5 h - practical).

Requirements for awarding credit points

Students take small tests – quizzes – during practicals, as well as have to independently prepare for seminar classes at home.

Description of the organization and tasks of students’ independent work

The course has a seminar (two classes), in which groups discuss current economic developments in the world or any other important and topical matters in the European Union, other regions of the world or the entire world that affect the foreign trade of Latvia and, consequently, certain industries and the whole national economy.

Criteria for Evaluating Learning Outcomes

The final mark consists of the scores earned in 9 quizzes (maximum score is 2 in each quiz; a total maximum score of 18) and a score earned during the seminar classes (maximum score of 2). A score of 2 is equal to one point on a 10-point marking scale.

Compulsory reading

1. Zīle H. Latvijas ārējie ekonomiskie sakari. Rīga: Biznesa augstskola Turība, 2003, 365 lpp.
2. Salvatore D. International Economics. 9-th edition, 2007, 838 p.

3. Ancāns S. Starptautiskie ekonomiskie sakari. Elektronisks studiju materiāls ESAF studentiem. 48 lpp. Pieejams e-studijās.

Further reading

1. Lībermanis G. Starptautiskie ekonomiskie sakari un Latvija. Rīga: Zvaigzne, 2003, 220 lpp.
2. Vaidere I. Starptautiskās valūtas attiecības. Rīga: LU Akadēmiskais apgāds, 2015, 141 Pieejams: https://www.inese-vaidere.lv/wp-content/uploads/2017/04/Starpatutiskas_Valutas_attiecibas-I-Vaidere.pdf lpp.
3. Oļevskis G. Starptautiskā tirdzniecība. Rīga: J.Rozes apgāds, 2003, 192 lpp. 4. Stiglics D. Globalizācija un neapmierinātība ar to. Rīga: BA Turība, 2010, 248 lpp.
5. Guaņjao L. No trešās pasaules valsts uz pirmo. Singapūras stāsts: 1965-2000. Rīga: BA Turība: 2013, 653 lpp.
6. Reinerts S. Ē. Kā bagātās valstis kļuva bagātas un kāpēc nabadzīgās valstis paliek nabadzīgas. Rīga: Zvaigzne ABC, 2012, 392 lpp.
7. Čangs H. Sliktie samarieši. Rīga: Zvaigzne ABC, 2011, 284 lpp.
8. Krūgmens P. Depresīvās ekonomikas atgriešanās un 2008.gada krīze. Rīga: Jumava: 2010, 216 lpp.
9. Oļevskis G. Starptautiskā ekonomika. Rīga: Jāņa Rozes apgāds, 2004, 192 lpp.
10. Gulbis A., Čevers A. Muitas darbības pamati. Rīga: RTU Izdevniecība, 2014, 380 lpp.
11. Inkotermi 2010 (tīmeklī pieejamie avoti).
12. Krugman P.R. & Obstfield M. International Economics Theory & Policy. 4th edition, 1994, 766 p.
13. Ducmane K. u.c. Naudas laiki Latvijā. Rīga, Latvijas mediji: 2013, 249 lpp.

Periodicals and other sources

1. Dienas Bizness. Rīga: Diena: Dagens Industri. ISSN 1407-2041.
2. Kapitāls. Rīga: Lietišķās informācijas dienests. ISSN 1407-2505.
3. Forbes. Rīga: SK Media. ISSN 1691-6018.

4. Financial Times u.c. tīmeklī pieejamie izdevumi.

Notes

Restricted elective course for the ESAF Bachelor programme Economics