International Economic Relations

Total Hours in Course81

Number of hours for lectures16

Number of hours for seminars and practical classes16

Independent study hours49

Date of course confirmation29.10.2018

Responsible UnitInstitute of Economics and Finance

Course developer

lect.

Sandris Ancāns

Mg. oec.

Prior knowledge

Ekon1024, Microeconomics

Ekon2121, Macroeconomics

Course abstract

The course provides basic knowledge for understanding international economic processes and using them in practice. The course deals with the 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.
The course aims to provide knowledge about international economics: theory and practice.

Learning outcomes and their assessment

Students will be able to:
• Demonstrate 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 – quizzes, discussion in classes, independent work.
• Demonstrate knowledge of foreign trade policies, incl. the EU common foreign trade policy – a quiz with calculations.
• Demonstrate 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 – quizzes, discussion in classes.
• Able to understand and assess economic trends and political and policy decisions made at the 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 - quizzes, independent work.
• 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 - quizzes, discussion in classes.
• Use information resources available on the Internet, incl. those in English - discussion in classes, independent work.
• 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 - discussion in classes.

Course Content(Calendar)

Full-time studies:
1. International economics and foreign/international trade, international labour division (1 h - lecture; 1 h - practical).
2. International economic integration. Globalisation and crises (2 h - lectures; 2 h - practicals).
3. International trade theories (3 h - lectures; 3 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 agreements, international cargo insurance and international payments. International mercantile and stock exchanges. Support for exporters (1 h - lecture; 1 h - practical).

Part-time studies:
All the topics intended for full-time studies are covered, yet the number of contact hours is ½ of the specified number of hours.

Requirements for awarding credit points

The student must complete 10 quizzes on key topics, participate in discussions in practicals and pass an oral exam.

Description of the organization and tasks of students’ independent work

The student must prepare for practicals 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 assessment is cumulative and consists of: 1) the scores earned on 10 quizzes (50%):
a) 15% - foreign trade and economic crises;
b) 10% - trade theories;
c) 5% - protectionism;
d) 10% - the balance of payments and exchange rates;
e) 10% - interest rate parity and Incoterms;
2) activity during practicals (10%);
3) an oral examination (40%).

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.

Periodicals and other sources

1. Dienas bizness. Rīga: Diena: Dagens Industri. ISSN 1407-2041.
2. Forbes. Rīga: SK Media. ISSN 1691-6018.
3. Financial Times u.c. tīmeklī pieejamie izdevumi.

Notes

Field theoretical basic course and information technology course for the ESAF professional Bachelor programme Entrepreneurship and Business Management

Atsauksmes