The course aims to give an overview of international business environment and the international economic linkages, equipping students with an understanding of the role of international institutions and regional groups in the promotion of international trade. It further aims to provide a thorough understanding of the basis for international trade and related strategies. The role of the global institutional structure and trade strategies of developing countries and trade partners of India will be studied.
At the end of the course, students should be able to:
Unit I (3 Weeks)
Background and Introduction:
Review of Economic Theory on International Trade: Basis for international trade; gains from trade; distributional issues, policy instruments and their impact, political economy. Trends in Global Trade and Balance of Payments with special reference to India: Historical roots of today’s international trade, Composition, origin and destination of global exports and imports, Trade in invisibles, Balance of payments: current account and capital account, Capital flows and foreign exchange revenues, External Debt.
References:
Krugman, Paul R., Obstfeld, Maurice and Melitz, Marc J.: International
Economics – Theory and Practice. Pearson | Chapters 1, 2, 10 and 11
Cherunilam, Francis: International Trade and Export Management. Himalaya Publishing House | Chapters 1, 2, 3 and 6
Unit 1I (3 Weeks)
Global Trade:
Factors behind growth of Global Trade: Labour, Resources, Location, Markets. The Global Institutional Structure: GATT (General Agreement on Trade and Tariffs), WTO (World Trade Organisation), Regional Trade Blocks and Trade Agreements. The case of European Union and then the Brexit episode. Instruments of Trade Policy. Exchange Rates. Support from Development Supporting Institutions such as IMF
References:
Krugman, Paul R., Obstfeld, Maurice and Melitz, Marc J.: International Economics – Theory and Practice. Pearson | Chapters 3, 5, 7, 8 and 9
Cherunilam, Francis: International Trade and Export Management. Himalaya Publishing House | Chapters 4, 5, 6 9, 11, 12, 14 and 15
Unit III (3 Weeks)
India and International Trade:
India’s Industrialization Strategy and International Trade: Review of Economic planning strategies and issues: early phase; the 1970s and 1980, Policies since 1991, Exim policy, structure of tariffs and restrictions, currency depreciation and convertibility, Export Promotion Zones, various export promotion schemes of Government of India like duty drawback and MEIS. An overview of foreign trade policy. FDI in India
References:
Krugman, Paul R., Obstfeld, Maurice and Melitz, Marc J.: International Economics – Theory and Practice. Pearson | Chapters 9, 10, 11, 21 and 22
Cherunilam, Francis: International Trade and Export Management. Himalaya Publishing House | Chapters 13, 14, 15, 27, 28 and 29
Unit IV (3 Weeks)
Developing Economies and International Trade:
Experience of Select Developing Countries: Analysis of the trade strategy and the policy framework in two select large countries and comparison with India, Impact of trade on growth, agriculture, inequality, poverty, and other developmental indicators Case Studies on Trade Strategies of Emerging Economies- China, ASEAN (Association of South East Asian Nations) and the four Asian tigers or Asian dragons.
References:
Krugman, Paul R., Obstfeld, Maurice and Melitz, Marc J.: International Economics – Theory and Practice. Pearson | Chapters 8, 9, 10, 11, 21 and 22
Cherunilam, Francis: International Trade and Export Management. Himalaya Publishing House | Chapters 9, 11 and 13
Gionea, John: International Trade and Investment – An Asia-Pacific Perspective. McGraw- Hill | Chapter 14
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