Subject: International Economics

Scientific Area:



80 Hours

Number of ECTS:

7,5 ECTS



Overall objectives:

1 - To understand the causes and consequences of international trade;
2 - To understand the pattern of trade between nations;
3 - To understand the relationship between market structure and foreign trade; 
4 - To know the instruments of trade policy;
5 - To understand the political economy of international trade;
6 - To understand the main underlying sources of exchange rate behavior both in the short run and in the long term;
7 - To understand how international transactions affect the domestic economy  and the conduct of national economic policies;
8 - To know the cost and benefits of different exchange rate regimes and the implication of this choice for the economy.


1 - Introduction to International Economics
2 - The Ricardian Model
3 - The Heckscher­-Ohlin­-Samuelson Model
4 - Economies of Scale and International Trade
5 - The Instruments of Trade Policy
6 - The Political Economy of Trade Policy
7 - The Balance of Payments
8 - Money, Interest Rates and Exchange Rates
9 - Price Levels and the Exchange Rate in the Long Run
10 - Exchange Rate Regimes
11 - Optimum Currency Areas


P. Krugman, M. Obstfeld and M. Melitz , 2012 , International Economics: Theory and Policy , Pearson Addison-Wesley
D. Appleyard, A. Field, and S. Cobb , 2010 , International Economics , McGraw Hill
M. H. Guimarães , 2005 , Economia Política do Comércio Internacional: teorias e ilustrações , Principia

Assesssment methods and criteria:

Classification Type: Quantitativa (0-20)

Evaluation Methodology:
In the lectures, the teaching methodology is basically the oral exposition supported by PowerPoint and/or lecture notes.  In the tutorials, the teaching methodology is based on problem solving, discussion of  real world case studies and presentation of works prepared by students.  Teaching material includes textbooks, scientific articles, media and internet material  and documents prepared by the teacher. Evaluation consists of an intermediate examination with a weight of 50% of the final mark and a final examination with a weight of 50% of the final mark.  To pass the module, the student needs to achieve a minimum  average of 10 out of 20. Time of resource / improvement: If the student is not approved in the normal time or intends to improve his / her evaluation, he / she should take an overall examination with the weight of 100%