Economics of Globalization (Jan 2019) (International Trade (Week 1-7)…
Economics of Globalization (Jan 2019)
International Trade (Week 1-7)
Why do countries trade? Who gains more? Who gains less?
Who gains / Who loses from trade? Consumers, Producers
**What is impact of trade on factor prices? On workers' wages / capital rentals?
Why do countries impose tariffs? Who benefits / loses from tariffs?
Why do countries form trade blocs? Is it good or bad?
Why do countries impose embargoes? Are they successful? Who lose more / Who lose less?
International Finance (Week 9-13)
Balance of payments
What are the components in BOP?
How are these components related?
Determinants of interest rates
Domestic Money Market
Expansionary / Contractionary MP
Determinants of exchange rates
What determines the x/r in the short run? Same expected rate of dollar returns
What determines the x/r in the long run? Same goods should be priced the same
Foreign Exchange Market
Government Policies on Exchange Rates
**What is the degree of flexibility?
Free float (US$)
Managed float (S$, RMB)
When to change the fixed rate?
How to defend the fix rate?
What to fix the x/r ?
What is the degree of restrictions?
Capital Controls (Malaysia)