PUSAT PENGAJIAN INOVASI PERNIAGAAN DAN TEKNOUSAHAWAN

SEMESTER 2, ACADEMIC SESSION 2015/2016

COURSE CODE/TITLE : BFT 203/3 – INTERNATIONAL ECONOMICS

COURSE TYPE : CORE
NUMBER OF UNITS : 3
PREREQUISITE : BFT 101/3 - Business Economics
LECTURER : DR WAN AHMAD WAN OMAR
E-mail: BFT203.DrWan@gmail.com
Tel: 04 – 979 7717
Office: Room 9-3, 1st Floor, Blok A, PPIPT.
Office hours: 8.10 am – 5.10 pm or by appointment.

COURSE SYNOPSIS :
Students will learn the ideas and perspectives of economic theories and thoughts that build
the notion of International Economics. They will also learn the main idea in understanding 3
major components in International Economics which are International Trade, International
Finance, and International Monetary System. Later in the course, students will use the
knowledge to understand the issues and critics in global economy.

ASSESSMENT:
1. Examination 60%
Mid Semester Test : 10%
Final examination : 50%
2. Course Works 40%
Quiz : 5%
Group Assignment : 20%
Individual Assignment : 10%
Presentation : 5%

Group Assignment

Form a group of 4 (four) students and select one of the topics you have learned in
the class and apply the concept in the context of Malaysia. You may use existing
international economics project or policy as your case study.

Individual Assignment

Will be given from time to time as the lecture commencing. The assignment is
basically based on the study questions at the end of chapters in the textbook, to be
submitted by the following week.

1
COURSE OUTCOMES:

Ability to define, classify the basic concept of economic, different economic school
CO1
of thoughts from various scholars.
Ability to define, classify, discuss the understanding in international trade,
CO2
international finance, and international monetary system.
Ability to apply, interpret and analyse the theories and thoughts in international
CO3
economics to the issues and critics that today’s global economics is facing.

COURSE CONTENT :
WEEK TOPIC CO/HOUR REFERENCE
1 THE INTERNATIONAL ECONOMY AND CO1
GLOBALISATION 3 hours
 World trade: an overview. Chapter 1
 International economic institutions since
World War II
2 & 3 INTERNATIONAL TRADE RELATION CO1
 Foundation of modern trade theory: 6 hours Chapter 2
comparative advantage. Chapter 3
 Sources of comparative advantage.
4 & 5 TARIFFS CO1, CO2
 The tariff concept 6 hours Chapter 4
 Types of tariff
 Effective rate of protection
 Tariff effects
 Gains from eliminating import tariffs
6 & 7 NONTARIFF TRADE BARRIERS CO2
 Import and export quota 6 hours Chapter 5
 Quota versus tariffs
 Export quota
 Domestic content requirements
 Subsidies
 Dumping
8 MID TERM BREAK -
9 INTERNATIONAL MONETARY CO2, CO3
RELATIONS 3 hours
 The balance of payments Chapter 10
 Balance of payment structure
 The foreign exchange rate
 Types of foreign-exchange

2
 WEEK TOPIC CO/HOUR REFERENCE
10 & EXCHANGE RATE DETERMINATION CO2, CO3
11  Determining long term exchange rate 6 hours Chapter 11
 Inflation rates, purchasing power parity (PPP) and 15
 Mechanisms of international adjustment
 Price adjustment
12 & MACROECONOMIC POLICY IN AN OPEN CO1, CO2,
13 ECONOMY CO3
 Economic objectives of nations 6 hours Chapter 16
 Monetary and fiscal policies respond to
financial turmoil in the economy
 Macroeconomic stability and the current
account
14 INTERNATIONAL BANKING CO2, CO3
 International reserve Chapter 17
 International gold standard
 The problems of international debts
15 GROUP PROJECT PRESENTATION CO3
16 PEPERIKSAAN AKHIR SEMESTER /
FINAL EXAMINATION

REFERENCES:

Text book :
Robert J. Carbaugh (2013). Global Economics. International Edition. 14th Edition. South-
Western Cengage Learning.

Reference :
1. Pugel, Thomas (2016). International Economics. 16th Edition. McGraw-Hill

2. Krugman, Paul R; Obstfeld, Maurice; and Melitz, Marc J (2012). International

Economics: Theory and policy. 9th Edition. Addison-Wesley.