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SYLLABUS

                                           International Trade and Finance


           Objectives:
           The course provides an understanding of international trade and investment theories. It is designed to better understand the
           implications of such theories as they relate to international trade management. It helps students deal with the opportunities
           and challenges created by the global environment.






                 Sr. No.                                       Content

                    1     Trade as an engine of growth, Measurement of gains from trade, Free Trade Theory-
                          Absolute advantage, comparative advantage & opportunity cost, Modern theories of

                          international trade: Theorem of factor price equalization,

                          H-O Theory, Kravis & Linder theory of trade.
                    2     Role of dynamic factors : tastes, technology & factor endowments in trade,

                          Rybszynski Theorem, Causes of emergence & measurement of intra industry trade
                          and its impact on developing economies,

                    3     Tariff, Quotas & non-tariff barriers: Definitions & types, Economic effects of Tariff
                          & Quotas on national income, output & employment, Political economy of non-

                          tariff barriers and their implication.

                    4     Balance of Payments and Balance of Trade: Meaning & components, Equilibrium &
                          Dis-equilibrium in BOP, BOP Adjustment: Monetary approach, Exchange Rate:

                          meaning & components,

                    5     Theories of Determination of Exchange rate (PPP, Monetary), Theories of
                          Determination of Exchange rate (Portfolio & Balance of Payment), Process of

                          adjustments : Gold standard, Fixed Exchange Rates & Flexible Exchange Rates,
                          Merits & demerits of Fixed & Flexible exchange rate.

                    6     Expenditure reducing & expenditure switching policies, Forms of Economic

                          cooperation, Static & Dynamic effects of a custom union & free trade organization,
                    7     SAARC/SAPTA, ASEAN, Regionalism: EU & NAFTA,

                    8     Multilateralism & WTO, International Monetary System, East Asian crisis &
                          lessons for developing countries,

                    9     FDI : types & issues, International Debt crisis, Functions of WTO/GATT,

                          UNCTAD, IMF, World Bank & Asian Development Bank
                   10     India’s trade policy: recent developments, India’s Balance of Payment
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