VIETNAM NATIONAL UNIVERSITY - HANOI

UNIVERSITY OF ECONOMICS AND BUSINESS

COURSE SYLLABUS
INTERNATIONAL ECONOMICS
(INE 2020-E)

(Issued with Decision No. ………./ QĐ-ĐHKT dated on……………)

1 – INSTRUCTOR INFORMATION
1.1 Instructor 1
o Full name: Nguyen Anh Thu
o Title, academic title and degree: Assoc. Prof.
o Office: R.6127, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0904 655 168, Email: thuna@vnu.edu.vn
o Main research interests: Foreign direct investment and sustainable development,
Multinational Corporations.
1.2. Instructor 2
o Full name: Vu Thanh Huong
o Title, academic title and degree: PhD
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 977 917 656, huongvt@vnu.edu.vn
o Main research interests: International trade, Trade liberalization, Free Trade Agreements,
ASEAN, WTO, EU.
1.3. Instructor 3
o Full name: Nguyen Kim Anh
o Title, academic title and degree: Assoc. Prof.
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0912 684 069, Email: pmduc86@yahoo.com.
o Main research interests: Foreign direct investment and sustainable development,
Multinational Corporations.
1.4 Instructor 4
o Full name: Nguyen Thi Minh Phuong

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o Title, academic title and degree: MA
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0123 203 2009, phuongntm.ueb@vnu.edu.vn
o Main research interests: Foreign Direct Investment, International Trade Policy.
1.5 Instructor 5
o Full name: Hoang Thi Bao Thoa
o Title, academic title and degree: PhD
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0982088911, thoahtb@vnu.edu.vn
o Main research interests: Marketing, International Trade, Innovation and Startups.
1.6. Instructor 6
o Full name: Nguyen Tien Dung
o Title, academic title and degree: PhD
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0904 353 681, Email: ngtiendung69@yahoo.com
o Main research interests: International Finance, WTO, and Trade liberalization.
1.7. Instructor 7
o Full name: Tran Viet Dung
o Title, academic title and degree: PhD
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 913 028 525, tranvietdung0377@yahoo.com
Main research interests: International Finance, International Financial Management,
Financial crisis, and Risk Management.
1.8. Instructor 8
o Full name: Nguyen Thi Vu Ha
o Title, academic title and degree: PhD
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (84) 904 223 229, vuha3012@yahoo.com
o Main research interests: International Finance, International Financial Management, and
Capital Control.
1.9 Instructor 9
o Full name: Pham Vu Thang

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 o Title, academic title and degree: PhD
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0976991666, thangph@vnu.edu.vn
o Main research interests: International Investment, Finance, Green development.
1.10 Instructor 10
o Full name: Dam Thi Phuong Thao
o Title, academic title and degree: MA
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0336688663, phuongthaowork2302@gmail.com
o Main research interests: World economy and international economic integration,
International trade, International investment
1.11 Instructor 11
o Full name: Tong Thi Minh Phuong
o Title, academic title and degree: MA
o Office: R.407, E4 Building, University of Economics and Business – Vietnam National
University, Hanoi
o Mobile, email: (+84) 0915998689, minhphuongtong@vnu.edu.vn
o Main research interests: International trade and investment.
2 – COURSE DESCRIPTIONS
- Course name: International Economics
- Course Code: INE2020-E
- Number of credits: 3
- Prerequisite courses: Macroeconomics 1, Microeconomics 1
- Credit hours: 45
o Lecture: 29
o In-class discussion and assignment: 16
- Faculty in charge of the course: Faculty of International Business and Economics,
University of Economics and Business, Vietnam National University - Hanoi
3 – COURSE OBJECTIVES
The overall objective of the course is to provide students with fundamentals of international
economics, and methodology of assessing international economic related issues with some
application to Vietnam’s context.
Upon the completion of the course, students are expected to grasp of the following issues:
- Basis and gains of trade, pattern of trade between nations, and nature and impact of
international trade policy instruments.

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 - Forms of, motives for and welfare effect of the international movement of resources
- Concept and structure of balance of payment, characteristics and function of the foreign
exchange market, exchange rate determinants, and different international monetary
systems.
The 4 scales (Appendix 1) are used to assess the level of proficiency of the students regarding to
their knowledge and skills achievement of the expected learning outcomes throughout the course.
Of which, 1 is “to be able to recall”, 2 “to be able to understand and apply”, 3 “able to reason”
and 4 “to be able to create”. In detail, the course aims to equip students with the followings:
3.1 Knowledge
By the end of this course, students are able to acquire the knowledge of international economics
ranging from level of proficiency 2 (to be able to understand) to level of proficiency 3 (to be able
to reason):
- To understand and explain some fundamental classical and modern international trade
theories, and analyze trade policy instruments as well as the impacts of those instruments
on a nation’s economies.
- To thoroughly grasp fundamental theoretical models and apply them in explaining and
analyzing the tendencies of international resource movement;
- To understand and analyze balance of payment, the nature and characteristics of foreign
exchange market, exchange rate, and the impact of functional mechanism of international
monetary systems on the nations’ and the global economy.
3.2 Skills and attributes
3.2.1. Professional skills and attributes
Students are required to build up personal and professional skills during and after the course
between the levels of proficiency 2 and 3. Specifically, successfully completing this course will
contribute to the recognition of students’ attainment of the following graduate attributes:
- Reasoning and solving international economics issues by the ability to identify, frame and
generalize international economic issues; analyze the current international economic
issues/problems qualitatively and with uncertainty; and solve the problems by
recommending and giving solutions.
- Researching and discovering international economics knowledge through surveying both
print and electronic literature; searching, collecting, analyzing and handling/processing
the international economic data.
- Thinking systematically: thinking holistically and critically; and finding international
economics problems/issues and their interactions.
- Developing self-study skills.
- Developing the passion to explore different issues of international economics.

3.2.2 Interpersonal skills

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Students are required to build up interpersonal skills between the levels of proficiency 2 and 3 to
prepare themselves for learning and working in a modern team-based environment.
- The ability to interact effectively with others in order to work towards a common outcome
in group discussions and presentation.
- The ability to lead and operate a team and work in different teams.
- The ability to communicate in English.
- The ability to make oral presentation, including preparing presentation and supporting
media with appropriate language, style, timing and nonverbal communications.
- Be responsible for common tasks.
- The ability to apply the international economics knowledge into practice with the
proficiency between 1 and 2. This ability will be incorporated into group presentation,
group discussion and assignments, through which students are able to conceive
international economics ideas; and design, implement and evaluate international
economics policies/plan/project within the contemporary societal and external context.
3.3. Qualities
- Students are encouraged to develop quality and attitudes such as perseverance,
responsibility, flexibility, self-confidence, diligence, enthusiasm and passion for career,
creative and critical thinking, self-esteem, awareness of one’s personal knowledge-skills-
and-attitudes, time and resource management, learning and self-learning, self-
management and a fluent use of Microsoft Word (in submitting homework and projects)
and Microsoft PowerPoint (in the form of case study and project presentation).
4 – COURSE OVERVIEW
International economics is about the economic interdependence between the nations. This course
aims to provide students with introductive and fundamental knowledge of international
economics and a methodology in analyzing and assessing the related issues. The course will
examine the flows of goods, services, resources and payment from one nation to others, the
policies regulating those flows and the impact of these policies on the welfare of nations.
Mechanism to adjust imbalance in Balance of Payment (BOP) and macro-economic
interdependence between nations in different international monetary systems are also mentioned
in the course.
5 – COURSE DETAILS

LECTURE 1: INTRODUCTION
1.1. Importance of international economics
1.1.1. Economic interdependence among nations
1.1.2. International economics and national development strategies
1.1.3. International economics and job opportunities
1.2. The Subject Matter of International Economics
1.2.1. Subjects

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 1.2.2. Objectives
1.2.3. Methodologies
1.3. Current International Economics Challenges
1.3.1. Slow growth and high unemployment in advanced nations after the “Great
Recession”, and slow growth in the world after “Global financial Crisis”
1.3.2. Trade protectionism in advanced nations in a rapidly globalizing world
1.3.3. Excessive fluctuation and misalignment in exchange rate and financial crisis
1.3.4. Increasing International Competition from China and Fear of Job Losses in the
United States and other Advanced Countries
1.3.5. Structural imbalances in advanced economics and insufficient restructuring in
transition economies
1.3.6. Deep Poverty in Many Developing Countries
1.3.7. Resource scarcity, environmental degradation, climate change and
unsustainable development
1.3.8. Other issues: globalization, scientific and technological revolutions, increasing
role of TNCs, …
 Case study: What is an “American car”?

LECTURE 2: THE LAW OF COMPARATIVE ADVANTAGE

2.1. The Mercantilists’ Views on Trade
2.1.1. Overview of Mercantilism
2.1.2. Mercantilism’s View on Trade
2.1.3. Evaluation of Mercantilism’s Views on Trade
2.2. Trade based on Absolute Advantage: Adam Smith
2.2.1. Assumptions
2.2.2. Absolute Advantage
2.2.3. Illustration of Absolute Advantage
2.3. Trade based on Comparative Advantage: David Ricardo
2.3.1. The Law of Comparative Advantage
2.3.2. The Gains from Trade
2.3.3. Exception to the Law of Comparative Advantage
2.4. Comparative Advantage and Opportunity Cost
2.4.1. Comparative Advantage and the labor theory of value
2.4.2. The Opportunity Cost Theory
2.4.3. The Production Possibility Frontier under constant costs
2.5. The basis for and the gain from trade under constant costs.
2.5.1. Illustration of the gains from trade
2.5.2. Relative Commodity Price with Trade

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LECTURE 3: FACTOR ENDOWMENTS AND THE HECKSCHER-OHLIN
THEORY
3.1. Assumptions of the Theory
3.1.1. The Assumptions
3.1.2. Meaning of the Assumptions
3.2. Factor intensity, Factor Abundance and the shape of the Production Frontier
3.2.1. Factor Intensity
3.2.2. Factor Abundance
3.2.3. Factor Abundance and the shape of the Production Frontier
3.3. Factor Endowment and the Heckscher-Ohlin Theory
3.3.1. The Heckscher-Ohlin theorem
3.3.2. Illustration of the Heckscher-Ohlin theorem
3.3.3. Factor-price equalization and income distribution

LECTURE 4: TRADE RESTRICTIONS: TARIFF

4.1. Introduction of trade policy
4.1.1. Concept and characteristics
4.1.2. Trade protectionist policy
4.1.3. Free trade policy
4.2. Tariff as a trade policy instrument
4.2.1. Concept
4.2.2. Classification
4.3. Partial equilibrium analysis of a tariff in a small country case
4.3.1. Partial equilibrium effects of a tariff
4.3.2. Effect of a tariff on consumer and producer surplus
4.3.3. Costs and Benefits of a tariff
4.4. The rate of effective protection
4.4.1. Concept
4.4.2. Example

LECTURE 5: NON-TARIFF TRADE BARRIERS

5.1. Import quota
5.1.1. Concept and example
5.1.2. Effects of an import quota
5.2. Other nontariff barriers
5.2.1. Voluntary Export Restrains

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 5.2.2. Technical, Administrative and other Regulations
5.2.3. International Cartels
5.2.4. Dumping
5.2.5. Export subsidies

LECTURE 6: INTERNATIONAL RESOURCE MOVEMENT AND MULTINATIONAL

CORPORATIONS
6.1. International capital flow
6.1.1. Motives for international capital flow
6.1.2. Welfare effects of international capital flow
6.2. Multinational corporations (MNCs)
6.2.1. Reasons for the existence of MNCs
6.2.2. Problems created by MNCs on the Home and Host countries
6.3. International labor movement
6.3.1. Motives for international labor migration
6.3.2. Welfare effects of international labor migration
6.3.3. Other welfare effects of international labor migration
 Case study: Cemex’s international investment

LECTURE 7: BALANCE OF PAYMENT

7.1. Overview of BOP
7.1.1. Definition of BOP
7.1.2. BOP Accounting Principles: Credit, Debit and Double-entry bookkeeping
7.1.3. Structure of BOP
7.2. Accounting Balances: Surplus and Deficit
 Case study: US’s Balance of Payment

LECTURE 8: FOREIGN EXCHANGE MARKETS AND EXCHANGE RATES

8.1. Foreign exchange markets
8.1.1. Definition of foreign exchange markets
8.1.2. Characteristics of foreign exchange markets
8.1.3. Functions of foreign exchange markets
8.1.4. Actors in foreign exchange markets
8.2. Foreign exchange rates
8.2.1. Definition of foreign exchange rates
8.2.2. Classification of foreign exchange rates
8.2.3. Exchange rates determinants

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 8.3. Foreign exchange risks, Hedging and Speculation
8.3.1. Foreign exchange transactions (Spot, forward, options)
8.3.2. Foreign exchange risks
8.3.3. Hedging
8.3.4. Speculation

LECTURE 9: THE INTERNATIONAL MONETARY SYSTEMS

9.1. Overview of international monetary system
9.1.1. Definition of international monetary system
9.1.2. Classification of international monetary system
9.1.3. Characteristics of an efficient international monetary system
9.2. Alternative international monetary systems in the past
9.2.1. The gold standard system
9.2.2. The interwar/Genoa monetary system
9.2.3. The Bretton Woods system
9.2.4. The present international monetary system

6. – TEXTBOOKS AND REFERENCES

6.1. Required textbooks
1 - Dominick Salvatore. (2013). International Economics (11th edition). John Wiley & Sons,
Inc.: New York.
2 - Khu Thị Tuyết Mai & Vũ Anh Dũng (2009). Giáo trình Kinh tế học quốc tế. Vietnam
National University Publishing House: Hanoi.
3 - Eicher, S. T., Multi, H.J., Turnovsky, J.M. (2009). International economics (7th edition).
Routledge - Taylor & Francis Group: London and New York.
6.2. References
4 - Krugman, P. R., Obstfeld, M., Meltiz. M.J. (2012). International economics: theory and
policy (9th ed.). Boston, MA: Addison-Wesley
5 - Jones, R.W., Weder, R. (2017). 200 years of Ricardian theory: Challenges of
Globalization. Springer International Publishing: Switzerland.
6 - Christensen, B.J. (2017). Globalization: Strategies and effects. Springer-Verlag Berlin
Heidelberg: Berlin, Germany.
7 - Nguyễn Hồng Sơn. (2005). Điều tiết sự di chuyển của dòng vốn tự nhân gián tiếp nước
ngoài ở một số nước đang phát triển. National Political Publishing House.
8 - Nguyễn thị Kim Chi. (2015) Hoạt động XKLĐ của Việt Nam sang thị trường Malaysia
trong bối cảnh hội nhập ASEAN. Nhà Xuất bản Đại học Quốc gia Hà Nội.
9 - Nguyễn Xuân Thiên. (2020). Môi trường đầu tư trực tiếp nước ngoài trong các nước
ASEAN. NXB Đại học Quốc gia Hà Nội.

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 7 – TEACHING METHODS
7.1. Course calendar

Teaching methods (Credit

hours) Assessment and
Week Lecture topics Total
Discussion/ Grading
Lecture Exercise
Dividing up the
 Course Introduction
1 2 1 3 class into 4 - 5
 Lecture 1: Introduction
groups.
 Lecture 2: The law of
2 2 1 3 Quiz/Presentation
comparative advantage
  Lecture 2: The law of Quiz/Assignment
3 2 1 3
Online
comparative advantage (cont.)
 Lecture 3: Factor endowment
4 2 1 3 Quiz/Presentation
and the Heckscher – Ohlin theory
 Lecture 4: Trade restrictions: Assignment/
5 2 1 3
Tariff Presentation
 Lecture 4: Trade restrictions:
6 Tariff (cont.) 2 1 3 Course review
 Lecture 5: Non-tariff barriers
 Lecture 5: Non-tariff barriers
7 1 2 3 Midterm exam
(cont.)
 Lecture 6: International
8 Resource Movement and 2 1 3
Multinational Corporations
 Lecture 6: International
Quiz/Presentation
9 Resource Movement and 2 1 3
Online
Multinational Corporations (cont.)
 Lecture 6: International
10 Resource Movement and 2 1 3 Quiz/Presentation
Multinational Corporations (cont.)

 Lecture 7: Balance of payments 2 1 3

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 Lecture 8: Foreign exchange
12 2 1 3 Online
markets and exchange rate
 Lecture 8: Foreign exchange
13 2 1 3 Assignment
markets and exchange rate (cont.)
  Lecture 9: The International
14 Monetary System: Past, Present 2 1 3
and Future.
 Lecture 9: The International
Monetary System: Past, Present
15
and Future (cont.)
2 1 3 Course summary
 Course summary; Q&A
Total 29 16 45

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7.2. Detailed studying calendar

 Lecture 1: Course Introduction and Lecture 1 (Introduction)

Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Course Introduction  Read course - Memorize an overview of
 Lecture 1: Introduction outline international economics:
 Read [1]: Chapter concept, subject matter and
- Importance of international
1 (1 – 19) the role (Level 1)
economics
Lecture 2 - Understand and analyze
- The Subject Matter of International
current international
Economics
economic problems (Level
- Current International Economics 3)
Challenges
 Case study: What is “American  Read [2]: Chapter
Discussion/ cars” 1
Presentation/ 1
Assignment  Current international economic
challenges
 Class attendance
Assessment/Grading
 In-class contribution
Consultation Appointment in advance

 Week 2: Lecture 2 - The law of comparative advantage

Teaching methods Credit Hours Main Contents Before class Required knowledge Note
 Lecture 2: The law of  Read [1]: Chapter 2 (31- - Understand the concept of
comparative advantage 53). comparative advantage and
- The Mercantilists’ Views on  Read [2]: Chapter 2, apply the concept to
Lecture 2 Trade section 2.1 identify trade pattern (Level
- Trade based on Absolute 2)
Advantage: Adam Smith
- Trade based on Comparative
Advantage: David Ricardo

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 Topics Find data and materials of
 Assessment of trade Vietnam, China, the US,
Discussion/ dependence of some nations Singapore regarding the
 Analyze and identify following issues from
Presentation/ 1 advantage of some confident sources:
Assignment countries/regions in the world  Imports and Export
based on labour productivity revenue
(e.g: Vietnam, China, US…)
 GDP
 Labor productivity
Assessment/Grading  Class attendance
 In-class contribution
 In-class exercise
Consultation Appointment in advance

 Week 3: Lecture 2 - The law of comparative advantage (cont.)

Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Lecture 2: The law of  Read [1]: Chapter 2 - Understand gains from
comparative advantage (cont.) (31-53) trade, and analyze trade
Online lecture 2 - Comparative Advantage and  Read [2]: Chapter 2, pattern of a specific
Opportunity Cost section 2.2. country based on the law
- The basis for and the gain from of comparattive advantage
trade under constant costs. (Level 3).
Discussion/ 1  Case study: Neo-Mercantilism  Find data and materials
Presentation/  Exercise: Identify some regarding Neo-
nation’s comparative advantage Mercantilism from
Assignment based on opportunity cost. confident sources
 Assignment: related to  Review macroeconomic
comparative advantage concepts: opportunity
cost, the production
possibility frontier and

12
 indifference curve…
Assessment/Grading  Class attendance
 In-class contribution
 Assignment
Consultation Appointment in advance

 Week 4: Lecture 3 (Factor endowment and the Heckscher – Ohlin theory)

Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Lecture 3: Factor endowment and  Read [1]: Chapter 5 - Understand H-O model
the Heckscher - Ohlin theory (109-127) and apply H-model to
- Assumptions of the Theory  Read [2]: Chapter 2, explain and analyze
Lecture 2 - Factor intensity, Factor Abundance section 2.4 trade pattern of a
and the shape of the Production country
Frontier
- Factor Endowment and the
Heckscher-Ohlin Theory
Discussion/  Read [1] chapter 5
Presentation/ 1  In-class exercise: H-O theory (109-127)
 Topic: Explain Vietnam’s trade  Find data on
Assignment pattern based on the trade theories Vietnam’s trade

 Class attendance
Assessment/Grading  In-class contribution

Consultation Appointment in advance

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  Week 5: Lecture 4 (Trade restrictions: Tariff)
Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Lecture 4: Trade restrictions: Tariff. - Memorize concept and
- Introduction of Trade policy differrent types of
- Tariff as a trade policy instrument  Read [1]: Chapter 8 tariffs (Level 2)
Lecture 2
(221-228) - Analyze and evaluate
- Partial equilibrium analysis of a tariff in
 Read [2]: Chapter 3 impacts of tariff on a
a small country case
small country case
(Level 3)
Discussion/Presentation/  Discussion: Calculate costs and
1 benefits of tariffs  Read [2]: Chapter 3,
Assignment
 Assignment related to welfare effects sections 3.1, 3.2.1
of a tariff
Assessment/Grading  Class attendance
 In-class contribution
 Assignment, Presentation
Consultation Appointment in advance

 Week 6: Lecture 4 (Trade restrictions: Tariff) and Lecture 5 (Nontariff barriers)

Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours

14
  Lecture 4: Trade restrictions: Tariff  Read [1]: Chapter - Evaluate the actual
(cont.) 8 (229-233) level of protection of
- The rate of effective protection  Read [1]: Chapter a tariff (Level 3)
Lecture 2  Lecture 5: Non-tariff barriers 9 (257-262) - Understand different
 Find data and types of non-tariff
- Import quotas.
materials regarding barriers and their
- Voluntary export restraints. classification of tariff impacts (Level 2)
- Technical, administrative and other from confident
regulations. sources
Discussion/  Topic: Tariff structure of some nations in
 Read [1]: Chapter
the world (e.g US, Japan…)
Presentation/ 1 8 (229-233)
 Case studies: Non-tariff barriers
 Read [1]: Chapter
Assignment (subsidies, dumping…)
9 (257-262)
 Review all materials from Week 1 to Week
6 to prepare for Mid-term exam
Assessment/Grading  Class attendance
 In-class contribution
 Presentation
Consultation Appointment in advance

 Week 7: Lecture 5 (Nontariff barriers) and Mid-term exam

Credit Required knowledge Note
Teaching methods Main Contents Before class
Hours
 Lecture 5: Non-tariff barriers (cont.)  Read [1]: Chapter 9 - Understand different
- International Cartel (263 – 269) types of non-tariff
Lecture 1 barriers and their
- Dumping  Read [2]: Chapter 3,
section 3.2. impacts (Level 2)
- Export Subsidies

Review all materials from

Mid-term exam 1  Mid-term exam Week 1 to Week 6

15
Discussion/Presentation/
1  Topic: Agricultural subsides
Assignment
Consultation Appointment in advance

 Week 8: International resource movement and multinational corporations

Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Lecture 6: International resource - Understand concept
movement and multinational corporations  Read [1]: Chapter 12 and characteristics of
- International capital flow (367 – 373) international capital
Lecture 2
o Motives for international capital  Read [2]: Chapter 4, flows (Level 2)
flow (173-194; 203-221) - Analyze motives for
international capital
flows (Level 3)
 Case studies: Stock of FDI around the  Read [1]: Chapter 8
Discussion/Presentation/
1 world and in ASEAN countries
Assignment

Assessment/Grading  Class attendance

 In-class contribution
 10-minute test
Consultation Appointment in advance

 Week 9: International resource movement and multinational corporations (cont.)

Credit Required knowledge
Teaching methods Main Contents Before class Note
Hours
Online lecture 2  Lecture 6: International resource  Read [1]: Chapter 12 - Analyze welfare
movement and multinational corporations (374 – 382) impacts of
(cont.)  Read [2]: Chapter 4 international capital
- International capital flow (173-194; 203-221) flows (Level 3)
o Welfare effects of international capital - Understand and
flow evaluate the role and

16
 - Multinational corporations (MNCs) impacts of MNCs
o Reasons for the existence of MNCs (Level 3)
o Problems created by MNCs on the
Home and Host countries
 Topic: Introducing the world largest MNC  Read [1]: Chapter 12
in 2012. (374 – 382)
 Case study: CEMEX’s international  Find data and materials
Discussion/ investment regarding the following
issues from confident
Presentation/ 1 sources: Business
Assignment performance and corporate
social responsibility (CSR)
of the world largest
MNC‘s in 2012.
 Read CEMEX case
study
Assessment/Grading  Class attendance and In-class contribution
 10-minute test
Consultation Appointment in advance

 Week 10: Lecture 6 (International resource movement and multinational corporations)- (cont.)
Credit Not
Teaching methods Main Contents Before class Required knowledge
Hours e
 Lecture 6: International resource - Understand motives
movement and multinational corporations for labor migration
(cont.) (Level 2)
- International labor migration  Read [1]: Chapter 12 (383- - Analyze and evaluate
Lecture 2 o Motives for international labor 390) welfare impacts of
migration Read [2]: Chapter 4 (195- international labor
o Welfare effects of international labor 202) migration (Level 3)
migration
o Other welfare effects of international
labor migration

17
  Case studies:  Read [1]: Chapter 12 (383-
- Brain drains in a specific country 390)
Discussion/  Find data and materials
Presentation/ 1 regarding the following
- Vietnam’s labor exportation issues from confident
Assignment sources: Brain drain and
problems of migration in
selected countries; and
Vietnam’s labor exportation
Assessment/Grading  Class attendance and contribution
 Assignment
Consultation Appointment in advance

 Week 11: Lecture 7 (Balance of Payment)

Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Lecture 12: Balance of Payment - Understand the concept
- Overview of BOP  Read [1] Chapter 13 of BOP; Apply in
Lecture 2
- Accounting Balance: Surplus and (397 – 406) calculation and analysis;
Deficit  Read [2] Chapter 5 Study BOP of VN and
other countries (Level 2)
Discussion/  Topic: BOP of the US
Visit IMF website and
Presentation/ 1  Assignment: Individual exercises
investigate balance of
Assignment payments of some
countries in the world.

Assessment/Grading  Class attendance

 In-class contribution
Consultation Appointment in advance

18
  Week 12: Lecture 8 (Foreign Exchange Markets and Exchange Rates)
Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Lecture 12: Foreign Exchange - Understand the meaning
Markets and Exchange Rates and functions of the
- Definition, characteristics, functions  Read [1] Chapter foreign exchange
Online lecture 2 and actors of FX markets 14 (423 – 433) markets; the definition,
- Definitions, types and determinants of  Read [2] Chapter types and determinants of
exchange rates 6 Section 6.1, 6.2 exchange rates; be able to
search and analyze about
exchange rates (Level 3).
Discussion/  In-class Exercises
 Search the
Presentation/ 1  Assignment: Individual Exercises
statistics of foreign
Assignment exchange market in
the world
Assessment/Grading  Class attendance
 In-class contribution
Consultation Appointment in advance

 Week 13: Foreign Exchange Markets and Exchange Rates (cont.)

Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours
 Lecture 12: Foreign Exchange - Understand the meaning
 Read [1] Chapter 14
Markets and Exchange Rates of and hedging and
Lecture 2 (434-443)
- FX transactions speculation (Level 2)
 Read [2] Chapter 6
- Foreign exchange risks
Section 6.2, 6.3
- Hedging
- Speculations
Discussion/Presentation/ 1  In-class Exercises.
 Assignment: Individual Exercises

19
 Assignment

Assessment/Grading  Class attendance

 In-class contribution
Consultation Appointment in advance

 Week 14: Lecture 9 (The International Monetary System: Past, Present and Future)
Credit Required knowledge
Teaching methods Main Contents Before class Note
Hours
  Lecture 9: The International - Understand and evaluate
Monetary Systems  Read [1] Chapter 21 how the gold standard,
Lecture 2 - Overview of IMS (687 – 697) interwar and the postwar
- The gold standard system  Read [2] Chapter 7 Bretton Woods System
- The interwar/Genoa monetary Section 7.1, 7.2 and operated and collapsed
system 7.3.1 in the past (Level 3).
- The Bretton Woods system
Discussion/
 Topic: IMF structure and function;
Presentation/ 1 and collapse of Bretton Woods  Search information
Assignment system on the IMF website
 Assignment: Individual Exercises
Assessment/Grading  Class attendance
 In-class contribution
Consultation Appointment in advance

 Week 15: Lecture 9 (The International Monetary System: Past, Present and Future) (cont.) and Course Revision
Credit
Teaching methods Main Contents Before class Required knowledge Note
Hours

20
   Lecture 9: The  Read [1] Chapter 21 (702 – - Understand how the
International Monetary 721) present international
Lecture 2 Systems  Read [2] Chapter 7 monetary system works;
- The present international Sections: 7.3.2, 7.3.3 evaluate its problems
monetary system.  Prepare questions about and proposals for reform
 Revision unclear points for the course. (Level 3)
Discussion/ Topic: Public debt in EU  Find information related to
Presentation/ 1 Public debt in EU
Assignment
Assessment/Grading  Class attendance
 In-class contribution
Consultation Appointment in advance

Remark:
 Further essential materials (if any) will be provided during each class.
 Venue for lectures and presentation/discussions: classroom.

21
8 – COURSE POLICY AND OTHER REQUIREMENTS
 Students are responsible for reading assignments listed in course schedule and
participating in discussion of those readings.
 The class is conducted as an interactive exchange. Students will take an active role in
presentation, discussion and critical comments. Each class will involve discussions and
dialogue as major elements in the learning strategy.
 Students are required to complete and submit all the tasks given by the instructor(s) in
due date.

9 - EXAMINATION, ASSESSMENT AND GRADING

9.1 The objectives and proportion of assessments

Form Characteristics of Objectives Proportion

examination
Attendance Attendance at all
sessions is required
except in previously
arranged
cases/emergencies.
Tests, Quizzes Different topics and
and Assignments forms of assignment
(i.e. Case study, essay,
MCQs.)
Group case Different practical
presentation topics and issues will
be given to students for
group discussion and
presentation
Mid-term Exam - Duration: 60 minutes
- A combination of
both MCQs and short
- To encourage students to 5%
attend the class on-time
and frequently.
- To encourage students to 10%
practice self-study at
home
- To check students’
understanding of the
course
- To promote students to
practice other skills such
as writing, problem
solving and critical
thinking skills.
- To check students’ 10%
understanding of the
course
- To promote students’
ability of applying
international economic
theory to solve practical
issues of the global
economy.
- To promote student to
practice presentation
skills
- To check students’ 15%
understanding and
application of the course

22
 essays - To check students’
progress in the course
Final Exam - Duration: 90 minutes - To check students’ 60%
- A combination of understanding of the
MCQs, exercise and course and progress.
short essay - Provide the final
assessment of the course
The total grade for the course will be an average lump sum of individual 100%
grades for attendance; Tests, Quizzes and Assignments; Group Case
Presentation; Mid-term exam and Final Exam

9.2 Criteria for grading assignments, exams and other forms of assessments
- Class Attendance: (5%)
 Students are required to attend all sessions except for previously arranged
circumstances.
 Students absent from the class up to 5 times will result in Grade 0.
- Tests, Quizzes and Assignments (level 2 and 3): (10%)
 There will be no makeup tests. Failure to participate in tests will result in Grade 0.
 Test and assignments would be in form of multiple-choice questions or short
essays.
- Group case presentation (level 2 and 3): (10%)
 Each assigned group will present their opinions for one of the cases in the text, as
assigned. Presentations should be 20-25 minutes maximum.
 The criteria for assessing the group case presentation are (but not limited to):
 The ideas/arguments/answers are relevant, appropriate and in full with
the requirements of the case. Reference is required where appropriate
(50%).
 Organization (20%).
 Teamwork (10%)
 Time management, non-verbal languages and pronunciation (10%).
 Neatly and nice/attractive form of presentation (10%).
- Mid-term exam (level 1,2 and 3): (15%)
 Failure to participate the mid-term exam will result in Grade 0.
 The criteria for assessing the mid-term exams are (but not limited to):
 The ideas and arguments are relevant and answer precisely all questions
raised: 90%.
 Organization of ideas and arguments are clear and logic with controlling
and supporting ideas: 5%
 Presentation in an appropriate format and professional appearance: 5%.
- Final exam (level 1,2 and 3): (60%)
 The final exam will be conducted based on “Content proportion and exam
structure” published by University of Economics and Business.
 The final exam covers the entire course (including the material covered before the
mid - term exam).

23
9.3 Examination schedule
- The mid-term exam will be administered in Week 7 and examine all the materials covered
from Week 1 to Week 6.
- Midterm exam, tests, presentations and assignments are scheduled by the Instructors and
given in the course’s syllabus. Instructors will inform students one week in advance if
there is any change in the schedule.
- The date for final exam is scheduled by the Office of Academic Affairs.

Lecturer Head of Department Dean Approved by

24
 Appendix 1: 4 scales to assess level of proficiency of students
Instructor(s) will use the 4 scales (1: to be able to recall; 2: to be able to understand and apply; 3: to be
able to reason; and 4: to be able to create) – in equal with the 6 scales of Bloom’s taxonomy – given in
the below Table to assess the level of proficiency of the students regarding to their achievement of the
expected learning outcomes thorough the course. Students can also use these 4 scales to assess
themselves the level of proficiency of the expected learning outcomes stated below.

Students’ Bloom’s Key verbs to recognize the ability of students after the
Level of Taxonomy course (level of proficiency)
proficiency
Level 1 Level 1: Memorizing; naming; recognizing; gathering data; observing;
(To be able to (Remembering) showing; recording; locating; identifying; recalling; telling;
recall) uncovering; listing; repeating; defining; explaining;
investigating; pointing to; retrieving prior knowledge
Level 2 Level 2 & 3: Understanding: classifying; demonstrating; grouping;
(To be able to (Understanding illustrating / exemplifying; rearranging; reordering;
understand and and applying) summarizing; inferring; relating; experimenting
apply) Applying: modeling; diagramming; performing; reporting;
ordering; operating; executing / carrying out; using /
implementing acquired data in new situations
Level 3: Level 4 & 5: Analyzing: comparing; attributing; discussing; contrasting;
(To be able to (Analyzing and organizing; investigating; taking a part; deconstructing;
reason) evaluating) focusing / selecting; solving; differentiating relevancy
Evaluating: interpreting; critiquing; valuing; justifying;
proving; deciding; monitoring; judging; rating; assessing;
appraising
Level 4: Level 6: Imagining / generating / hypothesizing; designing / planning;
(To be able to (Creating) inventing / producing / constructing; adapting / changing;
create) improving / predicting; extending; developing; building;
compiling

25
 Appendix 2: Case study “What is an American car”

Strange as it may seem, the question of what is an American car may be difficult to answer. Should a
Honda Accord produced in Ohio be considered American? What about a Chrysler minivan produced in
Canada (especially when Chrysler was owned by Germany’s Daimler-Chrysler)? Is a Kentucky Toyota
or Mazda that uses nearly 40 percent of imported Japanese parts American? Clearly, it is becoming
more and more difficult to define what is American, and opinions differ widely.
For some, any vehicle assembled in North America (the United States, Canada, and Mexico) should be
considered American because these vehicles use U.S.-made parts. But the United Auto Workers union
views cars built in Canada and Mexico as taking away U.S. jobs. Some regard automobiles produced
by Japanese-owned plants in the United States as American because they provide jobs for Americans.
Others regard pro- duction by these Japanese “transplants” as foreign, because (1) the jobs they create
were taken from the U.S. automakers, (2) they use nearly 40 percent imported Japanese parts, and (3)
they remit profits to Japan. What if Japanese transplants increased their use of American parts to 75
percent or 90 percent? Was the Ford Probe, built for Ford by Mazda in Mazda’s Michigan plant,
American?
It is difficult to decide exactly what is an American car - even after the American Automobile Labeling
Act of 1992, which requires all automobiles sold in the United States to indicate what percentage of the
car’s parts are domestic or foreign. One could even ask if this question is relevant at all in a world
growing more and more interdependent and globalized. In order to be competitive, automakers must
purchase parts and components wherever they are cheaper and better made, and they must sell
automobiles throughout the world to achieve economies of mass production. Ford designs its
automobiles in six nations (the United States, the United Kingdom, Germany, Italy, Japan, and
Australia), has production facilities in 30 locations (3 in North America, 3 in South America, 7 in Asia,
and 17 in Europe), and employs more workers outside than in the United States. In fact, the automotive
and many other industries are rapidly moving toward a handful of truly global, independent companies.

Appendix 3: Case study “CEMEX’s international investment”

In little more than a decade, Mexico’s largest cement manufacturer, Cemex, has transformed itself from
a primarily Mexican operation into the third-largest cement company in the world behind Holcim of
Switzerland and Lafarge Group of France with 2005 sales of $15 billion and more than $2 billion in net
profits. Cemex has long been a powerhouse in Mexico and currently controls more than 60 percent of
the market for cement in that country. Cemex’s domestic success has been based in large part on an
obsession with efficient manufacturing and a focus on customer service that is tops in the industry.
Cemex is a leader in using information technology to match production with consumer demand. The
company sells ready-mixed cement that can survive for only about 90 minutes before solidifying, so
precise delivery is important. But Cemex can never predict with total certainty what demand will be on
any given day, week, or month. To better manage unpredictable demand patterns, Cemex developed a
system of seamless information technology, including truck-mounted global positioning systems, radio
transmitters, satellites, and computer hardware, that allows it to control the production and distribution
of cement like no other company can, responding quickly to unanticipated changes in demand and

26
reducing waste. The results are lower costs and superior customer services, both differentiating factors
for Cemex.
The company also pays lavish attention to its distributors— some 5,000 in Mexico alone—who can
earn points toward rewards for hitting sales targets. The distributors can then convert those points into
Cemex stock. High-volume distributors can purchase trucks and other supplies through Cemex at
significant discounts. Cemex also is known for its marketing drives that focus on end users, the builders
them- selves. For example, Cemex trucks drive around Mexican building sites, and if Cemex cement is
being used, the construction crews win soccer balls, caps, and T-shirts.
Cemex’s international expansion strategy was driven by a number of factors. First, the company wished
to reduce its reliance on the Mexican construction market, which was characterized by very volatile
demand. Second, the company realized there was tremendous demand for cement in many developing
countries, where significant construction was being undertaken or needed. Third, the company believed
that it understood the needs of construction businesses in developing nations better than the established
multinational cement companies, all of which were from developed nations. Fourth, Cemex believed
that it could create significant value by acquiring inefficient cement companies in other markets and
transferring its skills in customer service, marketing, information technology, and production
management to those units.
The company embarked in earnest on its international expansion strategy in the early 1990s. Initially,
Cemex targeted other developing nations, acquiring established cement makers in Venezuela,
Colombia, Indonesia, the Philippines, Egypt, and several other countries. It also purchased two stagnant
companies in Spain and turned them around. Bolstered by the success of its Spanish ventures, Cemex
began to look for expansion opportunities in developed nations. In 2000, Cemex purchased Houston-
based Southland, one of the largest cement companies in the United States, for $2.5 billion. Following
the Southland acquisition, Cemex had 56 cement plants in 30 countries, most of which were gained
through acquisitions. In all cases, Cemex devoted great attention to transferring its technological,
management, and marketing know-how to acquired units, thereby improving their performance.
In 2004, Cemex made another major foreign investment move, purchasing RMC of Great Britain for
$5.8 billion. RMC was a huge multinational cement firm with sales of $8.0 billion, only 22 percent of
which were in the United Kingdom, and operations in more than 20 other nations, including many
European nations where Cemex had no presence. Finalized in March 2005, the RMC acquisition has
transformed Cemex into a global powerhouse in the cement industry with more than $15 billion in
annual sales and operations in 50 countries. Only about 15 percent of the company’s sales are now
generated in Mexico. Following the acquisition of RMC, Cemex found that the RMC plant in Rugby,
England was only running at 70 percent of capacity, partly because repeated production problems kept
causing a kiln shutdown. Cemex brought in an international team of specialists to fix the problem, and
quickly increased production to 90 percent of capacity.
Going forward, Cemex has made it clear that it will continue to expand and is eyeing opportunities in
the fast-growing economies of China and India where currently it lacks a presence, and where its global
rivals are already expanding. Still, not all of Cemex’s expansions have worked out as planned. In 2006,
Cemex announced that it would exit Indonesia after a long-running dispute with the government there.
Cemex entered Indonesia in 1998 as part of an IMF sponsored privatization program by purchasing a
25 percent stake in a government-owned Indonesian cement maker, Semen Gresik. At the time,
Indonesia promised to allow Cemex to acquire a majority stake in Semen Gresik in 2001. However, the
country never granted that permission, as local vested interests, including politicians and unions, voiced

27
worries about “Indonesian assets falling into foreign hands” and lobbied the central government to
block the deal. A frustrated Cemex eventually reached an agreement to sell its 25 percent stake to
another Indonesian enterprise.

Appendix 4: Case study “US’s Balance of Payment”

Table 1 presents a summary of the international transactions of the United States for the year 2011.
It shows that the United States exported $2,848 billions of goods and services (including the income
receipts on U.S. assets abroad) in 2011. Goods exports of $1,497 billion included automobiles,
petroleum products, chemicals, agricultural food products, computers, and electrical generating
machinery. Service exports of $606 billion included travel and transportation services provided to
foreigners, as well as fees and royalties received from foreigners. U. S. residents also earned $745
billion in interest and dividends on their foreign investments. Note that while a foreign investment or
financial outflow from the United States is recorded as a debit under financial transactions (an increase
in U.S.-owned assets abroad), the earnings from the services of U.S. assets abroad (foreign
investments) are recorded here with the export of other services. The income receipts on U.S. assets
abroad are recorded separately from other services because of their importance.
On the other hand, the United States imported goods and services (including income payments on
foreign assets in the United States) for $3,181 billion in 2011. Goods imports included petroleum,
automobiles, household appliances, apparel and household goods, computers, medical products, and
many other products for a total of (−)$2,236 billion. The $427 billion imports of services included the
travel and transportation services purchased by U.S. residents from other nations, fees and royalties
paid to foreigners, as well as $518 billion in interest and dividends paid on foreign investments in the
United States. Note that the inflow of foreign capital into the United States is recorded as a credit under
financial transactions (an increase of foreign-owned assets in the United States), while the payments
made to foreigners for the services of the foreign capital invested in the United States are recorded as a
debit with other imported services in the U.S. balance of payments.
The United States made net unilateral transfers to foreigners of (−)$133 billion during 2011. These
included net U.S. government economic and military grants to foreign nations (−$47 billion), net U.S.
government pensions and other transfers to foreign nations (−$9 billion), and net private remittances
and other transfers (−$77 billion). Private remittances and other transfers refer to the immigrant
remittances to relatives “back home” and other private gifts. Since more of these private transfers were
made to foreigners than were received by U.S. residents from abroad, the United States had a net debit
entry of (−)$133 billion for private remittances and other transfers.
Next, Table 1 gives the small net debit capital account transactions (capital outflows) of (−)$1 billion
for the United States in 2011. This includes, for the most part, debt forgiveness and goods and financial
assets that migrants take with them as they enter or leave the country.

28
Table 1: Summary of U.S. International Transactions for 2011 (Billions of dollars)

Following this, Table 1 shows that the stock of U.S.-owned assets abroad excluding financial
derivatives increased (a capital outflow of the United States and a debit) by the net amount of (−)$484
billion during 2011. This resulted from an increase in the stock of U.S. official reserve assets of (−)$16
29
billion, a net increase in the stock of U.S. government assets other than official reserve assets of (−)
$104 billion, and a net increase of (−)$364 billion in the stock of U.S. private assets abroad. The latter
include a net increase in U.S. foreign direct investments abroad of (−)$419 billion, a net increase in
U.S. holdings of foreign securities of (−)$147 billion, a net increase of (−)$12 billion in U.S. nonbank
claims on foreigners, and a net decrease in U.S. bank claims on foreigners of (+)$214 billion.
The official reserve assets of the United States include the gold holdings of U.S. monetary authorities,
Special Drawing Rights, the U.S. reserve position in the International Monetary Fund, and the official
foreign currency holdings of U.S. monetary authorities. Special Drawing Rights (SDRs, or “paper
gold”) are international reserves created on the books of the International Monetary Fund (IMF) and
distributed to member nations according to their importance in international trade. The reserve position
in the IMF refers to the reserves paid in by the nation upon joining the IMF, which the nation can then
borrow automatically and without questions asked in case of need. Membership in the IMF allows
nations to borrow additional amounts subject to the conditions imposed by the IMF.
Table 1 also shows that the stock of foreign-owned assets in the United States excluding financial
derivatives increased (a capital inflow to the United States and a credit) by the net amount of (+)$1,001
billion in 2011. This included a net increase in the stock of foreign official assets in the United States of
(+)$212 billion and a net increase in other (than official) foreign assets in the United States of (+)$789
billion. The latter included a net increase of (+)$234 billion in foreign direct investments in the United
States, (+)$241 billion in foreign holdings of U.S. treasury securities, (+)$55 billion in U.S. currency,
(+)$7 billion in U.S. nonbank liabilities to foreigners, (+)$309 billion in U.S. bank liabilities to
foreigners, and a net decrease of (−)$56 billion in U.S. securities other than U.S. treasury securities.
Next, Table 1 shows a net decrease in foreign-owned financial derivatives in the United States (a U.S.
capital inflow and credit) of $39 billion. Financial derivatives are complex assets or securities whose
values often depend on the values of stocks and bonds.
When we sum the total credits of (+)$2,848 billion for U.S. exports of goods, services, and income, the
(+)$1,001 billion net increase in foreign-owned assets in the United States, and the (+)$39 billions of
net inflow of financial derivatives, we get the overall credit total of (+)$3,888 billion for the U.S.
international transactions during 2011. On the other hand, adding up the debits of (−)$3,181 billion for
the U.S. imports of goods, services, and income, the (−)$133 billion for the net unilateral transfers, the
(−)$1 billion net capital account balance, and the(−)$484 billion net increase in U.S.-owned assets
abroad, we get the overall debit total of (−)$3,798 billion. Since the overall credit total of (+)$3,888
billion exceeds the overall debit total of (−)$3,798 billion by (+)$90 billion, there is a negative entry
called statistical discrepancy of (−)$89 billion (with a −$1 billion of rounding error) in Table 1 This
entry is required to make the total credits (including the statistical discrepancy) equal to the total debits,
as required by double-entry bookkeeping. Note that a statistical discrepancy results from incorrectly
recording or from not recording at all only one side of some transactions. (If both sides of a transaction
are reported incorrectly or are not reported at all, no statistical discrepancy between total debits and
total credits would arise because of double-entry bookkeeping.) Statistical discrepancies are
particularly likely to arise in recording short-term international private capital flows. Thus, the (−)$89
billion statistical discrepancy is likely to reflect unrecorded net short-term private capital outflows from
the United States during 2011.
The first accounting balance in the memoranda at the bottom of Table 1 is the balance on goods trade.
In 2011, the United States exported $1,497 billion and imported $2,236 billion of goods, for a net debit
balance on goods trade of (−)$738 (with a +$1 billion rounding error). On the other hand, the United

30
States had a net credit balance on services of $179 billion (from the $606 billion export of services
minus the $427 billion import of services). Thus, the United States had a net debit balance on goods
and services of (−)$560 billion (with a −$1 billion rounding error). The United States also had a net
surplus balance of (+)$227 billion on investment income (from the $745 billion interest and dividends
earned on U.S. investment abroad minus the $518 billion income payments on foreign assets in the
United States). The United States, therefore, had a net debit balance on goods, services, and income of
(−)$333 billion.
Adding the net debit balance of (−)$133 billion of unilateral transfers to the net debit balance of (−)
$333 billion on goods, services, and income, we get the current account net debit balance of (−)$466
billion. Thus, the current account lumps together all sales and purchases of currently produced goods
and services, investment incomes, and unilateral transfers and provides the link between the nation’s
international transactions and its national income. Specifically, a current account surplus stimulates
domestic production and income, while a current account deficit dampens domestic production and
income.
Table 1 then shows the net debit balance of (−)$1 billion on capital account transactions (capital
outflow) for the United States in 2011. As we have seen, the capital account includes, for the most part,
debt forgiveness and goods and financial assets that migrants take with them as they leave or enter the
country. As shown next, the U.S. deficit in the current and capital accounts in 2011 is financed or
covered by an equal net inflow of capital from abroad.
Below the current and capital accounts there is the financial account. The financial account shows the
change in U.S.-owned assets abroad and foreign-owned assets in the United States. From Table 1, we
see that in 2011, U.S.-owned assets abroad excluding financial derivatives increased (a financial
outflow from the United States and debit) by (−)$484 billion, while foreign-owned assets in the United
States excluding financial derivatives increased (a financial inflow to the United States and a credit) by
(+)$1,001 billion, giving a net credit balance of (+)$517 billion. Adding the net credit balance (+)$39
billion of financial derivatives and the net capital account debit balance of (−)$1 billion gives the net
credit financial account balance of (+)$555 billion. Adding to this the statistical discrepancy of (−)$89
billion (net unrecorded capital outflows to the United States) gives the net credit balance of (+)$466
billion on financial account and statistical discrepancy for the United States in 2011. This exactly
matches the sum of the net current account balance of (−)$466 billion of the United States in 2011.
Thus, the United States covered its current account deficit with an equal net financial account
(including the statistical discrepancy) surplus.
We have seen above that the financial account includes both private and official capital flows. If the net
private capital inflows to the nation are not sufficient to cover the deficit in the nation’s current and
capital accounts, the nation is said to have a deficit in its balance of payments equal to the difference,
which needs to be covered by a net credit balance on official (i.e., monetary authorities) reserve
transactions.
The balance on official reserve transactions is called the official settlements balance or simply the
balance of payments, and the account in which official reserve transactions are entered is called the
official reserve account. The official settlements balance or balance of payments is given by the sum of
the current account balance, the capital account balance, the balance in the financial account (excluding
official or reserve transactions or flows but including the net balance of financial derivatives), and the
statistical discrepancy. If the sum of these balances is negative, the nation has a deficit in the balance of
payments, which must be covered by an equal amount of official reserve transactions (reduction in the

31
international reserves of the nation or increase in foreign holdings of official assets of the nation). In
the opposite situation the nation has a surplus in the balance of payments, which needs to be settled by
an increase in the nation’s international reserves and/or reduction in foreign official holdings of the
nation’s assets.

32
 COURSE INFORMATION

1. Course code: INE 2020 - E

2. Course name: International Economics
3. Teaching language: English
4. Number of credits: 3
5. Instructors
- Nguyen Anh Thu (Asssoc. Prof)
- Vu Thanh Huong (PhD)
- Nguyen Thi Kim Anh (Assoc. Prof.)
- Nguyen Thi Minh Phuong (MA)
- Hoang Thi Bao Thoa (PhD)
- Nguyen Tien Dung (PhD)
- Tran Viet Dung (PhD)
- Nguyen Thi Vu Ha (PhD)
- Pham Vu Thang (PhD)
- Dam Thi Phuong Thao (MA)
- Tong Thi Minh Phuong (MA)
6. Course objectives
6.1 Knowledge
By the end of this course, students are able to acquire the knowledge of international economics
ranging from level of proficiency 2 (to be able to understand) to level of proficiency 3 (to be able to
reason):
- To understand and explain some fundamental classical and modern international trade theories,
and analyze trade policy instruments as well as the impacts of those instruments on a nation’s
economies.
- To thoroughly grasp fundamental theoretical models and apply them in explaining and
analyzing the tendencies of international resource movement;
- To understand and analyze balance of payment, the nature and characteristics of foreign
exchange market, exchange rate, and the impact of functional mechanism of international
monetary systems on the nations’ and the global economy.
6.2 Skills and attributes
 Professional skills and attributes

33
Students are required to build up personal and professional skills during and after the course between
the levels of proficiency 2 and 3. Specifically, successfully completing this course will contribute to the
recognition of students’ attainment of the following graduate attributes:
- Reasoning and solving international economics issues by the ability to identify, frame and
generalize international economic issues; analyze the current international economic
issues/problems qualitatively and with uncertainty; and solve the problems by recommending
and giving solutions.
- Researching and discovering international economics knowledge through surveying both print
and electronic literature; searching, collecting, analyzing and handling/processing the
international economic data.
- Thinking systematically: thinking holistically and critically; and finding international
economics problems/issues and their interactions.
- Developing self-study skills.
- Developing the passion to explore different issues of international economics.
 Interpersonal skills
Students are required to build up interpersonal skills between the levels of proficiency 2 and 3 to
prepare themselves for learning and working in a modern team-based environment.
- The ability to interact effectively with others in order to work towards a common outcome in
group discussions and presentation.
- The ability to lead and operate a team and work in different teams.
- The ability to communicate in English.
- The ability to make oral presentation, including preparing presentation and supporting media
with appropriate language, style, timing and nonverbal communications.
- Be responsible for common tasks.
- The ability to apply the international economics knowledge into practice with the proficiency
between 1 and 2. This ability will be incorporated into group presentation, group discussion and
assignments, through which students are able to conceive international economics ideas; and
design, implement and evaluate international economics policies/plan/project within the
contemporary societal and external context.
6.3. Qualities
- Students are encouraged to develop quality and attitudes such as perseverance, responsibility,
flexibility, self-confidence, diligence, enthusiasm and passion for career, creative and critical
thinking, self-esteem, awareness of one’s personal knowledge-skills-and-attitudes, time and
resource management, learning and self-learning, self-management and a fluent use of
Microsoft Word (in submitting homework and projects) and Microsoft PowerPoint (in the form
of case study and project presentation).

7. Course overview

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International economics is about the economic interdependence between the nations. This course aims
to provide students with introductive and fundamental knowledge of international economics and a
methodology in analyzing and assessing the related issues. The course will examine the flows of goods,
services, resources and payment from one nation to others, the policies regulating those flows and the
impact of these policies on the welfare of nations. Students are also able to apply the theories to solve
particular issues in the context of Vietnam.
8. Credit hours per week: 3
9. Teaching method: Lectures, Discussion, Tests, Presentations and Assignments.
10. Assessment method
- Class attendance: 5%
- Tests/Quizzes/Assignments: 10%
- Group Case Presentation: 10%
- Mid-term exam: 15%
- Final exam: 60%
11. Required textbook
- Dominick Salvatore. (2013). International Economics (11th edition). John Wiley & Sons, Inc.:
New York.
- Khu Thị Tuyết Mai & Vũ Anh Dũng (2009). Giáo trình Kinh tế học quốc tế. Vietnam National
University Publishing House: Hanoi.
- Eicher, S. T., Multi, H.J., Turnovsky, J.M. (2009). International economics (7th edition).
Routledge - Taylor & Francis Group: London and New York.
12. Prerequisite: Microeconomics 1, Macroeconomics 1
13. Contact: Room 407, Faculty of International Business and Economics, University of Economics
and Business, Vietnam National University - Hanoi
14. Program: International Economics (Undergraduate)

DEAN OF FALCUTY HEAD OF DEPARTMENT

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