A-612

Institute for E.wrrence in Ifigfier Education IEHE Bhopal.

B.A. (I IONOt IRS): PART-III Semester: VI
„.,
SI !Mal . ECONOMICS HONOURS-II/ SUBSIDIARY

TIT . International Economics

Maximum Marks: 150

SYLLABUS

Module 1: Importance of Trade and Trade Theories

Importance of the study of international economics; Inter-regional and international trade;
Theories of Absolute Advantage, Comparative Advantage and Opportunity Cost; Heckscher —
Ohlin Theory of Trade 171 — its main features, assumptions and limitations, Leontiefs Paradox.
Module 2: Gains from Trade
Gains from trade — Their measurement and distribution[']' Concepts of terms of trade and their
importance in the theory of trade; Doctrine of Reciprocal Demand — its importance and
limitations in the theory of trade, Marshall's Offer Curve Analysis.

Module 3: Tariffs and Quotas

Types of Tariffs and Quotas[]' their impact in partial equilibrium analysis; Free trade and Policy
of Tariffs in relation to economic growth.

Module 4: Balance of Trade and Balance of Payments

Concepts and components of Balance of Trade and Balance of Payments; Equilibrium and
disequilibrium 171 in balance of payments; Consequences of disequilibrium in balance of
payments; various measures to correct deficit in the balance of payments; Relative merits,
demerits and limitations of devaluation; Concept and implications of Foreign Trade Multiplier

Module 5: International Institutions

Functions of IMF, World Bank, WTO; Reform of international monetary system and India.

Reference Books:
1. International Economics M.L. Jhingan
2. International Economics B.O. Sodersten
3. International Economics Sudama and Vaish
4. International Economics Cherulinum
5. International Economics Kindleberger
6. International Economics Dominique Selnator
7. International Economics Mithani

Employability — [5], Entrepreneurship - [6],

Code Details: Gender — [1], Environment & Sustainability [2],—Human-Values — [3], Professional-Ethics — [4],
Skill-Development — [7]
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