AØKA08021U  International Economics (F)

Volume 2018/2019

MSc programme in Economics – elective course

Bacheloruddannelsen i økonomi – Prioriteret valgfag på 3. år

The Danish BSc programme in Economics - prioritized elective at the 3rd year

The course is part of the Financial line in Economics symbolized by "F".

MSc programme in mathematics-economics


The course studies causes and consequences of international trade. We seek to answer questions such as:

  • Why do countries trade?
  • What do they trade?
  • Who gains and who loses from trade?
  • What is the impact of trade policy on welfare?


The course also considers aspects of the globalization debate:

  • Is wage inequality affected?
  • What are the implications of multinationals and outsourcing?
  • How would various policy changes discussed in the news affect trade, welfare and inequality?
Learning Outcome

The purpose of the course is to give an introduction to traditional and new trade theories and selected topics in international monetary economics.

After completing the course, the student should be able to:


  • understand and describe why international trade arises

  • understand and describe trade patterns under perfect and imperfect competition

  • understand and describe the extent to which there are welfare gains from trade



  • analyze and calculate how trade affects behavior of firms and consumers and how trade affects welfare and inequality.

  • Analyze and calculate how trade policy affectsfirm behaviour and analyze and calculate welfare implications of trade policy



  • Understand and describe aspects of the globalization debate such as the impact of globalization on wage inequality, the role of multinational corporations, and labor market consequences of outsourcing.
  • Under, discuss and evaluate current policy proposals in light of the theory presented in the class.


  • Brander, J. and P. Krugman (1983), A 'Reciprocal Dumping' Model of International Trade, Journal of International Economics, 15, p. 313-321.
  • Brander, J. and B. Spencer (1985), Export Subsidies and International Market Share Rivalry, Journal of International Economics, 18, p. 83-100.
  • Feenstra, R.C. (2016), Advanced International Trade, Theory and Evidence, 2nd edition, Princeton University Press. Selected parts of chapters 1, 2, 3, 4, 5, 7, 8, and 9.
  • Krugman, P. (1979), Increasing Returns, Monopolistic Competition, and International Trade, Journal of International Economics, 9, p. 467-476.


Micro- and macro theory of the first two years. Especially with the mathematical formalities of microeconomics. Note, this is not an easy class. Understanding of differentiation, calculus etc. is taking as a given.
Lectures and exercise classes.

Students will be required to right a short memo (1-2) pages using the models of the class to discuss current events.
3 hours lectures a week from week 6 to 20 (except holidays).
2 hours exercise class a week from week 6/7 to 21 (except holidays).

Timetable and venue:
To see the time and location of lecturesplease press the link/links under "Se skema" (See schedule) at the right side of this page (F means Spring).

You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F19; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”

The overall schema for the 3rd year and Master courses can be seen at KUnet:
MSc in Economics => "courses and teaching" => "Planning and overview" => "Your timetable"
BA i Økonomi/KA i Økonomi => "Kurser og undervisning" => "Planlægning og overblik" => "Dit skema"
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
The exam assignment is given in English and must be answered in English.
Exam registration requirements

3 out of 4 written assignments (short memos) must be approved.


Without aids
Marking scale
7-point grading scale
Censorship form
No external censorship
The exam can be selected for external assessment.
Exam period

Exam information:

The exam takes place at the computers of the university:

27 May 2019


From the middle of the semester the exact time will be available in Digital Exam portal.


Note: In special cases, the exam date can be changed to another day and time within the exam period.


More information about examination, rules, exam schedule:Master (UK);,  Master (DK) and Bachelor (DK).





Reexam information:

The reexam takes place at the computers of the university:

21 August 2019


During the reexam period the exact time can be seen in Digital Exam.


Note: In special cases, the written reexam can change to another day within the reexam period. Or to an oral exam incl. date, time and place, if only a few students are registered. This will be informed by the Exam Office.


Info:   Master(UK),   Master(DK) and   Bachelor.

Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.

  • Category
  • Hours
  • Lectures
  • 42
  • Class Exercises
  • 28
  • Preparation
  • 133
  • Exam
  • 3
  • Total
  • 206