World Economy

Master 2019/2020

Type: Bridging course (Master of International Business)

Area of studies: Management

Delivered by: Магистерская программа "Международный бизнес", направление подготовки "Менеджмент"

Where: Faculty of World Economy and International Affairs

When: 1 year, 1 module

Mode of studies: distance learning

Instructors: Igor A. Makarov

Master’s programme: International Business

Language: English

ECTS credits: 3

Contact hours: 16

Full Syllabus

Abstract

This course is designed for master students of the 1st year (1 module). It follows the introductive course on international relations and provides the introduction to world economy. The course covers five blocks of topics: history of global economy, resources, international trade, international finance, and international institutions.

Learning Objectives

make an overview of stylized facts on the main dimensions of the global economy

Expected Learning Outcomes

learn about the history and methodology of international economics

Course Contents

Introduction. History of the world economy. Globalization
Methodology of international economics. World economy and neoclassical economics. World economy and institutional economics. World economy and international relations. Dynamics of world development. Resources for economic growth. Factors of production and evolution of its use. Main stages of world economic development. The main features of World economy in Antiquity, in Medieval Ages, in Epoch of Great Geographical Discoveries, before the World War I, after the World War II, at the beginning of the 21st century. The reasons for launching sustained economic growth in the 17-18th century. Role of industrial revolution. Great divergence. Definition of globalization. Globalization’ components: integration, internationalization, informatization, liberalization, standardization etc. When did globalization start? Impacts of globalization for developed and developing countries. “Globalization and its discontents”.
International Trade
History and dynamics of international trade. Geography of international trade flows. Inter- vs intraregional trade. Main exporters and importers. Gains from trade and their origin. Classical theories of international trade. Absolute and comparative advantage. Hecksher-Ohlin theory. New theories of international trade. Scale effect. Imperfect competition. Krugman’ contribution. Competitive advantage. Role of the cities. Path dependence in international trade. New economic geography. Role of the state. The effects of international trade on wealth and its distribution. Sources of protectionism of 2010s. Era of deglobalization.
Resources in global economy. Natural resource and environmental problems
Types of resources. Labour resources. Population growth and its difference in different countries. Demographic transition. Demographic factors of economic growth. “Malthusian trap”. International migration. Geography of international migration flows. Demographic problems in develop and developing countries. Natural resources. Problem of their scarcity and uneven distribution. Physical and economic scarcity of natural resources. Economics of global environmental problems. Ozone layer depletion and Montreal protocol. Climate change and its economic impacts. Mitigation, adaptation and geoengineering. International climate change regime. Kyoto protocol. Climate change regime beyond 2020. Water scarcity. Its reasons and possible responses. Optimization of water consumption, water trade, technological innovations. Loss of biodiversity. Deforestation. Transnational pollution. Concept of sustainable development and its weaknesses. International cooperation for sustainable development. Green economic growth. Green recovery
International Finanсe
Structure of world financial system. Financial markets and their role. Types of financial markets. Cross-border financial flows. Capital market. FDI vs portfolio, other investments. Role of FDI in world economy. International lending. International monetary system. Financial globalization. Role of international financial institutions. Economic cycles: types and role of the cycles. Procyclical and anticyclical economic policy. Origins of business cycle. Keynesian approach to business cycle analysis. Real business cycle theory. Great Recession: its reasons and consequences. Is the world in the start of new economic crisis?

Assessment Elements

Exam
Participation in discussions

Interim Assessment

Interim assessment (1 module)
0.5 * Exam + 0.5 * Participation in discussions

Bibliography

Recommended Core Bibliography

Bhagwati, J. (2007). In Defense of Globalization: With a New Afterword. Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oxp.obooks.9780195330939
Clark, G. (2007). A farewell to alms : a brief economic history of the world / Gregory Clark. Princeton [u.a.]: Princeton Univ. Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.267141262
Gilpin, R. (DE-576)161117015. (2001). Global political economy : understanding the international economic order / Robert Gilpin. Princeton, NJ [u.a.]: Princeton Univ. Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.089772180
Kołodko, G. W., & Brand, W. R. (2011). Truth, Errors, and Lies : Politics and Economics in a Volatile World. New York: Columbia University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=982191
Maddison, A. (2001). The world economy : a millennial perspective / by Angus Maddison. Paris: OECD. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.092066682
Mai Farid, Michael Keen, Michael G. Papaioannou, Ian W.H. Parry, Catherine A Pattillo, & Anna Ter-Martirosyan. (2016). After Paris; Fiscal, Macroeconomic and Financial Implications of Global Climate Change. IMF Staff Discussion Notes. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.imf.imfsdn.16.01
Stiglitz, J. E. . V. (DE-588)120068524, (DE-627)080424244, (DE-576)163200661, aut. (2017). Globalization and its discontents revisited anti-globalization in the era of Trump Joseph E. Stiglitz. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.497220709

Recommended Additional Bibliography

North, D. C. (DE-588)119307944, (DE-627)080115144, (DE-576)162401531. (2005). Understanding the process of economic change Douglass C. North. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.114940606

Course Syllabus