IBE303 Lecture 12

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IBE303 Lecture 12

  1. 1. Lecture 12 – Final Exam Review<br />October 4th, 2010<br />http://www.slideshare.net/saark/ibe303-lecture-12<br />
  2. 2. Final Exam<br />Type: <br />Multiple choice<br />No. of questions: <br />50<br />Duration: <br />3 hours<br />Grade: <br />50% of final grade<br />Topics:<br />Everything after midterm (from Lecture 5 onward)<br />
  3. 3. International Trade<br />Factor Endowments<br />Heckscher-Ohlin Model<br />Model assumptions<br />Captial-Labor ratio<br />Relative Factor Endowments<br />Factor Prices<br />Trade in Neoclassical Model<br />Stolper-Samuelson Theorem<br />
  4. 4. Post-Hecscher-Ohlin Theories of Trade<br />Posner’s Imitation Lag Hypothesis<br />Product Cycle Model<br />Vertical Specilization<br />Firm-focused Theories<br />The Linder Theory<br />The Krugman Model<br />
  5. 5. Intra-Industry Trade<br />Causes of intra-industry trade<br />
  6. 6. Economic Growth and International Trade<br />Trade effects of growth<br />Production Growth<br />Consumption Growth<br />Sources of Growth<br />Factor Growth<br />Factor-neutral<br />Growth in K<br />Growth in L<br />Cases<br />Small country<br />Large country<br />
  7. 7. International Factor Movement<br />Types of capital foreign investment<br />Foreign Direct Investment (FDI) <br />Foreign Portfolio Investment (FPI)<br />Market equilibrium<br />
  8. 8. The Instruments of Trade Policy<br />Tariff<br />
  9. 9. The Impact of Trade Policies<br />Consumer Surplus<br />Producer Surplus<br />Trade Restrictions<br />Partial equilibrium<br />Small / Large country case<br />General equilibrium<br />Small / Large country case<br />Arguments for Interventionist Trade Policies<br />Strategic Trade Policy<br />
  10. 10. Balance of Payment<br />Growth of Trade<br />Capital Movements<br />BOP accounting<br />
  11. 11. Foreign Exchange<br />Market for Foreign Exchange<br />Demand<br />Supply<br />Spot Market<br />Arbitrage<br />Absolute/Relative PPP<br />Forward Market<br />Hedging<br />
  12. 12. Foreign Exchange and Financial Market<br />Link between Foreign Exchange and Financial Markets<br />Financial and Exchange rate adjustments<br />The Eurodollar market<br />International Bond Market<br />International Stock Market<br />Derivatives<br />Exchange Rate Overshooting<br />
  13. 13. Monetary And Portfolio Balance Approaches<br />Monetary Approach<br />BOP<br />Money supply<br />Money demand<br />Monetary equilibrium<br />Exchange rate<br />Portfolio Approach<br />BOP<br />Money supply<br />Money demand<br />Monetary equilibrium<br />Exchange rate<br />
  14. 14. Price Adjustments and Balance-of-Payments Disequilibrium<br />Price Adjustment mechanism<br />Current Account under flexible rate<br />Demand and Supply of foreign exchange<br />The Marshall-Lerner Condition<br />
  15. 15. Current Account and National Income<br />Keynesian Income Model<br />Price and Income Adjustments <br />Internal and External Balance<br />
  16. 16. Economic Policy<br />Open economy under fixed exchange rate<br />Money market equilibrium<br />Real Sector equilibrium<br />BOP equilibrium<br />Fiscal policy<br />Monetary policy<br />Open economy under flexible exchange rate<br />Fiscal policy<br />Monetary policy<br />Effects of shocks<br />

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