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1. RIR 212: INTRODUCTION
TO INTERNATIONAL ECONOMICS
COURSE OUTLINE
SEPT - DEC 2023
SEMESTER

2. Course Description
This course introduces undergraduate students to the theory of
International Economics and its application to the real world.
Students are introduced to the theories with which to
understand international trade patterns, examine trade policies,
analyse the determinants of exchange rates and financial crises
and address topical issues of international economic
interdependence between states.
2/3 of the course is dedicated to international trade, and 1/3 –
to international finance theories.

3. Purpose of the Course
The objective of the course is to allow students to gain knowledge of the
theories relative to international economics, as well as concrete knowledge
of the multinational corporations that operate in the global economy and
the trade treaties and international institutions that regulate them.
It should also provide students with the ability to think critically about the
interrelation between economic integration, technology, political stability,
and economic equality, and to formulate informed opinions about future
developments.

4. Purpose of the Course cont.
In addition, students will develop research skills by
leading individual and group projects, as well as analytical
and communication skills in writing and oral exercises.
Overall, this course should help future managers to gain
the knowledge and skills necessary to lead an
international career.

5. Course Learning Objectives
This course is designed for students to attain the following learning objectives:
To explain and describe current major issues and debates in the global economy.
To understand the major international trade models, and how to apply those models
To analyse and describe significant policy options available to governments that can
be applied to international trade, and to analyse and describe the expected effects of
those policy choices
To develop analytical and critical thinking skills and use them to judge the
appropriateness of international trade policy options

6. Course Learning Objectives cont.
To understand the foundational concepts of international monetary policy,
and the international flow of money between countries (especially foreign
direct investment and international aid).
To develop research skills and skills in persuasive oral and written argument,
including: data collection; interpretation by way of analytical commentary;
demonstrated ability to support analysis through empirical evidence and
draw critical conclusions, and; presentation skills
To develop teamwork skills through tutorial activities and assignments

7. Expected Learning Outcomes
By the end of the course, students should be able to:
Explain the fundamental concepts of economics, international economics and the
link to international relations
Examine the theories of international economics and their application
better understand the centuries-old controversy between free trade and
protectionism
Assess concepts, issues and institutions of international trade
Explain concepts and institutions of international finance
Evaluate the impact of global economic trends on Africa

8. Teaching and Learning Methods
Students will be expected to assume responsibility for their own learning, and the
extent of their knowledge at the end of the course will depend on the effort they
put into the course.
Students will be provided with a course outline and a list of readings for each
seminar session.
They are expected to do the preparatory reading in advance to familiarize
themselves with the theory and concepts. Each person has his or her own way of
assimilating knowledge. Students are not restricted to the material provided in the
outline.
Should they prefer to use other materials, they are free to do so.

9. Teaching and Learning Methods cont.
Students are also not obliged to refer to all the reading material, although it
would be advantageous. In many instances the materials are merely
different ways of saying the same thing.
Students might find one author’s exposition easier to understand than
another’s, and are free to select the readings that are appropriate to their
learning needs.
The readings will be referred to briefly during seminars to highlight certain
issues and to clarify where necessary.

10. Teaching and Learning Methods cont.
The purpose of the seminars is merely to help students to improve their
understanding of the theory.
Lectures will be semi-Socratic and class participation is emphasized.
Provision is made for individual differences in application and learning.
The learning environment will hopefully be safe and encouraging. Students
should constantly question, request feedback and reflect.
Making mistakes is part of the learning process and in this course mistakes
can assist one to understand issues or to develop skills.

11. Course Requirements
i. Assumptions of Prior Learning
An ability to communicate coherently in English,
preferably both orally and in writing.
A basic ability to function as an autonomous learner.
Ability to organise and manage their own studies
Some communication skills

12. Course Requirements cont.
ii. Attendance and Participation
 An attendance roster is kept and students are expected to attend all sessions on time and as scheduled. As
per the university rules, any student who misses more than 4 times will automatically receive an F
grade.
 Each student is expected to come to the class prepared to discuss the week’s required reading materials.
 All students are expected to actively share their knowledge and experience of International Economics and
discourses going on in their environments and to participate actively in the class discussions.
 Students should also not feel constrained to follow the views that the lecturer expresses in seminars. If they
feel someone else has a better approach, they should accept that approach.
 It is important that they are comfortable with the theory that they intend applying.
 If they are not comfortable, the application thereof will be artificial and insincere.
 So students are free to experiment and the course provides them with the space to do so.

13. Key Institutional Academic
Policies that shall attract Penalties
Students should note that the following are the key policies as outlined in the
University Catalogue and Students Handbook.
ACADEMIC DISHONESTY:
Academic dishonesty includes: Any intentional giving or use of external
assistance during an examination without the express permission of the
faculty member giving the examination.
FABRICATION:
Any falsification or invention of data, citation or other authority in an
academic exercise.

14. Key Institutional Academic
Policies that shall attract Penalties cont.
PLAGIARISM:
This is the unauthorized representation of someone else’s thoughts, words and ideas
as if they were your own.
Students must acknowledge sources from which they adopt ideas through citation and
direct quotes must be indicated by the use of quotation marks.
PREVIOUSLY SUBMITTED WORK:
Presenting work prepared for and submitted to another course.
The university takes these cases seriously and violations may result in failure in the
course and in serious cases expulsion from the degree program.

15. Course Text
The following will be used as course texts and will be supplemented by other books and academic journals as
indicated under each topic:
1. Appleyard Dennis R & Alfred J Field, (2006) International Economics, Richard Irwin,
2. Carbough Robert J., (2010) International Economics, Cincinnati,
3. Gerber James, (2004) International Economics, Addison Wesley,
4. Husted Steven & Michael Melvin, (2007) International Economics, Addison Wesley, Longman,
5. Joseph E. Stiglitz and Carl E. Walsh, (2007) Economics, W.W. Norton & Company, Inc., New York,
International Student Edition, 4th edition,
6. Krugman P and Obstfeld. (2000) International Economics: Theory and Policy. Pearson Addison
Wesley, New York,
7. http://www.sanandres.esc.edu.ar/secondary/economics%20packs/international_economics/page_
15.htm

16. Week 1: Introduction to the Course
The first week introduces
the course,
its schedule,
the course assignments,
grading,
attendance policy, and
other formal course requirements.

17. Weeks 2 & 3: Introduction
to International Economics
Meaning of International Economics
The Mercantilist theory of International trade
The Theory of Absolute Advantage
The Ricardian model of trade
Theory of Relative Factor Endowments (Heckscher-Ohlin)
International Product Life-Cycle (Vernon)
New Trade Theories

18. Week 4: Who Wins and
Who Loses from Trade?
Meaning of terms of trade
How Free Trade Affects Welfare in an Exporting
Country...
International Trade and the Importing Country...
International experience

19. Week 5: Market Imperfections and Trade
The assumptions for a perfect market
Imperfect Competition and trade
Externalities and protectionism
Empirical evaluation of protectionism

20. Week 6
Continuous Assessment Test
(CAT)

21. Week 7 & 8. Tariffs and
Non-Tariff Barriers to Trade (cont.)
Economics of Tariffs
Economics of Quotas
Protection and Imperfect Competition

22. Week 9: Development
through Trade Policies
Import Substitution and Infant
Industry argument
Export-oriented development strategies
The East Asian Miracle?

23. Weeks 10 & 11: World Trade
Organization, Preferential Trading
Arrangements, Custom Unions and Economic Integration
Free trade agreements, customs unions
Trade creation vs trade diversion
Trade policy in developing countries: import
substitutions, export promotion
International negotiations: GATT, WTO, Doha round.

24. Week 12:
Class Revision& discussion
of the final exam.

25. Weeks 13 & 14
Examinations

26. Course Evaluation
Informal assessment will occur throughout the course. Random Assessment Tests
(RATs), peer assessment and lecturer feedback will take place from time to time
after exercises, and at the end of each session students will be given an
opportunity to reflect on what they have learnt during the course of that session.
Formal assessment
 Will take three forms:
 Individual Term Paper. Each student will select a multinational corporation
operating in Kenya (indicating his/her choice on a least in week 2 to ensure that no
two students have the same company). S/he will then research this company’s history,
size (employees, assets, turnover, profits, etc.), global implantation, sectors of activity,
recent transformations and future challenges.

27. Submission of the Term Paper
The hard copy of the Term Paper itself must be submitted on
November 15th 2023 during class time.
All papers must have a minimum length of 750 words and a
maximum length of 1,000 words (not including footnotes and
references).
You will in addition have to submit a soft copy of the same
through the convenor’s email address provided in class.

28. Group Presentation
Students will be divided into groups to work on an international organization that
impacts the global economy (IMF, World Bank, OECD, ILO, G20, World
Economic Forum, etc.) or international trading bloc (NAFTA, EU, MercoSur
(Southern Common Market), ASEAN, Trans-Pacific Partnership (TPP), etc.)
according to student preferences, as much as possible however, the convenor
retains the right to make final decisions on Team allocation according to
international best practice.
They should attempt to make an analysis of the current situation and offer
recommendations.
The analysis will be presented in a slightly more formal manner to the class.

29. Theoretical Test & examination
A 11/2 hour continuous Assessment Test
and a 2 hours written examination at the
end of the Semester (in
November/December) will assess students'
understanding of the readings and the
theoretical concepts.

30. Award of Marks
Types of Assessment Weighting
1. Attendance & Participation 05%
2. RATs & Group Presentation 10%
3. Continuous Assessment Tests 15%
4. Final Examination 70%
Total 100%