International Economics

3 units

This course provides an analysis of the international economy, the economic theories that help explain it, and analysis of important current issues of international economic policy. When David Ricardo proposed his famous theory of comparative advantage in 1821, he set out to explain why England exported cloth to and imported wine from Portugal. Today, international trade is much more complex. Apple devices are designed in Silicon Valley while their most expensive component, the hard drive, is manufactured by Toshiba in Philippines before it is finally assembled in China. Can Ricardo's theory explain today's patterns of international production and trade? Today, the number of these currencies has been reduced through the formation of the European Union. What are the cost and benefits of currency unions?