COURSE INFORMATION Course Title: INTERNATIONAL ECONOMICS I

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
ECO 321	B	5	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	Dr. Erinda Imeraj eimeraj@epoka.edu.al
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Erinda Imeraj eimeraj@epoka.edu.al , Thursday, 10:00- 12:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Economics (3 years)
Classroom and Meeting Time:	Wednesday, 11:40-15:30; E211
Teaching Assistant(s) and Office Hours:	NA
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	75%
Course Description:	International Economics I: Topics in the theory of international trade; causes and effects of international trade, gains from trade, theory of tariffs and customs; effective protection, economic growth and trade intermediate products, optimal trade policies, factor market imperfections, theory of integration, and effects of uncertainty.
Course Objectives:	The objective of this course is to equip students with the theoretical and analytical tools necessary to understand and evaluate international trade. Students will learn why countries engage in trade, how trade affects production, consumption, and income distribution, and how government policies and international agreements influence trade outcomes. The course aims to build the foundation for further study in international economics and related fields.

BASIC CONCEPTS OF THE COURSE

1	Comparative Advantage
2	Absolute Advantage
3	Opportunity Cost
4	Terms of Trade (TOT)
5	Specific Factors Model
6	Tariff
7	Quota
8	Trade Openness
9	Gains from Trade
10	Trade Policy

COURSE OUTLINE

Week	Topics
1	Introduction to International Economics --- Chapter 1: What is international economics about? International trade topics: Gains from trade, explaining patterns and volume of trade, effects of government policies on trade International finance topics: Balance of payments, exchange rate determination, international policy coordination, capital markets International trade versus finance
2	World Trade: An Overview --- Chapter 2 : describes the main patterns and trends of global trade, who trades with whom, what goods are traded, and how trade has evolved over time. It highlights differences between countries in trade composition and openness, showing how factors like geography and economic size shape trade flows. The chapter provides an empirical foundation for understanding the theories that explain international trade. (36-50)
3	Labor Productivity and Comparative Advantage: The Ricardian Model --- Chapter 3 : explains how international trade is driven by differences in labor productivity across countries. It introduces the concept of comparative advantage, showing that nations benefit from specializing in goods they can produce relatively more efficiently, even if one country is more productive in all goods. The chapter demonstrates how trade leads to overall gains in efficiency and welfare for all trading partners. (50-77)
4	Labor ProductivitLabor Productivity and Comparative Advantage: The Ricardian Model --- Chapter 3 (Cont.): explains how international trade is driven by differences in labor productivity across countries. It introduces the concept of comparative advantage, showing that nations benefit from specializing in goods they can produce relatively more efficiently, even if one country is more productive in all goods. The chapter demonstrates how trade leads to overall gains in efficiency and welfare for all trading partners. (50-77)/ Practical Session
5	Specific Factors and Income Distribution --- Chapter 4 : examines how trade affects the distribution of income within a country. Using the specific-factors model, it shows that while trade can increase a nation’s overall welfare, it creates winners and losers—owners of factors specific to export industries gain, while those tied to import-competing sectors may lose. The chapter highlights the short-run adjustment costs of trade and the political tensions arising from these distributional effects. (78-112)
6	Specific Factors and Income Distribution --- Chapter 4 (Cont.): examines how trade affects the distribution of income within a country. Using the specific-factors model, it shows that while trade can increase a nation’s overall welfare, it creates winners and losers—owners of factors specific to export industries gain, while those tied to import-competing sectors may lose. The chapter highlights the short-run adjustment costs of trade and the political tensions arising from these distributional effects. (78-112)
7	Midterm Exam
8	The Standard Trade Model --- Chapter 5 : integrates key elements from earlier trade theories into a single framework to explain how trade affects production, consumption, and welfare. It shows how a country’s terms of trade, the ratio of export to import prices, influence national welfare and how changes in world prices, growth, or trade policies can shift trade patterns. The model provides a comprehensive view of the determinants and effects of international trade in a general equilibrium setting. (150-174)
9	The Standard Trade Model (cont.) --- Chapter 5 : integrates key elements from earlier trade theories into a single framework to explain how trade affects production, consumption, and welfare. It shows how a country’s terms of trade, the ratio of export to import prices, influence national welfare and how changes in world prices, growth, or trade policies can shift trade patterns. The model provides a comprehensive view of the determinants and effects of international trade in a general equilibrium setting. (150-174)
10	The Instruments of Trade Policy --- Chapter 6 : analyzes the main tools governments use to influence international trade, including tariffs, export subsidies, import quotas, and voluntary export restraints. It explains how these instruments affect domestic prices, production, consumption, and national welfare, using both graphical and numerical examples. The chapter also discusses the political and economic motivations behind trade restrictions and the costs and benefits of protectionist policies. (242-272)
11	The Instruments of Trade Policy (continue) --- Chapter 6 : analyzes the main tools governments use to influence international trade, including tariffs, export subsidies, import quotas, and voluntary export restraints. It explains how these instruments affect domestic prices, production, consumption, and national welfare, using both graphical and numerical examples. The chapter also discusses the political and economic motivations behind trade restrictions and the costs and benefits of protectionist policies. (243-273) + Practical Session
12	The Political Economy of Trade Policy --- Chapter 7 : explores how political interests and pressure groups shape government decisions on trade. It explains why protectionist measures often arise even when free trade benefits society as a whole. The chapter uses models of collective action and lobbying to show how small, organized groups can influence policy, and it discusses the tension between economic efficiency and political incentives in shaping trade outcomes. (276- 313)
13	National Income Accounting and the Balance of Payments (continue) --- Chapter 7 : explores how political interests and pressure groups shape government decisions on trade. It explains why protectionist measures often arise even when free trade benefits society as a whole. The chapter uses models of collective action and lobbying to show how small, organized groups can influence policy, and it discusses the tension between economic efficiency and political incentives in shaping trade outcomes. (276- 313) + Practical Session
14	Assignment Presentation and Review before Final Exam.

Prerequisite(s):	NA
Textbook(s):	International Economics: Theory and Policy, Global Edition. Paul R. Krugman, Maurice Obstfeld, Pearson Addison Wesley, 12th Ed. 2023.
Additional Literature:	Reports and studies to be delivered to students that inform on the current events on the enternational economics.
Laboratory Work:	NA
Computer Usage:	NA
Others:	No

COURSE LEARNING OUTCOMES

1	Explain the main theories of international trade and their assumptions.
2	Analyze trade patterns and the gains from trade.
3	Evaluate the effects of tariffs and non-tariff barriers.
4	Interpret the role of international trade organizations and agreements.
5	Apply theoretical models to current global trade issues.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Economics (3 years) Program
1	Students define the fundamental problems of economics	5
2	Students describe key economic theories	5
3	Students critically discuss current developments in economics	5
4	Students appropriately use software for data analysis	3
5	Students critically contextualize the selection of an economic problem for research within scholarly literature and theory on the topic	5
6	Students apply appropriate analytical methods to address economic problems	5
7	Students use effective communication skills in a variety of academic and professional contexts	5
8	Students effectively contribute to group work	5
9	Students conduct independent research under academic supervision	5
10	Students uphold ethical values in data collection, interpretation, and dissemination	5
11	Students critically engage with interdisciplinary innovations in social sciences	4
12	Student explain how their research has a broader social benefit	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Project	1	15
Lab/Practical Exams(s)	4	5
Final Exam	1	35
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	2	32
Mid-terms	1	15	15
Assignments			0
Final examination	1	20	20
Other	1	10	10
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

In conclusion, this course provides students with the theoretical foundation and analytical tools necessary to understand the principles of international trade and to critically assess the impact of trade policies on national and global economic performance.