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International Economics

International Economics

Code: ECO2LK001

Extent: 6 ECTS

Timing: Semester 5

Language: English

Level: Professional studies

Type: Compulsory

Starting level and linkage with other courses

Principles of Economics (ECO1LK001) and Business English (ENG1LK001).

Part 1: International Trade

Learning outcomes

Upon successful completion of the course, the student masters the main theories and policies in international trade and understands the importance of foreign markets analyses when the competitive advantages are looked for.

Course contents

  •  Classic and modern trade theories
  • International factor movements
  • Competitive advantage of a firm
  • Trade policy
  • Regional trade agreements and economic integration

The course provides an introduction to the principles of international trade theory. Issues like how foreign markets should be analyzed, what is the source of competitive advantage, why foreign direct investments occur and how tariffs and other trade restrictions affect business possibilities will be dealt with.

Part 2: International Monetary Economics
Learning outcomes

Upon completion of the course, the student understands essential concepts of international finance and masters the main theories of exchange rate determination. The student also knows how to manage exchange rate risks in international business.

Course contents

  • Balance of payments
  • Foreign exchange
  • Exchange rate determination
  • Exchange rate regimes
  • Optimum currency areas
  • Exchange rate risk management

The course provides an introduction to corporate finance from the point of view of exchange rate risk management. Issues like how companies make financial plans, how international trade and exchange rate risks are connected and how exchange rate risks are managed will be dealt with.

Cooperation with the business community

Guest speakers, business-based examples and cases

Teaching and learning methods

Contact lessons and exam 64 h
Self-study 97 h
The assessment of one's own learning 1 h

Accreditation of prior learning (APL)

Accreditation of prior learning (APL) is observed on the course according to separate instructions.

Teacher responsible

Sami Hartikainen

Course materials

Krugman. P., Obstfeld, M. & Melitz. M. 2012. International Economics: Theory and Policy. Pearson. Boston. Selected chapters.

Lecture notes


Assessment criteria

Students' performance is graded on the following scale: Excellent (5), Very good (4), Good (3), Satisfactory (2), Fair (1), Fail (0).

. The assessment criterias are presented on scale 1 - 3 - 5.

1 (min. 40%
of objectives)
3 (min. 70% 
of objectives)
5 (min. 90% 
of objectives)


The student
- knows some of the economic mechanisms in the  international economic sphere
- knows some of the basic concepts of international economics

The student
- knows how economics is related to international economics
- knows core concepts of both international trade and international finance

The student
- has a very good understanding of different models used in international economics
- has a very good understanding of the potential effects of international trade and international finance on the firm


The student
- in a team, is capable of analyzing some of the effects of the international economy on the firm

The student
- is also independently capable of analyzing effects of international trade as well as international finance on the firm

The student
- can independently analyze potential opportunities in the international environment for the firm


The student
- understands news related to international economics
- knows where to look for information

The student
- feels comfortable when working in a team
- in a team, can make suggestions for preventive


Assessment components and their respective weights

Exam 60 %
Assignment 40 %
Both parts shall be passed.
The assessment of one’s own learning does not influence the grade. The assignment is the same for all courses/modules and the answers will also be used for course/module development. The assignment is completed on an electronic form.