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International Economics

International Economics

Code: IBU2LH003
Extent: 3 ECTS (81 h)
Timing: 3rd or 4th semester
Language: English
Level: Professional Studies
Type: Compulsory

Starting level and linkage with other courses

The student has completed the courses Kansantalouden perusteet (ECO1LH001) (i.e. Principles of Economics) and Business English (ENG1LH001).

Learning outcomes

Upon successful completion of the course, the student is able to analyze and evaluate the effects of the international economic environments on the firm.

The student

  • understands the theoretical background for international economics
  • will have a holistic view on the international economic environment
  • develops strategic thinking for international business operations.

Course contents

  • Classic and modern trade theories
  • Factor mobility
  • Trade policy
  • Foreign exchange
  • Exchange rate mechanisms

    WTO, economic integration and the EU

Cooperation with the business community

The course forms an essential component in the International Business Module, where learning is linked to business contacts.

Teaching and learning methods

Contact lessons and exam 32h
Self-study 48h
The own learning assessment 1h

A selected country will be analyzed using concepts related to international economics. Potential effects of these on the internationalization plan in the International Business Module will be studied.

Accreditation of prior learning (APL)

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

Teachers responsible

Seppo Suominen
Matti Perttu
Sami Hartikainen

Course materials

Husted, S. & Melvin, M. 2012. International Economics. Pearson, Prentice Hall.
or 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 criteria is presented on scale 1 to 5.

Components 1 (40%) 3 (70%) 5 (90%)

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
Skills 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

Competence 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 and corrective measures

The student
- can guesstimate developments
in the uncertain international economic environment
- can take preventive and corrective action
- can take initiative in formulating competitive strategies

Assessment cmponents and their respective weights

Exam 60%
Assignments 40%
The assessment of one's own learning assignment does not impact your grade. The assignment is the same for all courses/modules and your answers will be used also for course/module development. The assignment is completed on an electronic form.