Syllabus B.A(H) BUSINESS ECONOMICS Optional Group E: Paper- 541 INTERNATIONAL ECONOMICS V Semester

Optional Group E: Paper- 541

INTERNATIONAL ECONOMICS

UNIT 1 : INTERNATIONAL TRADE THEORY

Basis and the Gains from Trade
Absolute Advantage theory, Law of comparative advantage, Opportunity Cost Theory,
Production Possibility Curve with opportunity costs and relative commodity price, The
basis for and gains from trade under constant costs.
Production Possibility Curve -with increasing costs, Community indifference curve,
equilibrium in isolation, Gains from Trade with increasing costs, Gains from exchange and
specialization.
The Equilibrium Relative Commodity Prices with – Partial Equilibrium Analysis, Offer
curves, The Equilibrium Relative Commodity Prices with – General Equilibrium Analysis,
Relationship between General and Partial Equilibrium Analyses, Terms of trade.
Reading :
Salvatore-International Economics-8th Edition, Chapter 4, Chapter 3 without Appendix
However, Appendix: A4.1, A4.2, A4.3, A4.4 on Derivation of Trade Indifference Curves can
be treated as Optional reading.
UNIT 2 : FACTOR ENDOWMENT AND HECKSCHER OHLIN THEORY

Assumptions of the theory, Interpretation of Heckscher Ohlin Theorem, General equilibrium
framework of Heckscher- Ohlin Theorem, Diagrammatic presentation of the theory, Factor
price equalization and income distribution, Leontief paradox and Factor Reversal
Reading
Salvatore-International Economics-8th Edition [Chapter 5 and its Appendix other than A5.4]
New Trade Theories , Technology, skill, product differentiation
[Sections 6.1, 6.2, 6.3, 6.4A, 6.4B and 6.5, 6.5A, 6.5B of Chapter 6] Salvatore-International
Economics-8th Edition
UNIT 3 : INTERNATIONAL TRADE POLICY

A: Tariff
Definition, Types, Partial equilibrium analysis of a tariff, Effects of a tariff on consumer and
producer surplus, Cost and benefit analysis of tariff, Rate of effective protection.
Reading
[Sections 8.1, 8.2, and 8.3A of chapter 8]
Salvatore-International Economics-8th Edition
B: Non-Tariff Barriers and the New Protectionism
Import Quotas, comparison with tariff, Voluntary Export Restraints, Technical
Administrative and other regulations, International cartels, Dumping, Export Subsidies
Reading
[Sections 9.1, 9.2, 9.2A, 9.2B, 9.3, 9.3A-9.3E of Chapter 9]
Salvatore-International Economics-8th Edition
UNIT 4. NEW TOPICS IN INTERNATIONAL TRADE

A.International Capital Flows, Capital flows under laissez faire, Welfare analysis
B.Extension of Hecksher - Ohlin Trade theory- Many good and many factors extension
C.Immiserising Growth and Transfer Problem
D. Foreign Investment with special reference to Developing countries
Reading
1.Lectures on International Trade-Jagdish Bhagwati, T.N. Srinivasan: MIT Press
2. W.M.Corden Trade Policy and Welfare, Clarendon Oxford
UNIT 5. WORLD TRADE ORGANIZATION

GATT and Trade Liberalization, GATT to WTO, Objectives, functions, basic principles and
areas of operation of WTO, Structure and working of the WTO, an overview of Ministerial
conferences: issues, decisions and controversies, Doha Development Agenda, WTO and
agriculture, Implications of WTO activities for developing countries, WTO and India.
Reading
1. Contemporary Issues in Globalization-An Introduction to Theory and Policy in
India-(OUP) Soumyen Sikdar , Chapters- 6 and 7
2. www.wto.org

Syllabus B.A(H) BUSINESS ECONOMICS INDUSTRIAL ECONOMICS IIIrd Semester

PAPER – 302

INDUSTRIAL ECONOMICS

UNIT 1: STRUCTURE - CONDUCT - PERFORMANCE PARADIGM

The Simple SCP model/framework with and without feedbacks, its critique and modified framework with feedback.

UNIT 2: MARKET CONCENTRATION

Definition of the market, nature and measurement of market concentration, indices of concentration, inequality measures. Theories of measurement: deterministic and stochastic approach.

UNIT 3: BARRIERS TO ENTRY

Concepts to Barriers to Entry by Bains, Stigler. Sources to Barriers to Entry, Limit Pricing Theory, Strategic Entry deterrence, Contestable markets.

UNIT 4: VERTICAL INTEGRATION CONGLOMERATE DIVERSIFICATION & MERGERS

Conglomerate Diversification: Concepts, measures, determinants and consequences of diversification, Mergers, FDI

Vertical Integration: Nature and extent of vertical integration, theories of vertical integration, monopolistic motives for integration

UNIT 5: TECHNICAL PROGRESS & PERFORMENCE

Economics of Research, Market structure and incentive to invent, Concepts by Arrow,

Demsetz, Schumpeter.

Concepts of Profit margins, Productivity and Technical efficiency

Main Reading

1. Industrial Economics by Roger Clarke

Supplementary Readings

1 Stephen Martin, Industrial Economics.

2 Fergusen and Fergusen. Industrial Economics.

3 Giles Burgess, Industrial Organisation.

4 Stephen Martin, Advanced Industrial Economics

Internal Assessment Exam Q.P. Environmental Economics 2012

Time: 2:00 hours                                                                          Maximum Marks: 20

Attempt any four questions. All questions carry equal marks.

1.        Write short notes on any two:                                                  2 ½  * 2

a)      Reciprocal Spillover

b)     Tradable Emission Permit

c)     Pigouvian Tax

d)     Marginal Abatement Cost

2.      Define the concept of externalities & present a simple classification of externalities.                                                                                   5

3.      An economic efficiency can be achieved by internalizing negative externalities by equating private cost to social cost. Explain.           5

4.     Present an outline of different criterion for choice of pollution control instruments. How command and control instruments are better than market based instrument to control pollution in developing countries?                                                                                                             5

5.      Do you agree with the fact that increased international trade leads to environmental degradation. Give reasons to support your arguments.                                                                                                                   5

6.      Compare the likely outcome of cooperative and non-cooperative behaviour of the country’s using optimization analysis in case of reciprocal spillover.                                                                       5 

7.      The Coase Theorem demonstrates that from rational bargaining an efficient allocation of resources would be possible irrespective of how property rights were initially allocated.                                       5

8.      Define a public good and its relevance to environmental goods. Explain that the causes of market failure are imperfect information, uncertainty and irreversibility.                          5