University of Papua New Guinea

International Economics

Lecture 1: Introduction

The University of Papua New GuineaSlide 2

Lecture 1: Introduction Michael Cornish

Overview

• Aim of the course

• Structure of the course

• Some basic concepts…

• Guest lecturers

• Assessment

• Textbook

The University of Papua New GuineaSlide 3

Lecture 1: Introduction Michael Cornish

Aim of the course

• Critical thinking!

• To understand:

– Current major issues and debates in the global

political economy

– The major models used to understand

international trade, and how to apply them

The University of Papua New GuineaSlide 4

Lecture 1: Introduction Michael Cornish

Aim of the course

• To understand (cont.):

– What trade policy tools government has, their

effect, and how best to apply them

– A basic introduction to international monetary

policy

– The effects of foreign direct investment (FDI) and

international aid

…and all with at least a little enthusiasm!

The University of Papua New GuineaSlide 5

Lecture 1: Introduction Michael Cornish

Structure of the course

• Wks 2 to 4: Introduction / political economy

• Wks 5 to 8: Trade models and theorems

• Wk 9 and 10: Trade policy

• Wk 10 and 11: International monetary theory

• Wk 12: FDI and international aid

• Wk 13: Revision!

Trade

Intro

Monetary

The University of Papua New GuineaSlide 6

Lecture 1: Introduction Michael Cornish

Some basic concepts...

• What is international trade?

• What do our trade models try to do?

• What is the purpose of trade policy?

• What is international monetary theory?

» Why is all this important???

The University of Papua New GuineaSlide 7

Lecture 1: Introduction Michael Cornish

Guest lecturers

• Mr. Paul Flanagan (Aust. National University)

– Undertakes analysis on PNG’s economic prospects,

focusing on the 2015 PNG Budget

Strongly suggest you read:

• http://www.businessadvantagepng.com/papua-new-guinea-20

15-budget-analysis-dealing-with-debt-and-deficits/

• http://www.abc.net.au/news/2014-12-02/papua-new-guinea-ec

onomy-set-to-grow-15-per-cent-in-2015/5933664

The University of Papua New GuineaSlide 8

Lecture 1: Introduction Michael Cornish

Guest lecturers

• Also read:

– http://devpolicy.org/papua-new-guineas-vanishing-ln

g-export-boom-20141220/

• Detailed brief:

– http://devpolicy.org/policy_briefs/PB10VanishingPNG

LNGexportboom.pdf

The University of Papua New GuineaSlide 9

Lecture 1: Introduction Michael Cornish

Guest lecturers

• Homework:

– Write down one question to ask Mr. Paul Flanagan

for the question and answer session after his lecture

– Bring your written question to the first tutorial

(Wk4) – it will count for tutorial participation for

Week 3!

• Hopefully I can get more guest lecturers for us…

• Don’t worry, I will put all these links up online!

The University of Papua New GuineaSlide 10

Lecture 1: Introduction Michael Cornish

Online resources

• All material in the course will be made available at:

– http://michaelcornish.org/international-economics/

• This means:

– The course outline

– Lecture powerpoints

– Links to articles and .pdfs

– Anything else relevant or useful !

The University of Papua New GuineaSlide 11

Lecture 1: Introduction Michael Cornish

Textbook

9th Edition

The University of Papua New GuineaSlide 12

Lecture 1: Introduction Michael Cornish

Assessment

• Tutorial Participation: 10%

– Tutorials every week (except not today, and not

on Easter Friday)

– Tutorial questions handed out on Mondays

• Individual Assignment: 15%

– Details in Course Outline

– Due Monday 13th April (Wk 5) by 1pm

The University of Papua New GuineaSlide 13

Lecture 1: Introduction Michael Cornish

Assessment

• Group Assignment: 25%

– Details to be provided after individual

assignment is submitted

• Final Exam: 50%

– Details about time, date and location to be

provided as soon as they are confirmed

The University of Papua New GuineaSlide 14

Lecture 1: Introduction Michael Cornish

Some final words…

The University of Papua New GuineaSlide 15

Lecture 1: Introduction Michael Cornish