UGİ411

School of Economics and Administrative Sciences \ International Entrepreneurship

3

6

Compulsory

Turkish

-

Department of International Entrepreneurship (Compulsory),
All Other Departments (Elective)

International economics and finance are among the most important topics for both national economies and businesses. International economics and finance, which are based on the three pillars of trade theories, trade policies, and international monetary relations, have gained a more dynamic structure with the acceleration of globalization since the 1980s. In this context, the course is conducted within the framework of the fundamental policies of international economics and finance.
In international economics, an analysis of trade theories will be conducted, primarily focusing on absolute advantages, comparative advantage theories, and factor endowment theory, along with the key conclusions derived from them. Ultimately, by establishing the theoretical foundation of international economics, a basis will be formed for trade policies.
Another pillar of international economics, trade policies, will be examined within the framework of objectives and instruments. Although trade policies vary, they are primarily classified into two main categories: tariff and non-tariff trade policies. Therefore, this section of the course will be structured based on these two main categories. The objectives and economic effects of tariff policies will be highlighted, while in non-tariff measures, quantity restrictions and protectionism will be emphasized.
The third pillar of international economics, international monetary relations—namely, international finance—will constitute a significant part of the course. Topics such as international monetary systems, foreign capital flows, foreign exchange markets, exchange rate regimes, and the balance of payments will be examined in detail. Within this framework, financial models for international businesses will also be analyzed. Critical topics such as foreign exchange markets, the calculation of forward rates, and exchange rate risks will be emphasized with numerical examples.

M.LEVI, International Finance (2th Edition), McGraw-Hill, New York.
Krugman, Obstfer, International Economics, Pearson, USA
Yardımcı Kaynaklar:
F.Batis, International Finance and Open Economy Macroeconomics, MacMillan,NY

This course aims to provide students with a solid theoretical foundation in international trade theories, trade policies, and international monetary relations by addressing the fundamental dynamics of international economics and finance.
Students will develop the ability to analyze trade theories and policies, evaluate tariff policies and protectionist measures, and understand international financial systems and foreign exchange markets. Additionally, topics such as exchange rate risks, forward rate calculations, and the balance of payments will be presented with numerical examples, offering a practical perspective.

1. Explain and analyze the fundamental concepts of international economics and finance, as well as international trade theories and policies.
2. Analyze international financial systems, foreign exchange markets, and exchange rate risks, and interpret their effects on businesses.
3. Evaluate the financing models of international businesses and relate them to the global economy.

Week 1: General Framework of International Economics and Finance
Week 2: Functioning of International Finance, International Capital Flows, International Monetary System
Week 3: Functioning of International Finance, International Capital Flows, International Monetary System
Week 4: Foreign Exchange, Exchange Rate Regimes, Theories Explaining Exchange Rate Changes, and Foreign Exchange Markets
Week 5: Balance of Payments, Foreign Exchange Forward Transactions, Forward, Futures, Options, and Swap Transactions and Risk Hedging
Week 6: Balance of Payments, Foreign Exchange Forward Transactions, Forward, Futures, Options, and Swap Transactions and Risk Hedging
Week 7: International Trade Theories (Supply and Demand Models, Factor Endowment)
Week 8: International Trade Theories (Supply and Demand Models, Factor Endowment)
Week 9: International Trade Theories (Supply and Demand Models, Factor Endowment)
Week 10: International Trade Theories (Supply and Demand Models, Factor Endowment)
Week 11: International Trade Policies, Tariffs, Quotas, Other Policies, and Macroeconomic Effects
Week 12: International Trade Policies, Tariffs, Quotas, Other Policies, Macroeconomic Effects, and General Evaluation

Homework 15%
Midterm 35%
Final 50%