NATIONAL OPEN UNIVERSITY OF NIGERIA 
                                          
                                          
                                          
                                          
                   INTERNATIONAL ECONOMICS 
                                     ECO 344 
                                          
            
                            FACULTY OF SOCIAL SCIENCES 
           
           
                                  COURSE GUIDE 
            
                                  Course Developer: 
                                Dr. YINKA OGUNNEYE 
                               Olabisi Onabanjo University 
                                          
                                     Edited By: 
                                 Prof. James H. Landi 
                                Department of Economics 
                            National Open University of Nigeria 
                                          
            
                                          
                                          
                                          
                                          
                                          
                                          
                                          
           
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          CONTENT 
         Introduction 
         Course Content 
         Course Aims 
         Course Objectives 
         Working through This Course 
         Course Materials 
         Study Units 
         Textbooks and References 
         Assignment File 
         Presentation Schedule 
         Assessment 
         Tutor-Marked Assignment (TMAs) 
         Final Examination and Grading 
         Course Marking Scheme 
         Course Overview 
         How to Get the Most from This Course 
         Tutors and Tutorials 
         Summary 
          
           
          Introduction 
          Welcome to ECO: 344 INTERNATIONAL ECONOMICS. 
          ECO 344: International Economics is a three-credit and one-semester undergraduate 
          course for Economics student. The course is made up of fifteen units spread across 
          fifteen lecture weeks. This course guide gives you an insight to international economics 
          in year three second semester. It tells you about the course materials and how you can 
          work your way through these materials. It suggests some general guidelines for the 
          amount of time required of you on each unit in order to achieve the course aims and 
          objectives successfully. Answers to your tutor marked assignments (TMAs) are therein 
          already. 
          
         Course Content 
         This course is basically on International Economics, which is an extension to a more 
         broader discuss of what is really happening in the international trade and the players of 
         the trade between countries. The topics covered include Economy and Global trade, the 
         theory of gains from trade, differences in technology, the factor model and Government 
         policies as determinants of trade. 
          
          Course Aims 
          The  aims  of  this  course  is  to  give  you  in-depth  understanding  of  the  International 
          Economics as regards 
             Fundamental concept  and practices of international Economics 
             To familiarize students with issue of the theory of gains from trade 
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            To stimulate student’s knowledge on differences in technology 
             
            To make the students to understand what is the factor model and Government 
            policies as determinants of trade   
              
            To expose the students to differences between home trade and foreign trade 
         
            To ensure that the students know more about the theory of doing trade with other 
            countries in the world. 
         
             
         Course Objectives 
        To achieve the aims of this course, there are overall objectives which the course is out to 
        achieve though, there are set out objectives for each unit. The unit objectives are included 
        at the beginning of a unit; you should read them before you start working through the 
        unit.  You may want to refer to them during your study of the unit to check on your 
        progress. You should always look at the unit objectives after completing a unit. This is to 
        assist the students in accomplishing the tasks entailed in this course. In this way, you can 
        be sure you have done what was required of you by the unit. The objectives serves as 
        study guides, such that student could know if he is able to grab the knowledge of each 
        unit  through  the  sets  of  objectives  in  each  one.  At  the  end  of  the  course  period,  the 
        students are expected to be able to:  
         
            Understand the Heckscher-Ohlin theorem 
            Understand the meaning of Stolper Samuelson and Rybesynski theorem  
            Define and understand the meaning of trade theory with many goods and factors. 
            Understand the factor-content theorem. 
            Understand the meaning of Productivity of labour 
            Know how to determine the Marginal Productivity, commodity prices and factor 
           prices. 
            Define and understand the meaning of trade theory with many goods and factors. 
            Understand the meaning of endowments changes, factor endowments and factor 
           prices  
            Define and understand the meaning of endowment changes and outputs. 
            Understand the Pattern of trade. 
            Understand the meaning of gain from trade  
            Know the meaning of Factor Market Distortion  
            Understand the analysis of Competitive Equilibrium. 
         
        Working Through The Course 
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             To successfully complete this course, you are required to read the study units, referenced 
             books and other materials on the course. 
             Each unit contains self-assessment exercises called Student Assessment Exercises (SAE). 
             At some points in the course, you will be required to submit assignments for assessment 
             purposes. At the end of the course there is a final examination. This course should take 
             about 15weeks to complete and some components of the course are outlined under the 
             course material subsection. 
             Course Material    
             The major component of the course, What you have to do and how you should allocate 
             your time to each unit in order to complete the course successfully on time are listed 
             follows: 
              1.  Course guide  
              2.  Study unit 
              3.  Textbook 
              4.  Assignment file 
              5.  Presentation schedule  
                  
              Study Unit 
              There are 15 units in this course which should be studied carefully and diligently. 
             MODULE ONE          ECONOMY AND GLOBAL TRADE 
              
             Unit ONE                    Global Economy 
             Unit TWO                   Supply and Production Possibilities 
             Unit THREE               Goods and Factor Model 
             Unit FOUR                 General Equilibrium in a Closed Economy 
              
              
              
             MODULE TWO         THE THEORY OF GAINS FROM TRADE 
              
             UNIT ONE                  Gains from Trade 
             UNIT TWO                 Gain from Exchange 
             UNIT THREE             Cause and Consequences of trade 
              
              
              
             MODULE THREE      DIFFERENCES IN TECHNOLOGY 
              
             UNIT ONE                    Model of Production Function Differences 
             UNIT TWO                   Role of Wages In The Ricardian Framework 
             UNIT THREE               The Heckscher-Ohlin Model 
             UNIT FOUR                 The Stolper-Samuelson and Rybczynski Theorems 
              
              
              
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